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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Permanent Magnets Ltd.

Mar 31, 2025

I. NOTES TO ACCOUNTS:

1. In the opinion of Directors, the Current Assets, Loans & Advances, and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

2. Contingent liabilities: ('' in Crores)
Particulars	March 31, 2025	March 31, 2024
a) Unutilized Letters of Credit with Bankers	Nil	1.81
b) Bank Guarantee	0.11	0.12
c) Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts.	0.07	0.07
d) Excise Department has rejected the appeal filed by the Company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of ''0.05 Crores for stay order Stay order against recovery of the dues has been granted. In the opinion of Companyâs Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit. Further, in similar cases, the Commissioner of Central Excise has ruled in favour of the Company and has set aside the show cause notices.
Duty Demanded	0.32	0.32
Penalty	0.32	0.32
e) Interest on Central Excise loan (Operated through ICICI). In 1995-96, Company has taken interest free loan under the Excise relief scheme as approved by the Government of India and said loan was disbursed by designated financial institutions. ICICI, the Operating Agency raised certain demands towards the installments repaid with delay. The Company has provided simple interest on repayment of these delayed installments, which may be reversible if the Central Government doesnât demand during settlement. Additional interest if claimed by the government, will be payable. However, the management does not expect any liability on that account. Company had approached ministry of finance, government of India for instruction of settlement of account as one time settlement, and as per information, same is under consideration. Disbursing agency ICICI, has also forwarded Settlement proposal to the ministry on 30^th July, 2013 vide letter bearing reference no SSG/NA/2013-14/324 for seeking the directions. In view of the above situation, management does not feel any extra liability towards interest on the interest free excise loan. Management of PML is providing simple interest on outstanding dues of above loan even though this was interest free. Loan Principal Amount repaid on during FY 17-18.	22.01*	22.01*
f) corporate guarantee issued for subsidiary Company for EPCG license (export obligation).	0.83	0.83
^Management has tried to resolve the issues of Central Excise Loan with higher authorities of Ministry of Finance, Government of India and made various representations, but did not get proper response as above scheme has been over and no proper documents are available with ministry of finance, Government of India, Management of PML is providing simple interest on outstanding dues of above loan even though this was interest free. The Company has been repaid balance Principal Amount of the loan during FY 17-18.

3. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno âPetitionerâ (Freight forwarder agent & CHA of Company).

Facts of the case - During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the Company which is essential documents to claim Excise rebate, and accordingly Company withheld their payment. Subsequently, petitioner has filed winding up petition against the Company of dues of ''0.13 Crores. Honorable Mumbai High Court has passed an order allowing the petition and issued direction for appointment of official liquidator in winding up order

On the appeal against this order made by the Company before Honorable Bombay High Court, Honorable Bombay High Court has given interim stay order against the winding up order passed (against the Company) dated 15/04/2015. Company has deposited ''0.19 Crores with interest as per direction of honorable Bombay High Court. Matter is pending before Bombay High Court. Next hearing in this matter shall come up as per listing of the court.

Amount deposited of ''0.19 Crores with court is shown in Balance sheet under Current Assets.

4. The balances under the heads Trade Receivables, Trade Payables, and Loans and Advances Receivable and Payable are as per the books of accounts and are subject to confirmation by the respective parties, as well as adjustments, if any, upon reconciliation. Balance confirmation emails have been sent to the parties concerned, requesting confirmation or comments by a specified date. It was indicated that, in the absence of a

response, the balances stated in the communication would be considered as confirmed. Responses have been received from parties; however, no adverse remarks or objections have been received.

5. During the year ''1.59 Crores (P Y. 2.09 Crores) has been credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

6. Segment reporting

The Chief Operational Decision Maker identifies and monitors the operating results of its business segments separately for purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the Standalone financial statements. The Operating segments have been identified on the basis of the nature of products/services.

7. Leases: Effective date and transition

Effective April 01, 2019, the Company has adopted Ind AS 116 Leases. Company applies retrospectively with the cumulative effect of initially applying the Standard recognized at the date of initial application. Company measure lease liability at the present value of the remaining lease payments, discounted using the lesseeâs incremental borrowing rate at the date of initial application, and measure that right-of-use asset an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet immediately before the date of initial application. Company is following SLM method for depreciation on Right of use assets over lease terms.

9. Disclosure as required by Ind AS-19, Employee Benefits

I. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company contribution âon the basis of actuarially ascertained by the Independent Actuariesâ is charged to profit and loss account. The amount debited to profit, and loss account is ''0.829 Crores.

Other long-term employee benefits:

II. Leave encashment

The Company provides for the expected cost of accumulating paid leave which can be carried forward and used in future periods by the employees. The obligation for accumulating paid leaves has been recognized at the end of the reporting period.

10. Component accounting for fixed assets:

in opinion of the management, based on internal verification of the assets of the Company, there is no major part, in case of any asset, which is significant to total cost of the asset and whose useful life is different from the useful life of the asset. Hence, there is no change in accounting of fixed assets and depreciation thereon as required under Ind AS 16: Property, Plant and Equipment.

