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Notes to Accounts of TTK Prestige Ltd.
Mar 31, 2025
Other Details of Equity Shares for a period of 5 years immediately preceding March 31, 2025
1. Paid Up Share Capital of 13,69,49,974 shares of ''1/- each (Previous Year: 13,86,14,020 shares of ''1/- each) includes 1,01,79,297 (Previous Year: 1,01,79,297 shares) of ''10/- each allotted as Bonus Sharesfully paid-up by capitalisation of reserves. The Paid Up Share Capital also includes 9979 shares of ''10/- each issued to shareholders of Triveni Bialetti Industries Private Limited as per the demerger scheme approved by the Honourable High Courts of Madras and Bombay.
2. The Board of Directors at their Meeting held on October 27, 2021 approved the sub-division of each equity share of face value of ''10/- fully paid up into 10 equity shares of face value of '' 1/- each fully paid up. The same had been approved by the Members on December 01, 2021 through postal ballot and e-voting. The effective date for the subdivision was December 15, 2021. Consequently the split of equity shares had been effected from December 15, 2021.
3. Rights, preferences and restrictions attached to shares
Equity shares: The Company has one class of equity shares having a par value of '' 1/- per share. Each shareholder is eligible for one vote per share held. 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 the proportion to their shareholding. 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.
4. On September 11, 2024 the company concluded the buyback of 16,66,666 equity shares of '' 1/- each at a price of ''1,200 per equity share, representing approximately 1.20% of the total paid up share capital , as approved by the Board of Directors on August 02, 2024. This resulted in a total cash outflow of ''248.86 Crores (including tax on buy back of ''46.59 Crores and transaction cost related to buy back of ''2.27 Crores). In line with the requirement of the Companies act 2013, an amount of ''248.86 Crores has been utilized from Security Premium Account and free reserves. Further, capital redemption reserve of ''0.17 Crore (representing the nominal value of the shares bought back) has been created as apportionment from general reserve.
5. During the FY 2022-23, the "TTK Prestige Long Term Incentive (Stock Option) Plan 2023" was formulated and approved by the Nomination and Remuneration Committee on January 24, 2023, and subsequently approved by the Board of Directors on January 31, 2023. The said Plan was approved by the shareholders of the Company through postal ballot on March 08, 2023. Under this Plan, the maximum aggregate number of stock options that may be granted shall not exceed 1% of the outstanding paid-up share capital of the Company. 2,015 (March 31, 2024: Nil) stock options are exercised on October 29, 2024 under time linked grants in accordance with the terms of exercise under the "TTK Prestige Long Term Incentive (Stock Option) Plan 2023", and 605 (March 31, 2024: Nil) stock options are exercised on October 29, 2024 under performance linked grants in accordance with the terms of exercise under the "TTK Prestige Long Term Incentive (Stock Option) Plan 2023" (Refer Note 40).
33 Gratuity and other post-employment benefit plans a) Defined Benefit Plan - Gratuity
The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, every employee who has completed five years or more of service gets gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits provided depends on the member''s length of service and salary at retirement age.
The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for gratuity benefit.
All amounts mentioned above are excluding GST.
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables except for guarantees given on behalf of the subsidiary details of which is provided in Note 34(b). For the year ended March 31,2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023 : '' Nil).
This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management personnel.
The amounts disclosed in the table includes post-employment benefits paid to Key Managerial Personnel who retired during the year.
37. Segment information- Disclosure pursuant to Ind AS 108 ''Operating Segment''
(a) Basis of identifying operating segments:
The company operates under one segment of Kitchen & Home appliances. Hence, Segment reporting is not applicable.
Information about major customers: Company''s significant revenues (more than 5%) are derived from sales to three customers (PY: two customers). The total sales to such Customers amounted to '' 485.17 crores in 2024 - 25 and '' 339.32 crores in 2023 - 24. No single customer contributed 10% or more to the company''s revenue for 2024 - 25 and 2023 - 24.
38 Disclosures on financial instruments
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2, to the financial statements.
(a) Financial Assets and Liabilities
The following table presents the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2025 and March 31, 2024 excluding investment in subsidiaries which are valued at cost.
(b) Fair Value Hierarchy
An analysis of financial instruments (as indicated in the table above) that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, are as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
(i) Borrowings, loans, short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii) Management uses its best judgement in estimating the fair value of its financial instruments. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
39 Financial Risk Management Objectives and Policies
The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments.
The company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the company.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The Company''s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. However, the Company''s investments in listed and unlisted equity securities are not significant.
Interest Rate Risk:
The company''s investments are primary in short term investments which do not expose it to significant interest rate risk. Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outsides the territories in which they operate from. The Company is therefore exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables.
Foreign Currency Sensitivity Analysis
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
As per management''s assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair and EURO-INR currency pair sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below:
(a) Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Financial instruments that are subject to concentrations of credit risk principally consist of investments, trade receivables, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company results in material concentration of credit risk.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ''1085.51 Crores and ''1300.86 Crores as of March 31, 2025 and March 31, 2024 respectively, being the total of the carrying amount of balances with banks, bank deposits, and Trade receivables, other financial assets and investments excluding equity and preference investments. The Company''s exposure to customers is diversified and there is no customer who contributes to more than 10% of outstanding accounts receivable as of March 31, 2025 (one customer as of March 31, 2024).
Financial Assets that are neither past due nor impaired
Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interestbearing deposits placed with corporates, have high credit rating assigned by international and domestic credit-rating agencies. Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2025, that defaults in payment obligations will occur except as described in note 10 on allowances for impairment of trade receivables.
The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past. Parties with no significant defaults in past.
Trade Receivables
Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed above under Credit risk. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
At 31 March 2025, the Company had 2 Customers (31 March 2024: 2 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 16.71% (31 March 2024: 22.95%) of all the receivables outstanding.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds and bonds. Hence, the assessed credit risk is low.
(b) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit, which carry no or low market risk.
The Company monitors its risk of shortage of funds on a regular basis.
The Company has access to committed credit facilities as described below, of which the funded limit were unused at the end of the current and comparable reporting periods. The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.
Fund Base Limit: '' 56.50 Crores (PY '' 56.50 Crores)
Non-Fund Base Limit: '' 53.75 Crores (PY '' 53.75 Crores)
Securities offered:
(a) Hypothecation of entire stocks of Raw materials, WIP, Finished goods, Stores & Spares, Book-debts.
(b) Hypothecation / mortgage of Fixed Assets (Ref Note -3)
(i) Forward Contract
Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables denominated in certain foreign currencies. The details of outstanding forward contracts as at March 31, 2025 and March 31,2024 are given above.
It is the policy of the Company to enter into forward exchange contracts to cover specific foreign currency payments (100% of the exposure).
The Company recognized a net Gain on the forward contracts of ''0.00 Crores for the year ended March 31,2025 (Previous year Net Gain of ''0.01 Crores).
All open forward exchange contracts mature within three months from the balance sheet date.
(ii) Cross Currency Swap: None
(iii) Interest rate swap: None Capital management
For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. As at March 31, 2025, the Company has no debt, therefore, there are no externally imposed capital requirements.
40 Share-based Payment Arrangements A. Description of Share-based Payment Arrangements
At March 31, 2025, the Company had the following share-based payment arrangements:
Share option plans (equity-settled)
The company has granted time linked and performance linked grants as on September 13, 2023 and April 25, 2024 with different vesting options
Time linked grants: Time linked Grants to be granted annually subject to the Performance linked to balanced score card
Performance Linked grants: Performance linked grants to be granted after the end of Performance Year based on parameters linked to Company Performance
50 Events After The Reporting Date
Directors have not paid any interim dividend (Previous Year : Nil), The directors recommend a final dividend of '' 6 (Per Share) which entails an outlay of '' 82.17 Crores (Previous Year: '' 83.17 Crores). The total dividend for FY 2024 - 25 is '' 6 Per share (Previous Year : '' 6 per Share).
51 Additional disclosures
Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been disclosed
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2025
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including for eignentities (FundingParty 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.
(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The facilities from financial institutions have been used for the purposes for which it was taken at the balance sheet date.
52 Certain Figures Apparently may not add up because of rounding off, but are wholly accurate in themselves
53 The Company has used accounting software during the year which has the audit trail feature enabled throughout the year. Post publication of ICAI implementation guide in February 2024, direct database level changes was also included in audit trail scope.
Access to the database level is available only SAP Administrator. Access for direct changes is controlled with no access to any users. Any direct changes on Database, logs are available for investigation. We have activated audit log for direct changes to database level from 3rd Mar 2025.
Database audit trail (edit log) facility for database changes through the application transaction was not enabled. However, no access is provided to any users for direct changes on the database. In addition, we shall study the requirement and its impact on the performance
54 The previous periods numbers have been regrouped or reclassified wherever necessary to make them comparable with the figures of the current year.
