Mar 31, 2018
1. CORPORATE AND GENERAL INFORMATION : Pee Cee Cosma Sope Limited ("the Company") is domiciled and incorporated in India and its equity shares are listed at Bombay Stock Exchange(BSE). The registered office of Company is Situated at Padam Deep, G-10/8, Sanjay Place, Agra-282002. The Company is engaged in the business of Manufacturing of Laundry Soap, Detergent Powder and Cake operating in State of Uttar Pradesh, Rajasthan and Madhya Pradesh. The financial statements of the company for the year ended 31st March 2018 were approved and authorized for issue by board of directors in their meeting held on 26th Day of May, 2018
2. STATEMENT OF COMPLIANCE : The financial statements are a general purpose financial statement which have been prepared in accordance with the Companies Act 2013, Indian Accounting Standards and complies with other requirements under para 3 of Ind AS 101.
Footnotes to reconciliation of Equity & Total Comprehensive Income for the Year
1 Property, Plant & Equipments (PPE) : The Company availed the exemption available under IND AS 101 to continue the carrying value for all its Property, Plant& Equipment and intangibles as recognised in the financial statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition (01.04.2016)
2 Defined Benefit Plan : The Acturial gain/losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in the net interest on the net defined benefit liability are recognised in balance sheet through other comprehensive income. Thus employee benefit expenses are increased by Rs. 3.25 Lacs and recognised in other comprehensive income gross of tax for the year ended March 31,2017
3 Sale of Goods : Under IGAAP, excise duty was reduced from Gross Sales. Under Ind AS, excise duty is not reduced from Gross but shown as an expense in the statement of profit and loss, due to which sale of goods has increased by Rs 932.00 Lakhs with a corresponding increase in expense under the head excise duty on sale of goods for the period ended March 31,2017.
4 Dividend : Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under INd AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.
5 Other Comprehensive income : Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) seprately. Hence, the statement of profit and loss under previous GAAP has been reconciled with statement of profit and loss and other comprehensive income as per Ind AS.
Actuarial gain of Rs 3.25 Lacs on defined benefit plans for the employees and Rs 1.07 Lacs deferred tax expense on the same as per Ind AS has been reclassified to the Other Comprehensive Income from Statement of Profit and Loss
6 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 apporach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application on Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. This has resulted deferred tax asset by Rs 1.07 lacs.
Note 3 : Terms/Rights Attached to Shares Equity: The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of Equity Shares is entitled to one vote per share and ranks pari passu. The Dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders. During the year ended March 31,2018 the amount of dividend proposed as distribution to equity shareholders is Rs. 3 per share (P.Y. Rs. 2.50 per share).
Note 4 : 1466250 Equity Shares out of issued subscribed and paid up share capital were allotted in pursuant to the Scheme of Arrangement as approved by the Hon''ble Allahabad High Court on 5th July 2011 without payment being received in cash.
Note 5 : 723125 12% Non Cumulative Compulsorily Redeemable Preference Shares, redeemable at par within a period of 10 years from the date of issue, with a call option available to the company for early redemption, have been issued without payment being received in cash to the share holders of Amalgamating Company in pursuance of Scheme of Arrangement as approved by Hon''ble Allahabad High Court on 5th July 2011.
Note 6 : In earlier years Company has redeemed 253093 &196708 totalling 449801 12% Non Cumulative Compulsorily Redeemable Preference Shares of Rs. 100 each .The same is approved by Board of Directors in their meeting held at 29.05.2013 & 11.02.2014 respectively. In respect to above Capital Redemption Reserve of Rs. 44980100/- has been created by debiting Rs. 4498010/- from Preference Share Redemption Reserve and Rs. 40482090/- from surplus in the Statement of Profit and Loss.
Note 7 : In earlier years Company has further redeemed balance 273324 12% Non Cumulative Compulsorily Redeemable Preference Shares of Rs. 100 each .The same is approved by Board of Directors in their meeting held at 14.11.2014 &12.02.2015 respectively. In respect to above Capital Redemption Reserve of Rs. 27332400/has been created by debiting Rs. 5466480/- from Preference Share Redemption Reserve and Rs. 21865920/- from surplus in the Statement of Profit and Loss.
#The aforesaid disclosure is based upon percentages computed separately for class of shares outstanding as at the balance sheet date. As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal & beneficial ownership of shares.