11. Segment reporting:

As the Company operates mainly in one Business Segment i.e. Engineering and Current Sensing applications hence are considered to be a single primary business segment. There have been no other reportable segments identified by Chief Operating Decision Maker and hence no segment reporting is presented under IND AS 108.

12. Impairment of assets:

In accordance with Ind AS 36 "Impairment of Assets" Company has recognized impairment loss of '' Nil during year

15. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, healthcare, women empowerment, measures for the benefit of war widows and contributions to incubators has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilised through the year on these activities which are specified in schedule VII of the Companies Act, 2013.

The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Set out below, is a comparison by class of the carrying amounts and fair value of the Companyâs financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value instruments are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

18. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

(A) Market risk

affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

The analysis excludes the impact of movements in market variables on the carrying values of financial assets and liabilities.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the trade/other payables, trade/other receivables assets/liabilities. The risks primarily relate to fluctuations in US Dollar & EURO against the functional currencies of the Company. To mitigate the Groupâs exposure to foreign currency risk, cash flows are monitored and natural hedge is used. (Amounts to be paid and received in a specific currency are expected to largely offset one another). The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of

change in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Cash and other collaterals are obtained from customers when considered necessary under the circumstances.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents Companyâs maximum exposure to the credit risk. No other financial asset carries a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk.

19. Event occurring after the balance sheet date

The Board of Directors has recommended an Equity dividend of ''2.00/- per share on face value of ''10/- each, for the financial year 2024-25. The proposal is subject to the approval of shareholders at the Annual General Meeting.

20. Other disclosures

(a) Relationship with Struck off Companies - The Company does not have any transactions or relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(b) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(d) There is no Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(e) There is no transaction in Crypto Currency or Virtual Currency.

(f) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year

(g) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(j) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries); or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

21. The previous yearâs figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current year presentation.

Mar 31, 2024

I. NOTES TO ACCOUNTS

2. Contingent Liabilities			('' in Crores)
Particulars		March 31, 2024	March 31, 2023
^a)	Unutilized Letters of Credit with Bankers	1.81	4.27
b)	Bank Guarantee	0.12	0.02
^c)	Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts.	0.07	0.07
d)	Excise Department has rejected the appeal filed by the Company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of ''0.05 Crores for stay order. Stay order against recovery of the dues has been granted. In the opinion of Company''s Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit. Further, in similar cases, the Commissioner of Central Excise has ruled in favour of the Company and has set aside the show cause notices.
	Duty Demanded	0.32	0.32
	Penalty	0.32	0.32
^e)	Interest on Central Excise loan (Operated through ICICI).
	In 1995-96, Company has taken interest free loan under the Excise relief scheme as approved by the Government of India and said loan was disbursed by designated financial institutions.
	ICICI, the Operating Agency raised certain demands towards the installments repaid with delay. The Company has provided simple interest on repayment of these delayed installments, which may be reversible if the Central Government doesn''t demand during settlement. Additional interest if claimed by the government, will be payable. However, the management does not expect any liability on that account.
	Company had approached ministry of finance, government of India for instruction of settlement of account as one time settlement, and as per information, same is under consideration. Disbursing agency ICICI, has also forwarded Settlement proposal to the ministry on July 30, 2013 vide letter bearing reference no SSG/NA/2013-14/324 for seeking the directions.	22.01¹	22.01¹
	In view of the above situation, management does not feel any extra liability towards interest on the interest free excise loan. Management of PML is providing simple interest on outstanding dues of above loan even though this was interest free. Loan Principal Amount repaid on during FY 17-18
f)	Corporate guarantee issued for subsidiary Company for EPCG license (export obligation)	0.83	-

3. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno "Petitionerâ (Freight forwarder agent & CHA of Company).

Facts of the case: During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the Company which is essential documents to claim Excise rebate, and accordingly Company withheld their payment. Subsequently, petitioner has filed winding up petition against the Company of dues of ''0.13 Crores. Honorable Mumbai High Court has passed an order allowing the petition and issued direction for appointment of official liquidator in winding up order.

On the appeal against this order made by the Company before Honorable Bombay High Court, Honorable Bombay High Court has given interim stay order against the winding up order passed (against the Company) dated April 15, 2015. Company has deposited ''0.19 Crores with interest as per direction of honorable Bombay High Court. Matter is pending before Bombay High Court. Next hearing in this matter shall come up as per listing of the court.

Amount deposited of ''0.19 Crores with court is shown in Balance sheet under Current Assets.

4. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable'' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof. Balance Confirmation e-mails have been issued to parties for confirmation of balances with the request to confirm or send/comments by the stipulated date failing which the balances as appearing in the letter would be taken as confirmed. Confirmation e-mails have been received in very few cases; however, no adverse communication has been received from the parties.

5. Interest on outstanding balances of MSME creditors not provided in the books as contractual terms with the parties are more than 60/90 days and parties are also agreed upon the terms of payment. Now, Company is developing the procedure for compliance the relevant act and will provide interest, if payable as per act.

6. During the year ''2.17 Crores (P Y ''3.69 Crores credit) has been credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

7. Segment Reporting

The Chief Operational Decision Maker identifies and monitors the operating results of its business segments separately for purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the Standalone Financial Statements. The Operating segments have been identified on the basis of the nature of products/services.

