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Notes to Accounts of Pix Transmissions Ltd.
Mar 31, 2025
2.b.12 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources, which can be reliably
estimated, will be required to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows to net present value using an appropriate pre-tax discount rate that
reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss
as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the
current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made, is
disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is
remote, are not disclosed as contingent liabilities.
Contingent assets are not recognised in financial statements since this may result in the
recognition of income that may never be realised. However, when the realisation of income is
virtually certain, then the related asset is not a contingent asset and is recognised.
2.b.13 Trade receivables
A receivable represents the Company''s right to an amount of consideration that is unconditional
(i.e., only the passage of time is required before payment of the consideration is due).
2.b.14 Trade and other payables
These amounts represent liabilities for goods and services provided to the group prior to the end of
the financial year which are unpaid. The amounts are unsecured and are usually paid within 30
days of recognition. Trade and other payables are presented as current liabilities unless payment is
not due within 12 months after the reporting period. They are recognised initially at their fair value
and subsequently measured at amortised cost using the effective interest method.
2.b.15 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised in profit or loss over the period of the
borrowings using the effective interest method. Fees paid on the establishment of loan facilities
are recognised as transaction costs of the loan to the extent that it is probable that some or all of
the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the
extent there is no evidence that it is probable that some or all of the facility will be drawn down, the
fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility
to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is
discharged, cancelled, or expired. The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as
other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least 12 months after the reporting period. Where there is a
breach of a material provision of a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes payable on demand on the reporting
date, the entity does not classify the liability as current, if the lender agreed, after the reporting
period and before the approval of the financial statements for issue, not to demand payment as a
consequence of the breach.
2.b.16 Borrowing costs
Borrowing costs are interest and other costs that the Company incurs in connection with the
borrowing of funds and is measured with reference to the effective interest rate (EIR) applicable to
the respective borrowing.
Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale. Borrowing costs, allocated to qualifying assets, pertaining to the period from
commencement of activities relating to construction / development of the qualifying asset up to
the date of capitalisation of such asset are added to the cost of the assets. Capitalisation of
borrowing costs is suspended and charged to the Statement of Profit and Loss during extended
periods when active development activity on the qualifying assets is interrupted.
All other borrowing costs are recognised as an expense in the period which they are incurred.
2.b.17 Segment Reporting - Identification of Segments
Operating segments are reported in a manner consistent with the internal reporting provided to
the chief operating decision maker. The Company is engaged in the business of Industrial Rubber
Products and there is no reportable primary segment as per Indian Accounting Standard (IND AS
108) '' Segment Reporting''. The Company identified geographical locations as secondary segments.
The products of the company are sold both in the domestic & export markets, which are
considered different geographical segments.
2.b.18 Earnings per share
Basic Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the
company by the weighted average number of equity shares outstanding during the financial year,
adjusted for bonus elements in equity shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to consider the after-income tax effect of interest and other financing costs associated with dilutive
potential equity and the weighted average number of additional equity shares that would have
been outstanding assuming the conversion of all dilutive potential equity shares.
2.b.19 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk
of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered
an integral part of the Company''s cash management.
2. c. NEW AMENDMENTS ISSUED BUT NOT EFFECTIVE
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For
the year ended 31stMarch 2025, MCA has not notified any new standards or amendments to the
existing standards applicable to the Company.
Capital Reserve
The Company created capital reserve on cancellation/ forfeiture of the Company''s own equity instruments.
Capital reserve was created in financial year 2008-09.
Capital Redemption Reserve
Capital Redemption Reserve is created out of profit available for distribution towards redemption of
Preference shares. This reserve can be used for the purpose of issue of Bonus shares.
General Reserve
General Reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the General Reserve is created by a transfer from one component of equity to another and is
not an item of other comprehensive income, items included in the General Reserve will not be reclassified
subsequently to statement of profit and loss.
Amalgamation Reserve
The amalgamation Reserve was created on amalgamation of PIX Auto Ltd with the Company in financial
year 1999-2000.
Securities Premium
Securities Premium Reserve represents premium on issue of shares. The reserve will be utilised in
accordance with the provisions of the Companies Act, 2013.
Retained earnings
The balance in the Retained Earnings primarily represents the surplus after payment of dividend and
transfer to reserves.
30.1 Disclosure as per Indian Accounting Standard - 19 on ''Employee Benefits''
Leave Obligations:
The leave obligations cover the Company''s liability for earned leave which are classified as other long-term
benefits.
Leave obligations expected to be settled within the next 12 months - Rs.61.80 lakhs (31 March, 2024:
Rs.58.56 lakhs)
Leave obligations not expected to be settled within the next 12 months - Rs.244.65 lakhs (31 March, 2024:
Rs. 227.91 lakhs)
Post-employment obligations (Gratuity):
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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 gratuity plan is
unfunded.
Defined contribution plans:
The Company also has a certain defined contribution plan. Contributions are made to provident fund in
India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to
registered provident fund administered by the government. The obligation of the Company is limited to the
amount contributed and it has no further contractual nor any constructive obligation. The expense
recognised during the period towards defined contribution plan is Rs.218.87 lakhs (31 March 2024 - Rs.
227.59 lakhs)."
"The above sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared
to the prior period."
Risk Exposure:
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which
are detailed below:
1. Changes in bond yields: A decrease in bond yields will increase plan liabilities
2. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the
life expectancy of the plan participants will increase the plan''s liability.
3. Salary growth risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of plan participants. An increase in the salary of the plan participants will increase the
plan''s liability.
Notes
1. Remuneration does not include Post employment benefits and other long term benefits payable to Key managerial
persons, relatives of key managerial persons and other selected employees amounting to Rs. 279.68 lakhs at gross level on
totality basis and not available at individual employee level.
2. Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
3. Goods were sold to subsidiaries (including step down subsidiaries) during the year based on the price lists in force and
terms that would be available to third parties.
4. All other transactions were made on normal commercial terms and conditions and at market rates.
The accounting classification of each category of financial instrument, their carrying amount and
fair value are as follows :-
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
- The fair value of mutual funds are based on price quotations at the reporting date.
Fair Value Hierarchy
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in
the valuation techniques as follows
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
The above loans are secured by:
1st Pari passu charge on fixed assets (Moveable and Immovable) of the Company by way of Equitable
Mortgage located at
I. Plot no J-7, MIDC Hingna Road, Nagpur - Unit No.1
II. K-36,K-37/38 at MIDC , Hingna Road, Nagpur- Unit No.2
III. Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna, Nagpur-Mixing Plant,
IV. Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi.
V. Khasra No.13,14.15/3 village sangam , Tehsil Hingna, Nagpur
2nd pari passu charge by way of hypothecation of residual value of hypothecation of entire current
assets of the Company including raw material, finished goods, stock-in-process at the company''s
factory premises or at such places as may be approved by the Bank from time to time including
stock -in-transit, book debts, receivables under multiple banking arrangement.
Vehicle loans are secured against hypothecation of vehicles.
iii. Terms of repayment of Unsecured Loans
These Loans carries an interest rate of 11% to 11.50% (31 March, 2024: 11% to 11.50%) and is
repayable in March 2027.
iv. Security and terms of repayment of working capital loans
"(a) Working capital loans are secured by:
1) 1st pari passu charge by way of hypothecation of entire current assets of the Company including
raw materials, finished goods, stock-in-process at the Company''s factory premises or at such places
as may be approved by the Bank from time to time including stocks-in-transit, book debts,
receivables, on pari passu basis under multiple banking arrangement.
2) 2"" pari passu charge on entire fixed assets (Moveable and Immovable) of the Company by way of
Equitable Mortgage located at
i) Plot no J-7, MIDC Hingna Road, Nagpur - Unit NO.1
ii) K-36,K-37/38 at MIDC , Hingna Road, Nagpur- Unit NO.2
iii) Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna. Dist. Nagpur Mixing Plant
iv) Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi. "
(b) Working capital loans from banks are repayable on demand
(c) Working capital loans from banks/ financial instution are not availaed by the Company during the
current financial year (31 March, 2024: 8.00% to 8.80%)
(D) Financial Risk Management
The Company''s activities are exposed to variety of financial risks. The key financial risks include
market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of
financial markets and seek to minimise potential adverse effects on its financial performance. The
Board of Directors reviews and approves policies for managing these risks. The risks are governed by
appropriate policies and procedures and accordingly financial risks are identified, measured and
managed in accordance with the company''s policies and risk objectives.
(i) CREDIT RISK
"Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk for trade
receivables, cash and cash equivalents, investments, other bank balances, loans and other financial
assets. The Company only deals with parties which have good credit rating/ worthiness given by
external rating agencies or based on Company''s internal assessment.
Credit risk on trade receivables and contract assets are managed by the Company''s established
policy, procedures and control relating to customer credit risk management. Credit quality of a
customer is assessed and individual credit limits are defined in accordance with this assessment.
Moreover, given the diverse nature of the Company''s businesses, trade receivables and contract
assets are spread over a number of customers. Single external customer (except for subsidiaries)
accounted for 10% or more of the trade receivables in any of the years presented.
For trade receivables, as a practical expedient, the Company computes credit loss allowance based
on a provision matrix. The provision matrix is prepared based on historically observed default rates
over the expected life of trade receivables and is adjusted for forward-looking estimates.
For Mutual Fund Investments, counterparty risk are in place to limit the amount of credit exposure
to any one counterparty. This, therefore, results in diversification of credit risk for Company''s mutual
fund investments.
The Credit risk on mutual fund investments, cash and cash equivalents, and other bank balances are
limited as the counterparties are banks and fund houses with high-credit ratings assigned by credit
rating agencies."
The carrying amount of maximum exposure to credit risk. The concentration of credit risk is limited
due to the customer base being large and respective financial assets recognised in the financial
statements, represents the Company''s unrelated. The Company has a total recoverables of
INR.1253.34 Lakhs from single external Customer as at 31 March 2025 which is more than 10% of the
total trade receivables (31 March, 2024:NIL).
The Company establishes an allowance for impairment that represents its estimate of incurred
losses in respect of trade and other receivables. Receivables from customers are
reviewed/evaluated periodically by the management of the company and appropriate provisions
are made to the extent recovery there against has been considered to be remote.
(ii) Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to
meet it''s cash and collateral requirements at all times. The Company relies on borrowings and
internal accruals to meet its fund requirement. The current committed line of credit are sufficient to
meet its short to medium term fund requirement. The company manages liquidity risk by
maintaining sufficient cash and marketable securities and by having access to funding through an
adequate amount of committed credit lines.
(iii) Market Risk
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation
in the fair value of future cash flows of a financial instrument. The major components of Market risks
are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk
includes trade receivables, borrowings, investments and trade and other payables.