Note 8 : Nature of Security of Working Capital Loans :
Working capital loan from State Bank of India, are secured by way of hypothecation charge on entire current assets comprising of stocks of raw material, stores & spares, stock in process, Finished Goods lying in Unit''s works, godowns, offices, and elsewhere in units posession including the goods in transit & cash credit balance in their accounts and further secured by all present and future book debts/receivables etc. It is further collaterally secured by way of equitable mortgage of Factory land & building situated at plot no. 51-52 Malanpur Industrial Area , Distt. Bhind. (M.P.) measuring 31017.58 sft, Factory Land and Building at 7 km Stone Adalpur Dholpur, Rajasthan, measuring 52155.63 sq.mt and hypothecation of entire plant & machinery movable and immovable (present & future) in the name of company located at various units and elsewhere. Further secured by personal guarantee of Shri M.K. Jain, ShriA.K. Jain, Shri P.K. Jain.
âDuring the Year CESAT, Allahabad in its judgement dated 23.08.2016 set aside the impunged order of the department for demand of Rs. 18.88 crores and allow the appeal in the favour of the Company.
âThe SDO Gohad has raised a demand of Rs.14,03,603.00 on the Company as charges for change of land use from agriculture to industrial in respect of its factory land measuring 7.25 acres in Malanpur Industrial Area, Malanpur District Bhind which is disputed by the Company and is still pending at the Court of Collector Bhind(M.R).
ââDuring the Year ITAT Agra in its judgement dated 20.03.2018 allowed the appeal for the A.Y. 2010-11 in the favour of the Company.
9 Balances of trade receivable, trade payable, loan/advances given and other financial and non financial assets and liabilities are subject to reconciliation and confirmation from respective parties. The balance of said trade payable, loan/advances given and other financial and non financial assets and liabilities are taken as shown by the books of accounts, the ultimate outcome of such reconciliation and confirmation cannot presently be determined, therefore, no provision for any liability that may result out of such reconciliation and confirmation has been made In the financial statement, the financial Impact of which Is unascertalnable due to the reasons as above stated.
10 Defined Benefit Plan-Gratuity
1 Actuarial Assumptions
a) Economic Assumptions The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities. Salary growth rate is companyâs long term best estimate as to salary increases & takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on long term basis as provided in relevant accounting standard. These valuation assumptions are as follows:
11: Effect of plan on entityâs future cash flows
11.1 (a): Funding arrangements and funding policy
The company has purchased an insurance policy to provide for payment ofgratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the company. Any deficit in the assets arising as results of such valuation is funded by the company
11.2 (b): Expected contribution during the next annual reporting period
11.3: Sensitivity Analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:
Note. The fair value of plan assets as at 31.03.2018 is more than the present value of obligation as at 31.03.2018, therefore no adjustment have been made in the Balance Sheet. Further the amount of premium of Rs. 16,19,131/paid to LIC is debited to Statement of Profit and Loss.
Description of Risk Exposures : Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -
A) Salary Increases- Actual salary increases will increase the Planâs liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
C) Discount Rate: Reduction in discount rate in subsequent valuations can increase the planâs liability.
D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Planâs liability.
Leave encashment ( Unfunded): The valuation of Leave Encashment has been done on the basis of acturial valuation on projected unit ( PUC) method and is provided in the financial statement and does not require disclosure as mentioned in Para 158 of INDAS 19. Provision of leave encashment as per actuarial is less than the liability provided in books of accounts, hence the management has made the provision for leave encashment on accrual basis.
Defined Contribution Plan
Provident Fund - The company contributes Provident Fund (Employer as well as Employee Share) to Provident Fund Commissioner Aga ( U.P) and Employers Contribution to such fund is charged to Statement of Profit and Loss. The Provident fund contribution charged to Statement of Profit and Loss for the year ended 31.03.2018 amounted to Rs. 31,93,095/-
12 Financial Risk Management: The company activities exposes it to variety at financial risk i.e. Credit Risk , Liquidity Risk, Capital Risk, Interest Rate Risk. These risks are managed by senior management of the company and is supervised by Board of Directors of the company, to minimise potential adverse effects on the financial performance of the company.
(i) Credit Risk : Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the creditworthiness of the banks the company works with. Credit risk is the risk i.e a customer or the counter party fails to pay to the company causing financial loss. The credit risk primarily arises from outstanding receivables from customer. The company has specific policies for managing customer credit risk on an ongoing basis; These policies factor in the customer financial position, past experience and other customer specific factor.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. The Company makes provision for doubtful debt or write off when a debtor fails to make contractual payments greater than two years past due. When loans or receivables have either been provided for or written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. When recoveries are made, these are recognised in the Statement of Profit and Loss. The company has low credit risk in respect to cash and cash equivalent, other bank balances, other financial assets, trade receivables and security deposits paid.
(ii) Liquidity Risk : Liquidity Risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. Management monitors rolling forecasts of the liquidity position and cash and cash equivalent on the basis of expected cash flows. The company takes into account the liquidity of the market in which the entity operates.
