Mar 31, 2015
Related party transactions
1 . Details of Related Parties:
Description of relationship Names of related parties
a. ) Key Management Personnel 1 . Mr. Sanjay Gupta (Managing Director)
2 . Mr. S.K. Gupta (Director)
b. ) Associates 1. Prima Agro Limited
2. Ayyappa Roller Flour Mills Limited
3. Prima Beverage Pvt Limited
4. Prima Credits Limited
2. Employee benefit plans 1 Gratuity plan
The Company has a defined benefit gratuity plan. Gratuity is computed
as 15 days salary, for every completed year of service or part thereof
in excess of 6 months and is payable on
retirement/termination/resignation. The benefit vests on the employees
after completion of 5 years of service. The Gratuity liability has not
been externally funded. Company makes provision of such gratuity
liability in the books of accounts on the basis of company's own
valuation.
Particulars 31/03/2015 31/03/2014
(Rs.) (Rs.)
3. Contingent Liabilities
(a) Claims against the company not Nil Nil
acknowledged as debt;
(b) Guarantees;
- Guarantees issued by the bank Nil Nil
(c) Other money for which the company is
contingently liable
- Sales Tax demand disputed by the Company Nil Nil
- Central Sales Tax demand disputed by Nil Nil
the Company
- KGST demand disputed by the Company 5,365,029 5,365,029
- Penalty disputed by the Company Nil Nil
4. Commitments
(a) Estimated amount of contracts Nil Nil
remaining to be executed on capital
(b) Uncalled liability on shares and Nil Nil
other investments partly paid
(c) Other commitments - Dividend on 11,197,403 11,197,403
Cumulative Reedemable Preference
5. Corporate information
Prima Industries Limited (the "Company"), Indian Company registered
under the Indian Companies Act, 1956. The Company was promoted
primarily for Solvent Extraction and also for the refining of Oil.
6. Basis of accounting and preparation of financial statements
The Financial Statements have been prepared on the historical cost
convention. These statements have been prepared in accordance with the
generally accepted accounting principles and the applicable Mandatory
Accounting Standards and relevant requirements of The Companies Act,
1956 ('the Act1). The accounting policies have been consistently
applied by the Company. The preparation required adoption of estimates
and as sumptions that can affect the reported amounts of revenue and
expenditure and the assets and liabilities as well as the disclosure of
contingent liabilities. Differences between the actual results and
estimates are recognised in the year in which they become known or
materialises.
7. Use of estimates
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material ,their effects are disclosed in the notes to the financial
statements.
8. The Working Capital Loans are secured by hypothecation of present
and future goods, book debts and all other movable assets of the company
and second charge on the fixed assets and further guaranteed by the
Managing Director.
One Time Settlement with Banks
The interest waiver obtained on one time settlement with banks during
the year 2011 - 12 and 2012 - 13 have been credited to profit & loss
account. The interest waiver obtained in earlier years has been reduced
from the brought forward losses and the principal amount waived were
credited to the Capital Reserves. The OTS amount for the Term Loan
includes the value of Cumulative Redeemable Preference Shares allotted
to the Bank, against overdue interest upto 31/03/2012 and converting
the outstanding Principal amount and converting the present value of
savings on account of reduction in rate on a restructuring . The OTS
amount net of the value of the Cumulative Preference shares is
considered to be principal amount waiver and the entire interest
outstanding as per books is considered to be waived and has been
reduced from the brought forward losses.
9. In the opinion of the management, current assets, loans and advances
will realise the values as stated in the Balance Sheet, if realised in
the normal course of business.
10. The amount of borrowing costs capitalized during the year is Rs.
Nil.
11. As the company carries inventory of finished goods of various grade
/ quality, and the net realisable value of all such grade / quality are
not available , the valuation is done based on the rates as certified by
the Managing Director.
Mar 31, 2014
1. Segment Reporting
Primary Segment Information(By Business Segment)
The company''s primary segment have been identified as
(a) Cattle Feed Division,
(b) Oil Cake Processing Division.
There are no reportable secondary segments.
2. Related party transactions
Description of relationship Names of related parties
a.) Key Management Personnel
1 . Mr. Sanjay Gupta (Managing Director)
2 . Mr. S.K. Gupta (Director)
b.) Associates
1. Prima Agro Limited
2. Ayyappa Roller Flour Mills Limited
3. Prima Beverage Pvt Limited
4. Prima Credits Limited
3. Employee benefit plans 1. Gratuity plan
The Company has a defined benefit gratuity plan. Gratuity is computed
as 15 days salary, for every completed year of service or part thereof
in excess of 6 months and is payable on
retirement/termination/resignation. The benefit vests on the employees
after completion of 5 years of service. The Gratuity liability has not
been externally funded. Company makes provision of such gratuity
liability in the books of accounts on the basis of company''s own
valuation.
