Home  »  Company  »  Pricol Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Pricol Ltd.

Mar 31, 2015

1. Terms / rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. Details of Shares held by Holding Company :

There are no Shares held by Holding Company / Subsidiaries of ultimate Holding Company.

3. Details of Shares issued for consideration other than in cash :

296,721 Shares of Rs. 1/- each were allotted during the year in terms of Scheme of Amalgamation (Refer to Note No.2.47). There are no shares allotted by way of Bonus Shares and there have been no shares bought back in the immediately preceeding five years.

4. Term Loan of Rs. 300 Million for Medium Term Working Capital from Bank of Bahrain and Kuwait B.S.C. is repayable in 12 quarterly instalments of Rs. 25 Million each. Interest is payable on monthly basis at the rate of Bank Base Rate plus 10 bps. The loan is secured by an exclusive charge on the specific land and building of Plant III situated at Billichi Village, Coimbatore District. Present Outstanding as on 31st March, 2015 is Rs. 300 Million (Previous year - Nil).

5. Working Capital Facilities from State Bank of India, ICICI Bank,The Bank of Nova Scotia and IDBI Bank are secured by pari-passu first charge on the current assets of the Company. Working Capital Facilities are further secured by pari-passu second charge on the specific immovable properties situated at Plant I - Perianaickenpalayam, Coimbatore District, Tamilnadu.

Working Capital Facilities from Banks are repayable on demand and carries interest rates varying from 10.00% to 13.50% p.a.

6. CONTINGENT LIABILITIES AND COMMITMENTS AS ON THE CLOSING DATE :

Rs. Million

As at As at CONTINGENT LIABILITIES 31-3-2015 31-3-2014

a) On account of Pending Litigations :

Sales Tax Matters (excluding Interest & Penalty if any) 48.147 33.313

Excise, Service Tax and Customs Matters 180.596 210.094 (excluding Interest & Penalty if any)

b) Others :

Corporate Guarantee to Subsidiaries / Joint Venture 689.682 274.700

Letter of Credit 79.268 97.299

997.693 615.406

COMMITMENTS

Estimated Value of contracts remaining to be executed on Capital account 251.616 34.851

7. Power & Utilities is net of Wind Power of Rs. 8.340 Million (Previous year - Rs. 11.485 Million) representing units supplied to the grid against which equivalent consumption was made inhouse.

8. Balances in parties accounts are subject to confirmation / reconciliation. Appropriate adjustments, if any, will be made as and when the balances are reconciled.

9. In view of the considerable number of items diverse in composition, size and nature, it is not practicable to furnish particulars of materials consumed.

10. Income Tax Assessments are completed upto Assessment Year 2012-13.

11. During the financial year the Company has sold its 49% stake of its Joint Venture with Denso Corporation, Japan. The excess of sale consideration over the cost of investment has been included under exceptional item.

12. (i) As per the Scheme sanctioned by the Hon'ble High Court of Madras on 1st December 2014, the amalgamation has been given effect to under the "Pooling of Interest Method" in accordance with Accounting Standard 14 - Accounting for Amalgamations as on the appointed date of 1.1.2014. Accordingly, assets, liabilities and reserves of the Transferor Company (Xenos Automotive Limited) have been recorded in the books of the Company (Pricol Limited) at their carrying amounts as at the appointed date.

Upon the scheme being effective, in consideration of the transfer and vesting of the entire undertaking of the business of the transferor Company, the Company issued 296,721 equity shares of Rs. 1/- each in the ratio of 1 Equity Share of Rs. 1/- each for every 122 Equity Shares of Rs. 10/- each held by the equity shareholders of the transferor Company. In respect of Inter-company owing, the outstanding balance of Rs. 391.464 Million has been appropriately adjusted. The difference in the book value of liabilities over the assets of the transferor company, amounting to Rs. 305.199 Million has been debited to General Reserve. The working results of the transferor company for the period from 01.01.2014 to 31.03.2014, amounting to a loss of Rs. 11.393 Million has been adjusted in the opening balance of surplus in Statement of Profit & Loss.

Consequent to the Amalgamation, current year figures are not strictly comparable with those of the previous year.

13. Consequent to enactment of Companies Act, 2013 and its applicability for accounting periods commencing after 1st April, 2014, the company has re-worked depreciation as prescribed by Schedule II to the Act. Accordingly, the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of deferred tax, in the Opening balance of Surplus amounting to Rs. 36.164 Million.