8. Leases: Effective Date and Transition

Effective April 01,2019, the Company has adopted Ind AS 116 Leases. Company applies retrospectively with the cumulative effect of initially applying the Standard recognized at the date of initial application. Company measure lease liability at the present value of the remaining lease payments, discounted using the lessee''s incremental borrowing rate at the date of initial application, and measure that right-of-use asset an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet immediately before the date of initial application. Company is following SLM method for depreciation on Right of use assets over lease terms.

10. Disclosure as required by Ind AS-19, Employee Benefits

I. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company contribution "on the basis of actuarially ascertained by the Independent Actuariesâ is charged to profit and loss account. The amount debited to profit, and loss account is ''0.685 Crores.

Other long-term employee benefits:

11. Leave encashment

In respect of Gratuity & Leave Encashment, provision is made based on the actuarial valuation by an independent actuary. The following information as required under Ind AS-19 is based on the report of the Actuary:

11. Component Accounting for Fixed Assets

In opinion of the management, based on internal verification of the assets of the Company, there is no major part, in case of any asset, which is significant to total cost of the asset and whose useful life is different from the useful life of the asset. Hence, there is no change in accounting of fixed assets and depreciation thereon as required under Ind AS 16: Property, Plant and Equipment.

12. Segment Reporting

13. Impairment of Assets

In accordance with Ind AS 36 "Impairment of Assets" Company has recognized impairment loss of '' Nil during year.

16. Corporate Social Responsibility (CSR)

17. Financial Instruments and Risk Management

Fair values

1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short-term nature.

2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (non-current) consist of interest accrued but not due on deposits other financial assets consists of employee advances where the fair value is considered based on the discounted cash flow.

The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a

current transaction between willing parties, other than in a forced or liquidation sale.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other

than those with carrying amounts that are reasonable approximation of fair values:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.

18. Financial Risk Management

(A) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31,2023 and March 31, 2024.

The analysis excludes the impact of movements in market variables on the carrying values of financial assets and liabilities.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the trade/other payables, trade/ other receivables assets/liabilities. The risks primarily relate to fluctuations in US Dollar & EURO against the functional currencies of the Company. To mitigate the Group''s exposure to foreign currency risk, cash flows are monitored and natural hedge is used. (Amounts to be paid and received in a specific currency are expected to largely offset one another). The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents Company''s maximum exposure to the credit risk. No other financial asset carries a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

19. Event Occurring after the Balance Sheet date

The Board of Directors has recommended an Equity dividend of ''1.80/- per share on face value of ''10/- each,

for the financial year 2023-24. The proposal is subject to the

approval of shareholders at the Annual General Meeting.

20. Commitments

Company has commitment to pay for the acquisition

of plant and machinery (net of advances) is

''0.33 Crores (Previous year 3.93 Crores).

21. Other Disclosures

(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(d) There is no Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(e) There is no transaction in Crypto Currency or Virtual Currency.

(f) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.

(g) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

(h) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the Standalone Financial Statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries); or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries); or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

22. The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current year presentation.

Management has tried to resolve the issues of Central Excise Loan with higher authorities of Ministry of Finance, Government of India and made various representations, but did not get proper response as above scheme has been over and no proper documents are available with ministry of finance, Government of India. Management of PML is providing simple interest on outstanding dues of above loan even though this was interest free. The Company has been repaid balance Principal Amount of the loan during FY 17-18.

Mar 31, 2023

R. Provisions

Provisions for legal claims and returns are recognised when the company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provisions due to the passage of time is recognized as interest expense.

S. Employee benefits

i. Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

ii. Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations. Re-measurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

iii. Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund and superannuation fund.

Gratuity obligations

The liability or assets recognized in the balance sheet in respect of gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually with the assistance of independent actuaries.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss.

Defined contribution plans

The company pays provident fund contributions to publicly administered funds as per local regulations and superannuation fund to LIC. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due.

iv. Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

v. Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

T. Earning per share

i. Basic earnings per share

Basic earnings per share are calculated by dividing:

â¢ The profit attributable to owners of the company

â¢ By the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

ii. Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

â¢ The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

â¢ The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

*Management has tried to resolve the issues of Central Excise Loan with higher authorities of Ministry of Finance, Government of India and made various representations, but did not get proper response as above scheme has been over and no proper documents are available with ministry of finance, Government of India. Management of PML is providing simple interest on outstanding dues of above loan even though this was interest free. The Company has been repaid balance Principal Amount of the loan during FY 17-18.

3. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno "Petitionerâ (Freight forwarder agent & CHA of company).

Facts of the case - During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the company which is essential documents to claim Excise rebate, and accordingly company withheld their payment. Subsequently, petitioner has filed winding up petition against the Company of dues of ? 12.95 Lakhs. Honorable Mumbai High Court has passed an order allowing the petition and issued direction for appointment of official liquidator in winding up order.

On the appeal against this order made by the company before Honorable Bombay High Court, Honorable Bombay High Court has given interim stay order against the winding up order passed (against the Company) dated April 15, 2015. Company has deposited ? 19.05 Lakhs with interest as per direction of honorable Bombay High Court. Matter is pending before Bombay High Court. Next hearing in this matter shall come up as per listing of the court.

