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

Notes to Accounts of WPIL Ltd.

Mar 31, 2018

1. Corporate information

WPIL Limited (‘the Company’) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company’s registered office is at Trinity Plaza, 3rd Floor, 84/1A, Topsia Road (South) Kolkata - 700046. Its shares are listed on the Bombay Stock Exchange Limited and the Calcutta Stock Exchange Limited in India.

The Company is principally engaged in designing, developing, manufacturing, erecting, commissioning and servicing of pumps & pumping systems. The Company caters to both domestic and international markets.

2. Basis of preparation and compliance with Ind AS

For all periods upto and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, as amended (Previous GAAP), to the extent applicable, and the presentation requirements of the Companies Act, 2013.

In accordance with the notification dated February 16, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (Ind AS) notified under Section 133 read with Rule 4A of Companies (Indian Accounting Standards) Rules, 2015, as amended, and the relevant provisions of the Companies Act, 2013 (collectively, “Ind AS”) with effect from April 1, 2017 and the Company is required to prepare its financial statements in accordance with Ind AS for the year ended 31st March, 2018. These financial statements for the year ended 31st March, 2018 (the “Ind AS Financial Statements”) are the first financial statements, the Company has prepared in accordance with Ind AS.

The Company has followed the provisions of Ind AS 101-”First Time adoption of Indian Accounting Standards” (Ind AS 101), in preparing its opening Ind AS Balance Sheet as of the date of transition, i.e. April 1, 2016. In accordance with Ind AS 101, the Company has presented reconciliations of Shareholders’ equity under Previous GAAP and Ind AS as at 31st March, 2017, and April 1, 2016 and of the profit after tax as per Previous GAAP and total comprehensive income under Ind AS for the year ended 31st March, 2017.

The financial statements have been prepared on a historical cost convention on accrual basis except for certain financial instruments which are measured in terms of relevant Ind AS at fair value / amortised costs at the end of each reporting period.

These Ind AS financial statements were approved for issue by the Board of Directors on May 30, 2018.

Notes :

(a) Includes Rs. 294.35 lacs (31st March, 2017 : 300.74 lacs, 1st April, 2016: Rs. 307.14 lacs) which are still in the name of merged company (Refer Note 51) and yet to be transferred in the Company’s name.

(b) Includes Rs. 143.83 lacs (31st March, 2017: Rs . 127.02 lacs, 1st April, 2016: Rs. 66.59 lacs) acquired for Research and Development purpose.

(c) Refer Note 20 for information on property, plant and equipment pledged as security by the Company,

(d) For property, plant and equipment existing as at April 1, 2016, i.e date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost as permitted by Ind AS 101 - First Time Adoption. Accordingly, the net block as per Indian GAAP as on April 1, 2016 has been considered as Gross Block under Ind AS. Ihe accumulated depreciation so netted off as on April 1, 2016 is mentioned below :

(e) For Intangible Assets existing as at 1st April , 2016, i.e date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost as permitted by Ind AS 101 - First Time Adoption. Accordingly, the net block as per Indian GAAP as on April 1, 2016 has been considered as Gross Block under Ind AS. The accumulated amortisation so netted off as on 1st April , 2016 is mentioned below :

(c) There has been no change in the number of equity shares in the current year and comparative previous years.

(d) Terms and Rights attached to Equity Shares

The Company has issued Equity Shares having a face value of Rs. 10 each. 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 is subject to the approval of the shareholders at the ensuing Annual General Meeting and is accounted for in the year in which it is approved by the Shareholders in the General Meeting.

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

The Board of Directors, in its meeting on 30th May, 2018, have proposed a final dividend of Rs. 4/- per equity share for the financial year ended 31st March, 2018. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in a cash outflow of Rs. 470.99 lacs including corporate dividend tax. Proposed dividend is accounted for in the year in which it is approved by the shareholders.