4. Contingent Liabilities and commitments (to the extent not provided
for)
Particulars 31/03/2014 31/03/2013
(Rs.) (Rs.)
1. Contingent Liabilities
(a) Claims against the company not
acknowledged as debt; Nil Nil
(b) Guarantees;
- Guarantees issued by the bank Nil Nil
(c) Other money for which the company
is contingently liable
- Sales Tax demand disputed by
the Company Nil Nil
- Central Sales Tax demand disputed
by the Company Nil Nil
- KGST demand disputed
by the Company 5,365,029 5,365,029
- Penalty disputed by the Company Nil Nil
Prima Industries Limited
No. V-679/C, Industrial Development Area, Muppathadam, Edayar,
Cochin-683110
5 In the opinion of the management, current assets, loans and advances
will realise the values as stated in the Balance Sheet, if realised in
the normal course of business.
6 The amount of borrowing costs capitalized during the year is Rs. Nil.
7 As the company carries inventory of finished goods of various grade /
quality, and the net realisable value of all such grade / quality are
not available, the valuation is done based on the rates as certified by
the Managing Director.
Mar 31, 2013
1 Employee benefit plans
Gratuity plan
The Company has a defined benefit gratuity plan. Gratuity is computed
as 15 days salary, for every completed year of service or part thereof
in excess of 6 months and is payable on
retirement/termination/resignation.
The benefit vests on the employees after completion of 5 years of
service. The Gratuity liability has not been externally funded. Company
makes provision of such gratuity liability in the books of accounts on
the basis of company''s own valuation.
2 Operating Lease
Operating Lease payments are recognised as expenses in the Profit &
Loss Account for the year
3 Contingent Liabilities and commitments (to the extent not provided
for)
1 Contingent Liabilities
(a)Claims against the company not
acknowledged as debt; Nil Nil
(b)Guarantees;
- Guarantees issued by the bank Nil Nil
(c)Other money for which the company is
contingently liable
- Sales Tax demand disputed by the Company Nil Nil
- Central Sales Tax demand disputed
by the Company Nil Nil
- Penalty disputed by the Company Nil Nil
1 Corporate information
Prima Industries Limited (the "Company") , Indian Company registered
under the Indian Companies Act, 1956. The Company was promoted
primarily for Solvent Extraction and also for the refining of Oil.
4.1 Basis of accounting and preparation of financial statements
The Financial Statements have been prepared on the historical cost
convention. These statements have been prepared in accordance with the
generally accepted accounting principles and the applicable Mandatory
Accounting Standards and relevant requirements of The Companies Act,
1956 (Âthe Act''). The accounting policies have been consistently
applied by the Company. The preparation required adoption of estimates
and assumptions that can affect the reported amounts of revenue and
expenditure and the assets and liabilities as well as the disclosure of
contingent liabilities. Differences between the actual results and
estimates are recognised in the year in which they become known or
materialises.
4.2 Use of estimates
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material ,their effects are disclosed in the notes to the financial
statements.
5 The Working Capital Loans are secured by hypothecation of present and
future goods, book debts and all other movable assets of the company
and second charge on the fixed assets and further guaranteed by the
Managing Director.
One Time Settlement with Banks
The interest waiver obtained on one time settlement with banks during
the year 2011 - 12 and 2012 - 13 have been credited to profit & loss
account. The interest waiver obtained in earlier years has been reduced
from the brought forward losses and the principal amount waived were
credited to the Capital Reserves.
The OTS amount for the Term Loan includes the value of Cumulative
Redeemable Preference Shares allotted to the Bank, against overdue
interest upto 31/03/2012 and converting the outstanding Principal
amount and converting the present value of savings on account of
reduction in rate on a restructuring . The OTS amount net of the value
of the Cumulative Preference shares is considered to be principal
amount waiver and the entire interest outstanding as per books is
considered to be waived and has been reduced from the brought forward
losses.
6 In the opinion of the management, current assets, loans and advances
will realise the values as stated in the Balance Sheet, if realised in
the normal course of business.
