Mar 31, 2018
Note 1
Company overview
Panasonic Energy India Co. Ltd. (''the Company'') is a company domiciled in India and incorporated under the provisions of Companies Act, 1956. The Company has its registered office at GIDC Makarpura, Vadodara - 390010, Gujarat. The Company is engaged in business of manufacturing dry cell batteries and lighting products.
Note 2
Basis of preparation of Ind AS financial statements Statement of compliance
These financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') as per the Companies (Indian Accounting Standards) Rules, 2015 prescribed under Section 133 of Companies Act, 2013 (the ''Act'') and rules issued thereunder.
The Company''s financial statements upto and for the year ended 31 March, 2018 were prepared in accordance with the Companies (Accounting Standards) Rules, 2006, prescribed under Section 133 of the Act and rules issued thereunder.
As these financial statements are the first financial statements prepared in accordance with Ind AS, Ind AS 101 - âFirsttime Adoption of Indian Accounting Standardsâ has been applied. Refer note 40 for an explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows.
These Ind AS financial statements were authorised for issue by the Company''s Board of Directors on 28 May, 2018
Functional and presentation currency
These Ind AS financial statements are presented in Indian Rupees (INR) which is the Company''s functional currency. Basis of measurement
These Ind AS financial statements have been prepared on the historical cost basis except for defined benefit plans - net defined benefit (asset) / liabilities which have been measured at fair value based on principles of Ind AS 19 -ââEmployee benefitsâ.
Use of estimates and judgement
The preparation and presentation of Ind AS financial statements requires the management of the Company to make certain judgments, estimates and assumptions that affect the amounts reported in the Ind AS financial statements and notes thereto. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of Ind AS financial statements. The actual outcome may differ from these estimates. Management believes these assumptions are reasonable and prudent.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised prospectively.
Significant accounting judgments, estimates and assumptions
The preparation of financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities. Actual results could differ from those estimates. Estimates and judgments are reviewed on an ongoing basis. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstance. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:
a) Impairment of Property, Plant and Equipment (PPE)
The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset''s value, significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in recoverable amount of the PPE.
b) Determination of the estimated useful lives
Useful lives of all PPE are based on the estimation done by the management which is in line with the useful lives as prescribed in Part ''C'' of Schedule II to the Act. In cases, where the useful lives are different from those prescribed in Schedule II and in case of intangible assets, they are estimated by management based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support.
c) Current and deferred taxes
Significant management judgment is required to determine the amount of current and deferred taxes that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
d) Employee benefits
Management''s estimate of the Company''s obligation is determined based on actuarial valuation. 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 and mortality rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. Future salary increases and gratuity increases are based on expected future inflation rates for India. Refer Note 37 for details of the key assumptions used in determining the accounting of these plans.
Note 3
Recent accounting pronouncement
Ind AS 115- Revenue from Contract with Customers
Ind AS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including Ind AS 18 Revenue and Ins AS 11 Construction Contracts. The core principle of the new standard that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers. This Standard permits two possible methods of transition i.e. retrospective approach and modified retrospective method. Based on the preliminary assessment, the Company does not expect any significant impacts on transition to Ind AS 115. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information when the standard will be adopted. The quantitative impacts would be finalized based on a detailed assessment which has been initiated to identify the key impacts along with evaluation of appropriate transition options to be considered.
Amendments to existing Ind AS
The following amended standards are not expected to have a significant impact on the Company''s standalone financial statements. This assessment is based on currently available information and may be subject to changes arising from further reasonable and supportable information being made available to the Company when it will adopt the respective standards.
a) Ind AS 40 - Investment Property - The amendment lays down the principle regarding the transfer of asset to, or from, investment property.
b) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates - The amendment lays down principles to determine the date of transaction when a company recognizes a non-monetary prepayment asset or deferred income liability
c) Ind AS 12 - Income Taxes - The amendments explains that determining temporary differences and estimating probable future taxable profit against which deductible temporary differences are assessed for utilization are two separate steps.
Note:
The Company has elected to continue with the carrying value of its Property Plant & Equipment (PPE) recognised as of 01 April, 2016 (transition date) measured as per the previous Indian GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101. Refer below table for the gross block value and the accumulated depreciation on 01 April, 2016 under previous Indian GAAP (IGAAP):
a) Deposits maintained by the Company with banks comprise of time deposits which can be withdrawn by the Company at any point without prior notice or penalty on the principal amount.
b) Earmarked balances pertain to amounts deposited in unclaimed dividend accounts which are earmarked for payment of dividends and cannot be used for any other purpose.
c) Margin money deposits consists of margin money against bank guarantees.
d) During the previous year, the Company had disclosed specified bank notes or other denomination notes as defined in the MCA Notification GSR 308 (E) dated 30 March, 2017 on the details of Specified bank Notes (SBN) held and transacted during the period from 08 November, 2016 to 30 December, 2016 as below :
*For the purpose of this clause, the term '' Specified Bank Notes'' shall have same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.3407(E), dated 08 November, 2016.
The aforesaid disclosures regarding details of specified bank notes held and transacted during 08 November, 2016 to 30 December, 2016 has not been made for the financial year 2017-18 since the requirement does not pertain to financial year ended 31 March, 2018.
Terms / Rights attached to Equity Shares
For all matters submitted to vote in a shareholders meeting of the Company, every holder of an equity share as reflected in the records of the Company on the date of the shareholders meeting shall have one vote in respect of each share held. Any dividend declared by the company shall be paid to each holder of Equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the event of liquidation of the Company all preferential amounts if any shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
Nature and purpose of reserves:
1) Capital state subsidy reserve represents reserve created in earlier years on receipt of State Investment Subsidy from The Directorate of Industries, Madhya Pradesh.
2) Securities premium is used to record the premium on issue of equity shares. The reserve is utilised in accordance with the provisions of the Act.
3) General reserve is created out of profits earned by the Company by way of transfer from surplus in the Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares.
4) Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend. The amount that can be distributed by the Company as dividends to its equity shareholders is determined as per the provisions of the Act and the dividend distribution policy of the Company. In respect of the year ended 31 March, 2018, the Board of Directors has proposed a final dividend of INR 7 per share to be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these Ind AS financial statements. The total estimated equity dividend to be paid is INR 525.00 Lakhs and the dividend distribution tax thereon amounts to INR 107.92 Lakhs. The proposed dividend for the previous year was INR 5.50 per equity share.
5) Remeasurements of defined benefit liability / asset comprises of actuarial gains and losses and return on plan asset (excluding interest income).
a) Payment towards trade payables is made as per the terms and conditions of the contract / purchase orders. The average credit period for purchase of materials and traded products ranges from 30 to 45 days.
b) The Company''s exposure to currency and liquidity risks related to trade payables is disclosed in Note 36.
c) Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 02 October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management of the Company, dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management till date and relied upon by the auditors. The disclosures as required by Section 22 of the MSMED Act are given below:
4 Commitments
Estimated amount of capital contracts remaining to be executed and not provided for (net of advances) is INR 0.28 Lakhs (Previous year: INR 52.49 Lakhs)
5 The Company''s international and domestic transactions with associated enterprises are at arm''s length, as per the independent accountant''s report for the year ended 31 March, 2017. The Management believes that the Company''s international and domestic transactions with associated enterprises post 31 March, 2017 continue to be at arm''s length and that transfer pricing legislations will not have any impact on the Ind AS financial statements, particularly on the amount of tax expenses for the year and the amount of provision for taxation at the year end.
6 During the previous year, the Competition Commission of India (''the Commission'') under Regulation 5 of the Competition Commission of India (Lesser Penalty) Regulations, 2009 (''Lesser Penalty Regulations'') read with Section 46 of the Competition Act, 2002, carried out investigations in the complaint of cartelisation amongst the Company and two other Indian manufacturer companies, with respect to controlling the distribution and pricing of zinc-carbon dry cell batteries in India during the period 20 May, 2009 to 23 August, 2016 in contravention of the provisions of Section 3(3) read with Section 3(1) of the Competition Act, 2002.
The Commission''s investigations have been completed and subsequent to year end, the Company received the Commission''s Order dated 19 April, 2018 wherein the Commission granted relief to the Company under Regulation 5 of Lesser Penalty Regulations read with Section 46 of the Competition Act, 2002 by confirming 100% reduction in penalty leviable on the Company under the Competition Act, 2002. The investigations of the Commission also included two other Indian manufacturer companies, who have preferred an appeal before the National Company Law Appellate Tribunal (NCLAT) for reduction in quantum of penalty levied on them by the Commission. Appeals have also been filed by the individuals of those respective companies for reduction in penalty. Based on the assessment of hearings at the NCLAT till date, the Company''s external counsel have observed that relief granted by the Commission to the Company has not been challenged by the other parties. The matter is currently pending before the NCLAT and accordingly, no adjustments are required to be made in the Ind AS financial statements.
7 Operating segments
The business of the Company mainly comprises of sale of âDry Cell Batteriesâ which has been identified as a single reportable segment for the purpose of Ind AS 108 on ''Operating Segments''.
Entity-wide disclosures as required under Ind AS 108 are as under:
Segment revenue from âDry Cell Batteriesâ represents revenue generated from external customers are less than 10% of the total revenue and hence the Company has only single geographical segment to be reported.
All assets are located in the company''s country of domicile.
Further, the Company does not have revenue more than 10% of total revenue from single customer.
- Fair value of financial assets and liablities measured at amortised cost is not materially different from the amortised cost. Further, impact of time value of money is not significant for the financial instruments classified as current. Accordingly, the fair value has not been disclosed seperately.
Types of inputs are as under:
Input Level I (Directly Observable) : which includes quoted prices in active markets for identical assets such as quoted price for an equity security on Security Exchanges.
Input Level II (Indirectly Observable) : which includes prices in active markets for similar assets such as quoted price for similar assets in active markets, valuation multiple derived from prices in observed transactions involving similar businesses, etc.
Input Level III (Unobservable): which includes management''s own assumptions for arriving at a fair value such as projected cash flows used to value a business, etc.
B. Measurement of fair values
i) Valuation techniques and significant unobservable inputs
Since there are no financial instruments measured at Fair Value, this is not relevant.
ii) Transfers between Levels I and II
Since there are no financial instruments measured at Fair Value, this is not relevant.
iii) Level III fair values
There are no items in Level III fair values.
C. Financial risk management
The Company has a well-defined risk management framework. The Board of Directors of the Company has adopted a Risk Management Policy. The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
Risk management framework
The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors evaluate and exercise independent control over the entire process of market risk management. The board also recommends risk management objectives and policies.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
(i) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the Company. The potential activities where credit risks may arise include from cash and cash equivalents and security deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the Company along with relevant mitigation procedures adopted have been enumerated below:
Trade and other receivables
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. Majority of the customers have been associated with the Company for a considerable period of time. Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed regularly.
An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on account of time value of money and credit risk. The Company reviews the receivables in light of their historical payment patterns and adjusts the same to estimate the expected loss on account of credit worthiness of the customer or delay in payments leading to loss of time value of money.
As at the end of the reporting periods, the maximum exposure to credit risk for trade and other receivables by geographic region was as follows:
The above receivables which are past due but not impaired are assessed on case-to-case basis. The instances pertain to third party customers which have a proven creditworthiness record. Management is of the view that these financial assets are not impaired as there has not been any adverse change in credit quality and are envisaged as recoverable based on the historical payment behaviour and extensive analysis of customer credit risk, including underlying customers'' credit ratings, if they are available. Consequently, no additional provision has been created on account of expected credit loss on the receivables. There are no other classes of financial assets that are past due but not impaired. The provision for impairment of trade receivables, movement of which has been provided below, is not significant / material. The concentration of credit risk is limited due to fact that the customer base is large and unrelated.