1. Cash credit from banks are secured by first charge by way of hypothecation of stocks, consumable stores, book debts and other movables and first mortgage / charge over the Company’s present and future fixed assets. These are repayable on demand and carries interest in the range of 9.30% to 12.65% (31st March, 2017: 10.40% to 12.70%, 1st April, 2016: 11.65% to 12.75%).

2. Short term loans from Banks are repayable within 30 days and carries interest at the rate of Nil (31st March, 2017: 10.10%, 1st April, 2016: 11.10%).

3. Short term loans from Body Corporates are repayable on demand and carries interest at the rate of Nil (31st March, 2017: Nil, 1st April, 2016: 15%).

Provision for Warranties

As per the requirement of IND AS 37, the management has estimated future expenses with regard to warranty given by the Company on best judgment basis and provision thereof has been made in the accounts. The table below gives information about movement in warranty provisions.

3 Significant accounting judgements, estimates and assumptions

The key assumptions concerning the future and other key sources of estimation 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. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Employee benefit plans

The cost of defined benefit gratuity plan and its present value of the obligation are determined using actuarial valuations. 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, an employee benefit obligation is highly sensitive to changes in these assumptions particularly the discount rate and estimate of future salary increase. 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.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 36.

Warranty

Warranty costs are accrued at the time the products are sold. The Company estimates the provision for warranty based on past trend of actual sale of pumps. As at March 31, 2018, the estimated liability towards warranty amounted to approximately Rs. 138.47 lacs (March 31, 2017: Rs. 115.56 lacs, April 1, 2016: Rs. 127.49 lacs.)

The provision towards warranty is not discounted as the management, based on past trend, expects to use the provision within twelve months after the Balance Sheet date.

Estimation of expected useful lives and residual values of property, plant and equipment

Property, plant and equipment are depreciated at historical cost using straight-line method based on the estimated useful life, taken into account at residual value. The asset’s residual value and useful life are based on the Company’s best estimates and reviewed and adjusted if required, at each Balance Sheet date

Revenue from Construction Contracts

Contract Revenue is recognised under ‘percentage of completion method’. When the outcome of a construction contract can be estimated reliably contract revenue and contract costs associated with the construction contracts are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity. For further details, Refer note 50.

Provision for Expected Credit Losses

The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry practices and the business environment in which the Company operates. For further details Refer Note 44.

4 Gratuity and other post-employment benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on terms not less favourable than the provisions of The payment of Gratuity Act, 1972. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following table summarises the components of net benefit expenses recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the post retirement benefit plans.

5 Capital and other commitments

Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of Advances) Rs. 514.35 lacs (31st March, 2017: Nil, and 1st April, 2016: Nil).

6 Research and Development Expenses

Research and Development Expenses relating to material consumption aggregating to Rs. 8.17 lacs (31st March, 2017: Rs. 25.12 lacs), relating to other revenue nature aggregating to Rs. 110.83 lacs (31st March, 2017: Rs 131.03 lacs) have been charged to respective heads of accounts in the Statement of Profit and Loss, and relating to capital nature aggregating to Rs. 44.25 lacs (31st March, 2017: Rs, 80.05 lacs) under different heads in Tangible and Intangible assets in the Balance Sheet.

7 Related Party Transactions :

Related Party disclosures as required under Ind AS 24 on “Related Party Disclosures” as certified by the management, are given below :

A. Relationship :

(i) Associate - Clyde Pump India Private Limited (Clyde)

(ii) Joint Venture - WPIL (Thailand) Company Ltd. (WPIL-Thy.)

(iii) Subsidiaries - Sterling Pumps Pty Limited - Australia (Sterling)

- Aturia International Pte Ltd. - Singapore (Aturia International.)