(a) 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 changes in market interest rate. There is nominal amount of interest income
but significant interest expenses are incurred by the company on borrowed funds. In order to
minimize the interest cost, interest reset options is opted and a regular pursuance is made with
financial institutions/commercial banks to lower down the interest rates as per prevailing market
trend. The policies is designed to optimise the use of available funds for repayment of loans and
other payment obligations so that funds are not remained idle with the company.
The Company''s exposure in market risk relating to change in interest rate primarily arises from
floating rate borrowing with banks. The Company maintains a portfolio mix of fixed and floating rate
borrowings. During the current year, the Company has structured and swapped floating interest rate
loan to fixed interest rate loan.
Further there are deposits with banks which are for short term period and are exposed to interest
rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do
not cause material implication.
NOTE :- 39 Disclosure requirement as per Ind AS 108 '' Operating Segment-
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Managing Director of the
Company.
The company identified geographical locations as secondary segments. The product of the company are sold
both in the domestic & export markets.
NOTE 41
Capital management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital
ratio in order to support its business and maximise shareholder value. The Company''s objective when
managing capital is to safeguard their ability to continue as a going concern so that they can continue to
provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping
strong total equity base to ensure independence, security, as well as a high financial flexibility for potential
future borrowings, if required.
Notes:
(i) Current Assets= Inventories Current Investment Trade Receivable Cash & Cash Equivalents Bank
Balance other than Cash & Cash Equivalents Loans Current Tax Assets Other Financial Current Assets
Other Current Assets
(ii) Current Liability= Short term borrowings Lease Liabilities Trade Payables Other financial Current
Liabilities Provisions Other Current Liability
(iii) Debt= long term borrowings Short term borrowings
(iv) Earning for Debt Service =Net Profit after taxes Non-cash operating expenses like depreciation and
other amortizations long term borrowing Interest loss/(profit) on sale of Property, Plant and
Equipment
(v) Debt Service = Interest of long term borrowing & Lease Payments Principal Repayments of long term
borrowing
(vi) Capital Employed= Tangible Net Worth long term borrowings Deferred Tax Liability
Note 45.5 Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
Note 45.6 Borrowing secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current assets.
The quarterly returns or statements of current assets filed by the Company with banks and financial institutions
are in agreement with the books of accounts.
Note 45.7 Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.
Note 45.8 Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.
Note 45.9 Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
Note 45.10 Compliance with approved schemes of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
Note 45.11 Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other persons or entities, 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
The Company has not received any fund from any persons or entities, 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
Note 45.12 Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
Note 45.13 Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.
Note 45.14 Valuation of PP&E and intangible asset
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.
Note 45.15 Title deeds of Immovable Properties
Title deeds of all immovable properties are held in the name of the Company.
Note 45.16 Borrowings from Banks and financial institutions
The Company has used the borrowings from banks and financial institutions for the specific purpose for which it
was taken.
Note 45.17 Registration of charges / satisfaction with Registrar of Companies (ROC)
Charges / Satisfaction has been duly registered with ROC within the statutory period
Note 45.18 Disclosures with regards to section 186 of the Companies Act, 2013
The Company has made investments (Refer note no 5 and 9) but not provided any guarantee or security or
granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties
Note 46: Previous Year''s figures
Previous Year''s figure has been regrouped, re-arranged and reclassified, wherever considered necessary, to
confirm with the current year''s presentation.
The accompanying notes 1 to 46 are an integral part of these standalone financial statements
For and on behalf of the Board of Directors of PIX Transmissions Limited
CIN: L25192MH1981PLC024837
As per our report of even date AMARPAL SETHI SONEPAL SETHI
FOR S G C O & Co. LLP CHAIRMAN & MANAGING DIRECTOR JOINT MANAGING DIRECTOR
CHARTERED ACCOUNTANTS DIN: 00129462 DIN: 00129276
Firm Registration No : 112081W/W100184
RISHIPAL SETHI KARANPAL SETHI
SURESH MURARKA JOINT MANAGING DIRECTOR CHIEF FINANCIAL OFFICER
PARTNER DIN: 00129304 DIN: 01711384
MEMBERSHIP NO: 044739
SHYBU VARGHESE
PLACE: MUMBAI COMPANY SECRETARY
DATE : MAY 23, 2025
PLACE: MUMBAI
DATE : MAY 23, 2025
Mar 31, 2024
16.1 Terms and rights attached to equity shares
Equity shares have a par value of Rs. 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.
Capital Reserve
The Company created capital reserve on cancellation/ forfeiture of the Company''s own equity instruments. Capital reserve was created in financial year 2008-09.
Capital Redemption Reserve
Capital Redemption Reserve is created out of profit available for distribution towards redemption of Preference shares. This reserve can be used for the purpose of issue of Bonus shares.
General Reserve
General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
Amalgamation Reserve
The amalgamation Reserve was created on amalgamation of PIX Auto Ltd with the Company in financial year 1999-2000.
Securities Premium
Securities Premium Reserve represents premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
Retained earnings
The balance in the Retained Earnings primarily represents the surplus after payment of dividend and transfer to reserves.
Leave Obligations:
The leave obligations cover the Company''s liability for earned leave which are classified as other long-term benefits.
Leave obligations expected to be settled within the next 12 months - Rs.58.56 lakhs (31 March, 2023: Rs.51.83 lakhs)
Leave obligations not expected to be settled within the next 12 months - Rs.227.91 lakhs (31 March, 2023: Rs. 201.45 lakhs)
Post-employment obligations (Gratuity):
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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 gratuity plan is unfunded.
Defined contribution plans:
The Company also has a certain defined contribution plan. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs.227.59 lakhs (31 March 2023 - Rs. 232.72 lakhs)."
Sensitivity Analysis:
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
"The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period."
Sensitivities due to mortality & withdrawals are not material & hence impact of change not calculated.
Risk Exposure:
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:
1. Changes in bond yields: A decrease in bond yields will increase plan liabilities
2. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
3. Salary growth risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan''s liability.
30.2 Other long-term employee benefit:
The Company provides for Other Long Term Benefits in nature of Long Term Service Award to Executive Directors and certain specified employees which shall become applicable on completion of 15 years of service (vesting condition). It shall be payable on retirement or executive director / employee leaving the Company.
|
Note :- 34 Contingent liabilities, contingent assets and commitments Disclosure as per IND AS 37 Provisions, contingent Liabilities & conting A) Contingent liabilities :- 1 |
ent Assets Amount in lacs) |
|
|
Particulars |
As at 31.03.2024 |
As at 31.03.2023 |
|
Performance guarantee |
5.00 |
7.63 |
|
The Company neither had any contingent asset as on March 31, 2024 nor as on March 3 B) Commitments :- i |
1, 2023 Amount in lacs) |
|
|
Particulars |
As at 31.03.2024 |
As at 31.03.2023 |
|
Estimated amount of contracts remaining to be executed on capital account for property, plant & equipment (net of advances) |
404.72 |
666.68 |
Notes
1. Remuneration does not include Post employment benefits and other long term benefits payable to Key managerial persons, relatives of key managerial persons and other selected employees amounting to Rs. 246.22 lakhs at gross level on totality basis and not available at individual employee level.
2. Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
3. Goods were sold to subsidiaries (including step down subsidiaries) during the year based on the price lists in force and terms that would be available to third parties.
4. All other transactions were made on normal commercial terms and conditions and at market rates.
Notes
1. Payables does not include Post employment benefits and other long term benefits payable to Key managerial persons, relatives of key managerial persons and other selected employees amounting to Rs. 2025.90 lakhs at gross level on totality basis and not available at individual employee level.
NOTE 37:- Disclosures as per IND AS 115 Revenue from contract with customers
1. Nature of Goods and services
The revenue of the company comprises of income from Business of Industrial rubber products. The following is a description of principal activities:
Manufacturing of rubber V-belts & related mechanical transmissions products.
The accounting classification of each category of financial instrument, their carrying amount and fair value are as follows :-Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
- The fair value of mutual funds are based on price quotations at the reporting date.
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The above loans are secured by:
1st Pari passu charge on fixed assets (Moveable and Immovable) of the Company by way of Equitable Mortgage located at
I. Plot no J-7, MIDC Hingna Road, Nagpur - Unit No.1
II. K-36,K-37/38 at MIDC, Hingna Road, Nagpur- Unit No.2
III. Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna, Nagpur-Mixing Plant,
IV. Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi.
2nd pari passu charge by way of hypothecation of residual value of hypothecation of entire current assets of the Company including raw material, finished goods, stock-in-process at the company''s factory premises or at such palces as may be approved by the Bank from time to time including stock -in-transit, book debts, receivables under multiple banking arrangement.
Vehicle loans are secured against hypothecation of vehicles.
iii. Terms of repayment of Unsecured Loans
These Loans carries an interest rate of 11% to 11.50% (31 March, 2023: 9% to 11.50%) and is
repayable in March 2026.
iv. Security and terms of repayment of working capital loans
(a) Working capital loans are secured by:
1) 1st pari passu charge by way of hypothecation of entire current assets of the Company including raw materials, finished goods, stock-in-process at the Company''s factory premises or at such places as may be approved by the Bank from time to time including stocks-in-transit, book debts, receivables, on pari passu basis under multiple banking arrangement.
2) 2"pari passu charge on entire fixed assets (Moveable and Immovable) of the Company by way of Equitable Mortgage located at
i) Plot no J-7, MIDC Hingna Road, Nagpur - Unit NO.1
ii) K-36,K-37/38 at MIDC, Hingna Road, Nagpur- Unit NO.2
iii) Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna. Dist. Nagpur Mixing Plant
iv) Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi.
(b) Working capital loans from banks are repayable on demand
(c) Working capital loans from banks carry an interest rate of 8.00% to 8.80% (31 March, 2023: 5.85% to 8.90%)
The Company''s activities are exposed to variety of financial risks. The key financial risks include market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the company''s policies and risk objectives.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances, loans and other financial assets. The Company only deals with parties which have good credit rating/ worthiness given by external rating agencies or based on Company''s internal assessment.
Credit risk on trade receivables and contract assets are managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with this assessment. Moreover, given the diverse nature of the Company''s businesses, trade receivables and contract assets are spread over a number of customers. Single external customer (except for subsidiaries) accounted for 10% or more of the trade receivables in any of the years presented
For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.
For Mutual Fund Investments, counterparty risk are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of credit risk for Company''s mutual fund investments.
The Credit risk on mutual fund investments, cash and cash equivalents, and other bank balances are limited as the counterparties are banks and fund houses with high-credit ratings assigned by credit rating agencies."
The carrying amount of maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and respective financial assets recognised in the financial statements, represents the Company''s unrelated. The Company does not have recoverables which is more than 10% of the total trade receivables from single external Customer as at 31 March, 2024. (31 March, 2023:1092.45 lakhs).