Other financial assets
Other financial assets includes loan to employees, security deposits, cash and cash equivalents, other bank balance, etc. Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating. The amounts for other financial assets is not material and hence, exposure to credit risk is not considered to be significant.
(ii) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company''s financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Management monitors the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company''s liquidity management policy involves periodic reviews of cash flow projections and considering the level of liquid assets necessary, monitoring balance sheet, liquidity ratios against internal and external regulatory requirements.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.
(iii) Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and debt. The Company does not enter into any derivatives.
(a) Currency Risk
The functional currency of the Company is Indian Rupees. The Company has exposure of receivables and payables in foreign currency (USD). However, the exposure is not significant looking at the present business of the Company.
8 Capital Management
The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The Company monitors capital using a ratio of ''Debt'' to ''Equity''. For this purpose, ''Debt'' is meant to include long-term borrowings, short-term borrowings and current maturities of long-term borrowings. ''Equity'' comprises all components of equity. The Company''s debt to equity ratio as at the end of the reporting periods are as follows:
9 Employee benefits
In accordance with the stipulations of the Indian Accounting Standard 19 âEmployee Benefitsâ, the disclosures of employee benefits as defined in the Indian Accounting Standard are given below:
Defined Contribution Plans
The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund is administered by the trust owned and managed by the Company. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
The provident fund plan is operated by the âPanasonic Energy India Company Limited Employees Provident Fund Trustâ (the âTrustâ). Eligible employees receive benefits from the said Provident Fund Trust which is a defined contribution plan. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary. The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by the Government. The Company has an obligation to make good the short fall, if any, between the return from the investments of the trust and the notified interest rate.
The Company recognized INR 122.79 Lakhs (Previous year: INR 126.23 Lakhs) for provident fund contributions and INR Nil (Previous year: INR 1.48 Lakhs) for superannuation contribution in the Statement of Profit and Loss.
Defined Benefit Plans
1) Gratuity
15 days salary (Basic RA) for each completed year of service. Vesting period is 5 years and the payment is at actual on retirement, resignation, termination, disablement or death.
Scheme is funded with LIC. The liability for gratuity as below is recognised on the basis of actuarial valuation.
The Company makes contribution to LIC for gratuity benefits according to the Payment of Gratuity Act, 1972.
The Company recognizes the liability towards the gratuity at each Balance Sheet date.
The most recent actuarial valuation of the defined benefit obligation for gratuity was carried out at 31 March, 2018 by an actuary. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Scheme is funded through LIC.
These plans typically expose the Company to actuarial risks such as: Salary Risk, investment risk, liquidity risk, legislative risk and market risk.
2) Provident Fund
The Company has established an Employee Provident Fund T rust administered by the Company to which both the employee and employer make monthly contribution equal to 12% of basic salary of employee respectively. The Company''s contribution to the Provident Fund for all employees is charged to Statement of Profit and Loss. In case of any liability arising due to shortfall between the return from its investments and the administered interest rate, the same is required to be provided by the Company. The actuary has provided an actuarial valuation and indicated that the interest shortfall liability is INR Nil. The Company has contributed the following amounts towards Provident Fund during the respective period ended:
Transition to Ind AS:
The Company adopted Ind AS effective from 01 April, 2016 being the transition date (âtransition dateâ). These financial statements, for the year ended 31 March, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March, 2017, the Company prepared its financial statements in accordance with previous Indian GAAP (IGAAP), including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).
The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended 31 March, 2018, the comparative information presented in these financial statements for the year ended 31 March, 2017 and in the preparation of an opening Ind AS balance sheet at 01 April, 2016.
In preparing the opening Ind AS balance sheet, the Company has adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, estimates previously made under IGAAP have not been revised.
Exemptions Applied
Mandatory Exceptions:
1) Estimates:
An entity''s estimates in accordance with Ind AS at the transition date to Ind AS and end of the comparative period shall be consistent with estimates made under the previous Indian GAAP, unless there is objective evidence that those estimates were in error. Accordingly, the Company''s Ind AS estimates as on the transition date as well as end of the comparative period are consistent with the estimates made under the previous Indian GAAP on the respective dates.
2) Classification and measurement of financial assets:
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.
Optional Exemptions:
1) Deemed cost for property, plant and equipment (PPE), intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the previous GAAP carrying value for all of its property, plant and equipment as recognised in the financial statements as at the transition date to Ind AS and use that as the deemed cost after making necessary adjustments for de-commissioning liabilities (if any). This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to carry forward the IGAAP carrying value of all its property, plant and equipment and intangible assets as the deemed cost on transition to Ind AS.
Notes:
1 Reversal of proposed dividend
Under the previous Indian GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are to be recognised only on approval by the shareholders in the general meeting. Accordingly, liability amounting to INR 525.00 Lakhs and related dividend distribution tax amounting to INR 106.88 Lakhs are recognised as a liability in the year in which it is approved by the shareholders in the Annual General Meeting of the Company. This has resulted in an increase in equity amounting to INR 631.88 Lakhs as at 01 April, 2016.
2 Recognition of provision for tax
Under previous Indian GAAP, the Company had disclosed a disputed tax matter under litigation as a contingent liability. Ind AS 101 permits a first-time adopter to adjust accounting practices followed under previous Indian GAAP, if it becomes aware of an error as part of its Ind AS transition. Accordingly, on transition to Ind AS, the Company has realigned its accounting policy for such litigation to create a provision based on a probability estimate. This has resulted in a reduction in equity by INR 173.40 Lakhs on 01 April, 2016.
3 Discounts paid / accrued
Under previous Indian GAAP, cash discounts given was shown as a part of ''Other expenses''. However, under Ind AS such discounts amounting to INR 574.27 Lakhs for the year ended 31 March, 2017 have been reduced from revenue arising on sale of products.
4 Discount received
Under previous Indian GAAP, discounts received was disclosed as part of ''Other income''. However, under Ind AS such discount income amounting to INR 1.62 Lakhs for the year ended 31 March, 2017 have been reduced from ''Costs of materials consumed''.