Consequent to the above, the depreciation charge for the current year is higher by Rs. 73 Million.

14. Segment Reporting

As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

15. Previous year's figures are reclassified wherever necessary to conform to the current year's classification.

16. All figures are in Million unless otherwise stated.

17. Related Party disclosure as per Accounting Standard 18 :

Holding Company : Nil ; Fellow Subsidiary : Nil ; Associate : Nil ; Subsidiary Companies : Pricol Castings Limited, PT Pricol Surya, Indonesia, Pricol Asia Pte Limited, Singapore, Pricol Espana S.L. Spain, Pricol Do Brasil Componentes Automotivos LtdA, Brazil (Subsidiary of Pricol Espana S.L. Spain) and Integral Investments Limited Key Management Personnel : Mrs.Vanitha Mohan and Mr.Vikram Mohan Relatives of Key Management Personnel : Mr. Vijay Mohan Joint Venture : Johnson Controls Pricol Private Limited, Denso Pricol India Limited (Upto 16th March, 2015) Others: (Enterprise over which key management personnel are able to exercise significant influence) Pricol Holdings Limited, PPL Enterprises Limited (Formerly, Pricol Packaging Limited), Pricol Travel Limited, Pricol Technologies Limited, Pricol Properties Limited, Pricol Corporate Services Limited, Pricol Engineering Industries Limited, Target Manpower Services Limited, Prinfra Limited, M and M Enterprises (India) Limited, Bhavani Infin Services India Private Limited, Shrimay Enterprises Private Limited, Sagittarius Investments Private Limited, Libra Industries, Leo Industries, Bhavani Global Enterprises and Ellargi & Co.


Mar 31, 2014

1.1 The financial statements of an associate has been prepared for the period from January 1st, 2013 to December 31, 2013 and accordingly, share of loss Rs. 464,498,159 (previous year profit of Rs. 51,232,281) of the group have been consolidated in the financial statements

1.2 In April 2012, HOVS LLC (a subsidiary) invested in a new company named "HOV Environment LLC", having equity interest of 61.10% and other minority investors had brought various assets worth USD 115,000 (equivalent Rs. 6,299,390) and against which equity of USD 350,100 (equivalent Rs.19, 177,533) was allotted and excess consideration of USD 235,100 (equivalent to Rs. 12,878,143) was recognized as goodwill.

1.3 Commitment and Contingent liabilities: a) Contingent Liabilities not provided for in respect of:

(Amount in Rs.)

Sr. No. Particulars As at March As at December 31, 2014 31, 2012

(i) Corporate Guarantees outstanding in respect of loans taken by an Associate NIL 59,013,519

(ii) Disputed Income Tax Matters(including interest up to date of demand) 10,259,390 5,352,170

1.4 a) In the opinion of the management, assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

b) The accounts of certain Trade Receivables, Trade Payables, Loans & Advances and Banks are however, subject to formal confirmations/reconciliations and consequent adjustments, if any. The management does not expect any material difference affecting the current period''s financial statements on such reconciliation/adjustments.

1.5. a) The current financial period comprises of fifteen months as against previous year comprising of twelve months year therefore, figures of the current period are not comparable with those of the previous year.

b) Figures of the previous year have been regrouped / rearranged, wherever considered necessary to conform to the current period''s presentation.


Mar 31, 2013

1.1. MONEY RECEIVED AGAINST SHARE WARRANTS

The Company had issued 4,500,000 Share Warrants of Rs. 1/- each on preferential basis with each warrant convertible into one equity share of the company, for a price of Rs. 18/- per share (including a premium of Rs. 17/-). The share warrants are convertible into equity shares of the company within eighteen months from the date of allotment. As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, the company has received Rs. 20.250 Million (25% of value of the warrants) on allotment. As per the terms of issue the warrants are due for conversion in June 2013.

1.2. Power & Utilities is net of Wind Power of Rs. 10.008 Million (Previous year - Rs. 8.137 Million) representing units supplied to the grid against which equivalent consumption was made in house.

1.3. Depreciation for current year includes an amount of Rs. 15.928 Million towards arrears of depreciation.

1.4. In view of the considerable number of items diverse in composition, size and nature, it is not practicable to furnish particulars of materials consumed.

1.5. The company has entered into a Joint Venture Agreement with Denso Corporation, Japan, having a ownership interest of 49% in Pricol Components Limited (Presently, Denso Pricol India Limited). The Joint Venture commenced its operation on 23rd April 2013.