Amount deposited of ? 19.05 Lakhs with court is shown in Balance sheet under Current Assets.

5. Interest on outstanding balances of MSME creditors not provided in the books as contractual terms with the parties are more than 60/90 days and parties are also agreed upon the terms of payment. Now, company is developing the procedure for compliance the relevant act and will provide interest, if payable as per act.

6. During the year ? 368.80 Lakhs (P Y ? 252.73 Lakhs credit) has been credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

7. Segment reporting

The Chief Operational Decision Maker identifies and monitors the operating results of its business segments separately for purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. The Operating segments have been identified on the basis of the nature of products/services.

8. Leases: Effective date and transition

Effective April 01,2019, the Company has adopted Ind AS 116 Leases. Company applies retrospectively with the cumulative effect of initially applying the Standard recognized at the date of initial application. Company measure lease liability at the present value of the remaining lease payments, discounted using the lessee''s incremental borrowing rate at the date of initial application, and measure that right-of-use asset an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet immediately before the date of initial application. Company is following SLM method for depreciation on Right of use assets over lease terms.

10. Disclosure as required by Ind AS-19, Employee Benefits

I. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The company contribution "on the basis of actuarially ascertained by the Independent Actuariesâ is charged to profit and loss account. The amount debited to profit, and loss account is ? 6.85 Lakhs.

Other long-term employee benefits:

11. Leave encashment

11. Component Accounting for Fixed Assets:

In opinion of the management, based on internal verification of the assets of the company, there is no major part, in case of any asset, which is significant to total cost of the asset and whose useful life is different from the useful life of the asset. Hence, there is no change in accounting of fixed assets and depreciation thereon as required under Ind AS 16: Property, Plant and Equipment.

12. Segment Reporting:

13. Impairment of Assets:

In accordance with Ind AS 36 "Impairment of Assetsâ company has recognized impairment loss of ? 14.22 Lakhs.

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, healthcare, women empowerment, measures for the benefit of war widows and contributions to incubators has been formed by the company as per the Act. The funds were primarily allocated to a corpus and utilised through the year on these activities which are specified in schedule VII of the Companies Act, 2013.

20. Financial instruments and risk management Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:

*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3.

(A) Market risk

The analysis excludes the impact of movements in market variables on the carrying values of financial assets and liabilities.

(i) Foreign currency exchange rate risk

(ii) Interest rate risk

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents company''s maximum exposure to the credit risk. No other financial asset carries a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

22. Event occurring after the balance sheet date

The Board of Directors has recommended an Equity dividend of ? 1.50/- per share on face value of ? 10/-each, for the financial year 2022-23. The proposal is subject to the approval of shareholders at the Annual General Meeting.

23. Commitments

Company has commitment to pay for the acquisition of plant and machinery (net of advances) is ? 393.10 Lakhs.

24. Other Disclosures

(c) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(d) There is no Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

(e) There is no transaction in Crypto Currency or Virtual Currency.

(f) The Company is not declared wilful defaulter by any bank or financials institution or lender during the year.

(g) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

25. The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current year presentation.

For Jayesh Sanghrajka & Co LLP

Chartered Accountants

ICAI Firm Regd. No. 104184W/W100075

Hemant Kumar Agrawal

Designated Partner M. No. 403143

UDIN: 23403143BGRVFQ4439

Date: 17-05-2023 Place: Mumbai

For and on Behalf of the Board

Sharad Taparia Mukul Taparia

Managing Director Director

DIN:00293739 DIN: 00318434

Sukhmal Jain Rachana Rane

Chief Financial Officer Company Secretary

Mar 31, 2018

Company Overview

Permanent Magnets Limited is one of the flagship Companies of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. PML has started with supplies of Gas meters parts and accessories. The assembly includes Die cast parts, Plastic parts, Brass parts, Bi-metal parts, Stainless steel parts and special copper alloy parts. The combination is of these parts fitted together is further aligned under special conditions to be directly used in gas meters. PML is adding similar range of product and forward integration of parts to assemblies in current business based on customer demand. Company has good customer base in India as well as in Europe, USA, South America and South East Asia. Permanent Magnets Limited (the âCompanyâ) is listed on the Bombay Stock Exchange (BSE).The Significant Accounting Policies are as follows:

1. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

âmanagement has tried to resolve the issues of Central Excise Loan with higher authorities of Ministry of Finance, Government of India and made various representations, but did not get proper response as above scheme has been over and no proper documents are available with ministry of finance, Government of India. Management of PML is providing simple interest on outstanding dues of above loan even though this was interest free. Loan Principal amount repaid on during FY 17-18.

2. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno âPetitionerâ (Freight forwarder agent & CHA of company).

Facts of the case - During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the company which is essential documents to claim Excise rebate and accordingly company withheld their payment. Subsequently, petitioner has filed winding up petition against the Company of dues of INR 12,95,305/-. Honorable Bombay High Court has passed an order allowing the petition and issued direction for appointment of official liquidator in winding up order.