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management of the company and appropriate provisions are made to the extent recovery there against has been considered to be remote.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines.
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. There is nominal amount of interest income but significant interest expenses are incurred by the company on borrowed funds. In order to minimize the interest cost, interest reset options is opted and a regular pursuance is made with financial institutions/commercial banks to lower down the interest rates as per prevailing market trend. The policies is designed to optimise the use of available funds for repayment of loans and other payment obligations so that funds are not remained idle with the company.
The Company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks. The Company maintains a portfolio mix of fixed and floating rate borrowings. During the current year, the Company has structured and swapped floating interest rate loan to fixed interest rate loan.
Further there are deposits with banks which are for short term period and are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.
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 Company''s foreign currency borrowings, trade receivables and trade payables.
The Company has adopted a comprehensive risk management review system wherein actively engage in forward contracts its foreign exchange exposures within defined parameters through forward contracts. The Company periodically reviews its risk management initiatives and manages this forex risk using derivatives,wherever required,to mitigate or eliminate the risk.
The Company has not entered into forward contract during the current year and the details of outstanding forward contract on 31 March, 2023 is as under.
The Company''s equity exposure in Subsidiaries, are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect.
The company''s current investments which are fair valued through profit and loss and are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
NOTE :- 39 Disclosure requirement as per Ind AS 108 '' Operating Segment-
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company.
3. Information about major customers
The Company does not have any external customer other than its subsidiaries, with whom revenue from transactions is more than 10% of Company''s total revenue (Refer Note 35).
The Company does not have any ongoing CSR projects for both the years.
Capital management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required.
Events occurring after the reporting period
The Board of Directors have proposed a dividend of Rs. 7/- per share for the financial year 202324 (31 March, 2023: Rs 6 per share)
(i) Current Assets= Inventories Current Investment Trade Receivable Cash & Cash Equivalents Bank Balance other than Cash & Cash Equivalents Loans Current Tax Assets Other Financial Current Assets Other Current Assets
(ii) Current Liability= Short term borrowings Lease Liabilities Trade Payables Other financial Current Liabilities Provisions Other Current Liability
(iii) Debt= long term borrowings Short term borrowings
(iv) Earning for Debt Service =Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations long term borrowing Interest loss/(profit) on sale of Fixed assets
(v) Debt Service = Interest of long term borrowing & Lease Payments Principal Repayments of long term borrowing
(vi) Capital Employed= Tangible Net Worth long term borrowings Deferred Tax Liability Note 45.6 Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
Note 45.7 Borrowing secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Note 45.9 Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
Note 45.10 Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
Note 45.11 Compliance with approved schemes of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
Note 45.12 Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other persons or entities, 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
The Company has not received any fund from any persons or entities, 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
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
Note 45.14 Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Note 45.15 Valuation of PP&E and intangible asset
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
Note 45.16 Title deeds of Immovable Properties
Title deeds of all immovable properties are held in the name of the Company.
Note 45.17 Borrowings from Banks and financial institutions
The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
Note 45.18 Registration of charges / satisfaction with Registrar of Companies (ROC)
Charges / Satisfaction has been duly registered with ROC within the statutory period
Note 45.19 Disclosures with regards to section 186 of the Companies Act, 2013
The Company has made investments (Refer note no 5 and 9) but not provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties
Note 46: Previous Year''s figures
The financial statements for the year ended 31st March, 2023 were audited by another firm of Chartered Accountants and the same have been regrouped, re-arranged and reclassified, wherever considered necessary, to confirm with the current year''s presentation.
The accompanying notes 1 to 46 are an integral part of these standalone financial statements
Mar 31, 2023
16.1 Terms and rights attached to equity shares
Equity shares have a par value of Rs. 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.
The Company created capital reserve on cancellation/ forfeiture of the Company''s own equity instruments. Capital reserve was created in financial year 2008-09.
Capital Redemption Reserve is created out of profit available for distribution towards redemption of Preference shares. This reserve can be used for the purpose of issue of Bonus shares.
General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
The amalgamation Reserve was created on amalgamation of Pix Auto Ltd with the Company in financial year 1999-2000.
Securities Premium Reserve represents premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
The balance in the Retained Earnings primarily represents the surplus after payment of dividend and transfer to reserves.
30.1 Disclosure as per Indian Accounting Standard - 19 on ''Employee Benefits''Leave Obligations:
The leave obligations cover the Company''s liability for earned leave which are classified as other longterm benefits.
Leave obligations expected to be settled within the next 12 months - Rs.201.45 lakhs (31 March, 2022: Rs.124.55 lakhs)
Leave obligations not expected to be settled within the next 12 months - Rs.51.83 lakhs (31 March, 2022: Rs. 13.25 lakhs)
Post-employment obligations (Gratuity):
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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 gratuity plan is unfunded.
The Company also has a certain defined contribution plan. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs.232.72 lakhs (31 March 2022 - Rs. 239.76 lakhs).
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Sensitivities due to mortality & withdrawals are not material & hence impact of change not calculated. Risk Exposure:
Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:
1. Changes in bond yields: A decrease in bond yields will increase plan liabilities
2. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
3. Salary growth risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan''s liability.
30.2 Other long-term employee benefit:
The Company provides for Other Long Term Benefits in nature of Long Term Service Award to Executive Directors and certain specified employees which shall become applicable on completion of 15 years of service (vesting condition). It shall be payable on retirement or executive director / employee leaving the Company.
|
Note :- 34 Contingent liabilities, contingent assets and commitments Disclosure as per IND AS 37 Provisions, contingent Liabilities & contingent Assets A) Contingent liabilities :- ('' in lacs |
ch 31, 2022 |
||
|
Particulars |
As at 31-03-2023 |
As at 31-03-2022 |
|
|
Performance guarantee |
7.63 |
7.63 |
|
|
The Company neither had any contingent asset as on March 31, 2023 nor as on Mar B) Commitments :- ('' in lacs |
|||
|
Particulars |
As at 31-03-2023 |
As at 31-03-2022 |
|
|
Estimated amount of contracts remaining to be executed on capital account for property, plant & equipment (net of advances) |
666.68 |
551.73 |
|
Post employment benefits and other long term benefits have been provided at gross level on totality basis and not available at individual employee level.
Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
Goods were sold to subsidiaries (including step down subsidiaries) during the year based on the price lists in force and terms that would be available to third parties.
All other transactions were made on normal commercial terms and conditions and at market rates.
NOTE 37:- Disclosures as per IND AS 115 Revenue from contract with customers 1. Nature of Goods and services
The revenue of the company comprises of income from Business of Industrial rubber products. The following is a description of principal activities:
Manufacturing of rubber V-belts & related mechanical transmissions products.
3. Information about major customers
The Company does not have any external customer other than its subsidiaries, with whom revenue from transactions is more than 10% of Company''s total revenue (Refer Note 35).
The accounting classification of each category of financial instrument, their carrying amount and fair value are as follows :-Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
- The fair value of mutual funds are based on price quotations at the reporting date.
- The Company has entered into derivative financial instrument with a counterparty, principally with bank. The derivative contract has been valued using valuation techniques, which employs the use of market observable inputs.
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Vehicle loans are secured against hypothecation of vehicles.
iii. Terms of repayment of Unsecured Loans
These Loans carries an interest rate of 9% to 11.50% (31 March, 2022: 9% to 11.50%) and is repayable in March 2025.
iv. Security and terms of repayment of working capital loans
(a) Working capital loans are secured by:
1) 1st pari passu charge by way of hypothecation of entire current assets of the Company including raw materials, finished goods, stock-in-process at the Company''s factory premises or at such places as may be approved by the Bank from time to time including stocks-in-transit, book debts, receivables, on pari passu basis under multiple banking arrangement.
2) 2" pari passu charge on entire fixed assets (Moveable and Immovable) of the Company by way of Equitable Mortgage located at
i) Plot no J-7, MIDC Hingna Road, Nagpur - Unit No.1
ii) K-36,K-37/38 at MIDC , Hingna Road, Nagpur- Unit No.2
iii) Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna. Dist. Nagpur Mixing Plant
iv) Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi.
(b) Working capital loans from banks are repayable on demand
(c) Working capital loans from banks carry an interest rate of 5.85% to 8.90% (31 March, 2022: 6.00% to 8.00%) (E) Financial Risk Management
The Company''s activities are exposed to variety of financial risks. The key financial risks include market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the company''s policies and risk objectives.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances, loans and other financial assets. The Company only deals with parties which have good credit rating/ worthiness given by external rating agencies or based on Company''s internal assessment.
Credit risk on trade receivables and contract assets are managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with this assessment. Moreover, given the diverse nature of the Company''s businesses, trade receivables and contract assets are spread over a number of customers. Single external customer (except for subsidiaries) accounted for 10% or more of the trade receivables in any of the years presented
For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.
For Mutual Fund Investments, counterparty risk are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of credit risk for Company''s mutual fund investments.
The Credit risk on mutual fund investments, cash and cash equivalents, and other bank balances are limited as the counterparties are banks and fund houses with high-credit ratings assigned by credit rating agencies.
The carrying amount of maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and respective financial assets recognised in the financial statements, represents the Company''s unrelated. The Company has a total recoverable of ^ 1092.45 Lakhs from single external Customer as at 31 March, 2023 which is more than 10% of the total trade receivables. (31 March, 2022: Nil)
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management of the company and appropriate provisions are made to the extent recovery there against has been considered to be remote.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines.
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. There is nominal amount of interest income but significant interest expenses are incurred by the company on borrowed funds. In order to minimize the interest cost, interest reset options is opted and a regular pursuance is made with financial institutions/commercial banks to lower down the interestprevailing market trend. The policies is designed to optimise the use of available funds for repayment of loans and other payment obligations so that funds are not remained idle with the company.
The Company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks. The Company maintains a portfolio mix of fixed and floating rate borrowings. During the current year, the Company has structured and swapped floating interest rate loan to fixed interest rate loan. Refer Note 38(c).
Further there are deposits with banks which are for short term period and are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.
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 Company''s foreign currency borrowings, trade receivables and trade payables.
The Company has adopted a comprehensive risk management review system wherein actively engage in forward contracts its foreign exchange exposures within defined parameters through forward contracts. The Company periodically reviews its risk management initiatives and manages this forex risk using derivatives ,wherever required ,to mitigate or eliminate the risk.
The Company has entered into forward contract during the current year and the details of outstanding forward contract on 31 March, 2023 is provided as under. The Company has not entered into any forward contract for the year ending 31 March 2022.
The Company''s equity exposure in Subsidiaries, are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect.