Mar 31, 2024
(xiii) Provisions, Contingent Liabilities and Contingent Assets
General
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Warranty provisions
Provisions for warranty-related costs are recognized when the goods are sold to the customer. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised annually.
(xiv) Leases
When a contract begins, the company determines if it constitutes a lease. A lease exists if it grants control over an identified asset for a period, with consideration exchanged. If there are both lease and non-lease components, payments are allocated accordingly, and lease accounting is applied only to lease components.
At the lease''s start, the company recognizes a right-of-use asset and lease liability. This includes the lease liability''s present value of future payments, initial direct costs, and lease payments made. The right-of-use asset is depreciated unless ownership or lease renewal is probable, over the shorter of its useful life or lease term.
The lease liability''s initial measurement includes fixed payments and variable payments dependent on an index or rate, less any incentives received. If the interest rate implicit in the lease isn''t determinable, the company uses its incremental borrowing rate.
The lease term includes extensions the company is likely to exercise but excludes uncertain early termination options. Variable lease payments without an index or rate dependency are expensed as incurred. Guaranteed minimum payments are treated as fixed and included in the lease liability calculation.
The lease liability is adjusted for interest accrual and reduced for payments made. It''s also remeasured for modifications, changes in lease terms, ''in-substance fixed'' payments, or alterations in relevant indexes or rates.
The company chooses not to apply this accounting model to leases of low-value assets or those lasting less than 12 months.
(xv) Income Tax
a) Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities on the taxable income of the year. The tax rates and tax laws used for computation of current tax includes those that are enacted or substantively enacted, at the reporting date in the countries where the company operates and generates taxable income. Current tax is recognized in the statement of profit and loss except to the extent it relates to an item recognized directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis.
b) Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and a liability in the financial statements and the corresponding tax base used in the computation of taxable profit and is accounted for using the balance sheet method. Deferred tax liabilities
are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax are recognized in the Statement of profit and loss, except when they relate to items credited or debited directly to equity, in which case the tax is also recognized directly in equity. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.
(xvi) Earnings Per Share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the posttax effect of extraordinary items, if any) by the
weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.
(xvii) Inventories
Inventories are valued at the lower of cost (computed on a Weighted Average basis) or net realizable value. Cost includes the cost of purchase including duties and taxes (other than those refundable), inward freight, and other expenditure directly attributable to the purchase. Trade discounts, rebates and benefits are deducted in determining the cost of purchase. Net realizable value represents the estimated selling price for the inventories less all estimated costs of completion and costs necessary to make the sale. Finished goods and Work in Progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(xviii) Cash and Cash Equivalents (for the purpose of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are shortterm balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of no cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow for the year is classified by operating, investing and financing activities.
(xix) Recent Pronouncements
(i) New and amended standards adopted by the Company:
The Company has applied the following amendments for the first time for their annual reporting period commencing April 1,2023
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments to Ind AS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. Ind AS 1 - Presentation of Financial
Statements
The amendments to Ind AS 1 provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.
Ind AS 12- Income Taxes The amendments to Ind AS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities.
(ii) New Standards/Amendments notified but not yet 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 March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
2.1 Critical judgments in applying accounting policies & Key sources of estimation uncertainty:
The preparation of the company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying number of assets or liabilities affected in future periods.
Critical Judgements in applying Accounting Policies:
(i) Lease classification: The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. Ind AS 116 requires lessees to determine the lease term as the noncancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The Company revises the lease term if there is a change in the noncancellable period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
(i) Useful life of Property, Plant & Equipment (PPE) The Company reviews the estimated useful lives of PPE at the end of each reporting period.
(ii) Defined benefit plans, Defined Benefit Obligations (DBO) Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
Other Details of Equity Shares for a period of 5 years immediately preceeding March 31, 2024
1. Paid Up Share Capital of 13,86,14,020 shares of '' 1/- each (Previous Year : 13,86,14,020 shares of '' 1/- each) includes 1,01,79,297 (Previous Year : 1,01,79,297 shares) of '' 10/- each alloted as Bonus Shares fully paid-up by capitalisation of reserves. The Paid Up Share Capital also includes 9979 shares of ''10/- each issued to shareholders of Triveni Bialetti Industries Private Limited as per the demerger scheme approved by the Honorable High Courts of Madras and Bombay.
2. The Board of Directors at their Meeting held on October 27, 2021 approved the sub-division of each equity share of face value of '' 10/- fully paid up into 10 equity shares of face value of '' 1/- each fully paid up. The same had been approved by the Members on December 1, 2021 through postal ballot and e-voting. The effective date for the subdivision was December 15, 2021. Consequently the split of equity shares had been effected from December 15, 2021.
3. During the FY 2019-20, 23,10,233 nos of Bonus Shares of '' 10/- each have been allotted on 17th May 2019 (pursuant to the Share Holders resolution, dated 3rd May 2019 approving the same), thus increasing the paid up share capital to ''13.86 Crores. These bonus shares rank paripassu in all respects with the existing shares and will be entitled to any dividend declared after 17th May 2019.
4. Rights, preferences and restrictions attached to shares Equity shares: The Company has one class of equity shares having a par value of '' 1/- per share. Each shareholder is eligible for one vote per share held. 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 the proportion to their shareholding. 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.
(b) Fair Value Hierarchy
An analysis of financial instruments (as indicated in the table above) that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, are as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
(i) Borrowings, loans, short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii) Management uses its best judgement in estimating the fair value of its financial instruments. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date
39 Financial Risk Management Objectives and Policies
The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the company.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The Company''s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The investment in listed and unlisted equity securities are not significant.
Interest Rate Risk:
The company''s investments are primarly in short term and long term investment which do not expose it to significant interest rate risk.
Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outside the territories in which they operate from. The Company is therefore exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables.
(a) Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company results in material concentration of credit risk.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was '' 1288.77 Crores and '' 1152.39 Crores as of March 31, 2024 and March 31, 2023 respectively, being the total of the carrying amount of balances with banks, bank deposits, and Trade receivables, other financial assets and investments excluding equity and preference investments. The Company''s exposure to customers is diversified and there is one customer who contributes to more than 10% of outstanding accounts receivable as of March 31,2024 (no customers as of March 31,2023).
Financial Assets that are neither past due nor impaired
Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporates, which have high credit rating assigned by international and domestic credit-rating agencies. Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2024, that defaults in payment obligations will occur except as described in note 10 on allowances for impairment of trade receivables.
The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.
Trade Receivables
Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed above under Credit risk. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
At March 31,2024, the Company had 2 Customers (March 31,2023: 3 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 22.95% (March 31,2023: 26%) of all the receivables outstanding.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds and bonds. Hence, the assessed credit risk is low.
(b) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit, which carry no or low market risk.
The Company monitors its risk of a shortage of funds on a regular basis.
The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company''s financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.
51 Additional disclosures
Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been disclosed.
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2024.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity (ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The borrowing from financial institutions have been used for the purposes for which it was taken at the balance sheet date.
52 Certain Figures Apparently may not add up because of rounding off, but are wholly accurate in themselves.
53 The Company has used accounting software during the year which has the audit trail feature enabled throughout the year. Post publication of ICAI implementation guide in February 2024, direct database level changes was also included in audit trial scope which was not enabled, however access to the database level is available only for privileged users. The Company shall evaluate the impact on performance by enabling the database level audit trail and incorporate the recommendation as suggested by the ERP vendor.
54 The previous periods numbers have been regrouped or reclassified to conform to the current year''s classification
As per our audit report of even date attached For and on behalf of the Board
For PKF Sridhar & Santhanam LLP
Chartered Accountants
Firm''s Registration Number : 003990S/S200018 T.T. Jagannathan Chandru Kalro
Chairman Managing Director
DIN:00191522 DIN:03474813
Seethalakshmi M V. Ranganathan K.Shankaran Venkatesh Vijayaraghavan
Partner Director Wholetime Director Chief Executive Officer
Membership No. 208545 DIN: 00550121 DIN: 00043205 PAN ACMPV1376Q
Place : Bengaluru R. Saranyan Manjula K.V.
Date : May 28, 2024 Chief Financial Officer Company Secretary
PAN: AAHPS9134L PAN : AMPPK4429G
Mar 31, 2023
(i) During the year ended March 31, 2023, '' 8.35 Crores (Previous year : '' 9.16 Crores) was recognised as an expense for Inventories carried at Net Realisable value.
(ii) Mode of Valuation: Inventories are valued at lower of cost, computed on a weighted average basis and estimated net realisable value, after providing for cost of obsolescene and other anticipated losses,wherever considered necessary. Finished Goods and Work in progess include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(iii) Stock in transit includes '' 12.23 Crores of Traded Goods, '' 1.64 Crores of Finished Goods and '' 20.66 Crores of Raw Materials.