On the appeal against this order made by the company before Honorable Bombay High Court, Honorable Bombay High Court has given interim stay order against the winding up order passed (against the Company) dated 15/04/2015. Company has deposited INR 19,05,179/- with interest as per direction of honorable Bombay High Court. Matter is pending before Bombay High Court. Next hearing in this matter shall come up as per listing of the court.

Amount deposited of INR 19,05,179/-with court is shown in Balance sheet under Current Assets.

3. Balance under the head âTrade Receivablesâ, âTrade Payablesâ, âLoan and Advances Receivable and Payableâ are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof. Confirmation letters have been issued to parties for confirmation of balances with the request to confirm or send / comments by the stipulated date failing which the balances as appearing in the letter would be taken as confirmed. Confirmation letters have been received in very few cases; however no adverse communication has been received from the parties.

4. During the year INR 15.77 Lakh (P. Y. INR 104.40 Lakh credit) has been debited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

5. Segment reporting

The Chief Operational Decision Maker identifies and monitors the operating results of its business segments separately for purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. The Operating segments have been identified on the basis of the nature of products/services.

6. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets are taken on finance lease.

During the year the Company has recognized following rental expenses

7. Related Party Disclosure:

As per the Ind AS 24 details of related parties & transactions with them are given below:

Note: Reimbursement of expenses incurred by the related parties for and on behalf of the company and vice-versa has not been included above. Provision for Gratuity being on actuarial valuation, is not included as separate figure for related party is not available.

Note: Previous yearâs figures are given in italic

8. Disclosure as required by Ind AS-19, Employee Benefits

I. Gratuity

The Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The company contribution âon the basis of actuarially ascertained by the Independent Actuariesâ is charged to profit and loss account. The amount debited to profit and loss account is INR 10.67 Lakhs Other long-term employee benefits:

II. Leave encashment

In respect of Gratuity & Leave Encashment, provision is made based on the actuarial valuation by an independent actuary. The following information as required under Ind AS-19 are based on the report of the Actuary:

9. Component Accounting for Fixed Assets

10. Segment Reporting :

The company is operating in single segment i.e. manufacturing of Cast Magnets& part and accessories of electricity meters There have been no other reportable segments identified by Chief Operating Decision Maker and hence no segment reporting is presented under IND AS 108.

11. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

12. Micro, Small and Medium Enterprises Development Act, 2006:

As per requirement of Section 22 of Micro, Small & Medium Enterprises Development Act, 2006 following information is disclosed to the extent identifiable:

The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of information available with the company.

13. Financial instruments and risk management Fair values

2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (noncurrent) consists of interest accrued but not due on deposits other financial assets consists of employee advances where the fair value is considered based on the discounted cash flow.

*Fair value of instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If significant inputs required to fair value an instruments are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included in level 3

14. Financial risk management

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The analysis exclude the impact of movements in market variables on the carrying values of financial assets and liabilties.

(i) Foreign currency exchange rate risk

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The carrying amount of trade receivables, loans, advances, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents companyâs maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.

15. First-time adoption of Ind AS Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with Companies (Accounting Standard) Rules, 2006, notified under section 133 of the Act and other relevant provisions of the Act (Previous GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017. This note explains the principal adjustments made by the Company in restating its statement of financial position as at 1 April 2016 and its previously published financial statements as at and for the year ended 31 March 2016 under previous GAAP.

Exemptions and Exceptions availed

Upon transition, Ind AS 101 permits certain exemptions from full retrospective application of Ind AS. The Company has applied the mandatory exceptions and certain optional exemptions, as set out below:

A. Ind AS optional exemptions

(i) Deemed cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant & Equipment as recognised in the 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, after making necessary adjustments for decommissioning liabilities. This exemption can also be used for Intangible Assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its Property, Plant & Equipment and Intangible Assets at their previous GAAP carrying value.

(ii) Impairment of financial assets

The Company has applied the exception related to impairment of financial assets given in Ind AS 101. It has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially recognised and compared that to the credit risk as at 01 April 2016.

(iii) Lease

Appendix C to Ind AS 17, Leases, requires an entity to assess whether a contract or arrangement contains a lease. As per Ind AS 17, this assessment should be carried out at inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition.

B. Ind AS mandatory exceptions

(i) Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind As shall be consistent with the estimates made for the same date in accordance with previous GAAP(after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at Fair value through Profit and Loss.

- Impairment of financial asset based on expected credit loss model.

(ii) Classification and measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Reconciliation between previous GAAP and Ind AS (as at 31 March 2017 and 1 April 2016)

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods.

The following tables represent the reconciliations from previous GAAP to Ind AS.

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note

D. Notes to first-time adoption:

i. Deferred tax

Previous 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 differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. It requires recognition of tax consequences of differences between the carrying amounts of assets and liabilities and their tax base. As a result, deferred tax assets have been decreased by INR 2413/- as at 31 March 2017 with a corresponding increase in retained earnings and net profit respectively.

ii. Re-measurements of post-employment benefit obligations

Under Ind AS, re-measurements i.e. Actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these re-measurements were forming part of the profit or loss for the year. There is no impact on the total equity as at 31 March 2017.

iii. Other equity

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments on the date of transition. The company has transferred on April 1,2016 an amount of INR 25.25 Lakh from General reserve to retained earnings as the conditions attached to it are fulfilled as at the date of transition. However there is no impact on other equity on account of this adjustment.

iv. Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in the profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit or loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of âother comprehensive incomeâ did not exist under previous GAAP

v. Cash flow from financing activities

Other bank balances (disclosed under Note 11 of Financial statement) are not considered as part of cash and cash equivalents under Ind AS and the movement of other bank balances is the variance in net increase/decrease in cash and cash equivalents as at 31 March 2017.