The above chart depicts that the company have adequate liquidity and considers liquidity risk as low risk
(iii) Capital Risk Management: The company capital risk management objective is to ensure that all times its remains a going concern and safegurds the interest of the shareholders and other stakeholders. The company monitors capital on the basis of carrying amount of equity plus its subordinated loan, less cash and other cash equivalents as presented on the face of the statement of financial position and cash flow hedges recognised in other comprehensive income.
The company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to the shareholders, return capital to shareholders or issue new shares. The amount managed as capital by the Company are summarised as follows:
The above chart depicts that the company have low capital risk
(iv) Interest Rate Risk: The company has working capital facilities with the bank. The company policy is to minimize cash flow risk exposure on short term borrowings. At 31st March the company is exposed to changes in market interest rate through bank borrowings at variable interest rates. The company exposure to interest rate risk on borrowings is as follows:
The above chart depicts that the company have low interest risk
(v) Foreign Currency Risk : The company do not normally deal in foreign currency transactions. The company do not have any foreign currency risk.
13 The Company is engaged in single product i.e. Manufacturing of Laundry Soap, Detergent Powder and Cake. These in context of Indian Accounting Standard 108 (Ind AS 108) on Segment Reporting are considered to constitute one single primary segment
14 Standards issued but not effective
The Ministry of Company Affairs (MCA) have issued Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending INDAS -115 and is applicable to the Company for Annual periods on or after 01.04.2018. The company intents to adopt revised INDAS -115 when become effective. The effect of applying INDAS -115 on the financial statements of the Company will be immaterial
15 Event after the reporting period
The board of directors of the Company have recommended dividend of Rs 31- per share for the financial ended 31.03.2018 for the approval of shareholders. The actual dividend outgo and tax thereon will be dependant on share capital outstanding as on recorded/book clousure.
16 Previous years figures have been regrouped, rearranged or reclassified, where ever necessary to confirm the current year''s classification.
Mar 31, 2015
1. Terms/Rights Attached to Shares
Equity: The Company has only one class of Equity Shares having a par
value of Rs. 10 per share. Each holder of Equity Shares is entitled to
one vote per share and ranks pari passu. The Dividend proposed by the
Board of Directors is subject to approval of the shareholders at the
ensuing Annual General Meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts. The
distribution will be in proportion to the number of Equity Shares held
by the Shareholders.
Preference : The Company has only one class of Preference Shares having
a par value of Rs. 100 per share. Each holder of Preference Shares is
not be entitled to vote at any General Meeting of the members of the
Company in relation to any of the matters solely by virtue of
Preference Shares. The Preference shares shall be eligible for Dividend
at the rate Prescribed by the Board of the Company at the time of
issuance. The Preference Shares shall be redeemed as per the terms of
the issue.
2. 1466250 Equity Shares out of issued subscribed and paid up share
capital were allotted in pursuant to the Scheme of Arrangement as
approved by the Hon'ble Allahabad High Court on 5th July 2011 without
payment being received in cash.
3. 723125 12% Non Cumulative Compulsorily Redeemable Preference
Shares, redeemable at par within a period of 10 years from the date of
issue, with a call option available to the company for early
redemption, have been issued without payment being received in cash to
the share holders of Amalgamating Company in pursuance of Scheme of
Arrangement as approved by Hon'ble Allahabad High Court on5thJuly2011.
4. Last year Company has redeemed 253093 &196708 totaling 449801 12%
Non Cumulative Compulsorily Redeemable Preference Shares of Rs. 100
each The same is approved by Board of Directors in their meeting held
at 29.05.2013 & 11.02.2014 respectively. In respect to above Capital
Redemption Reserve of Rs. 44980100/- has been created by debiting Rs.
4498010/- from Preference Share Redemption Reserve and Rs. 40482090/-
from surplus in the Statement of Profit and Loss.
5. During the year Company has further redeemed balance 136662 &
136662 totaling 273324 12% Non Cumulative Compulsorily Redeemable
Preference Shares of Rs. 100 each The same is approved by Board of
Directors in their meeting held at 14.11.2014 &12.02.2015 respectively.
In respect to above Capital Redemption Reserve of Rs. 27332400/- has
been created by debiting Rs. 5466480/- from Preference Share
Redemption Reserve and Rs. 21865920/- from surplus in the Statement of
Profit and Loss.
#The aforesaid disclosure is based upon percentages computed separately
for class of shares outstanding as at the balance sheet date. As per
records of the company, including its register of shareholders/members
and other declaration received from shareholders regarding beneficial
interest, the above shareholding represents both legal & beneficial
ownership of shares.