The company''s current investments which are fair valued through profit and loss and are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
Note:-40 Corporates Social Responsibility (CSR)
1) CSR Amount required to be spent as per Section 135 of the Companies Act, 2013 read with schedule VII thereof by the Company during the year is Rs. 127.62 Lacs (31 March, 2022: Rs 100.89 Lacs).
2) The amount recognised as an expense in the statement of Profit & Loss on CSR activities is Rs 151.15 Lakhs (31 March, 2022: Rs 100.89 Lakhs)
D. The Company does not have any ongoing CSR projects for both the years.
E. No expenditure has been paid to a related party, in relation to CSR Expenditure.
F. There are no short falls at the end of the year
Capital management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required.
(I) Current Assets= Inventories Current Investment Trade Receivable Cash & Cash Equivalents Bank Balance other than Cash & Cash Equivalents Loans Current Tax Assets Other Financial Current Assets Other Current Assets
(ii) Current Liability= Short term borrowings Lease Liabilities Trade Payables Other financial Current Liabilities Provisions Other Current Liability
(iii) Debt= long term borrowings Short term borrowings
(iv) Earning for Debt Service =Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations long term borrowing Interest loss/(profit) on sale of Fixed assets
(v) Debt Service = Interest of long term borrowing & Lease Payments Principal Repayments of long term borrowing
(vi) Capital Employed= Tangible Net Worth long term borrowings Deferred Tax Liability Note 45.6 Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
Note 45.7 Borrowing secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Note 45.9 Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
Note 45.10 Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
Note 45.11 Compliance with approved schemes of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
Note 45.12 Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other persons or entities, 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. The Company has not received any fund from any persons or entities, 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
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
Note 45.14 Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Note 45.15 Valuation of PP&E and intangible asset
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
Note 45.16 Title deeds of Immovable Properties
Title deeds of all immovable properties are held in the name of the Company.
Note 45.17 Borrowings from Banks and financial institutions
The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
Note 45.18 Registration of charges / satisfaction with Registrar of Companies (ROC)
Charges / Satisfaction has been duly registered with ROC within the statutory period
Note 46: The Code on Social Security 2020
The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.
The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.
The accompanying notes 1 to 46 are an integral part of these standalone financial statements
Mar 31, 2022
16.1 Terms and rights attached to equity shares
Equity shares have a par value of Rs. 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the Company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.
The Company created capital reserve on cancellation/ forfeiture of the Company''s own equity instruments. Capital reserve was created in financial year 2008-09.
Capital Redemption Reserve is created out of profit available for distribution towards redemption of Preference shares. This reserve can be used for the purpose of issue of Bonus shares.
General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
The amalgamation Reserve was created on amalgamation of Pix Auto Ltd with the Company in financial year 1999-2000.
Securities Premium Reserve represents premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.
The balance in the Retained Earnings primarily represents the surplus after payment of dividend and transfer to reserves.
30.1 Disclosure as per Indian Accounting Standard - 19 on ''Employee Benefits''Leave Obligations:
The leave obligations cover the Company''s liability for earned leave which are classified as other longterm benefits.
Leave obligations expected to be settled within the next 12 months - Rs. 124.55 lakhs (31 March, 2021: Rs. 120.81 lakhs)
Leave obligations not expected to be settled within the next 12 months - Rs. 13.25 lakhs (31 March, 2021: Rs. 8.92 lakhs)
Post-employment obligations (Gratuity)
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. 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 gratuity plan is unfunded.
The Company also has a certain defined contribution plan. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs. 239.76 lakhs (31 March 2021 - Rs. 224.55 lakhs).
"The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period."
Sensitivities due to mortality & withdrawals are not material & hence impact of change not calculated. Risk Exposure:
"Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:
1. Changes in bond yields: A decrease in bond yields will increase plan liabilities
2. Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
3. Salary growth risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan''s liability."
Post employment benefits have been provided at gross level on totality basis and not available at individual employee level.
Transactions relating to dividends were on the same terms and conditions that applied to other shareholders.
Goods were sold to subsidiaries (including step down subsidiaries) during the year based on the price lists in force and terms that would be available to third parties.
All other transactions were made on normal commercial terms and conditions and at market rates.
1. Nature of Goods and services
The revenue of the company comprises of income from Business of Industrial rubber products. The following is a description of principal activities:
Manufacturing of rubber V-belts & related mechanical transmissions products.
3. Information about major customers
The Company does not have any external customer other than its subsidiaries, with whom revenue from transactions is more than 10% of Company''s total revenue (Refer Note 35).
The accounting classification of each category of financial instrument, their carrying amount and fair value are as follows :-Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
- The fair value of mutual funds are based on price quotations at the reporting date.
- The Company has entered into derivative financial instrument with a counterparty, principally with bank. The derivative contract has been valued using valuation techniques, which employs the use of market observable inputs.
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Vehicle loans are secured against hypothecation of vehicles.
iii. Terms of repayment of Unsecured Loans
These Loans carries an interest rate of 9% to 11.50% (31 March, 2021: 10.50% to 13%) and is repayable in March 2024.
iv. Security and terms of repayment of working capital loans
(a) Working capital loans are secured by:
1) 1st pari passu charge by way of hypothecation of entire current assets of the Company including raw materials, finished goods, stock-in-process at the Company''s factory premises or at such places as may be approved by the Bank from time to time including stocks-in-transit, book debts, receivables, on pari passu basis under multiple banking arrangement.
2) 2" pari passu charge on entire fixed assets (Moveable and Immovable) of the Company by way of Equitable Mortgage located at
i) Plot no J-7, MIDC Hingna Road, Nagpur - Unit NO.1
ii) K-36,K-37/38 at MIDC , Hingna Road, Nagpur- Unit NO.2
iii) Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna. Dist. Nagpur Mixing Plant
iv) Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi.
(b) Working capital loans from banks are repayable on demand
(c) Working capital loans from banks carry an interest rate of 6.00% to 8.00% (31 March, 2021: 6.00% to 9.00%) (E) Financial Risk Management
The Company''s activities are exposed to variety of financial risks. The key financial risks include market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek
to minimise potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the company''s policies and risk objectives.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances, loans and other financial assets. The Company only deals with parties which have good credit rating/ worthiness given by external rating agencies or based on Company''s internal assessment.
Credit risk on trade receivables and contract assets are managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with this assessment. Moreover, given the diverse nature of the Company''s businesses, trade receivables and contract assets are spread over a number of customers. No single external customer (except for subsidiaries) accounted for 10% or more of the trade receivables in any of the years presented.
For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.
For Mutual Fund Investments, counterparty risk are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of credit risk for Company''s mutual fund investments.
The Credit risk on mutual fund investments, cash and cash equivalents, and other bank balances are limited as the counterparties are banks and fund houses with high-credit ratings assigned by credit rating agencies.
The carrying amount of maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and respective financial assets recognised in the financial statements, represents the Company''s unrelated. Of the trade receivables balance at the end of the year, there are no customer accounting for more than 10% of the trade receivable as at March 31, 2022.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management of the company and appropriate provisions are made to the extent recovery there against has been considered to be remote.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines.
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. There is nominal amount of interest income but significant interest expenses are incurred by the company on borrowed funds. In order to minimize the interest cost, interest reset options is opted and a regular pursuance is made with financial institutions/commercial banks to lower down the interest rates as per prevailing market trend. The policies is designed to optimise the use of available funds for repayment of loans and other payment obligations so that funds are not remained idle with the company.
The Company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks. The Company maintains a portfolio mix of fixed and floating rate borrowings. During the current year, the Company has structured and swapped floating interest rate loan to fixed interest rate loan. Refer Note 38(C).
Further there are deposits with banks which are for short term period and are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.
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 Company''s foreign currency borrowings, trade receivables and trade payables.
The Company has adopted a comprehensive risk management review system wherein actively engage in forward contracts its foreign exchange exposures within defined parameters through forward contracts. The Company periodically reviews its risk management initiatives and manages this forex risk using derivatives ,wherever required ,to mitigate or eliminate the risk.
The Company has not taken any forward contract during the current year and also there were no outstanding forward contract as on 31 March, 2022.
The Company''s equity exposure in Subsidiaries, are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect.
The company''s current investments which are fair valued through profit and loss and are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required.
Note 45.5 Details of benami property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
Note 45.6 Borrowing secured against current assets
The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
Note 45.8 Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
Note 45.9 Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
Note 45.10 Compliance with approved schemes of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
Note 45.11 Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other persons or entities, 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
The Company has not received any fund from any persons or entities, 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
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
Note 45.13 Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Note 45.14 Valuation of PP&E and intangible asset
The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
Note 45.15 Title deeds of Immovable Properties
Title deeds of all immovable properties are held in the name of the Company.
Note 45.16 Borrowings from Banks and financial institutions
The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
Note 45.17 Registration of charges / satisfaction with Registrar of Companies (ROC)
Charges / Satisfaction has been duly registered with ROC within the statutory period
Note 46
"Till previous year, the Company presented sales related discounts under other expenses instead of adjusting the same against the revenue from operations. In the current year, the Company has restated in accordance with Ind AS 8 - "Accounting policies, Changes in accounting estimates and Errors", restating its numbers for the preceding year ended on 31 March 2021 in this regard. The information below summarises the impact of the restatement:
Revenue from Operations as reported for the year ended 31 March 2021 with Rs. 37,323.34 lakhs; restated amount being Rs. 35,394.17 lakhs. Other expenses as reported for the year ended 31 March 2021 with Rs. 6,092.91 lakhs; restated amount being Rs. 4,158.58 lakhs.
Other line items of Balance Sheet and Statement of Profit and Loss that were not affected by the restatement have not been disclosed. Furthermore, there is no impact on the profit and retained earnings of the Company for the said year. Accordingly, opening balance sheet has not been presented."
The accompanying notes 1 to 46 are an integral part of these standalone financial statements
Mar 31, 2019
1 Corporate information
PIX Transmissions Limited was incorporated on 22nd July 1981 as a priavate limited company in the State of Maharashtra, India. The status of PIX Transmissions Limited changed from a Priavate Limited company to a Public Limited Company effective from 27th September 1989. PIX Transmissions Limited completed its initial public offering of its equity shares in India on 4th December, 1989. The shares of the company are listed with BSE Limited, Mumbai.
2 Significant Accounting Policies
2.1 Basis of preparation
The financial statements of the company have been prepared and presented in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies(Indian Accounting Standards)(Amendment) Rules, 2016 and the relevant provisions of the Companies Act, 2013 (âthe Actâ). In addition, the guidance note/announcements issued by the Institute of Chartered Accountants of India(ICAI) are also applied except where compliance with other statutory promulgations require a different treatement.