1. Paid Up Share Capital of 13,86,14,020 shares of '' 1/- each (Previous Year : 13,86,14,020 shares of '' 1/- each) includes 1,01,79,297 (Previous Year : 1,01,79,297 shares) of '' 10/- each alloted as Bonus Shares fully paid-up by capitalisation of reserves. The Paid Up Share Capital also includes 9979 shares of ''10/- each issued to shareholders of Triveni Bialetti Industries Private Limited as per the demerger scheme approved by the Honorable High Courts of Madras and Bombay.
2. The Board of Directors at their Meeting held on October 27, 2021 approved the sub-division of each equity share of face value of '' 10/- fully paid up into 10 equity shares of face value of '' 1/- each fully paid up. The same had been approved by the Members on December 1, 2021 through postal ballot and e-voting. The effective date for the subdivision was December 15, 2021. Consequently the split of equity shares had been effected from December 15, 2021. Accordingly, equity shares and earning per shares have been adjusted for share split in accordance with IND AS 33 ''Earning Per Share'' for all previous periods.
3. During the FY 2019-20, 23,10,233 nos of Bonus Shares of '' 10/- each have been allotted on 17th May 2019 (pursuant to the Share Holders resolution, dated 3rd May 2019 approving the same), thus increasing the paid up share capital to '' 13.86 Crores. These bonus shares rank paripassu in all respects with the existing shares and will be entitled to any dividend declared after 17th May 2019.
4. During the year 2017-18, the Company completed Buy back of 1,00,000 Equity shares @ '' 7,000 per share aggregating to '' 70 crores. The Excess amount over Face value of these shares along with expenses relating to Buy back have been debited to Securities Premium Reserve in accordance with the provisions of the Companies Act
5. Rights, preferences and restrictions attached to shares
Equity shares: The Company has one class of equity shares having a par value of '' 1/- per share. Each shareholder is eligible for one vote per share held. 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 the proportion to their shareholding. 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.
33 Gratuity and other Post-Employment Benefit Plans a) Defined Benefit Plan - Gratuity
The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, every employee who has completed five years or more of service gets gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits provided depends on the member''s length of service and salary at retirement age.
The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for gratuity benefit.
|
b) Contingent Liabilities |
||
|
Particulars |
March 31, 2023 |
March 31, 2022 |
|
Guarantees * |
42.16 |
48.64 |
|
Claims against the company not acknowledged as debt (Tax matter under appeal) |
14.27 |
14.67 |
|
*'' 40.75 Crores (Previous Year - '' 39.82 Crores) relates to guarantees to banks against credit facilities extended to TTK British Holdings Limited to the extent of 4 million GBP (Previous Year - 4 Million GBP) (100% Subsidiary). |
||
All amounts mentioned above are excluding GST.
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables except for guarantees given on behalf of the subsidiaries details of which is provided in Note 34(b). For the year ended March 31,2023 the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2022: '' Nil).
This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
37 Segment information- Disclosure pursuant to Ind AS 108 ''Operating Segment''
(a) Basis of identifying operating segments:
The company operates under one segment of Kitchen & Home appliances. Hence, Segment reporting is not applicable.
Information about major customers:
Company''s significant revenues (more than 5%) are derived from sales to three customers (PY: three customer). The total sales to such Customers amounted to '' 473.30 crores in 2022-23 and '' 445.77 crores in 2021-22.
No single customer contributed 10% or more to the company''s revenue for 2022-23 and 2021-22.
38 Disclosures on Financial Instruments
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2, to the financial statements.
(b) Fair Value Hierarchy
An analysis of financial instruments (as indicated in the table above) that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, are as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
(i) Borrowings, loans, short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii) Management uses its best judgement in estimating the fair value of its financial instruments. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
39 Financial Risk Management Objectives and Policies
The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the company.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The Company''s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The investment in listed and unlisted equity securities are not significant.
Interest Rate Risk:
The company''s investments are primarly in short term and long term investment which do not expose it to significant interest rate risk.
Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outside the territories in which they operate from. The Company is therefore exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables.
Foreign Currency Sensitivity Analysis
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
(a) Credit Risk
Credit Risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company results in material concentration of credit risk.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was '' 1152.39 Crores and '' 1016.51 Crores as of March 31, 2023 and March 31, 2022 respectively, being the total of the carrying amount of balances with banks, bank deposits, and Trade receivables, other financial assets and investments excluding equity and preference investments. The Company''s exposure to customers is diversified and there are no customers who contributes to more than 10% of outstanding accounts receivable as of March 31, 2023 (no customers as of March 31,2022).
Financial Assets that are neither past due nor impaired
Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporates, which have high credit rating assigned by international and domestic credit-rating agencies. Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2023, that defaults in payment obligations will occur except as described in note 10 on allowances for impairment of trade receivables.
The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.
Trade Receivables
Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed above under Credit risk. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
At 31 March 2023, the Company had 3 Customers (31 March 2022: 3 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 26% (31 March 2022: 22%) of all the receivables outstanding.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds and bonds. Hence, the assessed credit risk is low.
(b) Liquidity Risk
Liquidity Risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit, which carry no or low market risk.
The Company monitors its risk of a shortage of funds on a regular basis.
The Company has access to committed credit facilities as described below, of which the funded limit were unused at the end of the current and comparable reporting periods. The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.
Fund Base Limit: '' 68.11 Crores (PY '' 76.00 Crores)
Non-Fund Base Limit: '' 66.50 Crores (PY '' 60.00 Crores)
Securities offered:
(a) Hypothecation of entire stocks of Raw materials, WIP, Finished goods, Stores & Spares, Book-debts.
(b) Hypothecation / mortgage of Fixed Assets (Ref Note -3)
(i) Forward contract
Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables denominated in certain foreign currencies. The details of outstanding forward contracts as at March 31, 2023 and March 31,2022 are given above.
It is the policy of the Company to enter into forward exchange contracts to cover specific foreign currency payments (100% of the exposure).
The Company recognized a net Gain on the forward contracts of '' 0.07 Crore for the year ended March 31, 2023 (Previous year Net loss of '' 0.06 Crore).
All open forward exchange contracts mature within three months from the balance sheet date.
(ii) Cross Currency Swap: None
(iii) Interest rate swap: None
The CSR spend includes amount spent towards support for Rehabilitation Research & Device Development at IIT, maintenance of rural schools, establishment of Public lab complex, nutritious supplement for government school children, treating the less fortunate children born with facial deformities, early education and daily food to students in reserved categories, providing ambulance with equipment for eye bank, providing battery operated small vehicle for District Administration Office, Haridwar for use of elderly and differently abled persons, providing smart boards to government schools, Children''s Airway & Swallowing reconstruction procedure, etc.
47 Disclosure pursuant to SEBI (Listing Obligation and Disclosure Requirements) regulations 2015:*
There were no Loan amounts due from Subsidiaries/ Associates or Firms / Companies in which the Directors are Interested *Excludes Current account transactions
49 Events After The Reporting Date
Your Directors have not paid any interim dividend (Previous Year : '' 34.65 Crores), Your directors are pleased to recommend a final dividend of '' 6 Per Share which entails an outlay of '' 83.17 Crores (Previous Year: '' 48.51 Crores). The total dividend for FY 2022-23 is '' 6 Per share (Previous Year : '' 6 per Share).
Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been disclosed.
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2023.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The borrowing from financial institutions have been used for the purposes for which it was taken at the balance date.
51 The social security code enacted in year 2020 has been deferred by a year. When enacted, this code will have an impact on Company''s contribution to Provident Fund, Gratuity and other employee related benefits. The Company proposes to do an assessment at an appropriate time and make appropriate provisions accordingly.
52 Certain figures apparently may not add up because of rounding off, but are wholly accurate in themselves
53 The previous periods numbers have been regrouped or reclassified to conform to the current year''s classification
Mar 31, 2022
(i) During the year ended March 31, 2022, '' 9.16 Crores (Previous year : '' 6.10 Crores) was recognised as an expense for Inventories carried at Net Realisable value.
(ii) Mode of Valuation:Inventories are valued at lower of cost, computed on a weighted average basis and estimated net realisable value, after providing for cost of obsolescene and other anticipated losses,wherever considered necessary. Finished Goods and Work in progess include cost of conversion and othe costs incurred in bringing the inventories to their present location and condition.
(iii) Stock in transit includes '' 2.27 Crores of Traded Goods and '' 11.99 Crores of Raw Materials
Other Details of Equity Shares for a period of 5 years immediately preceeding March 31, 2022
1. Paid Up Share Capital of "13,86,14,020" shares of ''1/- each (Previous Year: "1,38,61,402" shares of '' 10/- each) includes "1,01,79,297" (Previous Year :"1,01,79,297" shares) of '' 10/- each alloted as Bonus Shares fully paid-up by capitalisation of reserves. The Paid Up Share Capital also includes "9979" shares of '' 10/- each issued to shareholders of Triveni Bialetti Industries Private Limited as per the demerger scheme approved by the Honorable High Courts of Madras and Bombay.