6. Nature of Security of Term Loan & Working Capital Loans: Term Loan &
Working capital loan from State Bank of India, are secured by way of
hypothecation of stocks of raw material, stores, spares, stock in
process, Finished Goods, including Book Debts etc, lying in Unit's
works, god owns, offices, and elsewhere in units possession including
the goods in transit. Further extension of charge on current assets of
the Company to cover the Corporate Term Loan.lt is further collaterally
secured by way of equitable mortgage of Factory land & building
situated at plotno.51-52 Malanpur Industrial Area , Distt. Bhind.(M.P)
measuring 31017.58 sft, Factory Land and Building at Dholpur,
Rajasthan. measuring 52155.63 sqmt, Factory Land & Building of P.C. Soap
& Chemicals (through its partners) and hypothecation of unencumbered
plant & machinery of Malanpur & Dholpur unit and extension of charge on
fixed assets of the Company. Further secured by personal guarantee of
Sri M.K.Jain, Sri A.K.Jain, Sri P.K.Jain and TPG of PC.Soap & Chemicals
(through its partners).
- It includes amount of Rs. 18,88,86000/- which the Appellate Tribunal
Central Excise & Service Tax, New Delhi treating it as prima-facie
strong case in favour of the company and has stayed payment of demand
and penalties as such and the management does not consider necessary to
make provision for the said liability.
-The SDO Gohad has raised a demand of Rs. 14,03,603 on the Company as
charges for change of land use from agriculture to industrial in
respect of its factory land measuring 7.25 acres in Malanpur Industrial
Area, Malanpur District Bhind which is disputed by the Company and is
still pending at the Court of Collector Bhind(M .P.).
The fair value of plan assets as at 31.03.2015 is more than the present
value of obligation as at 31.03.2015, therefore no adjustment have been
made in the Balance Sheet. Further the amount of premium of Rs.
11,13,601 paid to LIC is debited to Statement of Profit and Loss.
A. Leave Encashment
Provision for leave encashment in respect of unavailed leaves standing
to the credit of employees is made on accrual basis. The Company does
not maintain any fund to pay for leave encashment.
Provision of leave encashment as per actuarial is less than the
liability provided in books of accounts, hence the management is of the
opinion that provision for leave encashment is to be made on accrual
basis.
B. Provident Fund
The Company makes contribution to statutory provident fund in
accordance with Employees Provident Fund and Misc. Provision Act, 1952.
This is post employment benefit and is in the nature of defined
contribution plan.
7. The Company has only one business segment of Manufacturing and
accordingly the disclosure requirements as prescribed in the Accounting
Standard-17 on segment reporting are not applicable to the company.
8. Inventories, loans & advances , trade receivables and other
Current/non current assets are in the opinion of the management do not
have a value on realization in the ordinary course of the business,
less than the amount at which they are stated in the Balance Sheet.
9. Balance in trade receivables, trade payables, current / non
current advances given / received are subject to reconciliation and
confirmation from respective Parties. The balance of said trade
receivables, trade payables, current / noncurrent advances given /
received are taken as shown by the books of accounts. The ultimate
outcome of such reconciliation and confirmation cannot presently be
determined.
10. During the year effective from 1st April 2014, the Company has
revised estimated useful life of all of its fixed assets as per the
Schedule II of the Companies Act 2013. Based on current estimates,
depreciation of Rs 7,72,711.86 (net of deferred tax asset of Rs.
3,81,765.00) on account of assets whose useful life has already been
exhausted as on 01.04.2014, has been adjusted with opening balance of
Reserves and Surplus. Had there not been any change in the useful life
of the fixed assets, depreciation for the year ended 31.03.2015 would
have been lower by Rs. 27,40,655 52.
11. Previous year figures have been re-grouped and re-arranged
Wherever so required.
12. All notes number1-37 forms an integral part of the financial statements.
Mar 31, 2014
1.1 Terms/ Rights Attached to Shares
Equity: The Company has only one class of Equity Shares having a par
value of Rs. 10 per share. Each holder of Equity Shares is entitled to
one vote per share and ranks pari passu. The Dividend proposed by the
Board of Directors is subject to approval of the shareholders at the
ensuing Annual General Meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts. The
distribution will be in proportion to the number of Equity Shares held
by the Shareholders.
Preference : The Company has only one class of Preference Shares having
a par value of Rs. 100 per share. Each holder of Preference Shares is
not be entitled to vote at any General Meeting of the members of the
Company in relation to any ofthe matters solely by virtue of Preference
Shares. The Preference shares shall be eligible for Dividend at the
rate Prescribed by the Board ofthe Company at the time of issuance. The
Preference Shares shall be redeemed as perthe terms ofthe issue.
1.2 1466250 Equity Shares out of issued subscribed and paid up share
capital were allotted last year in pursuant to the Scheme of
Arrangement as approved by the Hon''ble Allahabad High Court on 5th
July 2011 without payment being received in cash.