The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:
â-Certain financial assets and liabilities measured at fair value or at amortised cost depending on the classification(refer accounting policy regarding financial instruments),-Employee defined benefit assets/(obligations) are recognised as the net total of the fair value of plan assets, plus actuarial losses, less actuarial gains and the present value of the defined benefit obligations,â
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policyhitherto in use.
3 Significant accounting judgements, estimates and assumptions
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
Critical estimates and judgements
(i) Estimation of net realizable value for inventory
âInventory is stated at the lower of cost and net realizable value (NRV).NRV for completed inventory is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company, based on comparable transactions identified.â
(ii) Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
(iii)Recoverability of trade receivables
In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.
(iv) Useful lives of property, plant and equipment/intangible assets
The Company reviews the useful life of property, plant and equipment/intangible assets at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.
(v) Valuation of deferred tax assets
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been explained under note above.
(vi) Defined benefit plans
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
NOTE 4.1
The Company has only one class of equity shares having par value of Rs.10 per share. Each shareholder is eligible for one vote per share held and entitled to receive dividend at declared from time to time In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.
5.1 Disclosure as per Indian Accounting Standard-19 on âEmployee Benefitsâ
(a) During the year, in accordance with the provisions of Ind AS-19-âEmployees Benefitsâ, acturial valuation has been obtained in respect of liability of Gratuity and Leave Encashment.
AS per Actuarial Valuation the following table sets forth position of Defined Benefit Plans:-
Sensitivity Analysis:
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
Security Note
â1st Pari passu charge on fixed assets of the Company by way of Equitable Mortgage of land & building and hypothecation of machinery located at
I. Plot noJ-7, MIDCHingna Road, Nagpur-Unit NO.1
II. K-36,K-37/38at MIDC, Hingna Road, Nagpur-Unit NO.2
III. Khasra No.55 & 57, Nagalwadi,Tahsil Hingna, Nagpur-Mixing Plant,
IV. Khasra No.45,46/2,48,25,46/1,47, Mauza, Nagalwadi.
2nd pari passu charge byway of hypothecation of residual value of hypothecation of entire current assets of the Company including raw material, finished goods, stock-in-process at the companyâs factory premises or at such palces as may be approved by the Bank from time to time including stock-in-transit, book debts, receivables, on along with SBI, Citi Bank ,HDFC Bank and Kotak Mahindra Bank under multiple banking arrangement.â
Security Note as per above:
1) 1st pari passu charge by way of hypothecation of entire current assets of the Company including raw materials, finished goods, stock-in-process at the Companyâs factory premises or at such places as may be approved by the Bank from time to time including stocks-in-transit, book debts, receivables, on pari passu basis along with on sharing basis SBI, Citi Bank, HDFC Bank and Kotak Mahindra Bank.
2) 2â pari passu charge on entire fixed assets of the Company byway of Equitable Mortgage of land & building and hypothecation of machinery located at
i) Plot noJ-7, MIDCHingna Road, Nagpur-Unit NO.1
ii) K-36,K-37/38 at MIDC, Hingna Road, Nagpur-Unit NO.2
iii) Khasra No. 55& 57, Nagalwadi,Tahsil Hingna. Dist. Nagpur Mixing Plant
iv) Khasra No.45,46/2,48,25,46/1,47, Mauza, Nagalwadi.
(C) Financial Risk Management
The Companyâs activities are exposed to variety of financial risks. The key financial risks include market risk, credit risk and liquidity risk. The companyâs focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the companyâs policies and risk objectives.
(i) CREDIT RISK
Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risklimit are set accordingly.
âThe carrying amount of maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and espective financial assets recognised in the financial statements, represents the Companyâs unrelated. Of the trade receivables balance at the end of the year, there are one customer accounting for more than 10% of the trade receivable as at March 31, 2019.â
âThe Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management of each entity of the company and appropriate provisions are made to the extent recovery there against has been considered to be remote.â
(ii) Liquidity Risk
Liquidity risk is defined as the risk that the Group will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs objective is to maintain optimum level of liquidity to meet itâs cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines.
(iii) Market Risk
âMarket risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.â
(a) Interest Rate Risk
âInterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. There is nominal amount of interest income but significant interest expenses are incurred by the company on borrowed funds. In order to minimize the interest cost, interest reset options is opted and a regular pursuance is made with financial institutions/commercial banks to lower down the interest rates as per prevailing market trend. The policies is designed to optimise the use of available funds for repayment of loans and other payment obligations so that funds are not remained idle with the company.â
The Companyâs exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks. Borrowings at fixed interest rate exposes the Company to the fair value interest rate risk. The Company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31, 2019, approximately 30.56 % (March 31, 2018: 37.51 %) of the companyâs borrowings become fixed rate interest borrowing.
Further there are deposits with banks which are for short term period and are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.
(b) Foreign currency 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 Companyâs foreign currency, trade receivables and trade or other payables.
The Company has adopted a comprehensive risk management review system wherein actively engage in forward contracts its foreign exchange exposures within defined parameters through forward contracts. The Company periodically reviews its risk management initiatives and manages this forex risk using derivattives ,wherever required ,to mitigate or eliminate the risk. There are six forward contracts pending expiration as on March 31,2019.
Foreign Currency Sensitivity Analysis
Sensitivity analysis resulting in profit or loss mainly from USD, EURO, GBP & SGD denominated receivables and payables are as follows:
(c) Other price risk
The Companyâs equity exposure in Subsidiaries, are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect. The companyâs current investments which are fair valued through profit and loss and are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
The accounting classification of each category of financial instrument, their carrying amount and fair value are as follows :-
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost in the financial statements approximate their fair values.
Investments(other than Investments in Subsidiaries), Investments in liquid and short-term mutual funds are measured using quoted market prices at the reporting date multiplied by the quantity held. Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower.
Fair Value Hierarchy
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows
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 Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
NOTE :-6 Disclosure requirement as per Ind AS 108â Operating Segmentâ:-
The company identified geographical locations as secondary segments.
The product of the company are sold both in the domestic & export markets
Note:-7 Corporates Social Responsibility (CSR)
1) CSR Amount require to be spent as per Section 135 of the Companies Act, 2013 read with schedule VII thereof by the company during the year is Rs 38.90 Lacs.
2) The amount recognised as expense in the statement of Profit & Loss on CSR activities is Rs 23.19 Lakhs (Previous year: Rs 18.66Lakhs), which comprises of:
NOTE 8 Capital management
The primary objective of the Companyâs capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Companyâs objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the Company.
(8.1) As required by the Indian Accounting Standard (IND AS 36) âImpairment of the Assetâ issued by the Ministry of Corporate Affairs, the company has carried out the assessment of impairment of assets. There are no external/internal indicators which lead to any impairment of assets during year.
Note:-9 Figures of the current & previous year have been rounded off to nearest Lacs.
Note:-10 Previous yearâs figures has been restated, regrouped and rearranged, wherever considered necessary, to confirm to this yearâs classifications. However these changes have no material impact on the Financial Statements.
Mar 31, 2018
NOTE 1
The Company PIX transmissions Ltd had entered into a joint venture (JV) agreement on 18/02/2008 with the Mr. Joeseph Deacon and Sheila Deacon under which a separate company PIX QCS Ltd. (Co. No: 453482 ) was formed in which ratio of equity capital of PIX Transmissions Ltd. and Mr. Joeseph Deacon and Mrs. Sheila Deacon was fixed at 50:50 respectively.
NOTE 2
The Board of Directors of PIX Transmissions Ltd. in its meeting held on 10/02/2018 accorded approval to transfer the share of its joint venture PIX QCS LTD., at such consideration, being not lower than the net book value.
NOTE :- 3
Margin Money deposit held against Letters of credit for Import amounting to Rs. 3128.35 Lakhs (17-18) Rs. 1308.94 (PY-16-17) (Refer Note No. 34)
NOTE 4
The Company has only one class of equity shares having par value of Rs.10 per share. Each shareholder is eligible for one vote per share held and entitled to receive dividend at declared from time to time In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.
Based on the information and explanations available with management and given to us, there are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006.
5 Disclosure as per Indian Accounting Standard - 19 on ''Employee Benefits''
(a) During the year, in accordance with the provisions of Ind AS-19- "Employees Benefits", actuarial valuation has been obtained in respect of liability of Gratuity and Leave Encashment.
As per Actuarial Valuation the following table sets forth position of Defined Benefit Plans:-
Enterprise best estimate for expense next year is Rs.40819319 - Gratuity Enterprise best estimate for expense next year is Rs.3548573 - Earned leave liability.
Sensitivity Analysis:
Reasonable possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
Note No. 6-: Other Disclosures
Disclosure as per IND AS 37 Provisions, contingent Liabilities & contingent Assets Contingent liabilities :-
The company has outstanding bank guarantees given by commercial banks in favour of
NOTE :- 7 Obligation under leases (IND AS-17)
Assets held under finance leases are initially recognised as assets of the company at the fair value at the inception of the lease or if lower at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as finance lease obligation. However the finance lease of the company has expired during the F.Y. 2017-18.
A leased asset is amortised over the useful life of the asset. However if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is amortised over the lease term.
Security Note
"1st Pari passu charge on fixed assets of the Company by way of Equitable Mortgage of land & building and hypothecation of machinery located at
I. Plot no J-7, MIDC Hingna Road, Nagpur - Unit NO.1
II. K-36,K-37/38 at MIDC , Hingna Road, Nagpur- Unit NO.2
III. Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna, Nagpur-Mixing Plant,
IV. Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi.Residual charge on all the current assets of the Company on pari passu basis."
Security Note as per above:
"1) Hypothecation of entire current assets of the Company including raw materials, finished goods, stock-in-process at the Company''s factory premises or at such places as may be approved by the Bank from time to time including stocks-in-transit, book debts, receivables, on pari passu basis along with SBI for their Working capitaI and Corporate Loan.2) 2nd pari passu charge on entire fixed assets of the Company by way of Equitable Mortgage of land & building and hypothecation of machinery located at i) Plot no J-7, MIDC Hingna Road, Nagpur - Unit NO.1 ii) K-36,K-37/38 at MIDC , Hingna Road, Nagpur- Unit NO.2 iii) Khasra No. 55 & 57, Nagalwadi, Tahsil Hingna. Dis!. Nagpur Mixing Plant iv) Khasra No.45, 46/2, 48,25, 46/1,47, Mauza, Nagalwadi. "
(C) Financial Risk Factors
The Company''s activities are exposed to variety of financial risks. The key financial risks include market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Board of Directors reviews and approves policies for managing these risks. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed in accordance with the company''s policies and risk objectives.
(A)CREDIT RISK
Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). The management has a credit policy in place and the exposure to credit risk customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limit are set accordingly. The carrying amount of respective financial assets recognised in the financial statements, represents the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there is one customers accounting for more than 10% each of the trade receivables as at March 31, 2018.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management of each entity of the company and appropriate provisions are made to the extent recovery against them has been considered to be remote.