7 The amount of borrowing costs capitalized during the year is Rs. Nil.
8 As the company carries inventory of finished goods of various grade /
quality, and the net realisable value of all such grade / quality are
not available , the valuation is done based on the rates as certified
by the Managing Director.
Mar 31, 2012
I(a) The term loan from the Industrial Development Bank of India are
secured by way of first charge on movable and immovable properties of
the company and further guaranteed by the Managing Director of the
Company.
(b) The Working Capital Loans are secured by hypothecation of present
and future goods, book debts and all other movable assets of the
company and second charge on the fixed assets and futher guaranteed by
the Managing Director.
ii As per the One Time Settlement Scheme, Bank of India waived the loan
amount of Rs. 9,500,000.00 and interest of Rs. 5,293,250.00 and IDBI waived
an interest of Rs. 3,387,880.00.
iii Amount of current maturities disclosed under the head "Other
Current Liabilities". (Refer Note 8)
1 Segment Reporting
Primary Segment lnformation(By Business Segment)
The company's primary segment have been identified as (a) Cattle Feed
Division, (b) Oil Cake Processing Division.
There are no reportable secondary segments.
2 Employee benefit plans
1 Gratuity plan
The Company has a defined benefit gratuity plan. Gratuity is computed
as 15 days salary, for every completed year of service or part thereof
in excess of 6 months and is payable on retirement/termination/
resignation. The benefit vests on the employees after completion of 5
years of service. The Gratuity liability has not been externally
funded. Company makes provision of such gratuity liability in the books
of accounts on the basis of company's own valuation.
3 Operating Lease
Operating Lease payments are recognised as expenses in the Profit &
Loss Account for the year
4 Contingent Liabilities and commitments (to the extent not provided
for)
1 Contingent Liabilities
(a)Claims against the company not acknowledged
as debt; Nil Nil
(b)Guarantees;
- Guarantees issued by the bank Nil Nil
(c)Other money for which the company is
contingently liable
- Sales Tax demand disputed by the Company Nil 147,557,419
- Central Sales Tax demand disputed by the Company Nil 7,165,039
- Penalty disputed by the Company Nil 2,994,080
2 Commitments
(a) Estimated amount of contracts remaining
to be executed on capital account and not
provided for; Nil Nil
(b)Uncalled liability on shares and other
investments partly paid Nil Nil
(c)Other commitments (specify nature). Nil Nil
5 The Revised Schedule VI has become effective from 1 April, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Notes to financial statements for the year ended March 31, 2012
1 Corporate information Prima Industries Limited (the "Company"),
Indian Company registered under the Indian Companies Act, 1956. The
Company was promoted primarily for Solvent Extraction and also for the
refining of Oil.
6.1 Basis of accounting and preparation of financial statements
The Financial Statements have been prepared on the historical cost
convention. These statements have been prepared in accordance with the
generally accepted accounting principles and the applicable Mandatory
Accounting Standards and relevant requirements of The Companies Act,
1956 ('the Act'). The accounting policies have been consistently
applied by the Company. The preparation required adoption of estimates
and assumptions that can affect the reported amounts of revenue and
expenditure and the assets and liabilities as well as the disclosure of
contingent liabilities. Differences between the actual results and
estimates are recognised in the year in which they become known or
materialises.
6.2 Use of estimates
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material , their effects are disclosed in the notes to the financial
statements.
7. The Working Capital Loans are secured by hypothecotion of present
ond future goods, book debts and all other movable assets of the
company and second charge on the fixed assets and further guaranteed by
the Managing Director.
One Time Settlement with Banks
The interest amount waived by the banks as per the Scheme has been
reduced from the brought forward losses and the principal amount waived
were credited to the Capital Reserves.
The OTS amount for the Term Loan includes the value of Cumulative
Redeemable Preference Shares allotted to the Bank, against overdue
interest upto 31 /03/2012 and converting the outstanding Principal
amount and converting the present value of savings on account of
reduction in rate on a restructuring . The OTS amount net of the value
of the Cumulative Preference shares is considered to be principal
amount waiver and the entire interest outstanding as per books is
considered to be waived and has been reduced from the brought forward
losses.
8. In the opinion of the management, current assets, loans and
advances will realise the values as stated in the Balance Sheet, if
realised in the normal course of business.
9. All bank balances (except BOI.Canara Bank,ICICI-18031,IOB-l
12,Statebankof Travancore and State Bank of India) are subject to
reconciliation and confirmation.
10. The amount of borrowing costs capitalized during the year is Rs.
Nil
11. The working capital loans are subject to reconciliation and
confirmation. Interest is provided on the outstanding loan amounts as
per the OTS scheme.