2. The Board of Directors at their Meeting held on October 27, 2021 approved the sub-division of each equity share of face value of '' 10/- fully paid up into 10 equity shares of face value of '' 1/- each fully paid up. The same had been approved by the Members on December 1, 2021 through postal ballot and e-voting. The effective date for the subdivision was December 15, 2021. Consequently the split of equity shares had been effected from December 15, 2021. Accordingly, equity shares and earning per shares have been adjusted for share split in accordance with IND AS 33 ''Earning Per Share'' for all previous periods.
3. During the FY 2019-20, 23,10,233 nos of Bonus Shares of ''10 each have been allotted on May 17, 2019 (pursuant to the Share Holders resolution, dated May 3, 2019 approving the same), thus increasing the paid up share capital to '' 13.86 Crores. These bonus shares rank paripassu in all respects with the existing shares and will be entitled to any dividend declared after May 17, 2019.
4. During the year 2017-18 ,the Company completed Buy back of 1,00,000 Equity shares @ '' 7,000/- per share aggregating to '' 70 crores. The Excess amount over Face value of these shares along with expenses relating to Buy back have been debited to Securities Premium Reserve in accordance with the provisions of the Companies Act.
33 Gratuity and other Post-Employment Benefit Plans a) Defined Benefit Plan - Gratuity
The Company has a defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, every employee who has completed five years or more of service gets gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The level of benefits provided depends on the member''s length of service and salary at retirement age.
The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for gratuity benefit.
"All amounts mentioned above are excluding GST.
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables except for guarantees given on behalf of the subsidiaries details of which is provided in Note 34(b). For the year ended March 31, 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2021: '' Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates."
The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management personnel.
37 Segment information- Disclosure pursuant to Ind AS 108 ''Operating Segment'' a) Basis of identifying operating segments:
"The company operates under one segment of Kitchen & Home appliances. Hence, Segment reporting is not applicable. "Information about major customers:
Company''s significant revenues (more than 5%) are derived from sales to three customers (PY: two customer). The total sales to such Customers amounted to '' 445.77 crores in 2021-22 and '' 251.29 crores in 2020-21.
No single customer contributed 10% or more to the company''s revenue for 2021-22 and 2020-21."
38 Disclosure on Financial Instruments
"This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2, to the financial statements."
An analysis of financial instruments (as indicated in the table above) that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, are as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
(i) Borrowings, loans, short-term financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii) Management uses its best judgement in estimating the fair value of its financial instruments. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
39 Financial Risk Management Objectives and Policies
The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the company.
Market Risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The Company''s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The investment in listed and unlisted equity securities are not significant. Interest Rate Risk:
The company''s investments are primarly in short term and long term investment which do not expose it to significant interest rate risk Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outside the territories in which they operate from. The Company is therefore exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables.
Foreign Currency Sensitivity Analysis
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
As per management''s assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair and EURO-INR currency pair sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below: (a) Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company results in material concentration of credit risk.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was '' 1016.51 Crores and '' 811.09 Crores as of March 31, 2022 and March 31, 2021 respectively, being the total of the carrying amount of balances with banks, bank deposits, and Trade receivables, other financial assets and investments excluding equity and preference investments. The Company''s exposure to customers is diversified and there are no customers who contributes to more than 10% of outstanding accounts receivable as of March 31, 2022 (no customers as of March 31,2021).
Financial Assets that are neither past due nor impaired
Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporates, which have high credit rating assigned by international and domestic credit-rating agencies. Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2022, that defaults in payment obligations will occur except as described in note 10 on allowances for impairment of trade receivables.
The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.
Trade Receivables
Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed above under Credit risk. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
At March 31, 2022, the Company had 3 Customers (March 31, 2021: 3 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 22% (March 31, 2021: 21.74%) of all the receivables outstanding.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds and bonds. Hence, the assessed credit risk is low.
(b) Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit, which carry no or low market risk.
The Company monitors its risk of a shortage of funds on a regular basis.
The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company''s financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.
Securities offered:
(a) Hypothecation of entire stocks of Raw materials, WIP, Finished goods, Stores & Spares, Book-debts.
(b) Hypothecation / mortgage of Fixed Assets (Ref Note -3)
(i) Forward contract
Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables denominated in certain foreign currencies. The details of outstanding forward contracts as at March 31, 2022 and March 31,2021 are given above.
It is the policy of the Company to enter into forward exchange contracts to cover specific foreign currency payments (100% of the exposure).
The Company recognized a net loss on the forward contracts of '' 0.06 Crores for the year ended March 31, 2022 (Previous year Net gain of '' 0.25 Crores).
All open forward exchange contracts mature within three months from the balance sheet date.
(ii) Cross Currency Swap: None
(iii) Interest rate swap: None
The Ind AS 115 did not result in material change on the income statement and balance sheet of the Company as they did not result in any changes to the company''s existing accounting policy except scheme expense incurred, incentives given to customers, reimbursement of taxes to customer and promotional couponing which have been reclassified from ''sales promotion expenses'' within other expenses under Previous GAAP and netted from revenue directly under Ind AS -115.
49 Exceptional Items:
The exceptional income of '' 11.90 crores in FY 2020-21 refers to the reversal of provision for export obligations of the acquired business made in the previous years, as the same stands fulfilled.
50 Your Directors have paid an interim dividend of '' 2.5 per share which entails an outlay of '' 34.65 Crores (Previous year - '' 27.72 Crores), Your directors are pleased to recommend a final dividend of '' 3.50 (Per Share) which entails an outlay of '' 48.51 Crores (Previous Year: '' 41.58 Crores).The total dividend for FY 2021-22 is '' 6/- Per share (PY '' 5/- per Share).
51 Additional Disclosures
Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been disclosed.
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2022.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The borrowing from financial institutions have been used for the purposes for which it was taken at the balance date.
52 The social security code enacted in year 2020 has been deferred by a year. When enacted, this code will have an impact on Company''s contribution to Provident Fund, Gratuity and other employee related benefits. The Company proposes to do an assessment at an appropriate time and make appropriate provisions accordingly.
53 Certain Figures Apparently may not add up because of rounding off, but are wholly accurate in themselves.
Mar 31, 2019
Note:
(i) During the year ended 31st March 2019, Rs,(0.64) Crores (Previous year : Rs,2.97 Crores) was recognised/(reversed) as an expense for Inventories carried at Net Realisable value.
(ii) Mode of Valuation:
Inventories are valued at lower of cost,computed on a weighted average basis and estimated net realisable value,after providing for cost of obsolescene and other anticipated losses,wherever considered necessary.Finished Goods and Work in progess include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(iii) Stock in Transit - NIL (Previous Year-NIL).
1. Paid Up Share Capital of "1,15,51,169" shares (Previous Year: "1,15,51,169" shares) includes "78,69,064" shares of Rs,10 each alloted as Bonus Shares fully paid-up by capitalisation of reserves and "20106" shares issued to shareholders of M/s.Prestige Housewares India Limited(PHIL) consquent to merger of PHIL with TTK Prestige Limited. This also includes "9979" shares of Rs,10 each issued to shareholders of Triveni BIaletti Industries Private Limited as per the demerger scheme approved by the Honorable High Courts of Madras and Bombay.
2. During the year 2017-18 ,the Company completed Buy back of "100000" Equity shares @ ''"7000" per share aggregating to ''70 crores. The Excess amount over Face value of these shares along with expenses relating to Buy back have been debited to Securities Premium Reserve in accordance with the provisions of the Companies Act.
3. After the Balance sheet date, pursuant to the resolution passed by the Share Holders approval on 3rd May 2019 through Postal Ballot, 23,10,233 nos of bonus shares have been allotted on 17th May 2019, thus increasing the paid up share capital to Rs,13.87 Crores.These bonus shares rank paripassu in all respects with the existing shares and will be entitled to any dividend declared after 17th May 2019.
4. As on 31st March 2019, the issued and subscribed capital of the company stood at 1,16,78,469 shares of Rs,10/- each which included 27,300 forfeited shares.Pursuant to the resolution passed by shareholders through postal ballot, the forfeited shares have been cancelled and the current issued and subscribed capital stand at 1,16,51,169 shares of Rs,10/- each.The amount of Rs,5/- share paid up on the forfeited shares will stand transferred to capital reserve.
5. The Authorized Share capital remains the same i.e. Rs,15 Crores divided into 1,50,00,000 equity shares of Rs,10 each.
6 Critical judgments in applying accounting policies & Key sources of estimation uncertainty:
The preparation of the company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying number of assets or liabilities affected in future periods.