16. The previous yearâs figures have been regrouped, rearranged and reclassified wherever necessary to conform to the current year presentation.

Mar 31, 2015

Company Overview

Permanent Magnet Limited is one of the flagship Company of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. Company has good customer base in India as well as in Europe, USA, South America and South East Asia. The Significant Accounting Policies are as follows:

1. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

2. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno "Petitioner" (Freight forwarder agent & CHA of company).

Facts of the case - During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the company which is essential documents to claim Excise rebate, and accordingly company withheld their payment. Subsequently, petitioner has fled winding up petition against the Company of dues of Rs. 12,95,305/-. Honorable Mumbai High Court has passed an order allowing the petition.

The order dated 15th April 2015 was passed and uploaded on 16th May 2015 on High court website. Company has not yet received the certified copy yet due to court summer vacation.

However, Company has taken opinion of legal advisors on this issue and is in the process of filing an Appeal against the said order in Division Bench of Bombay High Court. An amount of Rs. 12,95,305/- has been shown under contingent liabilities showing all facts.

3. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 08.46 Lakhs (P. Y. Rs. 09.29 Lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

4. Balance under the head 'Trade Receivables', 'Trade Payables', 'Loan and Advances Receivable and Payable' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

5. During the year Rs. 152.64 Lakh (P. Y. Rs. 309.55 Lakh debit) has been credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

6. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancellable operating leases. There are no assets are taken on finance lease.

7. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

8. Segment Reporting :

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

9. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

10. Additional information as per revised schedule VI to the companies Act, 1956.

A) Purchases of Finished Goods: NIL (P.Y. NIL)

B) Expenditure and Earning in Foreign Currencies:

a. CIF Value of Imports:

d) Previous year's figures have been recast or regrouped wherever necessary to make them comparable with current year's figures.

Mar 31, 2014

1. Share Capital

a. Terms/Rights attached to Equity Shares

Equity shares are having a par value of Amount Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

b. Details of shareholders holding more than 5% shares in the company

As per the 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 and beneficial ownership of shares.

The company has neither issued any bonus shares nor any shares pursuant to contract without payment being received in cash during preceding five years. It has also not bought back any shares during these years.

2. Long Term Borrowings

a) Rupee Loans from banks are repayable in 3 years to 5 year from the date of loan. Above loans are secured by first charges on specific assets financed by the lender except working capital term loan from bank which is secured by exclusive charge on 5000 sq.ft. of constructible area at Borivali property out of the 15% Share of the Company. Further these facilities are secured by personal guarantees of Directors and relatives and a Corporate Guarantee by Synagogue Impex Ltd. and payable in monthly/Qtrly Installments.

b) Central Excise Loan taken from ICICI Bank is secured by hypothecation of specific assets purchased under the scheme and payable in Qtrly instalment which are overdue since 15th October, 2002 to 15th October, 2004.

3. Short Term Borrowings

Foreign as well Rupee currency Loans are secured by first pari passu charge on residential flat standing in the name of Synagauge Impex Ltd and second pari passu charge on entire fixed assets of the company, (Excluding Borivli property). Further working capital enhancement of Rs 1.9 crores by Central Bank of India is secured by exclusive 2500 squire feet constructable area of Borivli Property.

4. Exceptional items (Net)

During the previous year, company has announced Voluntary retirement Scheme (VRS) for its permanent employees. In response of the scheme, total of 35 employees has opted for the same. The company has incurred a total expenditure of Rs. 215.55 Lakhs on the said scheme. In compliance with the provisions of the Accounting Standards -15 "Employees Benefits", the entire amount of Rs. 215.55 Lakhs is charged to Statement of Profit and Loss Under the head "Exceptional items (net) during the previous financial year.

5. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

6. Contingent Liabilities:

(Rs. in Lakhs)

Particulars 31.03.14 31.03.13

a) Unutilized Letters of Credit with Bankers 47.00 126.54

b) Bank Guarantee 13.70 19.05

c) Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts. 34.74 16.79

d) Excise Department has rejected the appeal filed by the company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of Rs. 5 Lakh for stay order. Stay order against recovery of the dues has been granted. In the opinion of Company''s Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit.

Further, in similar cases, the Commissioner of Central Excise has ruled in favour of the company and has set aside the show cause notices.