1.6. Income Tax Assessments are completed upto Assessment Year 2010-11.

1.7. a) Particulars regarding defined benefit plan :-

The Company operates a defined benefit plan for payment of post employment benefits in the form of Gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided in the Payment of Gratuity Act, 1972. The terms of the benefits are common for all the employees of the company.

1.8. The Company has sold its Denso Technology Instrument Cluster Undertaking related to the Four Wheeler Personal Passenger Vehicles situated at Company''s locations at Plant I, Coimbatore and Plant II, IMT Manesar, Gurgaon as a going concern basis under a Slump Sale method on 22nd April 2013 to Pricol Components Limited.

1.9. Previous year''s figures are reclassified wherever necessary to conform to the current year''s classification.

1.10. All figures are in Million unless otherwise stated.


Mar 31, 2012

1. As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after 1st April, 2011. Accordingly, the financial statements for the year ended 31st March, 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified / regrouped wherever necessary to conform to the requirements of Revised Schedule VI.

The Company has during the year issued 4,500,000 Share Warrants of Rs 1/- each on preferential basis with each warrant convertible into one equity shares of the company, for a price of Rs 18/- per share (including a premium of Rs 17/-). The share warrants are convertible into equity shares of the company within eighteen months from the date of allotment. As per the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 the company has received 25% of value of the warrants on allotment.

Corporate Loan of Rs 130 Mn. from Indian Bank is repayable in 6 quarterly instalments of Rs 20 Mn. per quarter for 11 instalments and the final instalment for Rs 10 Mn. Interest is payable on monthly basis. The loan is secured by (a) hypothecation of specific Plant and Machineries located at Plant I, Perianaickenpalayam, Coimbatore and Vavipalayam, Tirupur District, Tamilnadu and (b) Pari-passu first charge on the specific immovable properties situated at Perianaickenpalayam, Billichi, Poochiyur Villages in Coimbatore District and Vavipalayam, Tirupur District, Tamilnadu. Present Outstanding as on 31st March, 2012 is Rs 130 Mn. (Previous year - Rs 320 Mn.)

Term Loan of Rs 141.737 Mn. from Indian Bank is repayable in 24 monthly instalments of Rs 6 Mn. per month for 23 instalments and the final instalment for Rs 3.737 Mn. Interest is payable on monthly basis. The loan is secured by (a) hypothecation of specific Plant and Machineries located at Plant I, Perianaickenpalayam, Coimbatore , Plant II, IMT Manesar, Gurgaon, Plant VI and Plant VII Rudrapur, Uttarakhand, and (b) Pari-passu first charge on the immovable properties situated at Perianaickenpalayam, Billichi, Poochiyur Villages in Coimbatore District and Vavipalayam, Tirupur District, in Tamilnadu. Present Outstanding as on 31st March, 2012 is Rs 57.914 Mn. (Previous year - Rs 44.577 Mn.)

Corporate Loan of Rs 400 Mn. from State Bank of India is repayable in 34 monthly instalments of Rs 11.800 Mn. per month for 33 instalments and the final instalment for Rs 10.600 Mn. Interest is payable on monthly basis. The loan is secured by (a) First Charge on the Current Assets of the company on pari-passu basis and (b) Pari-passu second charge on the specific land and building situated at Perianaickenpalayam, Coimbatore District and Udhagamandalam, Nilgiris District, Tamilnadu. Present Outstanding as on 31st March, 2012 is Rs 400 Mn. (Previous year - Nil.)

Term Loan of Rs 500 Mn. from Indian Overseas Bank is repayable in 60 monthly instalments of Rs 8.334 Mn. per month. Interest is payable on monthly basis. The loan is secured by (a) hypothecation of specific plant and machineries located at Plant I, Perianaickenpalayam, Plant III - Billichi, and Poochiyur in Coimbatore District, Plant II, IMT Manesar, Gurgaon, Haryana and Plant VI & VII, Rudrapur, Uttarakhand and (b) exclusive charge on the land and building of Plant VII, Rudrapur, Uttarakhand. Present Outstanding as on 31st March, 2012 is Rs 350 Mn. (Previous year - Rs 450 Mn.)