Critical Judgements in applying Accounting Policies:
(i) Lease classification: The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
(i) Useful life of Property, Plant & Equipment (PPE)
The Company reviews the estimated useful lives of PPE at the end of each reporting period
(ii) Defined benefit plans, Defined Benefit Obligations (DBO))
Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
7 Financial Risk Management Objectives and Policies
The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments. The company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the company.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The Company''s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The investment in listed and unlisted equity securities are not significant.
Foreign Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.
Considering the countries and economic environment in which the company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outside the territories in which they operate from. The Company is, therefore, exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables
Foreign Currency Sensitivity Analysis
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company results in material concentration of credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs,519.33 Crores and ''508.28 Crores as of March 31, 2019 and March 31, 2018 respectively, being the total of the carrying amount of balances with banks, bank deposits, and Trade receivables, other financial assets and investments excluding equity and preference investments.
The Company''s exposure to customers is diversified except for two customers who contributes to more than 10% of outstanding accounts receivable as of March 31, 2019 and one customer as of March 31, 2018.
Financial Assets that are neither past due nor impaired
Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporates, which have high credit rating assigned by international and domestic credit-rating agencies. Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2019, that defaults in payment obligations will occur except as described in note 3.6 on allowances for impairment of trade receivables.
The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.
Trade Receivables
Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance. At 31 March 2019, the Company had 2 Customers (31 March 2018: 3 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 27.90% (31 March 2018: 27.27%) of all the receivables outstanding.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed above under Credit risk. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
Financial Instruments and Cash Deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds and bonds with high credit rating. Hence, the assessed credit risk is low.
Liquidity Risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company consistently generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.
The table below summarizes the maturity profile of the company''s financial liabilities based on contractual undiscounted payments and financial assets (excluding cash and cash equivalents) based on contractual undiscounted receipts:
b) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required). Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements except as per note a) above approximate their fair values.
Capital Management:
The Company''s capital comprises of equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of company''s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The Company does so by adjusting dividend paid to shareholders. The total capital as on March 31, 2019 is Rs,11.56 crores (Previous Year: Rs,11.56 crores).
Gearing Ratio
The Company does not have any borrowings as at March 31, 2019 and March 31, 2018.
Interest rate risk management:
The Company does not have any borrowings, as at March 31, 2019 and March 31, 2018 and hence it is not exposed to any interest rate risk.
8 The company operates under one segment of Kitchen & Home appliances. Hence, Segment reporting is not applicable.
a) Information about major customers:
Company''s significant revenues (more than 5%) are derived from sales to one Customer. The total sales to such Customers amounted to Rs,131.57 crores in 2018-19 and Rs,122.75 crores in 2017-18.
No single customer contributed 10% or more to the company''s revenue for 2018-19 and 2017-18.
b) Revenue from Major products:
Refer note 5.6
c) Information about geographical area
9Related Party Transactions
The following tables provide details about the nature of relationship and total amount of transactions that have been entered into with related parties for the relevant financial year.
Description of relationship Company
Wholly Owned Subsidiaries TTK British Holdings Limited
Horwood Homewares Limited
Enterprises over which Key Managerial Personnel (KMP) having TT Krishnamachari & Co
significant c°ntr°l TTK Healthcare Limited ~
TTK Services (P) Limited
Directors Mr. K. Shankaran (KMP)
Mr. T.T. Jagannathan (KMP)
Mr. Chandru Kalro (KMP)
Mr.R.Srinivasan
Dr.(Mrs.) Vandana Walvekar
Mr.Dileep Kumar Krishnaswamy
Mr.Arun.K.Thiagarajan
Mr.Murali Neelakantan
Mr. T.T.Raghunathan
Mr. T.T.Mukund
Other Key Managerial Personnel Mr. V Sundaresan
Other Related Parties TTK Prestige Limited Executive Superannuation Fund
Note: All amounts mentioned above are excluding GST.
- Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables except for guarantees given on behalf of the subsidiaries details of which is provided in Note no.5.8 below. For the year ended 31 March 2019, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2018: INR Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
The amounts disclosed in the table are the amounts recognized as an expense during the reporting period related to key management personnel.
10 Disclosures on Adoption of Ind AS 115:
The company has adopted Ind AS 115 - ''Revenue from contracts with customers'' for the current period. The adoption of this standard did not result in material change on the income statement and balance sheet of the Company as they did not result in any changes to the group''s existing accounting policy except scheme expense incurred, incentives given to customers, reimbursement of taxes to customer and promotional coupon which have been reclassified from ''sales promotion expenses'' within other expenses under Previous GAAP and netted off from revenue directly under Ind AS 115.
iv) There is no change in retained earnings between closing balance sheet as on 31st March 2018 and Opening Balance sheet as on 1st April 2019 on transition from Ind AS 18 to Ind AS 115. However, income statement has been impacted only to the extent of reclassification.
11. Disclosure pursuant to SEBI (Listing Obligation and Disclosure Requirements) regulations 2015:2
There were no Loan amounts due from Subsidiaries/Associates or Firms/Companies in which the Directors are Interested *Excludes Current account transaction
These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. When there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit. Currently, for these plans, investments are made in gratuity fund maintained by the Life Insurance Corporation of India.
Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plan''s investments.
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.
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
12. Trade Payables-Micro and Small Enterprises:
Based on data received from Vendors and information available with us, the amount due to MSMED is ascertained as Rs,19.44 Crores (PY: 42.75 Crores). There were no over dues at any point in time and hence no interest is paid/payable.
13. Certain figures apparently may not add up because of rounding off, but are wholly accurate in themselves.
14. Your Directors are pleased to recommend a dividend of Rs,30/- per share including the Bonus Shares allotted after 31st March 2019 (Previous year- Rs,30/- per share) which entails an out lay of Rs,41.58 Crores (PY Rs,34.66 Crores) by way of Dividend and Rs,8.55 Crores (PY Rs,7.12 Crores) by way of Dividend Distribution Tax.
15. The financial statements were approved by the Board of Directors and authorized for issue on 29th May 2019.
Mar 31, 2018
Note:
(i) During the year ended 31st March 2018, Rs,2.97 Crores (Previous year : Rs,3.66 Crores) was recognized as an expense for Inventories carried at Net Realizable value.
(ii) Mode of Valuation:
Inventories are valued at lower of cost, computed on a weighted average basis and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished Goods and Work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
1. Paid Up Share Capital of 1,15,51,169 shares (Previous Year : 1,16,51,169 shares) includes 78,69,064 shares of Rs, 10 each alloted as Bonus Shares fully paid-up by capitalization of reserves and 20106 shares issued to shareholders of M/s.Prestige Housewares India Limited(PHIL) consquent to merger of PHIL with TTK Prestige Limited. This also includes 9979 shares of Rs,10 each issued to shareholders of Triveni BIaletti Industries Private Limited as per the demerger scheme approved by the Honorable High Courts of Madras and Bombay.
2. During the year the Company completed Buy back of 1,00,000 Equity shares @ Rs,7000 per share aggregating to Rs,70 crores. The Excess amount over Face value of these shares along with expenses relating to Buy back have been debited to Securities Premium Reserve in accordance with the provisions of the Companies Act and the necessary transfer to Capital Redemption Reserve has been made.
5.1 Critical judgements in applying accounting policies
& Key sources of estimation uncertainty:
The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accounting disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying number of assets or liabilities affected in future periods.
Critical Judgments in applying accounting policies:
(i) Lease classification The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
(i) Useful life of Property, Plant & Equipment (PPE) The Company reviews the estimated useful lives of PPE at the end of each reporting period
(ii) Defined benefit plans Defined Benefit Obligations (DBO))
Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
5.2 Financial risk management objectives and policies: The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Company.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The Company is not exposed to any price risk that could adversely affect the value of the Company''s financial assets or expected future cash flows.
Foreign currency risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the Company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outside the territories in which they operate from. The Company is, therefore, exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables.
Foreign currency sensitivity analysis
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company result in material concentration of credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs, 508.8 Crores, and Rs, 317.02 Crores as of March 31, 2018, March 31, 2017 respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, other financial assets and investments excluding equity and preference investments.
The Company''s exposure to customers is diversified and no single customer contributes to more than 10% of outstanding accounts receivable as of March 31, 2018 and March 31, 2017.
Financial assets that are neither past due nor impaired
Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporate, which have high credit-rating assigned by international and domestic credit-rating agencies.
Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to
Trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2018, that defaults in payment obligations will occur except as described in note 3.6 on allowances for impairment of trade receivables. The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance. At 31 March 2018, the Company had 3 Customers (31 March 2017: 2 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 27.27% (31 March 2017: 11%) of all the receivables outstanding.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed below. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds. Hence the assessed credit risk is low.
Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company consistently generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.
The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments and financial assets based on contractual undiscounted receipts:
(i) Forward contract
Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables denominated in certain foreign currencies. The details of outstanding forward contracts as at March 31, 2018 and March 31, 2017 are given below:
It is the policy of the Company to enter into forward exchange contracts to cover specific foreign currency payments (100% of the exposure).
The Company recognized a net loss on the forward contracts of Rs,0.20 Crore for the year ended March 31, 2018 (Previous year Rs,0.04 Crore).
All open forward exchange contracts mature within three months from the balance sheet date.
ii. Cross Currency Swap: None
iii. Interest rate swap: None
b) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required) Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements except as per note a) above approximate their fair values. Interest income/ (expense), gain/ (losses) recognized on financial assets and liabilities
Capital Management:
The Company''s capital comprises of equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of company''s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The Company does so by adjusting dividend paid to shareholders. The total capital as on March 31, 2018 is Rs,11.56 crores (Previous Year: Rs, 11.66 crores).
Gearing Ratio
The Company does not have any borrowings as at March 31, 2018 and March 31, 2017.
Interest rate risk management:
The Company does not have any borrowings as at March 31, 2018 and March 31, 2017 and hence it is not exposed to any interest rate risk.
5.3 A. The company operates under one segment of Kitchen & Home appliances. Hence Segment reporting is not applicable.
Information about major customers:
Company''s significant revenues (more than 5%) are derived from sales to one Customer. The total sales to such Customers amounted to '' 122.75 crores in 2017-18 and '' 104.01 crores in 2016-17.
No single customer contributed 10% or more to the company''s revenue for 2017-18 and 2016-17.
Revenue from Major products:
Refer note 5.7
5.4 Related Party Transactions
The following tables provide details about the nature of relationship and total amount of transactions that have been entered into with related parties for the relevant financial year.
Description of relationship Company
TTK British Holdings Limited Wholly Owned Subsidiaries Horwood Homewares Holdings Limited
Horwood Homewares Limited TTK Healthcare Limited
Enterprises over which Key Managerial Personnel (KMP) TTK Protective Devices Limited_
having significant control TT Krishnamachari & Co
TTK Services (P) Limited
Mr. T.T. Jagannathan (KMP)
Mr. Chandru Kalro (KMP)
Mr. K. Shankaran (KMP)
Mr.R.Srinivasan
Dr.(Mrs.) Vandana Walvekar
Directors -
Mr.Dileep Kumar Krishnaswamy
Mr.Arun.K.Thiagarajan
Mr.Murali Neelakantan
Mr.T.T.Raghunathan
Mr. T.T.Mukund
Other Key Managerial Personnel Mr. V Sundaresan
5.16 Trade Payables-Micro and Small Enterprises:
Based on data received from Vendors, the amount due to MSMED is ascertained as Rs, 42.75 Crores (PY: Rs,45.05 Crores). There are no over dues.
5.17. Certain figures apparently do not add up because of rounding off, but are wholly accurate in themselves.
5.18. The Board of Directors of the Company have proposed a dividend @ Rs,30/- per share amounting to Rs,41.78 Crores including Dividend Distribution Tax of Rs,7.12 Crores at this meeting, subject to the approval of the shareholders at the Annual General Meeting.
Mar 31, 2017
Amendment to Ind AS 7: The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.
The company is evaluating the requirements of the amendment and its effect on the financial statements.
Notes to the Standalone financial statements for the year ended 31 March 2017
1. Critical judgments in applying accounting policies & Key sources of estimation uncertainty:
The preparation of the company''s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying number of assets or liabilities affected in future periods.
Critical Judgments in applying accounting policies:
(i) Investment property:
"Company has entered into a Joint Development Agreement for developing office cum residential complex in Dooravani nagar, Bangalore property.
As per Ind AS 40, Investment property is a property held to earn rentals or for capital appreciation or for both and not for use in production/supply of goods (or Administrative purposes (or) sale in the ordinary course of business."
As the Property is intended for capital appreciation residential complex, it has been classified as an Investment property under Ind AS.
(ii) Lease classification:
The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
(i) Useful life of Property, Plant & Equipment (PPE)
The Company reviews the estimated useful lives of PPE at the end of each reporting period.
(ii) Defined benefit plans Defined Benefit Obligations (DBO).
Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
2. Financial risk management objectives and policies:
The Company is exposed primarily to fluctuations in credit, liquidity and interest rate risks and foreign currency exchange rates, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the company.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
Price Risk
The company is not exposed to any price risk that could adversely affect the value of the Company''s financial assets or expected future cash flows.
Foreign currency risk
"The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollars against the functional currency of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
The Company imports raw materials and finished goods from outside India as well as makes export sales to countries outside the territories in which they operate from. The Company is, therefore, exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency. Foreign currency exchange risks are managed by entering into forward contracts against foreign currency vendor payables.
Foreign currency sensitivity analysis
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.
As per management''s assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair, sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below:
Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks.
Financial instruments that are subject to concentrations of credit risk principally consist of investments classified as loans and receivables, trade receivables, loans and advances, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the Company result in material concentration of credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 414.19 Crores , Rs.277.22 Crores and Rs.217.01 Crores as of March 31, 2017, March 31, 2016 and April 1, 2015, respectively, being the total of the carrying amount of balances with banks, bank deposits, trade receivables, unbilled revenue, other financial assets and investments excluding equity and preference investments.
The Company''s exposure to customers is diversified and no single customer contributes to more than 10% of outstanding accounts receivable and unbilled revenue as of March 31, 2017, March 31, 2016 and April 1, 2015.
Financial assets that are neither past due nor impaired Cash and cash equivalents, financial assets carried at fair value and interest-bearing deposits with corporate are neither past due nor impaired. Cash and cash equivalents with banks and interest-bearing deposits placed with corporate, which have high credit-rating assigned by international and domestic credit-rating agencies. Financial assets carried at fair value substantially include investment in liquid mutual fund units. With respect to Trade receivables and other financial assets that are past due but not impaired, there were no indications as of March 31, 2017, that defaults in payment obligations will occur except as described in note 3.6 on allowances for impairment of trade receivables. The Company does not hold any collateral for trade receivables and other financial assets. Trade receivables and other financial assets that are neither past due nor impaired relate to new and existing customers and counter parties with no significant defaults in past.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance. At 31st March, 2017, the Company had 2 customers (31st March, 2016: 2 customers) that owed the Company more than 5% of the Total receivables, which accounted for approximately 11% (31st March, 2016: 10%) of all the receivables outstanding.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed below. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. The cash surpluses of the company are short term in nature and are invested in Liquid Debt Mutual funds. Hence the assessed credit risk is low.
Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company consistently generated sufficient cash flows from operations to meet its financial obligations as and when they fall due.
The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments and financial assets based on contractual undiscounted receipts:
The Company has access to committed credit facilities as described below, of which Rs.90 crores were unused at the end of the reporting period (as at March 31, 2016 Rs.60 crores). The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.
3 Financial Instruments
a. Derivative financial instruments
(i) Forward contract
Foreign exchange forward contracts are purchased to mitigate the risk of changes in foreign exchange rates associated with certain payables denominated in certain foreign currencies. The details of outstanding forward contracts as at March 31, 2017 and March 31, 2016 are given below:
It is the policy of the Company to enter into forward exchange contracts to cover specific foreign currency payments 100% of the exposure generated.
The Company recognized a net loss on the forward contracts of Rs.0.04 Crore (Previous year Rs.0.21 Crore) for the year ended March 31, 2017.
All open forward exchange contracts mature within three months from the balance sheet date.
ii. Cross Currency Swap: None
iii. Interest rate swap: None
b. Financial assets and liabilities
Fair value hierarchy:
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:
- Level 1 â Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2 â Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3 â Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
b) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)
Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial stat ments except as per note a) above approximate their fair values.
Interest income/ (expense), gain/ (losses) recognized on financial assets and liabilities
Capital Management:
The Company''s capital comprises of equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of company''s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The Company does so by adjusting dividend paid to shareholders. The total capital as on March 31, 2017 is Rs.11.66 crores (Previous Year:Rs. 11.65 crores).
Gearing Ratio:
The Company does not have any borrowings as at March 31, 2017 and March 31, 2016.
Interest rate risk management:
The Company does not have any borrowings as at March 31, 2017 and March 31, 2016 and hence it is not exposed to any interest rate risk.
5.3 Segment reporting
"For management purposes, the Company is organized into two business segments such as
a.) Kitchen and Home Appliances
b.) Property & Investment."