(Formerly : WPIL - Singapore)

(iv) Stepdown Subsidiaries - Mathers Foundry Limited, U.K. (Mathers)

- WPIL SA Holdings Pty Limited

- APE Pumps Pty Limited (APE Pumps)

- Mather & Platt (SA) Pty Limited

- PSV Zambia Limited (Zambia)

- Global Pumps Services (FZE)

- Gruppo Aturia SpA (Aturia)

- Rutschi Fluid AG

- Pompes Rutschi SAS

(v) Key Management Personnel - Mr. P. Agarwal : Managing Director and their relatives - Mr. V. N. Agarwal : Non Executive Director, Father of Mr. P. Agarwal

- Mrs. Ritu Agarwal : Non Executive Director, Wife of Mr. P. Agarwal

- Mr. K. K. Ganeriwala : Executive Director

- Mr. U. Chakrabarty : General Manager (Finance) and Company Secretary

- Mr Anajan Dasgupta : Non Executive Independent Director (Appointed with effect from 3rd February 2018)

- Mr Binaya kapoor : Non Executive Director (Ceased with effect from 13th December, 2017)

- Mr S.N. Roy : Non Executive Independent Director

- Mr U.K. Mukhopadhyay : Non Executive Independent Director

(vi) Enterprise over which KMP/ - Bengal Steel Industries Limited (Bengal Steel) shareholders/ relatives have - Hindusthan Udyog Limited (HUL) significant influence - Macneill Electricals Limited (MEL)

- Neptune Exports Limited (Neptune)

- Orient International Ltd. (Orient)

- Hindusthan Parsons Ltd. (HPL)

- Tea Time Ltd. (Tea Time)

7 Financial risk management objectives and policies

The company’s financial liabilities comprise loans and borrowings, trade and other payables etc. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s financial assets include trade and other receivables, cash and cash equivalents, that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company has a risk management policy, and its management is supported by a Risk management committee. The Risk management committee provides assurance to the company’s management that the company’s risk activities are governed by appropriate policies and procedures and that the financial risks are identified, measured and managed in accordance with company’s policies and risk objectives. The Board of Directors review and agrees policies for managing each of these risks which are summarised below :

Market risks :

Market risk is the risk that the fair value of future cash flow of a future instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks, currency risk, interest rate risk and other prise risk such as commodity price risk and equity price risk. Financial instrument affected by market risk include trade payables, trade receivables, borrowings etc.

Interest rate risk :

The Company’s exposure to the risk of changes in market interest rates relate primarily to the company’s debt.

Interest rate sensitivity :

The following table demonstrates the sensitivity to a reasonable possible change in interest rates. With all other variables held constant, the Company’s profit before tax is affected through the impact of floating rate as follows :

Credit risk:

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or a customer contract leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade receivables :

Customers’ credit risk is managed by the respective department subject to company’s established policy, procedure and control relating to customer credit risk management. Credit quality of a customer is assessed based on individual credit limits as defined by the Company. Outstanding customers’ receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis. The calculation is based on historical data of credit losses.

The ageing analysis of receivables (gross of provisions) has been considered from the date the invoice falls due.

Liquidity risk :

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation or at a reasonable price. The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are monitored by company’s senior management. Management monitors the company’s net liquidity position through rolling forecast on the basis of company’s expected cash flow.

The company’s objective is to maintain a balance between the continuity of funding and flexibility through the use of cash credit, bank loans amongst others.

8 Capital management

For the purpose of Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to equity holders. The primary objective of the company’s capital management is to maximise the shareholder value and keep the debt equity ratio within acceptable range.

The company manages its capital structure and makes adjustment in the light of changes in economic conditions and the requirement of financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares.

9 Standard issued but not yet effective

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following new and amendments to Ind ASs which the Company has not applied as they are effective for annual periods beginning on or after April 1, 2018:

Ind AS 115 - Revenue from Contracts with Customers

The Company is currently evaluating the impact of implementation of Ind AS 115 “Revenue from Contracts with Customers” which is applicable to it w.e.f 01.04.2018. However, based on the evaluation done so far and based on the arrangement that the Company has with its customers for sale of its products and revenue from construction contracts, the implementation of Ind AS 115 will not have any significant impact on the profit or loss of the Company.

Ind AS 21 - The Effect of Changes in Foreign Exchange Rates

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The company is evaluating the impact of this amendment on its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after 1st April, 2018. These amendments are not expected to have any impact on the Company as the Company has no deductible temporary differences or assets that are in the scope of the amendments.