5 Excise Duty
Under previous Indian GAAP, sale of goods was presented as net of exicse duty. However, under Ind AS sale of goods include excise duty. Accordingly, excise duty on sale of goods amounting to INR 3,296.69 Lakhs is separately disclosed on the face of Statement of Profit and Loss. Thus, revenue from sale of goods under Ind AS has increased with a corresponding increase in expenses.
6 Remeasurements of post employment benefit obligations
Under previous Indian GAAP, these remeasurements were forming part of profit or loss for the year. Under Ind AS 19 - Employee Benefits, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in ''Other Comprehensive Income'' instead of ''Statement of Profit or Loss''. As the result of this change, profit for the year ended 31 March, 2017 increased by INR 179.99 Lakhs (net of tax INR 117.70 Lakhs). There is no impact on total equity and profit.
10 Operating leases
The operating lease arrangements are cancellable subject to the stipulated notice period which generally does not exceed 12 months. Thus, the management of the Company is of the view that there is no right to receive or obligation to pay the agreed lease rentals in case of termination. Thus, the disclosure of minimum lease rentals payable or receivable has not been provided.
Mar 31, 2017
1. Right, preferences and restrictions attached to shares
For all matters submitted to vote in a shareholders meeting of the Company every holder of an equity share as reflected in the records of the Company on the date of the shareholders meeting shall have one vote in respect of each share held. Any dividend declared by the company shall be paid to each holder of equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the event of liquidation of the Company all preferential amounts if any shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
2. Employee Benefits
3. Post employment benefits consists of the following:
4. Defined contribution plans:
The Company makes contributions towards provident fund and superannuation fund to defined contribution retirement benefit plan for qualifying employees. The superannuation fund is administered by the trust owned and managed by the company. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
The provident fund plan is operated by the âPanasonic Energy India Company Limited Employees Provident Fund Trustâ (the âTrustâ). Eligible employees receive benefits from the said Provident Fund Trust which is a defined contribution plan. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary. The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by the Government. The Company has an obligation to make good the short fall, if any, between the return from the investments of the trust and the notified interest rate.
The Company recognized Rs. 126.24 lakhs (previous year Rs. 128.82 lakhs) for provident fund contributions and Rs. 1.49 lakhs (previous year Rs. 4.16 lakhs) for superannuation contribution in the Statement of Profit and Loss.
5. Defined benefit plan:
The Company makes annual contributions to the Employees'' gratuity fund scheme and leave encashment scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
6. The Company has obtained certain premises for its business operations (including furniture and fittings, therein as applicable) under operating leases or leaves and license agreements. These are generally not non-cancellable and range between 11 months to 9 years under leave and licenses or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms.
7. The Operations of the company are limited to one segment, namely, Dry Cell Batteries.
8. In the opinion of the management and to the best of their knowledge and belief the value on realization of current assets, loans & advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.
9. Balances of trade receivable and trade payable are subject to confirmation, reconciliation and consequential adjustment, if any.
10. Figures of the previous year have been regrouped/re-cast wherever necessary.
Mar 31, 2016
b. Right, preferences and restrictions attached to shares
For all matters submitted to vote in a shareholders meeting of the Company every holder of an equity share as reflected in the records of the Company on the date of the shareholders meeting shall have one vote in respect of each share held. Any dividend declared by the company shall be paid to each holder of equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the event of liquidation of the Company all preferential amounts if any shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date.
The amount due to Micro & Small Enterprise, as defined under the âMicro Small and Medium Enterprise Development Act,2006â stated above is based on the information available with the Company. Payment made to suppliers beyond the due dates during the year was Rs. 45.66 Lacs (Previous Year Rs. 60.92 Lacs). No interest during the year has been paid to Micro and Small Enterprise on delayed payments. Further interest accrued and remaining unpaid at the yearend Rs. 0.31 Lacs (Previous year Rs. 0.81 Lacs) is not provided in the books as the management is of the opinion that due to contractual terms they will not be required to pay the same.
1. Employee Benefits
a. Post employment benefits consists of the following:
i Defined contribution plans:
The company makes contributions towards provident fund and superannuation fund to defined contribution retirement benefit plan for qualifying employees. The superannuation fund is administered by the trust owned and managed by the company. Under the plan, the company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.
The provident fund plan is operated by the âPanasonic Energy India Co. Ltd. Employees Provident Fund Trustâ (the âTrustâ). Eligible employees receive benefits from the said provident fund trust which is a defined contribution plan. Both the employees and the company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary. The minimum interest rate payable by the Trust to the beneficiaries every year is being notified by the Government. The Company has an obligation to make good the short fall, if any, between the return from the investments of the trust and the notified interest rate.
The company recognized Rs. 128.82 Lacs (previous year Rs. 131.35 Lacs ) for provident fund contributions and Rs. 4.16 Lacs (previous year Rs. 3.60 Lacs) for superannuation contribution in the statement of profit and loss.
ii Defined benefit plan:
The company makes annual contributions to the employees'' gratuity fund scheme and leave encashment scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan asset management.
2. Research & Development
Research & Development related expenses amounting to Rs. 166 .37 Lacs (Previous year - Rs. 147.10 Lacs) have been debited to respective heads of Account.
3. The Company has obtained certain premises for its business operations (including furniture and fittings, therein as applicable) under operating leases or leaves and license agreements. These are generally not non-cancellable and range between 11 months to 9 years under leave and licenses or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms.
4. Exceptional item of previous year consist of refund received from excise department.
5. The operations of the company are limited to one segment, namely, Dry Cell Batteries.
6. In the opinion of the management and to the best of their knowledge and belief the value on realization of current assets, loans & advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.
7. Balances of trade receivable and trade payable are subject to confirmation, reconciliation and consequential adjustment, if any.