The company monitors the operating results of its business as stipulated above for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Certain expenses, like CSR expenses, are not specifically allocable to specific segments. Management believes that it is not feasible to provide segment disclosure of these expenses and, accordingly, they are separately disclosed as "unallocated expenses" and adjusted only against the total operating income of the Company.
Information about major customers:
Company''s significant revenues (more than 5%) are derived from sales to 2 Customers. The total sales to such Customers amounted to Rs. 188.01 cr in 2016-17 and Rs. 155.04 cr in 2015-16.
No single customer contributed 10% or more to the company''s revenue for 2016-17 and 2015-16.
Revenue from Major products:
Refer note 4
The following tables provide details about the nature of relationship and total amount of transactions that have been entered into with related parties for the relevant financial year.
Description of relationship Company
Wholly Owned Subsidiaries 1) TTK British Holdings Limited
2) Horwood Homewares Holdings Limited
3) Horwood Homewares Limited Enterprises over which Key Managerial Personnel (KMP) having 1) TTK Healthcare Limited significant c°ntr°l 2) ttk Protective Devices Limited
3) TT Krishnamachari & Co
4) TTK Services (P) Limited
Directors Mr. T.T. Jagannathan (KMP)
Mr. Chandru Kalro (KMP)
Mr. K. Shankaran (KMP)
Mr.R.Srinivasan Dr.(Mrs.) Vandana Walvekar Mr.Dileep Kumar Krishnaswamy Mr.Arun.K.Thiagarajan Mr.Murali Neelakantan
Other Key Managerial Personnel Mr. V Sundaresan
Relatives of KMP (With whom transactions have taken place during Dr.(Mrs.) Latha Jagannathan the period).
Footnotes:
a) Prepaid lease rentals considered as part of fixed assets amounting to Rs.2.34 crores (April 1, 2015: Rs.2.37 crores) have been reclassified as part of prepayments under non-financial other non-current/current assets under Ind AS.
b) Investment property under development amounting to Rs.23.75 crores (April 1, 2015: Rs.23.75 crores) has been reclassified from non-current investments to investment property under Ind AS.
c) Capital advances and Security Deposits considered amounting to Rs.10.00 crores (April 1, 2015: Rs.7.86 crores) have been reclassified from long term loans and advances to other non-current assets being non-financial in nature under Ind AS.
d) Advances that will be adjusted against a ailment of services and tax credits amounting to Rs.25.76 crores (Apr 1, 2015: Rs.33.53 crores) have been reclassified under other current assets under Ind AS
e) Liabilities which are contractual in nature and payable in cash amounting to Rs.68.73 crores (April 1, 2015: Rs. 57.13 crores) reclassified from other current liabilities to other current financial liabilities under Ind AS.
f) Provision for proposed dividend (including tax) amounting to Rs.30.82 crores reversed since it is accounted only on approval by the shareholders under Ind AS.
g) Current Portion of post retirement employee benefits and warranty amounting to Rs.2.13 crores have been reclassified from Long term provisions to Short term provisions under Ind AS
h) Provision for taxation amounting to Rs.10.80 crores (April 1 2015:1.90 Crores) has been reclassified from short term provisions to a separate line item ''Current Tax Liabilities'' under Ind AS.
i) The previous year''s figures have been regrouped and reclassified wherever necessary to make them comparable with the figures of the current year
(d) Reconciliation of material items of statement of cash flows for the year ended March 31, 2016 as per IND AS with previous GAAP No material differences.
Discount rate - based on prevailing market yields of Indian government securities as at the balance sheet date for estimated term of obligations.
Expected rate of return on plan assets - expectation of the average long term rate of return expected on investment of the funds during the estimated terms of the obligations.
Salary escalation rate - estimates of future salary increases considered taken into account the inflation, seniority, promotion and other relevant factors.
5. Scheme of Arrangement-Triveni Bialetti Industries Private Limited (TBI):
During FY2012-13, the Board of Directors of the Company approved a Scheme of Arrangement (Demerger) whereby the Kitchen Appliances Division (a subsidiary of Bialetti Industries SpA., Italy) with all its assets, rights, liabilities, obligations etc., would vest in TTK Prestige Limited (Company) at book values, the Appointed Date being 1st April, 2012. All profits, losses etc. on and from 1.4.2012 and the benefit of accumulated losses relating to the said Division as on that date would accrue to the Company.
The Scheme was approved by the Stock Exchanges and further approved by the Honorable High Court, Madras on 13.12.2013 subject to sanction of the Scheme by the Honorable High Court, Bombay being the jurisdictional court of the Transferor. The Hon''ble High Court, Bombay by its order of 28.1.2016 sanctioned the Scheme. With the sanction of the Scheme by the Hon''ble High Court, Bombay (the jurisdictional Court of the Transferor) the Scheme acquired the necessary legal sanction. However, the Scheme could not be given effect due to the ''status quo'' orders issued on account of the disputes raised by a 6% minority shareholder of TBI before various forums. Pending admission of the appeal of the said minority by the Division Bench of Hon''ble High Court, Bombay, the status quo orders ceased during the FY 2016-17 and the said Division stands fully absorbed in to the Company with effect from the appointed date of 1.4.2012. Pursuant to the Scheme, 9979 equity shares of your Company were allotted to the shareholders of TBI during the FY 2016-17.
Consequently, necessary effect has been given in the books of accounts during FY 2016-17. The opening balances as of 1.4.2016 have been adjusted to reflect the transactions relating the Division for the period 1.4.2012 to 31.3.2016. The transactions relevant to the FY 2016-17 have been considered as part of the current year''s operations of the Company and accounted under respective heads. Ind AS 103 cannot be applied, in view of the provisions for accounting contained in the Scheme sanctioned by the Courts, and the financial statement provides appropriate disclosures under relevant schedules.
6. Events occurring after the Balance Sheet Date
The Board of directors of the Company has declared an Interim Dividend at the Rate of Rs.15 per share amounting to Rs.21.03 crores including dividend distribution tax of Rs. 3.56 Crores at their meeting held on 24th April 2017. On May 30, 2017, the Board of Directors of the Company have proposed a final dividend of Rs.12/- per share in respect of year ending 31st March, 2017, subject to the approval of Shareholders at the Annual General Meeting. If approved the final dividend would result in cash flow of Rs. 16.83 Crores, including dividend distribution tax of Rs. 2.85 Crores.
7. Exceptional items include the Net impact of entries arising out of the Scheme with TBI and the amount paid as Ex-Gratia as Retired Employees.
8. Certain figures apparently do not add up because of rounding off, but are wholly accurate in themselves.
Mar 31, 2015
1.1 CONTINGENT LIABILITIES AND COMMITMENTS:
As at As at
Particulars 31st March 31st March
2015 2014
(A) Contingent Liabilities
(a) Guarantees/LC 1244.14 1104.31
(b) Tax matters under appeal (IT/ST/ED etc) 709.64 432.74
(B) Commitments
Estimated amount of contracts remaining
to be executed on capital account 466.13 2561.58
and not provided for
1.2 Pursuant to the Approval of shareholders to the proposed scheme of
Demerger between TTK Prestige Limited (TTKPL) and Triveni Bialeti
Industries Private Limited (TBI) for the purpose of transferring the
Kitchen Appliances Division of TBI to TTKPL, The Honourable High Court
of Madras has approved the scheme. However, the approval of The
Honourable High Court of Bombay is awaited.
The Appointed Date being 01.04.2012, appropriate effect will be given
in the Books of Accounts for the Assets /Liabilities including
adjustments for taxes paid in accordance with the sanction of the
Courts.
1.3 Exceptional income consists of Net Write back of
Liabilities/Provisions no longer required, on account of extinguishment
of a Distribution Line.
1.4 The company has deposited an amount of Rs. 340 lakhs in Capital Gain
Account Scheme out of the proceeds of Land Compensation received in the
previous financial year for acquisition of Company''s Land by the
Government of Karnataka for Road widening purpose.
1.5 Forward Exchange Contract
As at the year end, the Company has not entered into any Forward
Exchange Contract (or other derivative instruments). The year end
foreign currency exposures, which are only in respect of Export
receivables, that have not been hedged by a derivative instrument or
otherwise amount to Rs. 449.87 lakhs (USD 720253.24) and Rs. 180.74 lakhs
(EURO 268759.80).
Mar 31, 2014
1. CONTINGENT LIABILITIES AND COMMITMENTS:
As at As at
Particulars 31 st 31 st
March 2014 March 2013
A) Contingent Liabilities
(a) Guarantees/LC 1104.31 7424.18
(b) Tax matters under appeal
(IT/ST/ED etc) 432.74 686.62
(B) Commitments
Estimated amount of contracts remaining
to be executed on capital account 2561.58 5212.27
and not provided for
2. Pursuant to the Approval of shareholders to the proposed scheme of
Demerger between TTK Prestige Limited (TTKPL) and Triveni Bialeti
Industries Private Limited (TBI) for the purpose of transferring the
Kitchen Appliances Division of TBI to TTKPL, the Honourable High Court
of Madras has approved the scheme. However, the approval of The
Honourable High Court of Bombay is awaited.