1.3 723125 12% Non Cumulative Compulsorily Redeemable Preference
Shares, redeemable at par within a period of 10 years from the date of
issue, with a call option available to the company for early
redemption, have been issued without payment being received in cash to
the share holders of Amalgamating Company in pursuance of Scheme of
Arrangement as approved by Hon''ble Allahabad High Court on 5th July
2011
1.4 During the year Company has redeemed 253093 &196708 totalling
449801 12% Non Cumulative Compulsorily Redeemable Preference Shares of
Rs. 100 each .The same is approved by Board of Directors in their
meeting held at 29.05.2013 & 11.02.2014 respectively. In respect to
above Capital Redemption Reserve of Rs. 44980100/- has been created by
debiting Rs. 4498010/- from Preference Share Redemption Reserve and Rs.
40482090/-from surplus in the Statement of Profit and Loss.
Nature of Security of Term Loan & Working Capital Loans : Term Loan &
Working capital loan from State Bank of India, are secured by way of
hypothecation of stocks of raw material, stores, spares, stock in
process, Finished Goods, including Book Debts etc, lying in Unit''s
works, godowns, offices, and elsewhere in units posession including the
goods in transit. Further extension of charge on current assets of the
Company to cover the Corporate Term Loan.lt is further collaterally
secured byway of equitable mortgage of Factory land & building situated
at plot no.51-52 Malanpur Industrial Area , Distt. Bhind.(M.P)
measuring 31017.58 sft, Factory Land and Building at Dholpur,
Rajasthan,measuring 52155.63 sqmt, Factory Land & Building of P.C. Soap
& Chemicals (through its partners) and hypothecation of unencumbered
plant & machinery of Malanpur & Dholpur unit and extension of charge on
fixed assets of the Company. Further secured by personal guarantee of
Sri M.K.Jain, Sri A.K.Jain, Sri P.K.Jain and TPG of P.C.Soap &
Chemicals (through its partners).
Year Ended Year Ended
March 31, 2014 March 31, 2013
2. Contingent Liability
(a) Claims against the company not acknowledge as debt
1. Excise (including Service Tax)* 19,06,19,663 19,06,19,663
2. Trade Tax&VAT 11,61,639 15,57,047
3. State Levies** 14,03,603 14,03,603
4. Income Tax 69,62,180 93,04,761
5. ESI 1,05,241 0
(b) Guarantees
1. FDR held as security in Sales Tax 31,006 4,25,178
2. NSC Held as Security in Sales Tax 1,000 1,000
*lt includes amount of Rs. 18,88,86000/- which the Appellate Tribunal
Central Excise & Service Tax, New Delhi treating it as prima-facie
strong case in favour of the company and has stayed payment of demand
and penalties as such and the management does not consider necessary to
make provision for the said liability.
**The SDO Gohad has raised a demand of Rs.14,03,603.00 on the Company
as charges for change of land use from agriculture to industrial in
respect of its factory land measuring 7.25 acres in Malanpur Industrial
Area, Malanpur District Bhind which is disputed by the Company and is
still pending at the Court of Collector Bhind(M.R).
3. Employee Benefits
The details of the Company''s post-retirement benefit plans for
gratuity for its employees are given below which is certified by the
actuary and relied upon by auditors:
B. Leave Encashment
Provision for leave encashment in respect of unavailed leaves standing
to the credit of employees is made on accrual basis.The Company does
not maintain any fund to pay for leave encashment.
Provision of leave encashment as per actuarial is less than the
liability provided in books of accounts, hence the management is of the
opinion that provision for leave encashment is to be made on accrual
basis.
C. Provident Fund
The Company makes contribution to statutory provident fund in
accordance with Employees Provident Fund and Misc. Provision Act, 1952.
This is post employment benefit and is in the nature of defined
contribution plan.
4 Related Party Disclosure:
Details of disclosure as required by "Accounting Standard (AS)-18 on
Related Party Disclosures" are as under:-
1. Entities over which Key Managerial Personnel or their relatives
exercises significant influence
M/S Pee Cee Reality Builders Private Limited
M/S Suraj Bhan Agencies Limited
P.C.Sons HUF Director is Karta
Mahendra Kumar Jain HUF Director is Karta
Mayank Jain HUF Director''s Son is Karta
Ashok Kumar Jain HUF Director is Karta
Pramod Kumar Jain HUF Director is Karta
2. Key Management Personnel Designation
Mr. Ashok Kumar Jain Chairman (Executive)
Mr. Pramod Kumar Jain Managing Director
Mr. Mahendra Kumar Jain Whole Time Director
3. Relatives of Key Management Personnel
Asha Lata Jain Wife Of Director
Maya Jain Wife Of Director
Lajja Jain Wife Of Director
Ankit Jain Son of Director
Ankur Jain Son of Director
Anuj Jain Son of Director
Divya Jain Daughter in Law of Director
Stuti Jain Daughter in Law of Director
Shikha Jain Daughter in Law of Director
Master Pranit Grand Son Of Director
Mayank Jain Son of Director
5. The Company has only one business segment of Manufacturing and
accordingly the disclosure requirements as prescribed in the Accounting
Standard-17 on segment reporting are not applicable to the company.