Ind AS 28 - Investments in Associates and Joint ventures

Clarification that measuring investees at fair value through profit or loss is an investment-by-investment choice :

i) An entity that is a venture capital organisation, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss.

ii) If an entity, that is not itself an investment entity, has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which: (a) the investment entity associate or joint venture is initially recognised; (b) the associate or joint venture becomes an investment entity; and

(c) the investment entity associate or joint venture first becomes a parent.

The amendments should be applied retrospectively and are effective from 1st April, 2018. These amendments are not applicable to the Company.

Amendments to Ind AS 112 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in Ind AS 112

The amendments clarify that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale. These amendments are not applicable to the Company.

Amendments to Ind AS 40 Investment Property are not applicable to the Company.

10 Categorization of Financial Instruments:

The fair value of the financial assets (excluding investments in subsidiaries and associate) and liabilities approximates their carrying amounts as at the Balance Sheet date.

The obligations on long-term, non-cancellable operating leases payable as per the rentals stated in the respective agreements are as follows:

The operating lease arrangements are renewable on a periodic basis. The period of extension depends on mutual agreement. These lease agreements have price escalation clauses.

11 Disclosure as required by Ind AS 108, Operating Segments

As the Company’s business activity falls within a single operating segment, comprising of engineering, manufacturing, installation and servicing of pumps of various sizes, no separate segment information is disclosed.

The revenue information above is based on the locations of the customers. The operating facilities of the Company are situated in India and are common for production of both domestic and export market.

12 In July, 2017, the National Company Law Tribunal had sanctioned the Scheme of amalgamation of the wholly owned subsidiary namely Mody Industries (Foreign Collaboration) Private Limited with WPIL Limited pursuant to the provisions of Sections 391 to 394 and other applicable provisions of the Companies Act, 1956 and the Companies Act, 2013. The certified true copy of the said order was received and filed with the Registrar of Companies, West Bengal on 8th July, 2017, thus making the Scheme effective from that date. Since, the appointed date of the Scheme was 1st April, 2016, the effect of amalgamation has been considered in the books retrospectively.

13 The comparative financial information of the Company for the year ended 31st March, 2017 and 1st April, 2016 included in these standalone Ind AS financial statements, are based on previously issued standalone financial statements prepared in accordance with the Previous GAAP and audited by the predecessor auditor as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS and audited by the Statutory auditors of the Company.

14 FIRST TIME ADOPTION OF IND AS

These financial statements, for the year ended 31st March, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for period ending on 31st March, 2018, together with the comparative period data as at and for the year ended 31 March, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1st April, 2016, the Company’s date of transition to Ind AS. The reconciliation of Total Equity as at 31st March, 2017 and 1st April, 2016 and Net Profit after Tax for the year ended 31st March, 2017 between previous GAAP and Ind AS is as under:

(III) Footnotes to the reconciliation of Total Equity as at 31st March, 2017 and 1st April, 2016 and Net Profit after tax for the year ended 31st March, 2017

a) Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognised as a liability in the period to which they relate, irrespective of when they are approved by the shareholders. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability recorded for dividend has been derecognised against retained earnings on 1st April, 2016 and recognised in year ended 31st March, 2017. The proposed dividend for the year ended on 31st March, 2017, recognized under Indian GAAP was reduced from other payables and with a corresponding impact in the retained earnings.

b) Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

Further, the various transitional adjustments arising on adoption of IND-AS also create temporary differences, deferred tax adjustments whereon are also recognised in Retained earnings, Statement of Profit and Loss or OCI along with the corresponding item of adjustment.

c) Impact of Merger of wholly owned Subsidiary - Common Control business combination