8. Figures of the previous year have been regrouped/re-cast wherever necessary.
Mar 31, 2015
1. Share Capital
a. Right, preferences and restrictions attached to shares
For all matters submitted to vote in a shareholders meeting of the
Company every holder of an equity share as reflected in the records of
the Company on the date of the shareholders meeting shall have one vote
in respect of each share held. Any dividend declared by the Company
shall be paid to each holder of equity shares in proportion to the
number of shares held to total equity shares outstanding as on that
date. In the event of liquidation of the Company all preferential
amounts if any shall be discharged by the Company. The remaining assets
of the Company shall be distributed to the holders of equity shares in
proportion to the number of shares held to the total equity shares
outstanding as on that date.
2. The Company has entered into a contract for purchase of raw material
from its supplier wherein there is a commitment to purchase a minimum
quantity of material during financial year 2015-16 at agreed prices.
3. Estimated amount of contracts remaining to be executed and not
provided for (net of advances) is RS. 0.99 lacs (previous year RS.
0.82 lacs)
4. Contingent Liabilities (to the extent not provided for) consists of
the following :
(RS. in lacs)
Particulars For the year For the year
ended March ended March
31,2015 31, 2014
Disputed excise, custom/service tax
pending before assessing / appellate 160.96 132.63
authorities.
Bank guarantees 71.70 51.53
Income tax 897.68 1,209.49
Sales tax / vat 203.68 171.35
Claims against the Company not 59.75 55.30
acknowledged as debt
Claims from employees and former Amount Amount
employees unascer unascer
tainable tainable
5. Consequent to the enactment of the Companies Act, 2013 (the Act) and
its applicability for accounting periods commencing from April 1, 2014,
the Company has reassessed the remaining useful life of fixed assets in
accordance with the provisions prescribed under Schedule II to the Act.
In case of assets which have completed their useful life, the carrying
value (net of residual value) as at April 1, 2014 amounting to RS.
11.06 lacs (Net of tax RS. 5.85 lacs) has been adjusted to retained
earnings and in case of other assets the carrying value (net of
residual value) is being depreciated over the revised remaining useful
life. The depreciation and amortisation expense charge for the year
ended March 31, 2015 would have been higher by RS. 13.07 lacs had the
Company continued with the previous assessment of useful life of such
assets.
6. Employee Benefits
a. Post employment benefits consists of the following:
i Defined Contribution Plans:
The Company makes contributions towards provident fund and
superannuation fund to defined contribution retirement benefit plan for
qualifying employees. The superannuation fund is administered by the
trust owned and managed by the Company. Under the plan, the Company is
required to contribute a specified percentage of payroll cost to the
retirement benefit plan to fund the benefits.
The provident fund plan is operated by the "Panasonic Energy India
Company Limited Employees Provident Fund Trust" (the "Trust"). Eligible
employees receive benefits from the said Provident fund Trust which is
a defined contribution plan. Both the employees and the Company make
monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employee's salary. The minimum interest rate
payable by the trust to the beneficiaries every year is being notified
by the government. The Company has an obligation to make good the short
fall, if any, between the return from the investments of the trust and
the notified interest rate.
The Company recognized RS. 131.35 Lacs (previous year RS. 100.92
Lacs) for provident fund contributions and RS. 3.60 Lacs (previous
year RS. 3.13 Lacs) for superannuation contribution in the Statement
of Profit and Loss.
ii Defined Benefit Plan:
The Company makes annual contributions to the Employees' gratuity fund
scheme and leave encashment scheme of the Life Insurance Corporation of
India, a funded defined benefit plan for qualifying employees. The
present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognized in the
same manner as gratuity.
7. Research & Development
Research & development related expenses amounting to RS. 147.10 Lacs
(Previous year - RS. 117.93 Lacs) have been debited to respective
heads of Account.
8. Related Party Disclosures
a. Disclosures as required by Accounting Standard -18 are given below:
Name of Related Parties Nature of Relationship
Panasonic Corporation Holding Company
Panasonic Carbon India Co. Ltd Joint venture of Holding Company
PT. Panasonic Gobel Energy Indonesia Joint venture of Holding Company
Panasonic Energy Tanzania Co. Ltd. Joint venture of Holding Company
Panasonic Energy Thailand Co. Ltd. Joint venture of Holding Company
Panasonic AVC Networks India Co. Ltd. Joint venture of Holding Company
Panasonic Peruana SA Joint venture of Holding Company
Panasonic India Pvt. Ltd. Joint venture of Holding Company
Panasonic Sales & Services Pvt. Ltd. Joint venture of Holding Company
Panasonic Excel International Joint venture of Holding Company
Co. Ltd.
Panasonic Procurement Asia Pacific Joint venture of Holding Company
Pte Ltd.
Sanyo Energy (S) Corp. Pte Ltd. Joint venture of Holding Company
Sanyo Electric (Hong Kong) Ltd. Joint venture of Holding Company
Panasonic Energy ( Shanghai) Joint venture of Holding Company
Co., Ltd
Mr. S. K. Khurana Key management personnel
9. The Company has obtained certain premises for its business
operations (including furniture and fittings, therein as applicable)
under operating leases or leave and license agreements. These are
generally not non-cancellable and range between 11 months to 9 years
under leave and licenses or longer for other lease and are renewable by
mutual consent on mutually agreeable terms. The Company has given
refundable interest free security deposits in accordance with the
agreed terms.
10. Exceptional item of current year consist of refund received from
excise department.
11. The Operations of the Company are limited to one segment,mainly Dry
Cell Batteries.
12. In the opinion of the management and to the best of their knowledge
and belief the value on realization of current assets, loans & advances
in the ordinary course of business will not be less than the amount at
which they are stated in the Balance Sheet.
13. Balances of trade receivable and trade payable are subject to
confirmation, reconciliation and consequential adjustment, if any.
14. Figures of the previous year have been regrouped/re-cast wherever
necessary.
Mar 31, 2013
1 a. Estimated amount of contracts remaining to be executed and not
provided for (net of advances) is Rs. Nil (previous year Rs. Nil)
b. The Company has entered into a contract for purchase of raw
material from its supplier wherein there is a commitment to purchase a
minimum quantity of material during financial year 2012-13 at agreed
prices.