6. Inventories, loans & advances , trade receivables and other
current/non current assets are in the opinion of the management do not
have a value on realization in the ordinary course of the business,
less then the amount at which they are stated in the Balance Sheet. The
classification of assets and liabilities between current and non
current have been made based on management perception as to its
recoverability / settlement and other criteria as set out in the
revised schedule VI to the Companies Act 1956.
7. Balance in trade receivables, trade payables, current/non current
advances given / received are subject to reconciliation and
confirmation from respective Parties. The balance of said trade
receivables, trade payables, current / non current advances given /
received are taken as shown by the books of accounts. The ultimate
outcome of such reconciliation and confirmation cannot presently be
determined.
8. Previous year figures have been re-grouped and re-arranged wherever
so required.
9. All notes number 1-36 forms an integral part of the financial
statements.
Mar 31, 2013
1. Contingent Liability As At As At
31st March, 2013 31st March, 2012
(a) Claims against the company
not acknowledge as debt
1. Excise (including Service
Tax)* 19,06,19,663 19,06,19,663
2. Sales Tax & VAT 15,57,047 9,58,140
3. State Levies" 14,03,603 14,03,603
4. Income Tax 93,04,761 52,73,101
(b) Guarantees
1. FDR held as security in
Sales Tax 4,25,178 25,178
2. NSC Held as Security in
Sales Tax 1,000 1,000
*lt includes amount of Rs. 18,88,86,000/- which the Appellate Tribunal
Central Excise & Service Tax, New Delhi treating it as prima-facie
strong case in favour of the company and has stayed payment of demand
and penalties as such and the management does not consider necessary to
make provision for the said liability.
"The SDO Gohad has raised a demand of Rs. 14,03,603.00 on the Company
as charges for change of land use from agriculture to industrial in
respect of its factory land measuring 7.25 acres in Malanpur Industrial
Area, Malanpur District Bhind which is disputed by the Company and is
still pending at the Court of Collector Bhind (M.P.).
2 Related Party Disclosure:
Details of disclosure as required by "Accounting Standard (AS) -18 on
Related Party Disclosures" are as under:-
1. Entities over which Key Managerial Personnel or their relatives
exercises significant influence
M/S Pee Cee Reality Builders Private Limited M/S Suraj Bhan Agencies
Limited M/S Ram Shyam Investment & Trading Co Private limited
PC.Sons HUF Director is Karta
M.K.Jain HUF Director is Karta
Mayank Jain HUF Director''s Son is Karta
A.K.Jain HUF Director is Karta
P.K.Jain HUF Director is Karta
2. Key Management Personnel Designation
Mr. A.K.Jain Chairman (Executive)
Mr. P.K.Jain Managing Director
Mr. M.K.Jain Whole Time Director
3. Relatives Of Key Management Personnel
Sanchita Jain Daughter of Director
Hero Devi* Mother of Director
Asha Lata Jain Wife Of Director
Maya Jain Wife Of Director
Lajja Jain Wife Of Director
Ankit Jain Son of Director
Ankur Jain Son of Director
Anuj Jain Son of Director
Divya Jain Daughter in Law of Director
Stuti Jain Daughter in Law of Director
Shikha Jain Daughter in Law of Director
Master Pranit Grand Son Of Director
Mayank Jain Son of Director
* Note: Expired on 19.01.2013
3. The Company has only one business segment of Manufacturing and
accordingly the disclosure requirements as prescribed in the Accounting
Standard-17 on segment reporting are not applicable to the company.
4. Inventories, loans & advances, trade receivables and other
current/non current assets are in the opinion of the management do not
have a value on realization in the ordinary course of the business,
less then the amount at which they are stated in the Balance Sheet. The
classification of assets and liabilities between current and non
current have been made based on management perception as to its
recoverability / settlement and other criteria as set out in the
revised schedule VI to the Companies Act 1956.
5. Balance in trade receivables, trade payables, current / non
current advances given / received are subject to reconciliation and
confirmation from respective Parties. The balance of said trade
receivables, trade payables, current / non current advances given /
received are taken as shown by the books of accounts. The ultimate
outcome of such reconciliation and confirmation cannot presently be
determined.
6. Previous year figures have been re-grouped and re-arranged
wherever so required.