As mentioned in note 51, in July, 2017, the National Company Law Tribunal had sanctioned the Scheme of amalgamation of the wholly owned subsidiary namely Mody Industries (Foreign Collaboration) Private Limited (Mody) with WPIL Limited pursuant to the provisions of Sections 391 to 394 and other applicable provisions of the Companies Act, 1956 and the Companies Act, 2013. The certified true copy of the said order was received and filed with the Registrar of Companies, West Bengal on 8th July, 2017, thus making the Scheme effective from that date. Since, the appointed date of the Scheme was 1st April, 2016, the effect of amalgamation has been considered in the books retrospectively w.e.f 1st April, 2016. Accordingly, all assets and liabilities including goodwill were recognised in accordance with Ind AS 103 based on the principles of common control business combinations.

d) Trade receivables

The Company is required to apply expected credit loss model as per Ind AS 109, for recognising the loss allowance. As a result, the loss allowance on trade receivables increased by Rs. 57.45 lacs as at 31st March, 2017 (1st April, 2016: Rs. 86.80 lacs). Consequently, the total equity as at 31st March, 2017 decreased by Rs. 144.25 lacs (1st April, 2016: Rs. 86.80 lacs).

e) Gratuity expense

As per the requirements of Ind AS 19, the Company has provided for gratuity expense. As a result, the provision for employee benefits increased by Rs. 14.14 lacs (1st April, 2016: Rs. 290.42 lacs). Consequently, the total equity as at 31st March, 2017 decreased by Rs. 304.56 lacs (1st April, 2016: Rs. 290.42 lacs).

f) Other comprehensive income

IND-AS requires preparation of Other Comprehensive Income in addition to Statement of Profit and Loss.

g) IND-AS 101 Exemption applied

The Company has adopted following exemptions from retrospective application of certain requirements under IND-AS, as allowed by IND-AS 101 - First-time Adoption of Indian Accounting Standards:

(i) The Company has opted not to apply IND-AS 103 - Business Combinations, to acquisitions occurred before 1st April 2016 i.e. date of transition.

(ii) Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its property, plant and equipment as recognised in its Indian GAAP financial as deemed cost at the transition date. This exemption is also available for intangible assets covered by Ind AS 38 Intangible Assets.

(iii) The estimates at 1st April, 2016 and at 31st March, 2017 are consistent with those made for the same dates in accordance with Previous GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Previous GAAP did not require estimation:

- Impairment of financial assets based on expected credit loss model

(iv) Ind AS 101 allows a first-time adopter to elect to continue with the carrying amount of its investments in subsidiaries and joint ventures as recognised in the separate financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure all of its investments in subsidiaries and joint ventures as recognised in the separate financial statements at their previous GAAP carrying value.

(v) In respect of its interest in joint operations, Ind AS 101 allows an entity to de-recognise the investment that was previously accounted for at cost, and recognise the assets and the liabilities in respect of its interest in the joint operation. Accordingly, the Company has elected to de-recognise the investments in joint operations recognised under previous GAAP and recognise share of each of the assets and the liabilities in respect of its interest in the joint operations as at the date of transition.

15 The Board of Directors of the Company at its meeting held on July 14, 2017 have approved a proposal for acquisition of an Alloy and Stainless Steel Castings Foundry unit in Nagpur from Hindusthan Udyog Limited as slump sale on a going concern basis. Pending necessary approvals and formalities for the acquisition, no adjustment has been made in the financials.

16 The Company has identified that its only reportable segment and Cash generating unit (CGU) is “Pump and pump accessories”. The carrying amount of goodwill as at 31st March, 2018 is Rs. 1,372.93 lacs. Before the year end, the management has tested the goodwill for impairment. In this regard, discounting factor of 8% has been considered. The management has also performed sensitivity analysis around the base assumptions and have concluded that no reasonable changes in key assumptions would cause the recoverable amount of the CGU to be less than the carrying value.


Mar 31, 2016

Cost of Product Warranties including provisions are included under the head “Miscellaneous Expenses”, which includes cost of raw materials and components for free replacement of spares and other overheads.