(B)Liquidity Risk
Liquidity risk is defined as the risk that the Group will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit is sufficient to meet its short to medium term fund requirement.
(C)Market Risk
Market risk is the risk or uncertainty arising from possible market fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
(a) 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 changes in market interest rate. There is nominal amount of interest income but significant interest expenses are incurred by the company on borrowed funds. In order to minimize the interest cost, interest reset options is opted and a regular pursuance is made with financial institutions/commercial banks to lower down the interest rates as per prevailing market trend. The policies is designed to optimise the use of available funds for repayment of loans and other payment obligations so that funds are not remained idle with the company."
The Company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks. Borrowings at fixed interest rate exposes the Company to the fair value interest rate risk. The Company maintains a portfolio mix of fixed and floating rate borrowings. As at March 31, 2018, approximately 37.51 % (March 31, 2017: 29.29 %) of the company''s borrowings become fixed rate interest borrowing.
Further there are deposits with banks which are for short term period and are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes as such do not cause material implication.
(b)FOREIGN CURRENCY 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 Company''s foreign currency, trade receivables and trade or other payables.
The Company has adopted a comprehensive risk management review system wherein company actively engages in forward contracts to hedge its foreign exchange exposures within defined parameters through forward contracts. The Company periodically reviews its risk management initiatives . There are no forward contracts pending expiration as on March 31, 2018.
The carrying amount of various exposures to foreign currency as at the end of the reporting period are as follows:
Foreign Currency Sensitivity Analysis
Sensitivity analysis resulting in profit or loss mainly from USD, EURO, GBP & SGD denominated receivables and payables are as follows :
(D) Other price risk
The Company''s equity exposure in Subsidiaries, are carried at cost or deemed cost and these are subject to impairment testing as per the policy followed in this respect.
The company''s current investments which are fair valued through profit and loss and are not material. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
(E) Capital management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder''s value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without where the risk profile of the Company.
NOTE :- 8 Disclosure as per Ind AS 113-Fair value measurement
The accounting classification of each category of financial instrument, their carrying amount and fair value are as follows :-
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, current trade receivables and payables, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short- term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost in the financial statements approximate their fair values. Investments(other than Investments in Subsidiaries), Investments in liquid and short -term mutual funds are measured using quoted market prices at the reporting date multiplied by the quantity held. Quoted Investments for which quotations are not available have been included in the market value at the face value/paid up value, whichever is lower.
Fair Value Hierarchy
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows :
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
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Assets and liabilities are presented as current or non-current as per criteria set out in Schedule III of The Companies Act, 2013. Based on the nature of the products and realisation, the company has ascertained its operating cycle of twelve months. Accordingly twelve months period has been considered for the purpose of classification of assets and liabilities into current and non-current.
(8.1) As required by the Indian Accounting Standard (IND AS 36) "Impairment of the Asset" issued by the Ministry of Corporate Affairs, the company has carried out the assessment of impairment of assets. There are no external/internal indicators which lead to any impairment of assets during year.
(8.2) Previous year''s figures have been restated, regrouped and rearranged wherever considered necessary to confirm to this year''s classification.
Note:-9
Transition to Ind AS as per Ind AS first time adoption of Indian Accounting Standards
These are the company''s first standalone financial statements prepared in accordance with Ind AS. For Periods upto and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with Indian GAAP , including accounting standards notified under the Companies (Accounting Standards) Rules 2006(as amended). The effective date for Company''s Ind AS Opening Balance Sheet is 1st April 2016 (the date of transition to Ind AS)
"The accounting policies set out in Note I have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening Ind AS balance sheet at 1st April 2016 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).
Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of 1st April 2016 compared to those presented in the Indian GAAP Balance Sheet as of 31st March 2016, were recognised in the equity under retained earnings within Ind AS Balance Sheet. An explanation of how the transition from previous GAAP to Ind AS has affected the group''s financial position, financial performance and cash flows is set out in the following tables and notes."
"Exemptions and Exceptions availed
Accordingly the Company has prepared the financial statements in accordance with IND AS for the year ending 31st March 2018. in preparing such statements the opening balance sheet was prepared at 1st April 2016, the company''s date of transition to IND AS.The note explain principal adjustments made in order to restate its Indian GAAP financial statements including the balance sheet as at 1st April 2016 and financial statements as at and for the year end 31st March 2017.
IND AS 101 allows first time adopters certain optional exemptions and mandatory exceptions from the retrospective application of certain requirements under IND AS.The company has applied following exemptions and exceptions:
1.Deemed cost:
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and 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 de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties.
Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value."
2. Estimates:
On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.
Note:-10
"Financial Assets As per Ind AS 109 Assets in which the company have a contractual right to receive cash or any other financial assets are classified as financial assets. Therefore line items of Balance Sheet have been classified as Financial and Non-Financial Assets. Financial Liabilities in which the company have a contractual obligation to deliver cash are classified as financial liabilities. Therefore line items of Balance Sheet have been classified as Financial and Non-Financial Liabilities. Subsequently, a financial asset is measured at Amortised Cost or fair value through profit and loss depending upon the fulfilment of criteria. 11
Note:-11
"Employee Benefits Both under Indian GAAP and IND AS, the company recognized costs related to its post employment defined benefits plan on an acturial basis. Under Indian GAAP the entire cost including actuarial gain/loss are charged to profit or loss. Under IND AS , re-measurement are recognized in Other Comprehensive Income."
Note:-12
"Other Comprehensive Income Under Indian GAAP the company has not presented Other Comprehensive Income separately. Hence Indian GAAP profit or loss is reconciled to total comprehensive income."
Note:-13
Figures of the current & previous year have been rounded off to nearest Lakhs.
Note:-14
During the year the accounting policies have been added/ reworded/ redrafted/ modified for better presentation and to bring them in line with the Indian accounting standards.
Note:-15
Previous year''s figures has been restated, regrouped and rearranged, wherever considered necessary, to confirm to this year''s classifications. However these changes have no material impact on the Financial Statements.
Mar 31, 2016
Rights, preferences and restrictions attached to shares a. Equity Shares
The company has one class of shares having par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
1 TERM LOAN / CORPORATE LOAN FROM BANKS ARE SECURED BY FIRST PARI PASSU CHARGE ON ALL FIXED ASSETS AND SECOND CHARGE ON CURRENT ASSETS OF THE COMPANY AND FURTHER GURANTEED BY FOUR PROMOTER DIRECTORS
2 NEW AND PREVIOUS TERM LOANS TAKEN FROM BANKS ARE CARRIED AT THE INTEREST RATE 12.75% ( PREVIOUS YEAR 13.20% TO 14.70 % ) THE LOANS ARE REPAYABLE IN MONTHLY INSTALMENTS AS PER REPAYMENT SCHEDULE
3 LOAN RECEIVED AGAINST HYPOTHECATION OF VEHICLE IS FULLY SECURED AGAINST VEHICLES.
4. WORKING CAPITAL FROM BANKS ARE SECURED BY FIRST PARI PASSU CHARGE ON CURRENT ASSETS AND SECOND CHARGE ON ALL FIXED ASSETS AT RATE OF 9.75% TO 11.75 %. ( PREVIOUS YEAR 10.20% TO 13.95 %)
5. WORKING CAPITAL FACILITIES ARE FURTHER SECURED BY PERSONAL GUARANTEE OF FOUR PROMOTER''S DIRECTORS
6. TERM LOAN / CORPORATE LOAN FROM BANKS ARE SECURED BY FIRST PARI PASSU CHARGE ON ALL FIXED ASSETS AND SECOND CHARGE ON CURRENT ASSETS OF THE COMPANY
7. NEW AND PREVIOUS TERM LOANS TAKEN FROM BANKS ARE CARRIED AT THE INTEREST RATE 12.75% ( PREVIOUS YEAR 13.20% TO 14.70 %) THE LOANS ARE REPAYABLE IN MONTHLY INSTALMENTS AS PER REPAYMENT SCHEDULE
The Company has no information as to whether any of its vendors constitute a âSupplierâ within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.
NOTE :8: AGGREGATE VALUE OF QUOTED INVESTMENT AT COST RS.139311152/- PREVIOUS YEAR RS. 129473438.00 MARKET VALUE OF INVESTMENT RS. 150238095/- PREVIOUS YEAR RS. 145060085/-
9. Depreciation on the Assets added / deducted during the year has been provided on pro-rata basis with reference to the months of addition/deduction.
10. The Company has received loans from Directors. The same has been grouped under long term borrowings.
11. During the year the company has transferred product development expenditures of Rs.8.00,00.000/- to Capital-Work-In-Progress. (Previous Year Rs.7,51,71,953/-)
12. Segment Reporting:
The Company is engaged in the business of Industrial Rubber Products and there is no reportable segment as per Accounting Standard (AS 17 ) âSegment Reporting''.
Mar 31, 2015
1. Company Information:
Pix Transmissions Limited was incorporated on 22nd July 1981 as a
private limited company in the State of Maharashtra, India. The status
of Pix Transmissions Limited changed from a Private Limited company to
a Public Limited Company effective from 27th September 1989. Pix
Transmissions Limited completed its initial public offering of its
equity shares in India on 4th December 1989. It is now listed on The
Stock Exchange, Mumbai (BSE).
2. Rights, preferences and restrictions attached to shares a. Equity
Shares
The company has one class of shares having par value of Rs. 10 each.
Each shareholder is eligible for one vote per share held. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of
interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their
shareholding.
1 Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
2 Term Loan and working Capital Facilities are further secured by
personal guarantee of three Promoter's Directors.
3 Loan received against Hypothecation of vehicle is fully secured
against vehicles.
1 Working Capital from banks are secured by first pari pasu charges on
current assets and second charges on all fixed assets.
2 Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
3 Term loan/Working capital facilities are further secured by personal
guarantee of four promoter directors.
4 New and previous term loans taken from banks are carried the interest
rate 13.95% to 14.25%. The loans are repayable in the monthly
installment as per repayment schedule
The Company has no information as to whether any of its vendors
constitute a "Supplier" within the meaning of Section 2 (n) of the
Micro, Small and Medium Enterprises Development Act, 2006 as no
declarations were received under the said Act from them.
3. Contingent Liabilities
Particulars 31.03.2015 31.03.2014
Letters of Credit 62,764,867 112,488,645
Bill Discounting NIL NIL
Bank Guarantee 7,286,322 338,539
4. Depreciation on the Assets added / deducted during the year has been
provided on pro-rata basis with reference to the months of
addition/deduction.
5. The Company has received loans from Directors . The same has been
grouped under long term borrowings.