7. All notes number 1 -34 forms an integral part of the financial
statements.
Mar 31, 2012
1.1 Terms/Rights Attached to Shares
Equity
The Company has only one class of Equity Shares having a par value of
Rs. 10 per share. Each holder of Equity Shares is entitled to one vote
per share and ranks pari passu. The Dividend proposed by the Board of
Directors is subject to approval of the shareholders at the ensuing
Annual General Meeting. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts. The
distribution will be in proportion to the number of Equity Shares held
by the Shareholders.
Preference
The Company has only one class of Preference Shares having a par value
of Rs. 100 per share. Each holder of Preference Shares is not be
entitled to vote at any General Meeting of the members of the Company
in relation to any of the matters solely by virtue of Preference
Shares. The Preference shares shall be eligible for Dividend at the
rate Prescribed by the Board of the Company at the time of issuance.
The Preference Shares shall be redeemed as per the terms of the issue.
During the year no Preference Share Capital has been issued by the
Company, however Preference Share Capital amounting to Rs 723.13 Lacs
are pending for allotment as on 31.03.2012.
1.2 In terms of Scheme of Arrangement approved by the Hon'ble High
Court of Allahabad, the Authorised Share Capital has been increased by
400000 Preference Shares of Rs. 100 each. Further as per the Scheme of
Arrangement, duly approved, 723125 Preference Shares of Rs 100 each was
to be issued to the Shareholders of Amalgamating Company. To facilitate
the issue of Preference Shares the Authorised Share Capital of the
Company has further been divided into 2750000 equity shares of Rs 10
each and 725000 Preference shares of Rs 100 each. The said modification
has been approved by the members at the Annual General Meeting held on
30th September 2011.
2. Contingent Liability
(a) Claims against the company not acknowledge as debt
1. Excise (including Service Tax)* 19,06,19,663 2,28,311
2. Sales Tax & VAT 9,58,140 Ã
3. State Levies** 14,03,603 14,03,603
4. Income Tax 52,73,101 59,591
(b) Guarantees
1. FDR held as security in Sales Tax 25,178 25,178
2. NSC Held as Security in Sales Tax 1,000 Ã
3. Related Party Disclosure:
Details of disclosure as required by "Accounting Standard (AS) -18 on
Related Party Disclosures" are as under:-
1. Entities over which Key Managerial Personnel or their relatives
exercises significant influence
M/S Pee Cee Reality Builders Private Limited
M/S Suraj Bhan Agencies Private Limited |
M/S Ram Shyam Investment & Trading Co Private limited
M/S Pee Cee Soap & Chemicals Private Limited*
'(merged with the Company from 01.04.2011 in pursuance of Scheme of
Amalgamation as approved by Hon'ble Allahabad High Court on 05.07.2011
4. ACCOUNTING FOR AMALGAMATION
tn terms of Scheme of Arrangement (the Scheme), the Real Estate
Business of Pee Cee Soap and Chemicals Pvt. Ltd. have been demerged in
to resultant companies no. 1 to 4 namely Shree Riddhi Siddhi Realtech
Private Limited, Maya Infracon Private Limited, M2 Reality Private
Limited, Pee Cee Reality Builders Private Limited, and Amalgamation of
Pee Cee Soap & Chemicals Private Limited (with "Doctor" Brand, Soap
Business and other Residual Business) with Pee Cee Cosma Sope Limited
- The Scheme of Arrangement filed by the Company has been approved by
the Hon'ble High Court of Allahabad in terms of its order passed on 5,h
July 2011,and has sanctioned Scheme of Amalgamation u/s 391 to394ofthe
Companies Act, 1956 between the Company "Pee Cee Cosma Sope Ltd" ('the
Amalgamated Company') and "Pee Cee Soap & Chemicals Private Limited",
('the Amalgamating Company') and their respective shareholders and
creditors with effect from 01 -04-2011 (Appointed date).
Consequent to the above order, the results of the merged undertaking
have been accounted for under "Pooling of Interest method" (as detailed
in the Accounting Standard 14 -Accounting for Amalgamations) in the
financial statements of the Company, accordingly, all assets and
liabilities of Amalgamating Company have been recorded in the books of
accounts and transferred to and vested in Amalgamated Company at the
values appearing in the books of accounts of Amalgamating Company on
appointed date.
In terms of Scheme of Arrangement 1446250 no. of equity shares of Rs.
10/- each and 723125 no. of 12% Non Cumulative Compulsorily Redeemable
Preference Shares of Rs. 100/- each shall be allotted to the
shareholders of Pee Cee soap & Chemicals Pvt. Ltd. The said Equity
shares were allotted on 04/08/2012 and pending allotment of 12% Non
Cumulative Compulsorily Redeemable Preference Shares as on 31.03,2012.
have been shown in "Share Application Money Pending Allotment" in the
financial statements (Refer Note 4).