(c) The Company has issued Ordinary Shares having a face value of Rs 10/- each. Each holder of Ordinary Shares is entitled to one vote per share. The Company declares dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

(d) In the event of liquidation of the Company, the holders of Ordinary Shares will be entitled to receive any of the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in the proportion to the number of Ordinary Shares held by the shareholders.

d) Accrued liability on account of Gratuity payable to the employees of the Company on retirement at future dates as per actuarial valuation as at 31st March, 2016 amounts to Rs. 2,99,61,705/- ( 2015 - Rs. 2,78,45,752/- ). A total sum of Rs. 5,67,69,560/- (NIL amount during the current year) has been charged in the Financial Statements and paid to LICI by way of premium under Group Gratuity Scheme for its employees to cover current as well as past liability.

e) Warranty costs are accrued at the time the products are sold. Based on past experience, the provision is discharged over the contractual warranty period from the date of sale. During the year, Rs. 1,04,19,521/- have been incurred against earlier provisions and Rs. 1,12,00,000/- have been provided.

f) Research and Development Expenses

Research and Development Expenses relating to revenue nature aggregating to Rs. 100.66 lacs (2015 - Rs. 71.03 lacs) have been charged to respective heads of accounts in the Statement of Profit and Loss and relating to capital nature aggregating to Rs. 60.02 lacs (2015 - Rs. 10.75 lacs) under different heads in Fixed Assets in the Balance Sheet.

k) Disclosure pertaining to Corporate Social Responsibility expenditures as per section 135 of the Companies Act, 2013:

- Gross amount required to be spent by the Company during the year : Rs 48,23,453/

- Amount spent by the Company : Rs. 5,00,000/-

Notes :

- The Company is primarily engaged in the business of design, development, manufacture, marketing, installation and servicing of vertical and horizontal pumps of various sizes required for lift irrigation / major irrigation schemes, thermal / nuclear power plants etc., and accordingly there are no business segment. The primary segment is geographical based on location of customer, i.e domestic and export sales.

- The segment wise revenue and assets figures relate to amounts directly identifiable to each of the segments. The operating facilities of the Company are situated in India and are common for production of both domestic and export market.

s) Previous year''s figures have been rearranged / regrouped wherever found necessary.


Mar 31, 2014

Not Available


Mar 31, 2013

A) Accrued liability on account of Gratuity payable to the employees of the Company on retirement at future dates as per actuarial valuation as at 31st March, 2013 amounts to Rs. 2,30,97,562/- (2012 – Rs. 2,19,47,713/-). A total sum of Rs. 5,13,38,560/- (including Rs. 34,32,000/- during the current year) has been charged in the Financial Statements and paid to LICI by way of premium under Group Gratuity Scheme for its employees to cover current as well as past liability.

b) Warranty costs are accrued at the time the products are sold. Based on past experience, the provision is discharged over the contractual warranty period from the date of sale. During the year, Rs. 1,18,16,421/- have been incurred against earlier provisions, and Rs. 91,25,000/- have been provided.

c) Research and Development Expenses

Research and Deveopement Expenses relating to revenue nature aggregating to Rs. 74.32 lacs (2012 - Rs. 66.97 lacs) have been charged to respective heads of accounts in the Statement of Profit and Loss, and relating to capital nature aggregating to Rs. 3.78 lacs (2012 - Rs. Nil) have been capitalised under different heads in Fixed Assets in the Balance Sheet.

d) Disclosure on Joint Venture Entity :

a) Details of Joint Venture :

– Name of Joint Venture Entity : Clyde Pump India Private Limited

– Country of Incorporation : India

– Proportion of Ownership Interest : 40%

e) Related Party Transactions :

Related party disclosures as required under Accounting Standard - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, as certified by the management, are given below :

A. Relationship

i) Joint Venture – Clyde Pump India Private Limited (Clyde)

ii) Subsidiaries – Sterling Pumps Pty Limited - Australia (Sterling)

– WPIL International Ltd. - Singapore (WPIL-Sing.) – Mody Industries (F.C.) Private Limited (Mody)

iii) Stepdown Subsidiaries – Mathers Foundry Limited, Manchester, U.K. (Mathers)