Duty Demanded 31.59 31.59

Penalty 31.59 31.59

e) Interest on Central Excise loan (Operated through ICICI). 571.64 447.87

According to the management, Central Excise loan is interest free. However ICICI, the Operating Agency raises certain demands towards the overdue installments. The Company has provided simple interest as demanded by ICICI. Total interest provided by the company is Rs. 151.13 lakhs, which may be reversible if the Central Government finally doesn''t demand. The ICICI had also demanded Compounded interest which is not provided in the account as according to the company, the same is not payable and the same is shown as contingent here. Additional interest if claimed by the department will be payable. However the management does not expect any liability on that account.

f) During the year, credit balances had been written back under the head "Misc. Balances Written back". According to the company those amounts are not payable since all have become time barred. 18.31 0.15

g) Income tax Department has raised a demand of Rs. 2,59,318 in respect of Suyog Agency Ltd. (Company merged with PML) for the A. Y. 07-08 of which Rs. 53,517 is recognized in the books and for the balance amount the company has filed an appeal with CIT (A). 2.06 2.06

7. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 09.29 Lakhs (P. Y. Rs. 09.63 Lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

8. Donation made by the Company is within the limits prescribed u/s. 293(1) (e) of the Companies Act 1956.

9. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable'' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

10. During the year Rs. 309.55/- Lakhs (P. Y. Rs. 32.22 Lakhs credited) has been debited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

11. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets are taken on finance lease.

12. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

Note: Reimbursement of expenses incurred by the related parties for and on behalf of the company and vice-versa has not been included above. Provision for Gratuity being on actuarial valuation, is not included as separate figure for related party is not available.

13. Segment Reporting:

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

14. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

15. The Company has determined the liability for Gratuity and Leave encashment in accordance with Accounting Standard 15 (Revised 2005) - Employee Benefits.

16. Previous year''s figures have been recast or regrouped wherever necessary to make them comparable with current year''s figures.

Mar 31, 2013

Company Overview

Permanent Magnet Limited is one of the flagship Company of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. The Company has good customer base in India as well as in Europe, USA, South America and South East Asia. The Significant Accounting Policies are as follows:

1. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 9.63 Lakhs (P. Y. Rs. 08.56 Lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

2. During the year Rs. 32.22/- Lakhs (P. Y. Rs. 77.03 Lakhs Debited) has been Credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

3. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets are taken on finance lease.

4. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

5. Segment Reporting :

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

6. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

7. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

8. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable'' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

9. Previous year''s figures have been recast or regrouped wherever necessary to make them comparable with current year''s figures.

Mar 31, 2012

1. Share Capital

a. Terms/Rights attached to Equity Shares

Equity shares are having a par value of Amount Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

2. Long Term Borrowings

a) Rupee Loans from banks are repayable in 3 years to 5 years from the date of loan. Above loans are secured by first charge on specific assets financed by the lender except working capital term loan from bank which is secured by exclusive charge on 5000 sq.ft. of constructible area at Borivali property out of the 15% Share of the Company. Further these facilities are secured by personal guarantees of Directors and relatives and a Corporate Guarantee by Synagogue Impex Ltd. and payable in monthly/Qtrly Installments.

b) Central Excise Loans taken from ICICI Bank is secured by hypothecation of specific assets purchased under the scheme and payable in Qtrly instalment which are overdue since 15th October, 2002 to 15th October, 2004

Company Overview

Permanent Magnet Limited is one of the flagship companies of Taparia group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. Company has good customer base in India as well as in Europe, USA, South America, and South East Asia. The Significant Accounting Policies are as follows:-

3. Contingent Liabilities: (Rs. in Lakhs)

Particulars 31.03.12 31.03.11

a) Unutilized Letters of Credit with Bankers 116.67 244.52

b) Bank Guarantee 9.80 32.00

c) Bills discounted with Banks and not realized (Secured by hypothecation of all 383.97 696.62 movable assets and second Charge on all Fixed Assets.)

d) Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts. 19.70 28.51

e) Excise Department has rejected the appeal filed by the company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of Rs. 5 Lakh for stay order. Stay order against recovery of the dues has been granted. In the opinion of Company's Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit.

Further, in similar cases, the Commissioner of Central Excise has ruled in favour of the company and has set aside the chow cause notices.

Duty Demanded 31.59 31.59

Penalty 31.59 31.59

f) Interest on Central Excise loan (Operated through ICICI).

According to the management, Central Excise loan is interest free. However ICICI, the Operating Agency raises certain demands towards the overdue installments. The Company has provided simple interest as demanded by ICICI. Total interest provided by the company is Rs. 136.18 lakhs, which may be reversible if the Central Government finally doesn't demand. The ICICI had also demanded Compounded interest which is not provided in the account as according to the company, the same is not payable and the same is shown as contingent here. Additional interest if claimed by the department will be payable. However the management does not expect any liability on that account 271.07 225.91

g) During the year, credit balances had been written back under the head "Misc. Balances Written back". According to the company those amounts are not payable since all have become time barred. 21.38 13.98

h) Income tax Department has raised a demand of Rs. 2,59,318 in respect of Suyog Agency Ltd. (Company merged with PML) for the A. Y. 07-08 of which Rs. 53,517 is recognized in the books and for the balance amount the company has filed an appeal with CIT(A). 2.06 2.06

4. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 8.56 Lakhs (P. Y. Rs. 16.86 lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

5. Donation made by the Company is within the limits prescribed u/s. 293(1) (e) of the Companies Act 1956.

6. During the year Rs. 77.03 Lakhs (P. Y. Rs. 55.40 lakhs) has been Debited to the Profit and Loss account in respect of the Foreign Exchange Differences.

7. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets taken on finance lease.

8. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

9. Segment Reporting :

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

10. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

11. Balance under the head 'Trade Receivables', 'Trade Payables', 'Loan and Advances Receivable and Payable' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

12. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realisation in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

13. Previous year's figures have been recast or regrouped wherever necessary to make them comparable with current year's figures.

Mar 31, 2010

1) In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization at least equal to the amount at which they are stated in the Balance Sheet

2) Contingent Liabilities:

(Rs. in Lakhs)

Particulars As at 31.03.10 As at 31.03.09

a) Unutilized Letters of Credit with Bankers 160.61 17.96

b) Bank Guarantee 19.25 19.25

c) Bills discounted with Banks and not realized 558.27 633.42 (Secured by hypothecation of all moveable assets and second Charge on

all Fixed Assets.)

d) Labour cases in the court for reinstatement and/or higher compensation, 31.73 28.80

which in the opinion of the management demand no provision of liability

than what is recorded in accounts.

e) Excise Department has rejected the appeal filed by the company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of Rs. 5 Lakh for stay order. Stay order against recovery of the dues has been granted. In the opinion of Companys Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit.

Further, in similar cases the Commissioner of Central Excise has ruled in favour of the company and has set aside the show cause notices. Duty Demanded 31.59 31.59

Penalty 31.59 31.59

f) Interest on Central Excise loan (Operated through ICICI). 148.24 131.27 Represents difference between (a) Simple interest provided for in books on overdue instalments of interest-free excise loan and (b) Compounded interest computed thereon by the erstwhile agency ICICI Ltd. The Company views former as the correct basis and does not expect any additional liability.

g) During the year, credit balances had been written back under the head 6.26 0.52 Misc. Balances Written backÃ. According to the company those amounts

are not payable since all have become time barred.

h) Income tax Department has raised a demand of Rs. 2,59,318 in respect of 2.06 -

Suyog Agency Ltd. (Company merged with PML) for the A. Y. 07-08 of which Rs. 53,517 is recognized in the books and for the balance amount the company has filed an appeal with CIT (A).

3) Managerial Remuneration :

No managerial remuneration has been paid during the year. Thus the provisions of section 198 of the Companies Act, 1956 have been complied with.

4) The details of amount payable to Micro & small industrial undertakings, in excess of Rs.1Lakh and outstanding for a period of more than 30 days are not ascertainable as the suppliers have not disclosed their status.

5) The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 11.80 Lakhs (Previous Year Rs. 18.70 lakhs). The same amount has been included in the calculation of cost for valuation of finished goods.

6) Donation made by the Company is within the limits prescribed u/s. 293(1) (e) of the Companies Act 1956.

7) Balance under the head Sundry Debtors, Sundry Creditors, Loan and Advances Receivable and Payable are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any on reconciliation thereof.

8) Deferred Revenue Expenditure:

The company has made a provision of Rs. 1,38,29,296 during the year 2004-05,and Rs.3,34,59,639 during the year 2005-06 towards retirement compensation, to be written off in 5 years. Accordingly Rs. 66,91,927 (Previous year Rs. 94,57,787) is written off during the year.

9) During the year Rs 34,36,890/- (Previous Year Rs. 7,51,31,961 ) has been Debited to the Profit and Loss account in respect of the Foreign Exchange Differences.

10) Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases.

During the year under review, the company has paid Rs. 54.09 Lakhs on account of rent.

11) Loans and Advances include Rs.169.21 lakhs (Previous Year Rs. 158.15 lakhs) due from the Company in which Directors are interested.

12) Related Party Transaction:

As per the accounting standard 18 issued by the Institute of Chartered Accountants of India, the list of related parties are given below:

The list of related parties and nature of their relationship as on 31.3.2010:

Subsidiaries NIL

Joint Ventures NIL

Associate Companies NIL

Directors / Key Management Personnel and their relatives:

Shri Shyamsunder Taparia Managing Director

Shri Sharad Taparia Executive Director

Enterprises in control of Key Management Persons :

a) Pregna International Limited

b) Permanent Infotech (I) Pvt. Ltd.

c) Taparia Loudspeakers Pvt. Ltd

d) Taparia Audio Component Pvt.Ltd.

e) Nymph Properties Pvt. Ltd.

f) Varij Plantation Ltd.

g) Jalaj Plantations Ltd.

h) Shriorient Corporation

I) Suraj Agency

j) Suyog Agency

k) Kymsap Enterprises

l) Shriniwas Company Pvt. Ltd

m) Nova Audio systems Pvt. Ltd.

n) Nutal realties

13) Segment Reporting:

The company is operating in single segment i.e. manufacturing of Cast Magnets & Assemblies. Hence AS-17 is not applicable.

14) Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

15) Additional informations pursuant to paragraphs 3 and 4 of part II of Schedule VI to the Companies Act 1956

16) The Company has determined the liability for Gratuity and Leave encashment in accordance with Accounting Standard 15 (Revised 2005) Ã Employee Benefits.

17) Previous years figures have been recast or regrouped wherever necessary to make them comparable with current years figures.

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