2 Contingent liabilities not provided for
Details of claims against the company not acknowledged as debts
consists of the following:
(Amount in Rs. in lacs)
Particulars For the
year ended For the year ended
March 31, 2013 March 31, 2012
Disputed Excise/ Service
Tax pending before
Assessing / Appellate
Authorities 40.55
Bank Guarantees 52.06 42.55
Income Tax 1,317.93 1,320.58
Sales Tax / VAT 284.84 156.63
Claims against the
company not acknowledged
as debts 63.00 46.03
Claims from employees and former employees Amount Amount
unascertainable unascertainable
3 Employee Benefits
a. Post employment benefits consists of the following: i Defined
contribution plans:
The Company makes contributions towards provident fund and
superannuation fund to defined contribution retirement benefit plan for
qualifying employees. The superannuation fund is administered by the
trust owned and managed by the Company. Under the plan, the Company is
required to contribute a specified percentage of payroll cost to the
retirement benefit plan to fund the benefits.
The provident fund plan is operated by the "Panasonic Energy India
Company Limited Employees Provident Fund Trust" (the "Trust"). Eligible
employees receive benefits from the said Provident Fund Trust which is
a defined contribution plan. Both the employees and the Company make
monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employee''s salary. The minimum interest rate
payable by the Trust to the beneficiaries every year is being notified
by the Government. The Company has an obligation to make good the short
fall, if any, between the return from the investments of the trust and
the notified interest rate.
The Company recognized Rs. 100.38 Lacs (previous year Rs. 104.96 Lacs) for
provident fund contributions and Rs. 3.24 Lacs (previous year Rs. 4.46
Lacs) for superannuation contribution in the Statement of Profit and
Loss.
ii Defined benefit plan:
The Company makes annual contributions to the Employees'' gratuity fund
scheme and leave encashment scheme of the Life Insurance Corporation of
India, a funded defined benefit plan for qualifying employees. The
present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognized in the
same manner as gratuity.
4 The Company has obtained certain premises for its business
operations (including furniture and fittings, therein as applicable)
under operating leases or leaves and license agreements. These are
generally not non-cancelable and range between 11 months to 9 years
under leave and licenses or longer for other lease and are renewable by
mutual consent on mutually agreeable terms. The Company has given
refundable interest free security deposits in accordance with the
agreed terms.
5 The Operations of the company are limited to one segment, namely,
Dry Cell Batteries.
6 In the opinion of the management and to the best of their knowledge
and belief the value on realization of current assets, loans & advances
in the ordinary course of business will not be less than the amount at
which they are stated in the Balance Sheet.
7 Balances of Trade receivable and Trade payable are subject to
confirmation, reconciliation and consequential adjustment, if any.
8 Figures of the previous year have been regrouped/re-cast wherever
necessary.
Mar 31, 2012
1 Estimated amount of contracts remaining to be executed and not
provided for (net of advances) is Rs Nil (Previous year Rs Nil).
2 Contingent liabilities not provided for
Details of claims against the company not acknowledged as debts
consists of the following:
(Amount in Rs in lacs)
Particulars For the
year ended For the
year ended
31st March, 2012 31st March, 2011
Disputed excise/ service tax
pending before - 1.04
Assessing / appellate
authorities.
Bank guarantees 42.55 44.52
Income tax 1,320.58 1,212.90
Sales tax / VAT 156.63 151.88
Others 46.03 3.46
3 Employee benefits
a. Post employment benefits consists of the following:
i Defined contribution plans:
The Company makes contributions towards provident fund and
superannuation fund to defined contribution retirement benefit plan for
qualifying employees. The superannuation fund is administered by the
trust owned and managed by the company. Under the plan, the Company is
required to contribute a specified percentage of payroll cost to the
retirement benefit plan to fund the benefits.
The provident fund plan is operated by the "Panasonic Energy India
Company Limited Employees Provident Fund Trust" (the "Trust").
Eligible employees receive benefits from the said Provident Fund Trust
which is a defined contribution plan. Both the employees and the
Company make monthly contributions to the provident fund plan equal to
a specified percentage of the covered employee's salary. The minimum
interest rate payable by the Trust to the beneficiaries every year is
being notified by the Government. The Company has an obligation to make
good the short fall, if any, between the return from the investments of
the trust and the notified interest rate.
The Company recognized Rs 104.96 Lacs (previous year Rs 87.23 Lacs ) for
provident fund contributions and Rs 4.46 Lacs (previous year Rs 4.05
Lacs) for superannuation contribution in the Statement of profit and
loss.
ii Defined benefit plan:
The Company makes annual contributions to the Employees' Gratuity
Fund Scheme and leave encashment scheme of the Life Insurance
Corporation of India, a funded defined benefit plan for qualifying
employees. The present value of obligation is determined based on
actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation for leave encashment is
recognized in the same manner as gratuity.
In absence of the availability of information relating to experience
adjustment on plan liabilities and plan assets for the year ended 31st
March 2010, 2009 and 2008, the same have not been furnished above.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors mainly, the composition of plan assets held,
assessed risks, historical results of return on plan assets and the
Company's policy for plan asset management.
4 Research & development
Research & development related expenses amounting to Rs 76.94 Lacs
(Previous year - Rs 136.25 Lacs) have been debited to respective heads
of account. Additions to fixed assets include addition to research &
development department Rs NIL (Previous year - Rs Nil).
5 The Company has obtained certain premises for its business
operations (including furniture and fittings, therein as applicable)
under operating leases or leaves and license agreements. These are
generally not non-cancelable and range between 11 months to 9 years
under leave and licenses or longer for other lease and are renewable by
mutual consent on mutually agreeable terms. The Company has given
refundable interest free security deposits in accordance with the
agreed terms.
6 Exceptional items of previous year includes profit on sale of
property.
7 The operations of the Company are limited to one segment, namely,
Dry cell batteries.