Term Loan of Rs 290 Mn. from Canara Bank is repayable in 30 quarterly instalments of Rs 3.625 Mn. for the first 2 quarters, Rs 1.813 Mn. for 4 quarters, Rs 3.625 Mn. for next 4 quarters, Rs 14.50 Mn. for next 16 quarters and Rs 7.25 Mn. for 4 quarters. Interest is payable on monthly basis. The loan is secured by (a) hypothecation of specific plant and machineries located at Plant I, Perianaickenpalayam, Plant III - Billichi, and Poochiyur in Coimbatore District, Plant II, IMT Manesar, Gurgaon, and Plant VI & VII, Rudrapur, Uttarakhand and (b) exclusive charge on the land and building of Plant II, IMT Manesar, Gurgaon, Haryana. Present Outstanding as on 31st March,2012 is Rs 264.623 Mn. (Previous year - Rs 275.498 Mn.)

Term Loan of Rs 600 Mn. from Andhra Bank is repayable in 20 quarterly instalments of Rs 30 Mn. per quarter. Interest is payable on monthly basis. The loan is secured by (a) pari-passu first charge on land and building situated at Plant I, Perianaickenpalayam, Coimbatore, Udhagamandalam, Nilgiris and (b) exclusive charge on the land and building situated at Plant III - Billichi, Coimbatore. Present Outstanding as on 31st March, 2012 is Rs 240 Mn. (Previous year - Rs 360 Mn.)

Secured Term Loans from Others of Rs 35.326 Mn. from Maruti Udyog Limited is repayable in 48 to 84 monthly equated instalments with interest. The loan is secured by hypothecation of specific vehicles purchased out of the loan. Present Outstanding as on 31st March, 2012 is Rs 5.277 Mn. (Previous year - Rs 10.296 Mn.)

Unsecured Term Loans from Others of Rs 150 Mn. from Bajaj Finance Limited is repayable in 37 monthly equated instalments of Rs 4.875 Mn. with interest. The loan is against Demand Promissory Note and Post dated cheques for the loan amount. Present Outstanding as on 31st March, 2012 is Rs 84.671 Mn. (Previous year - Rs 131.246 Mn.)

Interest for the above Term loans range between 12% to 14.75% per annum.

Working Capital Facilities from Andhra Bank, State Bank of India, Indian Overseas Bank, ICICI Bank Limited, Indian Bank, Canara Bank, The Bank of Nova Scotia and IDBI Bank Limited, are secured by pari-passu first charge on stock of raw materials, finished goods, consumable stores & spares, work-in-progress and book debts of the company.

Working Capital Facilities from Andhra Bank, State Bank of India, Indian Overseas Bank and ICICI Bank Limited are further secured by pari-passu second charge on the specific immovable properties situated at Plant I - Perianaickenpalayam, Coimbatore District, Udhagamandalam, Nilgiris District, Tamilnadu.

Working Capital Facilities from The Bank of Nova Scotia and IDBI Bank Limited are further secured by pari-passu second charge on the immovable properties situated at Plant III - Billichi Village, Coimbatore District, Tamilnadu.

Working Capital Facilities from Canara Bank is further secured by pari-passu second charge on the immovable properties situated at Plant II, IMT Manesar, Gurgaon, Haryana.

Working Capital Facilities from Banks are repayable on demand and carries interest rates varying from 12.75% to 14.00% per annum. Packing Credit in Foreign Currency is repayable on demand and carries interest LIBOR plus 200 to 350 bps.

1.1. CONTINGENT LIABILITIES AND COMMITMENTS AS ON THE CLOSING DATE :

As at As at 31-3-2012 31-3-2011

CONTINGENT LIABILITIES Rs Million Rs Million

Sales Tax Matters 33.313 33.313

Excise Matters 168.631 139.331

Corporate Guarantee to Subsidiaries 355.398 138.415

Letter of Credit 240.456 166.708

797.798 477.767

COMMITMENTS

Estimated Value of contracts remaining to be executed on Capital account 23.622 6.550

1.2. Power & Utilities is net of Wind Power of Rs 8.137 Million (Previous year - Rs 6.601 Million) representing units supplied to the grid against which equivalent consumption was made inhouse.

Note : Research and Development expenses of Revenue nature have been classified under the relevant heads of accounts in the Statement of Profit and Loss and the expenditure of Capital nature is grouped under fixed assets.

1.3. Balances in parties accounts are subject to confirmation / reconciliation. Appropriate adjustments, if any, will be made as and when the balances are reconciled.

1.4. In view of the considerable number of items diverse in composition, size and nature, it is not practicable to furnish particulars of materials consumed.

