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Notes to Accounts of Panasonic Energy India Company Ltd.

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, 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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