6. The company has incurred expenditure on development of production of
various new belts for local and Export market. The company intends to
develop manufacture of speciality belts for the hitec applications and
innovations that are coming in th power transmissions industry and
Maintenance Free type belts for the new generation packaging machines
and EPDM rubber cover belts for automotive industries.
7. These would be able to withstand higher temperature and perform
longer. All the above are new generation products that the company is
now proceeding to manufacture to take care of the future needs of the
power transmissions industry.
Upto previous year the company has incurred expenditure on development
of new product which yet to be manufactured commercially have been
carry forward in Product Development Expenditures under the head Other
8. The Accounting Standard 15 (Revised 2005) on "Employee Benefits"
issued by the Institute of Chartered Accountants of India (ICAI) has
been adopted by the Company as under:
9. Defined Benefit Plan - The following figures as per actuarial
valuation as at the Balance Sheet date have been debited to profit and
loss account:
The company has manufacturing facility at Nagpur, India. It is not
possible to directly attribute or allocate on a reasonable basis, the
expenses, assets and liabilities to these geographical segments.
10 Deferred Tax:
Deferred Tax has been provided in accordance with Accounting Standard
22- Accounting for Taxes on income issued by the Institute of Chartered
Accountants of India.
DEPRICIATION
The company has provided Depriciation on Fixed Assets, as prescribed by
"PART C" of schedule II to the Companies Act 2013. The carrying values
have been depreciated over the remaining useful lives of the assets and
recognised in the statement of profit and loss account. Due to change
in method of depreceiation, depreciation is lowered by ' 272 lakhs for
the year ended 31/03/2015.
11 .Related Parties' Disclosures:
i. Names of Related parties with whom transactions have taken place
during the year :
A. Subsidiary Companies
1. Subsidiary
1. Pix Transmissions (Europe) Limited, England
ii. Pix Middle East FZC, UAE
2. Fellow Subsidiaries
i. PIX Germany GmbH, Germany
(Subsidiary company of PIX Transmissions (Europe) Limited)
ii. PIX Middle East Trading LLC, UAE
(Subsidiary company of PIX Middle East FZC, UAE)
B. Joint Venture Company
i. PIX QCS Limited, Ireland
C. Key Management Personnel:
i. Mr. Sukhpal Singh Sethi
ii. Mr. Amarpal Sethi
iii. Mr. Sonepal Sethi
iv. Mr. Rishipal Sethi
v. Mr. Joe Paul
vi. Mr. Karanpal Sethi Vii. Miss Shirley Paul
D. Enterprises over which key Management Personnel or Relatives have
influence
i. Amit Beneficiary Trust
ii. K. S. Beneficiary Trust
iii. R. S. Beneficiary Trust
iv. M/s Prominent Infrastructure Ltd
12. Additional Information pursuant to Part I and II of Schedule III to
the Companies Act, 2013
13. Value of imported and indigenous raw materials stores and sapre
parts consumed during the period. (As Certified by Management)
14. Imports Current Year Previous Year
A Raw Materials ( On CIF Basis) 220,084,472 274,031,571
B Capital Goods ( On CIF Basis) 42,427,800 87,290,956
Stores & Spares 3,155,870 -
Trading Goods 1,333,675 -
15. Expenditure in Foreign currency Current Year Previous Year
A. Travelling 16,519,719 13,931,966
B. Others 2,999,616 1,628,910
1. Earning in Foreign Currency Current Year Previous Year
A. Exports of Goods (On FOB basis) 949,411,398 928,559,873
B. Dividend 0 4,110,120
Notes: The previous year figures are regrouped , wherever necessary to
confirm with this year classification.
Mar 31, 2014
1. Company Information:
PIX Transmissions Limited was incorporated on 22nd July 1981 as a
private limited company in the State of Maharashtra, India. The status
of PIX Transmissions Limited changed from a Private Limited company to
a Public Limited Company effective 27th September 1989. PIX
Transmissions Limited completed its initial public offering of its
equity shares in India in 4th December 1989. It is now listed on The
Stock Exchange, Mumbai (BSE).
Rights, preferences and restrictions attached to shares
a. Equity Shares
The company has one class of shares having par value of Rs. 10 each.
Each shareholder is eligible for one vote per share held. The dividend
proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting, except in case of
interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their
shareholding.
b. Preference Shares
Convertible Preference Shares
During the year, 4,69,610 6% Redeemable Cumulative Preference Shares
has been redeemed at par.
1. Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
2. Term Loan and working Capital Facilities are further secured by
personal guarantee of four Promoter''s Directors.
3. Loan received against Hypothecation of vehicle is fully secured
against vehicles.
4. Working Capital from banks are secured by first pari pasu charges
on current assets and second charges on all fixed assets.
5. Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
6. Term loan/Working capital facilities are further secured by
personal guarantee of four promoter''s directors.
Note: In the opinion of the Board of Directors, the Current assets,
Loans and Advances are approximately of the values stated, if realized
in the ordinary course of business. The Provision for depreciation and
all known liabilities are adequate and not in excess of the amount
reasonably necessary.
Note :2: Aggregate value of quoted investment 146,175,587/- previous
year nil. Unquoted investment Rs. 13,391,960/- previous year Rs.
13,402,092/-
Note: Book Debts, Advances, Bank Deposits and Credit balances are taken
subject to their respective confirmation.
The Company has not received information from vendors regarding their
status under the Micro Small and Medium Enterprises Development Act,
2006. Hence disclosures relating to amounts un-paid as at yearly end
together with interest paid / payable under this Act have not been
given.
Note: Sundry Advances includes deposit to the various government
departments, amount receivable from Excise and Sales Tax departments,
paid to subsidiaries companies and advance towards capital goods.
3 Contingent Liabilities
Particulars 31.03.2014 31.03.2013
Letters of Credit 112,488,645 125,674,715
Bill Discounting NIL NIL
Bank Guarantee 338,539 2,817,660
4 Depreciation on the Assets added / deducted during the year has been
provided on pro-rata basis with reference to the months of
addition/deduction.
5 The Company has received loans from Directors. The same has been
grouped under long term borrowings.
6 The company has incurred expenditure on development of production of
various new belts for local and Export market. The company intends to
develop manufacture of speciality belts for the hitec applications and
innovations that are coming in the power transmissions industry and
Maintenance Free type belts for the new generation packaging machines
and EPDM rubber cover belts for automotive industries. These would be
able to withstand higher temperature and perform longer.
7 All the above are new generation products that the company is now
proceeding to manufacture to take care of the future needs of the power
transmissions industry.
Up to previous year the company has incurred expenditure on development
of new product which yet to be manufactured commercially have been
carry forward in Product Development Expenditures under the head Other
Non-Current Assets.
8 Defined Benefit Plan - The following figures as per actuarial
valuation as at the Balance Sheet date have been debited to profit and
loss
9. The previous year figures are regrouped, where ever necessary to
confirm with this year''s classification.
Mar 31, 2013
1 Company Information:
PIX Transmissioos Limited was incorporated on 22nd July 1981 as a
private limited company in the State of Maharashtra, India. The status
of PIX Transmissions Limited changed from a Private Limited company to
a Public Limited Company effective 27th September 1989. PIX
Transmissions Limited completed its initial public offering of its
equity shares in India in 4th December 1989. It is now listed on The
Stock Exchange, Mumbai (BSE).
2 Contingent Liabilities
Particulars 31.03.2013 31.03.2012
Letters of Credit 125,674,715 2653.65 lacs
Bill Discounting NIL 2047.81 lacs
Other matters 2,817,660 26,182,705
3 Depreciation on the Assets added / deduction during the year has
been provided on pro-rata basis with reference to the months of
addition/deduction.
4 The Company has received loans from Promoters / Directors and their
relatives. The same has been grouped under long term borrowings.
5 The company has incurred expenditure on development of production of
various new belts for local and Export market. The company intends to
develop manufacture of speciality belts for the hitec applications and
innovations that are coming in the power transmissions industry and MF
type belts for the new generation packaging machines and EPDM rubber
cover belts for automotive industries. These would be able to withstand
the temps and perform longer.
All the above are new generation products that the co is now proceeding
to manufacture to take care of the future needs ofthepowertransmissions
industry.
During the year the company has incurred expenditure on development of
new product which yet to be manufactured commercially the expenses
incurred up to 31.03.2013 is have been carry forward in Product
Development Expenditures.
6 Segment Reporting:
The Company is engaged in the business of Industrial Rubber Products
and there is no reportable segment as per Accounting Standard (AS 17)
''Segment Reporting''.
The company identified geographical locations as secondary segments.
The products of the company are sold both in the domestic & export
markets, which are considered different geographical segments.
The products of the company are sold both in the domestic & export
markets, which are considered different geographical segments.
Segment-wise revenues are as under:
7 Deferred Tax:
Deferred Tax has been provided in accordance with Accounting Standard
22- Accounting for Taxes on income issued by the Institute of Chartered
Accountants of India.
The major components of the net deferred tax liability as on 31.03.2013
are as under:
8 Related Parties'' Disclosures:
i. Names of Related parties with whom transactions have taken place
during the year:
A. SubsidiaryCompanies
PIX Middle East FZC,UAE
B. Joint Venture Companies
I. PIX Europe Limited
ii. PIX QCS Limited
C. Key Management Personnel:
i. Mr. Sukhpal Singh Sethi
ii. Mr. Amarpal Sethi
iii. Mr. Sonepal Sethi
iv. Mr. Rishipal Sethi
v. Mr. Joe Paul
vi. Mr. Karanpal Sethi
D. Relatives of key Management Personnel
i. Mrs. Nirmal Sethi
ii. Mrs. Davinder Sethi
iii. Mrs. Inderjeet Sethi
iv. Mrs. Kamalpreet Sethi
v. Mrs. Saba Sethi
vi. MissShirleyPaul
E. Enterprises over which key Management Personnel or Relatives have
influence
i. Amit Beneficiary Trust
ii. K.S. Beneficiary Trust
iii. R.S. Beneficiary Trust
9 The figures of current year are not comparable with those of
previous year in view of sale of Hose Division in the current year.
10 The previsous year figures are regrouped, where ever necessary.
Mar 31, 2012
1. Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
2. Corporate loan and working capital from banks are secured by first
pari passu charge on current assets and second charge on all fixed
assets.
3. Term/Corp loan and working capital facilities are further secured
by personal guarantee of three promoter directors.
4. Term loan from bank was taken during the financial year 2008-09 and
carries the interest @ 13.75% to 14.5%. The loan is repayable in
monthly instalments as per repayment schedule starting from April 2010.
1. Working capital from banks are secured by first pari passu charge
on current assets and second charge on all fixed assets.
2. Working capital facilities are further secured by personal
guarantee of three promoter directors.
3. Term loan from banks are secured by first pari passu charge on all
fixed assets and second charge on current assets of the company.