12. As the company carries inventory of finished goods of various grade
/ quality, and the net realisable value of all such grade / quality are
not available , the valuation is done based on the rates as certified
by the Managing Director.
Mar 31, 2010
1 Background
Prima Industries Limited (the "Company"), Indian Company registered
under the Indian Companies Act, 1956. The Company was promoted
primarily to manufacture Cattle Feed and also for the refining of Oil.
2 a) The term loans from the Industrial Development Bank of India are
secured by way of first charge on the movable and immovable properties
of the company and further guaranteed by the Managing Director of the
Company.
b) The Working Capital Loans are secured by hypothecation of present
and future goods, book debts and all other movable assets of the
company and second charge on the fixed assets and further guaranteed by
the Managing Director.
3 Companys offer for the settlement of dues to the Banks on One Time
Settlement (OTS) have been approved by them.
One Time Settlement with Banks
The interest amount waived by the banks as per the Scheme has been
reduced from the brought forward losses and the principal amount waived
were credited to the Capital Reserves.
The OTS amount for the Term Loan includes the value of Cumulative
Redeemable Preference Shares allotted to the Bank, against overdue
interest upto 31/03/2001 and converting the outstanding Principal
amount and converting the present value of savings on account of
reduction in rate on a restructuring . The OTS amount net of the value
of the Cumulative Preference shares is considered to be principal
amount waiver and the entire interest outstanding as per books is
considered to be waived and has been reduced from the brought forward
losses.
4 Investments Rs. 1,00,000.00 represents 20 "IDBI growing interest
Bond , 1998" of face value Rs. 5000/- each.
5 In the opinion of the management, current assets, loans and advances
will realise the values as stated in the Balance Sheet, if realised in
the normal course of business.
6. All bank balances (except federal Bank -
II8402UUI5648,1C1C1-U262O5U0U292, Indian Overseas Bank A/c No 352 and
State Bank of India) are subject to reconciliation and confirmation.
7 The amount of borrowing costs capitalized during the year is Rs. Nil
8 The term loans and working capital loans are subject to
reconciliation and confirmation. Interest is provided on the
outstanding loan amounts as per the OTS scheme.
As the company carries inventory or timsnea gooas oi various grade /
quality, and me net realisable value ot an
9 such grade / quality are not available , the valuation is done based
on the rates as certified by the Managing Director.
10 Contingent liabilities not provided for
2009-10 2008-09
a) - Sales Tax demand disputed by the
Company 9,007,329 9,007,329
- Central Sales Tax demand disputed by
the company 54,406 54,406
- Penalty disputed by the company 2,994,080 2,994,080
b) Estimated amount of contracts
remaining to be executed on capital
account and not provided for Nil Nil
15 Disclosure in respect of Related Parties pursuant to Accounting
Standard 18
1 List of Related Parties
Parties where control exists - Nil
II. Other Related parties with whom the Company has entered into
transactions during the year
i) Associates For details on the Related Party Transactions, Please
Refer Annexure 2
ii) Key Managerial Personnel and Enterprises having common Key
Management Personnel or their relatives : Key Managerial Personnel :
Shri Sanjay Gupta - Managing Director
Shri S K Gupta - Chairman
11 Additional information pursuant to the provision of part II of
schedule VI to the Companies Act,1956.
I Licensed and Installed Capacity and Production (Previous Years
Figures are in brackets) (Installed capacity being a technical matter
is as certified by the Managing Director and accepted by the auditors)
Licensed N.A.
Installed
Oil Extraction 500TPD
(500TPD)
Refining 50TPD
(50TPD)
CPD 5TPD
(5TPD)
12 CIF value of
imports Nil Nil
13 Taxation
1 Provision for Current Tax :
The company does not have any income tax liability during the year.
2 Deferred Taxation
The company has not recognised the Deferred Tax Asset as it is not
anticipated to generate enough profits to set off the losses in the
forseeable future. Consequently, the deferred tax liability for the
year has also not been considered in the accounts as it would only set
off a part of the unrecognised deferred tax asset.
14 Applicability of Accounting Standards
"The company is a Level 1 Enterprise as defined in the General
instructions in respect of Accounting Standards notified under the
Companies Act, 1956. Accordingly the company has complied with the
Accounting Standards as applicable to a Level 1 Enterprise.
15 Previous years figures have been re-grouped/recast whereever
necessary to suit current year layout.
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