1.5. INTEREST IN JOINT VENTURE:

The Company had, during the year, entered into an agreement by which the company is a party to a Joint Venture in Pricol Pune Private Limited (formerly Pricol Pune Limited). The Company has invested Rs 50 Million in 5,000,000 Equity Shares of Rs 10/- each which is equivalent to an ownership interest of 50% as on 31st March, 2012.

1.6. a) Particulars regarding defined benefit plan :-

The Company operates a defined benefit plan for payment of post employment benefits in the form of Gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided in the Payment of Gratuity Act, 1972. The terms of the benefits are common for all the employees of the company.

b) Contribution of Rs 48.209 Mn. (Previous year - Rs 37.600 Mn.) made to defined contribution plans were charged to Statement of Profit and Loss.


Mar 31, 2010

1. Secured Loans:

a) External Commercial Borrowings from Standard Chartered Bank is secured by an exclusive charge on the specific movable properties of the company.

b) Rupee Term Loan from Indian Overseas Bank is secured by an exclusive charge on the specific movable and immovable properties of the company.

c) Corporate Loan from Indian Bank is secured by an exclusive charge on the specific movable and immovable properties of the company.

d) Rupee Term Loan from Canara Bank is secured by an exclusive charge on the specific movable and immovable properties of the company.

e) Corporate Loan from Andhra Bank and Corporate Loan - II from State Bank of India is secured by pari-passu first charge on the specific immovable properties of the company.

f) Corporate Loan from Andhra Bank is further secured by an exclusive charge on the specific immovable property of the company.

g) Cash Credit Facilities from banks and the Corporate Loan - I from State Bank of India are secured by way of hypothecation of stock of raw materials, finished goods, consumable stores & spares, work-in-progress and book debts of the company.

h) Cash Credit Facilities from Andhra Bank, State Bank of India, ICICI Bank Limited, Indian Overseas Bank and Corporate Loan - I from State Bank of India are further secured by pari- passu second charge on the specific immovable properties of the company.

i) Cash Credit Facilities from Canara Bank is further secured by pari-passu second charge on the specific immovable property of the company.

j) Cash Credit Facilities from IDBI Bank Limited and The Bank of Nova Scotia are further secured by a pari-passu second charge on the specific immovable property of the company.

k) Cash Credit Facilities from Indian Bank is further secured by pari-passu second charge on the specific immovable property of the company.

l) Secured loans from others are secured by hypothecation of specific vehicles purchased out of the loan.

2. Estimated value of contracts remaining to be executed on capital accounts is Rs.9.784 million.

3. Loans & Advances includes security deposit for leasehold land amounting to Rs.10.302 million.

4. Stores and spares consumed is net of realisation of sale of stores materials of Rs.0.059 million (Previous year - Rs.0.098 million).

5. Provision for Taxation includes Wealth Tax.

6. Income tax assessments are completed upto Assessment Year 2007-08.

7. Previous years figures have been regrouped wherever necessary to conform to the current years classification.

8. Figures have been rounded off to the nearest thousand.

9. Net sales and service charges includes sale of Wind Power of Rs.8.051 million (Previous year - Rs.6.750 million) representing units supplied to the grid against which equivalent consumption was made inhouse.

10. Contingent Liabilities as on the closing date are as follows : Rs. Million As at As at 31-03-2010 31-03-2009

Sales Tax Matters 33.313 37.906

Excise Matters 46.312 47.401

Bill Discounting Facilities from Banks -- 124.600

Corporate Guarantee to Foreign Subsidiary 139.934 208.895

Other Claims against the company not acknowledged as debts 14.100 42.026

Total 233.659 460.828

11. Debtors include an amount of Rs.425.058 Mn. (Previous year - Rs.503.742 Mn.) outstanding for more than six months from a company in which the Chairman & Managing Director has substantial interest. The Board has taken adequate steps to ensure planned recovery of moneys due.

12. Fixed deposits with banks includes Deposits of Rs.68 Million under lien with banks for Facilities extended to wholly owned subsidiaries.

13. a) Particulars regarding defined benefit plan :-

The company operates a defined benefit plan for payment of post employment benefits in the form of Gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided in the Payment of Gratuity Act, 1972. The terms of the benefits are common for all the employees of the company.

14. Balances in parties accounts are subject to confirmation / reconciliation. Appropriate adjustments, if any, will be made as and when the balances are reconciled.

 
Subscribe now to get personal finance updates in your inbox!