– WPIL SA Holding Pty Limited

– APE Pumps Pty Limited

– Mather & Platt (SA) Pty Limited

– PSV Services Pty Limited

– PSV Properties 2 Pty Limited

– PSV Zambia Limited (Zambia)

– Global Pumps Services (FZE)

iv) Key Management Personnel and their relatives

– Mr. P. Agarwal : Managing Director

– Mr. V. N. Agarwal : Director, Father of Mr. P. Agarwal

– Mr. K. K. Ganeriwala : Executive Director

v) Companies over which key management personnel or relatives are able to exercise control/significant influence control/significant influence

– Bengal Steel Industries Limited (Bengal Steel)

– Hindusthan Udyog Limited (HUL)

– WPIL (Thailand) Company Ltd. (WPIL-Thy.)


Mar 31, 2012

Cost of Product Warranties including provisions are included under the head "Miscellaneous Expenses", which includes cost of raw materials and components for free replacement of spares, and other overheads.

(a) The Company has issued ordinary shares having a face value of Rs 10/- each. Each holder of ordinary share is entitled to one vote per share. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

(b) In the event of liquidation of the company, the holder of ordinary shares will be entitled to receive any of the remaining assets of the company after distribution of all preferential amounts. The distribution will be in the proportion to the number of ordinary shares held by the shareholders.

Note A - "Others" represent Term Loan comprising of two loans amounting to Rs. 15 crores each, repayable as under :

i) Term Loan of Rs. 15 crores repayable in three equal installments of Rs. 5 crores each on 20.10.2013, 20.10.2014 and 20.10.2015.

ii) Term Loan of Rs. 15 crores repayable in two equal installments of Rs. 7.50 crores each on 20.06.2013 and 20.09.2013.

5 DEFERRED TAX LIABILITIES (Net)

In compliance with the Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has adjusted the Deferred Tax Liability (net) of Rs. 45.59,217/- for the year has been recognized in the Profit and Loss Account. The Deferred Tax Liability (net) comprises of:

As required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 and to the extent such parties are identified on the basis of information available with the Company, there are no Micro enterprises or Small Scale enterprises to whom the Company owes any due which are outstanding as at 31st March, 2012; (2011 - Rs Nil).

c) Accrued liability on account of Gratuity payable to the employees of the Company on retirement at future dates as per actuarial valuation as at 31st March, 2012 amounts to Rs. 2,19,47,713/- ( 2011 - Rs. 2.15,05,000/- ). A total sum of Rs. 4,79,06,560/- (including Rs. 35.00,000/- during the current year) has been charged in the Financial Statements and paid to LICI by way of premium under Group Gratuity Scheme for its employees to cover current as well as past liability.

d) Warranty costs are accrued at the time the products are sold. Based on past experience, the provision is discharged over the contractual warranty period from the date of sale. During the year, Rs. 72.50.892/- have been adjusted against the earlier provisions and Rs. 89,25,000/- have been provided afresh.

e) Research and Development Expenses

Research and Development Expenses relating to revenue nature aggregating to Rs. 66.97 lacs (2011- Rs. 59.80 lacs) have been charged to respective heads of accounts in the Statement of Profit and Loss, and relating to capital nature aggregating to Rs. Nil (2011- Rs. 28.17 lacs) have been debited to different heads in Fixed Assets in the Balance Sheet.

f) Segment Reporting :

The Company is engaged in the business of design, development, manufacture, marketing, installation and servicing of vertical and horizontal pumps of various sizes required for lift irrigation/major irrigation schemes, thermal/nuclear power plants etc. and accordingly there is no business segment. The provisions of reporting of geographical segments based on location of customers, i.e. domestic and export as per Accounting Standard 17 does not apply, and hence not reported here.