8 In the opinion of the management and to the best of their knowledge
and belief the value on realization of current assets, loans & advances
in the ordinary course of business will not be less than the amount at
which they are stated in the Balance Sheet.
9 Balances of Trade receivable and Trade payable are subject to
confirmation, reconciliation and consequential adjustment, if any.
10 Figures of the previous year have been regrouped/re-cast wherever
necessary.
Mar 31, 2011
As on As on
31st March, 2011 31st March, 2010
(Rupees `000s) (Rupees `000s)
1. Contingent liabilities
not provided for
Claims against the Company
not acknowledged as debts
(1) Disputed Excise/Custom
s/Service Tax pending
before Assessing/Appellate
Authorities. 104 5,033
(2) Bank guarantees 4,452 22,695
(3) Income tax 121,290 136,700
(4) Sales tax/VAT 15,188 8,077
(5) Others 346 4,740
2. POST EMPLOYMENT BENEFITS
(i) Defined contribution plans
The Company makes contributions towards Provident Fund and
Superannuation Fund to defined contribution retirement benefit plan for
qualifying employees. The Superannuation Fund is administered by the
Trust owned and managed by the Company. Under the plan, the Company is
required to contribute a specified percentage of payroll cost to the
retirement benefit plan to fund the benefits.
The Provident Fund plan is operated by the ÃPanasonic Energy India
Company Limited Employees Provident Fund Trustà (the ÃTrustÃ). Eligible
employees receive benefits from the said Provident Fund Trust which is
a defined contribution plan. Both the employees and the Company make
monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employee's salary. The minimum interest rate
payable by the Trust to the beneficiaries every year is being notified
by the Government. The Company has an obligation to make good the short
fall, if any, between the return from the investments of the trust and
the notified interest rate.
The Company recognized Rs. 8,399 thousands (previous year Rs. 8,391
thousands) for Provident Fund contributions and Rs. 405 thousands
(previous year Rs. 405 thousands) for Superannuation contribution in
the Profit & Loss Account.
(ii) Defined benefit plan
The Company makes annual contributions to the Employees' Gratuity Fund
Scheme and Leave Encashment Scheme of the Life Insurance Corporation of
India, a funded defined benefit plan for qualifying employees. The
present value of obligation is determined based on actuarial valuation
using the projected unit credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognized in the
same manner as gratuity.
The estimates of rate of escalation in salary considered in actuarial
valuation, take in to account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering
several applicable factors mainly, the composition of plan assets held,
assessed risks, historical results of return on plan assets and the
Company's policy for plan asset management.
3. The operations of the Company are limited to one segment, namely,
dry cell batteries.
4. Research & Development related expenses amounting to Rs. 13,625
thousands (Previous year à Rs. 17,462 thousands) have been debited to
respective heads of Account. Additions to fixed assets include addition
to Research & Development department NIL (previous year à Rs. 16
thousands).
5. Based on the information available with the Company, the balance
due to Micro and Small Enterprises, as defined under the ÃMicro Small
and Medium Enterprise Development Act, 2006Ã is Rs. 1,165 thousands
(previous year Rs. 2,629 thousands). Payment made to suppliers beyond
the due dates during the period was Rs. 2,085 thousands (previous year
Rs. 4,568 thousands). No interest during the period has been paid to
Micro and Small Enterprise on delayed payments. Further interest
accrued and remaining unpaid at the year end Rs. 24 thousands (previous
year Rs. 46 thousand) is not provided in the books as the management is
of the opinion that due to contractual terms they will not be required
to pay the same.
6 . Letter of confirmation to debtors/creditors are issued, balances
of the debtors/creditors are subject to adjustments, if any, on
reconciliation/settlement of respective accounts.
7.Related Party disclosures as required under AS-18 are as under
Names of the Related Parties having transactions with the Company
during the year
2010-2011 2009-2010
(a) Collaborator (a) Collaborator
Panasonic Corporation Panasonic Corporation
(b) Joint Venture of
collaborator (b) Joint Venture of collaborator
Panasonic Carbon India
Co. Ltd Panasonic Carbon India Co. Ltd
P.T. Panasonic Gobel
Energy Indonesia. P.T. Panasonic Gobel Energy Indonesia.
Panasonic Asia Pacific
Pte. Ltd. Panasonic Asia Pacific Pte. Ltd.
Panasonic Energy
Tanzania Co. Ltd. Panasonic Energy Tanzania Co. Ltd.
Panasonic Energy
Thailand Co. Ltd. Panasonic Energy Thailand Co. Ltd.
Panasonic Energy
Poland S.A. Panasonic Energy Poland S.A.
Panasonic AVC Networks
India Co. Ltd. Panasonic AVC Networks India Co.
Ltd.
Panasonic Manufacturin
g Malaysia Berhad Panasonic Manufacturing Malaysia Berhad
Panasonic Peruana SA
Panasonic India Pvt. Ltd
c) Whole-time Directors (c) Whole-time Directors
Mr. Ajai K. Lakhanpal,
Chairman Mr. Ajai K. Lakhanpal, Chairman
Mr. S. K. Khurana,
Managing Director Mr. S. K. Khurana, Managing Director
8. In the opinion of the management and to the best of their
knowledge and belief the value on realization of current assets, loans
& advances in the ordinary course of business will not be less than the
amount at which they are stated in the balance sheet.
9. Exchange Gain/(Loss) on account of import and exports transactions
have been included under purchase and sales up to last year of Rs.1,011
thousands and (Rs.175 thousands) respectively.
10. The Company has obtained certain premises for its business
operations (including furniture and fittings, therein as applicable)
under operating leases or leave and license agreements. These are
generally not non- cancelable and range between 11 months to 9 years
under leave and licenses or longer for other lease and are renewable by
mutual consent on mutually agreeable terms. The Company has given
refundable interest free security deposits in accordance with the
agreed terms.
Lease payments are recognized in the Profit & Loss Account under ÃRentÃ
in Schedule 15.