Note:
1. Aggregate value of quoted investment nil previous year nil.
Unquoted Investment Rs. 15,417,192/- previous year Rs. 18,171,592/-.
2. The shares of subsidiary company sold during the year. The loss on
Investment has been transferred to profit and loss account.
1. Contingent liability not provided in respect of:-
i) Letters of Credit opened by Bank Rs.2653.65 lacs (Previous year
Rs.2,786.30 lacs).
ii) Foreign bills discounted by Banks Rs.2047.81 lacs (Previous year
Rs. 1,481.62 lacs).
iii) Dividend Payable on 6% non convertible cumulative redeemable
preference shares of Rs.20,678,955 (Previous year Rs. 17,861,295) and
6% convertible preference shares of Rs. 5,503,750 (Previous year Rs.
1,618,750).
2. Depreciation:
(a) Depreciation has been calculated on straight line method at the
rates given in Schedule XIV of the Companies Act, 1956.
(b) Depreciation on the Assets added / deduction during the year has
been provided on pro-rata basis with reference to the months of
addition / deduction.
3. The Company has received loans from Promoters/ Directors and their
relatives. The same has been grouped under longterm borrowings.
4. The provision has made in the accounts for the present
liabilityforfuture payment of Gratuity to employees ofthe Company in
terms of Gratuity Act, 1972.
5. The company has incurred expenditure on development of production
of various new belts for local and Export market. The company intends
to develop manufacture of speciality belts for the hitec applications
and innovations that are coming in the power transmissions industry and
MF type belts for the new generation packaging machines and EPDM rubber
cover belts for automotive industries. These would be able to withstand
the temps and perform longer.
All the above are new generation products that the company is now
proceeding to manufacture to take care of the future needs of the power
transmissions industry.
During the year the company has incurred expenditure on development of
new product which are yet to be manufactured commercially, the expenses
incurred up to 31.03.2012 have been carried forward in capital
work-in-progress.
Opening balance as 01.04.2011 Rs. 38,050,000 Addition during the year
Rs. 170,621,953
Total Work-in-Progress as on 31.03.2012
Rs. 208,671,953
6. The Accounting Standard 15 (Revised 2005) on "Employee Benefits"
issued by the Institute of chartered Accountants of India has been
adopted by the Company as under:
7. The Value of Stocks is as per inventory taken, prepared, valued and
certified by the Management.
8. The Company continues to follow Cash System of Accounting with
regard to reimbursement of Bank interest, charges, commission and fixed
deposit.
9. The figure of sales shown during the year includes the amount of
Excise, wherever applicable.
10. Book debts, advances, bank deposits and credit balances are taken
subject to their respective confirmation.
11. In the opinion of the Board of Directors, the Current assets,
loans and advances are approximately of the values stated, if realized
in the ordinary course of business. The provision for depreciation and
all known liabilities are adequate and not in excess of the amount
reasonably necessary.
12. Capital Commitment: Estimated value of contracts, remaining to be
executed on capital account to the extent not provided is Nil.
13. Sundry Advances includes deposit to the various government
departments, amount receivable from Excise and Sales Tax departments,
paid to subsidiaries companies and advance towards capital goods.
14. The Company is engaged in the business of Industrial rubber
products and there is no reportable segment as per Accounting Standard
(AS 17) 'Segment Reporting'.
The company has manufacturing facility at Nagpur, India. It is not
possible to directly attribute or allocate on a reasonable basis, the
expenses, assets and liabilities to these geographical segments.
15. Joint Venture Companies: The Company's interest, as a venture, in
a jointly controlled entity (Incorporated joint venture) is:
16. The Company has foreign subsidiaries known as
1) PIX South America Importacao E Exportacao DeCorreias E Mangueiras
Ltda., Brazil has been closed and advance given to this party transfer
to bad debts.
2) PIX Middle East FZC, UAE. The annual accounts from subsidiary
companies attached herewith.
17. Deferred Tax:
(a) Deferred Tax has been provided in accordance with Accounting
Standard 22 - Accounting for Taxes on income - issued by the Institute
of Chartered Accountants of India.
18. Related Parties' Disclosures:
1. Names of related parties with whom transactions have taken place
during the year:
(a) Joint Venture Companies
i) PIX Europe Limited
ii) PIX QCS Limited
Subsidiary Companies
I) PIX South America Importacao E Exportacao De Correias E Mangueiras
Ltda, Brazil (The above subsidiary closed with effect from 15th April,
2011)
ii) PIX Middle East FZC, UAE
(b) Key Management Personnel:
(1) Mr Sukhpal Singh Sethi
(2) Mr Amarpal Sethi
(3) Mr Sonepal Sethi
(4) Mr Rishipal Sethi
(5) Mr Joe Paul
(6) Mr Karanpal Sethi
19. The Company has not received information from vendors regarding
their status under the Micro Small and Medium Enterprises Development
Act, 2006. Hence disclosures relating to amounts un- paid as at yearly
end together with interest paid / payable under this Act have not been
given.
20. Additional information pursuant to the provision of paragraph 3
and 4 of Part II of the Schedule VI to the Companies Act, 1956.
21. The company has foreign subsidiaries known as PIX South America
Importacao E Exportacao De Correias E Mangueiras Ltda, Brazil & PIX
Middle East FZC, UAE. The annual audited accounts from subsidiary
companies have not been received. Hence consolidated Profit & Loss
accounts and Balance Sheet have not been attached. The accounts will be
consolidated thereafter & report will be sent on request received from
shareholders.
22. The previous year figures are regrouped and rearranged to compare
with those of current year.
Mar 31, 2010
1. Contingent liability not provided in respect of :-
i) Letters of Credit opened by Banks Rs. 1282.34 Lacs (Previous year
Rs.900.75 Lacs)
ii) Foreign bills discounted by Banks Rs. 1569.84 lacs (Previous year
Rs. 1585.55)
iii) Dividend Payable on 6% non convertible cumulative redeemable
preference shares of Rs.127, 77,385 (Previous year 78, 30,000)
2. In terms of the approval of the Shareholders obtained at the
Extra-ordinary General Meeting of the Company held on 11th February
2009, the Company has issued and allotted 28,00,000 warrants (face
value Rs.30/- each) and amount paid-up of Rs.30/- each on 27* February
2009 to Promoters and Promoters Group on preferential basis to finance
the long term corporate fund. The holders of each warrant will be
entitled to apply for and be allotted one equity share of Rs.10/- each
of the Company, at a price of Rs.30/- (including Rs.20/- on account of
premium), any time after the date of allotment but on or before the
expiry of 18 months from the date of allotment, in one or more
tranches, of the above, the holders of 15,60,000 warrants have
exercised the option and were allotted one equity share per warrant.
Total amount received of Rs.468.00 Lacs has been utilized towards
financing of Long Term corporate fund including capital expenditure for
ongoing expansion of company project.
3. Depreciation
(a) Depreciation has been calculated on straight Line Method at the
rates given in Schedule XIV of the Companies Act, 1956.
(b) Depreciation on the Assets added / deduction during the year has
been provided on pro-rata basis with reference to the months of
addition/deduction
4. The Company has received loans from Promoters / Directors and their
relatives. The same has been grouped under unsecured loans.
5. The provision has made in the accounts for the present liability
for future payment of Gratuity to employees of the Company in terms of
Gratuity Act, 1972.
6. The Accounting Standard 15 (Revised 2005) on "Employee Benefits"
issued by the Institute of chartered Accountants of India has been
adopted by the Company as under:
C. The Company has recognized as Leave Encashment Rs. 19,00,639/- the
Profit and Loss Accounts as per actuarial Valuation as on Balance Sheet
date.
7. The Value of Stocks are as per inventory taken, prepared, valued
and certified by the Management.
8. The Company continues to follow Cash System of Accounting with
regard to reimbursement of Bank Interest, Charges, Commission, and
Fixed Deposit.
9. The Figures of Sales shown during the year includes the amount of
Excise, VAT and Central Sales Tax wherever applicable.
10. Book Debts, Advances, Bank Deposits and Credit balances are taken
subject to their respective confirmation.
11. In the opinion of the Board of Directors, the Current assets,
Loans and Advances are approximately of the values stated, if realized
in the ordinary course of business. The Provision for depreciation and
all known liabilities are adequate and not in excess of the amount
reasonably necessary.
12. a) Addition to fixed assets includes Pre-Operative expenses of
Rs.2320.97 Lacs (Previous Year Rs.277.34 Lacs)
b) During the year Work In Progress of Rs. 408,891,033/-as on 31st
March, 2009 has been capitalized and transfer to the respective heads
as project is completed.
13. CAPITAL COMMITMENT
Estimated value of contracts, remaining to be executed on capital
account to the extent not provided for Rs.324.00 Lacs.
14. Sundry Advances includes deposit to the various government
departments, amount receivable from Excise and Sales Tax departments,
paid to subsidiaries companies and advance towards capital goods.
15. The Company is engaged in the business of Industrial Rubber
Products and there is only secondary segmental reporting as per
Accounting Standard (AS 17) Segment Reporting.
Related parties disclosures;
1. Names of Related parties with whom transactions have taken place
during the year:
(a) Joint Venture Companies
i) Pix Europe Limited
ii) Pix QCS Limited
Subsidiary Companies
ii) Pix South America Importacao E Exportacao
De Correias E Mangueiras Ltda, Brazil
ii) Pix Middle East FZC, UAE
(b) Key Management Personnel:
(1) Mr. Sukhpal Singh Sethi
(2) Mr. Amarpal Sethi
(3) Mr. Sonepal Sethi
(4) Mr. Rishipal Sethi
(5) Mr. Joe Paul
(6) Mr. Karanpal Sethi
(c) Relatives of key management personnel
1. Mrs. Nirmal Sethi
2. Mrs. Davinder Sethi
3. Mrs. Inderjeet Sethi
4. Mrs. Kamalpreet Sethi
5. Mrs. Saba Sethi
6. Miss Shirley Paul
(d) Enterprises over which key Management personnel or relatives have
influence
1. Amit Beneficiary Trust
2. K. S. Beneficiary Trust
3. R. S. Beneficiary Trust
16. The Company has not received information from vendors regarding
their status under the Micro, Small and Medium Enterprises Development
Act, 2006. Hence disclosures relating to amounts un-paid as at yearly
end together with interest paid / payable under this Act have not been
given.
17. Balance Sheet Abstract and Companys General Business Profit
pursuant to part IV of Schedule VI of the Companies Act, 1956 is
attached.
18. Cash Flow Statement for the year ended 01.04.2009 to 31.03.2010
pursuance to listing agreement with Stock Exchange is attached.
19. The Previous year figures are regrouped and rearranged to compare
with those of current year.
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