Previous year's figures have been rearranged/regrouped wherever found necessary.-


Mar 31, 2011

1. Contingent liabilities not provided for in the Accounts in respect of the following :

i) Sales Tax matters under dispute 1,85,41,301 6,75,70,262

ii) Excise Duty matters under dispute 1,85,700 1,85,700

iii) Bank Guarantee outstanding 41,77,91,130 29,64,38,369

2. Land and Buildings were revalued in 1980 and Plant & Machinery were revalued in 1984 and the surplus on revaluation was transferred to Revaluation Reserve Account. Depreciation for the year ended 31st March, 2011 on the amounts added on revaluation amounting to Rs. 2,22,598/- (2010 - Rs. 2,23,979/-) has been credited to the Profit and Loss Account by transfer from Revaluation Reserve Account.

3. There are no Micro enterprises or Small Scale enterprises to whom the Company owes any due which are outstanding as at 31st March, 2011 (2010 - Rs. Nil).

The above information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties are identified on the basis of information available with the Company.

4. Accrued liability on account of Gratuity payable to the employees of the Company on retirement at future dates as per actuarial valuation as at 31st March, 2011 amounts to Rs. 2,15,05,000/- (2010 - Rs. 2,13,07,000/-). A total sum of Rs. 4,48,06,560/- (including Rs. 76,57,000/- during the current year) has been charged in the accounts and paid to LICI by way of premium under Group Gratuity Scheme for its employees to cover current as well as past liability.

5. Warranty costs are accrued at the time the products are sold. Based on past experience, the provision is discharged over the contractual warranty period from the date of sale.

6. Revenue Expenses aggregating to Rs.59.80 lacs (2010 - Rs. 46.26 lacs) incurred on Research & Development activities have been charged to respective heads of accounts in the Profit and Loss Account.

7. Figures for the previous year have been rearranged/regrouped wherever found necessary.


Mar 31, 2010

Year ended Year ended 31st March, 2010 31st March. 2009 Rs. Rs. 1. Contingent liabilities not provided for in the Accounts in respect of the following : i) Sales Tax matters under dispute 6,75,70,262 7.25,35.982 ii) Excise Duty matters under dispute 1,85,700 19.93,402 iii) Bank Guarantee outstanding 29,64,38,369 20,02,11.561

2. Land and Buildings were revalued in 1980 and Plant & Machinery were revalued in 1984 and the surplus on revaluation was transferred to Revaluation Reserve Account. Depreciation for the year ended 31st March, 2010 on the amounts added on revaluation amounting to Rs. 2.23,979/- (2009 - Rs. 2,25,532/-) has been credited to the Profit and Loss Account by transfer from Revaluation Reserve Account.

3. There are no Micro enterprises or Small Scale enterprises to whom the Company owes any due which are outstanding as at 31st March, 2010 (2009 - Rs. Nil).

The above information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties are identified on the basis of information available with the Company.

4. Accrued liability on account of Gratuity payable to the employees of the Company on retirement at future dates as per actuarial valuation as at 31st March, 2010 amounts to Rs. 2,13,07,000/- (2009 - Rs. 2,00,01,000/-). A total sum of Rs. 3,71.49,560/- (including Rs. 41,72,000/- during the current year) has been charged in the accounts and paid to LICI by way of premium under Group Gratuity Scheme for its employees to cover current as well as past liability.

5. Warranty costs are accrued at the time the products are sold, based on past experience. The provision is discharged over the contractual warranty period from the date of sale.

6. Revenue Expenses aggregating to Rs. 46.26 lacs (2009-Rs. 42.32 lacs) incurred on Research & Development activities have been chargedto respective heads of accounts in the Profit and Loss Account.

7. Related Party Transactions :

Related party disclosures as required under Accounting Standard - 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, as certified by the management, are given below :

A. Relationship

i) Associates - Hindusthan Udyog Ltd. - Clyde Pumps India Private Limited ii) Key Management Personnel - Mr. P. Agarwal : Managing Director and their relatives - Mr. V. N. Agarwal : Director; Father of Mr. P. Agarwal - Mr. K. K. Ganeriwal : Executive Director

iii) Companies over which key management personnel or their relatives are able to exercise control/significant influence : -Bengal Steel Industries Ltd.

8. Figures for the previous year have been rearranged/regrouped wherever necessary.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X