In pursuant to Scheme of Arrangement as approved by the Hon'ble High
Court, the shares of Amalgamated Company held as investment in
Amalgamating Company, has been transferred to Demerged Company namely
Shree Riddhi Siddhi Realtech Private Limited, Maya Infracon Private
Limited, M2 Reality Private Limited.
5. SEGMENT REPORTING
The Company has only one business segment of Manufacturing and
accordingly the disclosure requirements as prescribed in the
"Accounting Standard-17" on segment reporting are not applicable.
6. Inventories, loans & advances, trade receivables and other
current/non current assets are in the opinion of the management do not
have a value on realization in the ordinary course of the business,
less than the amount at which they are stated in the Balance Sheet. The
classification of assets and liabilities between current and non
current have been made based on management perception as to its
recoverability/ settlement and other criteria as set out in the revised
schedule VI to the Companies Act 1956.
7. Balance in trade receivables, trade payables, current / non
current advances given / received are subject to reconciliation and
confirmation from respective Parties. The balance of said trade
receivables, trade payables, current / non current advances given /
received are taken as shown by the books of accounts. The ultimate
outcome of such reconciliation and confirmation can not presently be
determined, therefore no provision for any liability that may result of
such reconciliation and confirmation has been made in the financial
statement.
8. Previous year figures comprises figures of the company only,
whereas current year figures comprises figures of amalgamating company
also, hence current year figures are not comparable with those of
previous year. Previous yearfigures have been re-grouped and
re-arranged wherever so required.
9. All notes number 1-37 forms an integral part of the financial
statements.
Mar 31, 2010
1.01. Contingent Liabilities Not Provided For:
Current Year Previous Year
(i) Bank Guarantees 20,000 50,20,000
(ii) Service Tax 3,27,631 6,16,645
(Hi) Excise Duty claims for Cenvat 1,95,119 1,95,119
Credit, differential duty etc.,
(Rs. 1,95,119 deposited under protest)
(iv) Capital Contract Outstanding to be 6,35,658 NIL
Executed on capital account and not
Provided for
(v) The SDO Gohad has raised a demand of Rs.14,03,603.00 on the Company
as charges for change of land use from agriculture to industrial in
respect of its factory land measuring 7.25 acres in Malanpur Industrial
Area, Malanpur District Bhind which is disputed by the Company and is
still pending at the Court of Collector Bhind(M.R).
1.02. In the opinion of the management the current assets, loans and
advance" are approximately of the value stated, if realised in the
ordinary course of business. Provisions for all known liabilities are
adequate and are neither in excess nor in short of the amount
reasonably necessary.
1.03. Segment Reporting:
The Company has only one segment of Soaps and Detergents and
accordingly the disclosure requirements as prescribed in the
"Accounting Standard (AS) -17 on segment reporting" is not applicable.
1.04. A. Related Party Disclosure:
Details of disclosure as required by "Accounting Standard (AS) -18 on
Related Party Disclosures" are as under.
Party Relationship
1. Pee Cee Soap and Chemicals
Pvt. Ltd. A Company underthe same Management
2. Key Management Personnel
Name of Key Management Personnel Designation
Mr. A.K.Jain Executive Chairman
Mr. P.K.Jain Managing Director
Mr. M.K.Jain Non Executive Director
Mr. Mayank Jain Non Executive Director
1.05 Balance in various accounts included in Sundry Debtors, Creditors
and Loan & Advances are subject to confirmation from respective
Parties.
1.06 Disclosure pertaining to Micro, Small and medium enterprises (as
per information available with the Company)
1.07 Employee Benefit
The details of the Companys post-retirement benefit plans for gratuity
for its employees are given below which is certified by the actuary and
relied upon by auditors:
The fair value of plan assets as at 31.03.2010 is more than the present
value of obligation as at 31.03.2010, therefore no adjustment have been
made in the Balance Sheet. Further the amount of premium of Rs.
68387.00 paid to LIC is debited to Profit and Loss Account.
B. Leave Encashment
Provision for leave encashment in respect of unavailed leaves standing
to the credit of employees is made on actuarial basis. The Company does
not maintain any fund to pay for leave encashment.
Provision of ieave encashment as per actuarial is less than the
liability provided in books of accounts, hence the management is of the
opinion that provision for leave encashment is to be made on accrual
basis.
C. Provident Fund
The Company makes contribution to statutory provident fund in
accordance with Employees Provident Fund and Misc. Provision Act,
1952. This is post employment benefit and is in the nature of defined
contribution plan.
1.08. Previous years figures have been re-grouped or re-arranged
wherever necessary to make them comparable.