11. Figures of the previous year have been regrouped/re-cast wherever
necessary.
Mar 31, 2010
As on As on
31st March, 2010 31st March, 2009
(Rupees 000s) (Rupees 000s)
1. Contingent liabilities
not provided for
Claims against the Company not
acknowledged as debts
(1) Disputed Excise / Customs
/ Service Tax pending
before Assessing / Appellate
Authorities. 5,033 7,211
(2) Bonds - 20,909
(3) Bank Guarantees 22,695 23,751
(4) Income Tax 136,700 127,455
(5) Sales Tax/VAT 8,077 12,167
(6) Others 4,740 4,463
2. POST EMPLOYMENT BENEFITS
(i) Defined contribution plans
The Company makes contributions towards Provident Fund and
Superannuation Fund to defined contribution retirement benefit plan for
qualifying employees. The Superannuation Fund is administered by the
Trust owned and managed by the company. Under the plan, the Company is
required to contribute a specified percentage of payroll cost to the
retirement benefit plan to fund the benefits.
The Provident Fund plan is operated by the "Panasonic Energy India
Company Limited Employees Provident Fund Trust" (the "Trust"). Eligible
employees receive benefits from the said Provident Fund Trust which is
a defined contribution plan. Both the employees and the Company make
monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employees salary. The minimum interest rate
payable by the Trust to the beneficiaries every year is being notified
by the Government. The Company has an obligation to make good the short
fall, if any, between the return from the investments of the Trust and
the notified interest rate.
The Company recognized Rs.8,391 thousands (previous year Rs.8,112
thousands) for Provident Fund contributions and Rs. 405 thousands
(previous year Rs. 500 thousands) for Superannuation contribution in
the Profit and Loss Account.
(ii) Defined benefit plan
The Company makes annual contributions to the Employees Gratuity Fund
Scheme and Leave Encashment Scheme of the Life Insurance Corporation of
India, a funded defined benefit plan for qualifying employees. The
present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognized in the
same manner as gratuity.
3. The operations of the Company are limited to one segment, namely,
Dry Cell Batteries.
4. Accounting Standard 19 (AS 19) on Operating Leases
Lease payments are recognized in the Profit and Loss Account as "Rent"
under Schedule-15.
5. Research & Development related expenses amounting to Rs. 17,462
thousands (Previous year - Rs. 4,481 thousands) have been debited to
respective heads of account. Additions to Fixed Assets include addition
to Research & Development department Rs.16 thousands (Previous year -
Rs. 962 thousands).
6. Based on the information available with the Company, the balance
due to Micro and Small Enterprises, as defined under the "Micro Small
and Medium Enterprise Development Act, 2006" is Rs. 2,629 thousands
(Previous year - Rs. 2,729 thousands). Payment made to suppliers beyond
the due dates during the period was Rs. 4,568 thousands (Previous year
- Rs. 8,386 thousands). No interest during the period has been paid to
Micro and Small Enterprise on delayed payments. Further interest
accrued and remaining unpaid at the year end Rs. 46 thousands (Previous
year - Rs. 160 thousands) is not provided in the books as the
management is of the opinion that due to contractual terms they will
not be required to pay the same.
7. Letter of confirmation to Debtors / Creditors are issued, balances
of the Debtors / Creditors are subject to adjustments, if any, on
reconciliation / settlement of respective accounts.
8. RELATED PARTY DISCLOSURES AS REQUIRED UNDER AS-18 ARE AS UNDER:
Name of related parties where control exists
2009-2010 2008-2009
(a) Collaborator (a) Collaborator
Panasonic Corporation Panasonic Corporation (Formerly: Matsushita
Electric Industrial Co. Ltd.(MEI) & Matsushita
JBattery Industrial Co. Ltd. (MBI))
Names of other related parties having transactions with the Company
during the year
2009-2010 2008-2009
(a) Joint Venture of collaborators (a) Joint Venture of collaborators
Panasonic Carbon India
Co. Ltd Panasonic Carbon India Co. Ltd
P.T. Panasonic Gobel Energy
Indonesia. P.T. Panasonic Gobel Battery Indonesia.
Panasonic Asia Pacific Pte.
Ltd. P.T. Panasonic Gobel Energy Indonesia.
Panasonic Energy Tanzania Co.
Ltd. Nippo Batteries Ltd.
Panasonic Energy Thailand Co.
Ltd. Panasonic Asia Pacific Pte. Ltd.
Panasonic Energy Poland S.A. Panasonic Battery Tanzania Co. Ltd.
Panasonic AVC Networks India
Co. Ltd. Panasonic Energy Tanzania Co. Ltd.
Panasonic Manufacturing
Malaysia Berhad Panasonic Battery Thailand Co. Ltd.
Panasonic Energy Poland S.A.
Panasonic AVC Networks India Co. Ltd.
(b) Whole-time Directors (b) Whole-time Directors
Mr. A. K. Lakhanpal, Chairman Mr. A. K. Lakhanpal, Chairman
Mr. S. K. Khurana, Managing
Director Mr. S. K. Khurana, Managing Director
9. In the opinion of the management and to the best of their
knowledge and belief the value on realization of current assets, loans
& advances in the ordinary course of business will not be less than the
amount at which they are stated in the Balance Sheet.
10. Exchange Gain/(Loss) of Rs. 1,011 thousands & (Rs.175 thousands)
(Previous Year Rs. 9,210 thousands) & (Rs.4 thousands)) arising on
account of import and exports transactions have been included under
purchase and sales.
11. The Company has obtained certain premises for its business
operations (including furniture and fittings, therein as applicable)
under operating leases or lives and license agreements. These are
generally not non-cancelable and range between 11 months to 9 years
under leave and licenses or longer for other lease and are renewable by
mutual consent on mutually agreeable terms. The Company has given
refundable interest free security deposits in accordance with the
agreed terms.
Lease payments are recognized in the Profit and Loss Account under
"Rent" in Schedule 15.
12. Figures of the previous year have been regrouped/re-cast wherever
necessary.
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