The Appointed Date being 01.04.2012, appropriate effect will be given
in the Books of Accounts for the Assets /Liabilities including
adjustments for taxes paid in accordance with the sanction of the
Courts.
3. The Exceptional Income shown under Note No. 2.26 relates to the
Enhanced Compensation for Land at Bangalore, acquired by the Government
of Karnataka for Road widening purpose. The compensation was settled in
accordance with the Order of the Honourable High Court of Karanataka.
The compensation amount (net of related expenses) is Rs. 312.50 lacs. The
interest on account of delay in settlement of compensation is Rs. 497.66
lacs.
4 The R & D facility of the Company has been recognized by the
Ministry of Science & Technology,
Government of India, U/s 35(2) AB of the Income Tax Act. As required
under this approval, expenditure in connection with R & D centre is
disclosed as follows :
Rs. in Lacs
(1) Capital Expenditure 44.26
(2) Revenue Expenditure 178.38
Mar 31, 2013
1.1 Figures are given in lakhs. Previous year figures are given in
brackets.
1.2 (1) The previous year''s figures have been regrouped and
reclassified wherever necessary to make them comparable with the
figures ofthe current year.
(2) A scheme of Amalgamation of M/s.Prestige Housewares India
Limited(PHIL), (which was engaged in the business of manufacturing
kitchen appliances), with TTK Prestige Ltd., was sanctioned by the
Honourable High Court of Madras: The details of the Amalgamation are :
(a) The Amalgamation is in the Nature of Merger as defined in AS 14
issued by ICAI.
(b) Under the said scheme, all the assets and liabilities have been
transferred to TTK Prestige Limited.
(c) As per the scheme approved by the High Court, a total of 20106
Equity shares in TTK Prestige Ltd, have been issued to the erstwhile
shareholders of PHIL., the ratio of exchange being one equity share for
every 24 shares of PHIL.
(d) The difference between the value of net identifiable assets and the
agreed consideration amounting to Rs. 14.90 lacs has been credited to
Capital Reserve.
(e) The Appointed date for the amalgamation was 1.4.2011 and the Order
of the High Court dated 7th June 2012 was filed with the Registrar on
the 16th ofAugust 2012, which is the effective date ofAmalgamation.
Pursuant to the Order ofthe High Court, the scheme of amalgamation has
been given effect to in the previous year and the previous figures
figures have been suitably adjusted.
1.3 a) The company has created a Trust which has taken a Group
Gratuity Policy with the Life Insurance Corporation of India for future
payment of gratuity to retired / resigned employees. Based on the
actuarial valuation, provision has been made for the full value ofthe
gratuity benefits as per the requirements of Accounting Standard
(AS-15) (Revised) issued by The Institute of Chartered Accountants of
India.
b) The Company contributes to a Superannuation Fund covering specified
employees. The Contributions are by way of annual premia payable in
respect of a superannuation policy issued by the Life Insurance
Corporation of India, which confers benefits to retired / resigned
employees based on policy norms. No other liabilities are incurred by
the Company in this regard.
c) Leave encashment benefit has been charged to Profit & Loss account
on the basis of actuarial valuation as at the yearend in line with the
Accounting Standard (AS -15) (Revised) issued by the Institute of
Chartered Accountants of India.
DEFINED BENEFIT PLAN:
The Employees'' Gratuity Fund Scheme managed by a Trust is defined
benefit plan.
The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit method which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation as per Para 65 of the Accounting Standard AS - 15 (Revised),
issued by the Institute of Chartered Accountants of India.
1.4 Fringe Benefit Tax (till the time of abolition) was paid under
protest, since the matter is pending before The Hon''ble Supreme Court
of India. In case of a favourable decision, the company would be
entitled to seek refund of the same. Amount: Rs.197.37 Lakhs (P/Y:Rs.
197.37 lakhs).
1.5 Based on data received from Vendors, the amount due to MSMED is
ascertained as Rs. 2062.75 lakhs. There are no over dues.
1.6 The company has two segments namely Kitchen Appliances and
Property & Investment for reporting purposes.
1.7 Related Party transactions as per Accounting Standard - 18:
(a) The Company has transactions with the following entities.
Related Party, Enterprises over which Key Management personnel have
significant control TTK Health Care Limited, Peenya Packaging Products,
TTK LIG Limited, T.T. Krishnamachari & Co., TTK Services (P) Limited,
Manttra Inc., USA.
Key Management Personnel and their Relatives:
Mr. T.T. Jagannathan, Mr. T.T. Raghunathan, Mr. S. Ravichandran, Mr. K.
Shankaran, Dr. (Mrs.) Latha Jagannathan, Dr. T.T. Mukund, Mr. T.T.
Lakshman, Mr. T.T. Venkatesh and Ms. Bhanu Raghunathan.
1.8 CONTINGENT LIABILITIES AND COMMITMENTS:
As at As at
Particulars 31st March 2013 31st March 2012
A) Contingent Liabilities
(a) Guarantees/LC 7424.18 3203.60
(b) Tax matters under appeal (IT/ST/ED etc) 686.62 668.52
(B) Commitments
Estimated amount of contracts remaining
to be executed on capital account 5212.27 10894.13
and not provided for
Mar 31, 2012
1. Paid up share capital of 1,13,21,084 shares (Previous year :
1,13,21,084 shares) Includes 78,69,064 shares of Rs 10/- each allotted
as Bonus shares fully paid-up by capitalisation of reserves.
2. There was no issue / buy back of shares of the nature mentioned in
clause(i) of note 6A of general instructions to Schedule VI in the last
five years.
1.1. The previous year's figures have been regrouped and reclassified
wherever necessary to make them comparable with the figures of the
current year.
1.2. a) The company has created a Trust which has taken a Group
Gratuity Policy with the Life Insurance Corporation of India for future
payment of gratuity to retired / resigned employees. Based on the
actuarial valuation, provision has been made for the full value of the
gratuity benefits as per the requirements of Accounting Standard 15
(AS-15) (Revised) issued by The Institute of Chartered Accountants of
India.
b) The Company contributes to a Superannuation Fund covering specified
employees. The Contributions are by way of annual premia payable in
respect of a superannuation policy issued by the Life Insurance
Corporation of India, which confers benefits to retired / resigned
employees based on policy norms. No other liabilities are incurred by
the Company in this regard.
c) Leave encashment benefit has been charged to Profit & Loss account
on the basis of actuarial valuation as at the yearend in line with the
Accounting Standard (AS -15) (Revised) issued by the Institute of
Chartered Accountants of India.
DEFINED BENEFIT PLAN:
The Employees' Gratuity fund scheme managed by a Trust is defined
benefit plan.
The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit method which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation as per Para 65 of the Accounting Standard AS - 15(Revised),
issued by the Institute of Chartered Accountants of India.
The obligation for leave encashment is recognized in the same manner as
gratuity.
The estimate of rate of escalation in salary considered in actuarial
valuation, take in to account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
1.3. Fringe Benefit Tax (till the time of abolition) was paid under
protest, since the matter is pending before The Hon'ble Supreme Court
of India. In case of a favorable decision, the company would be
entitled to seek refund of the same. Amount: Rs 197.37 Lakhs (P/Y:Rs
197.37 lakhs).
1.4. Based on data received from Vendors, the amount due to MSMED is
ascertained as Rs 1298.13 lakhs. There are no over dues.
1.5. The company has two segments namely Kitchen Appliances and
Property & Investment for reporting purposes.
1.6. Disclosure as per Accounting Standard 19
The company has acquired certain items of Vehicles on Financial Lease
on or after April 1, 2008 amounting to Rs Nil (Previous year - Rs Nil)
1.7. Related party transactions as per accounting standard-18:
(a) The Company has transactions with the following entities.
Associates:
Prestige Housewares India Limited:
Others:
TTK Health Care Limited, Peenya packaging Products, TTK LIG Limited,
T.T. Krishnamachari & Co., TTK Services (P) Limited, Manttra Inc., USA
Key Management Personnel and their relatives:
Mr. T.T. Jagannathan, Mr. T.T. Raghunathan , Mr.S.Ravichandran, Mr. K.
Shankaran, Dr.(Mrs.) Latha Jagannathan, Dr. T.T. Mukund, Mr. T.T.
Lakshman, Mr. T.T. Venkatesh and Ms. Bhanu Raghunathan
1.8. CONTINGENT LIABILITIES AND COMMITMENTS:
Particulars As at As at
31st March 2012 31st March 2011
A) Contingent Liabilities
(a) Guarantees/LC 3203.60 3701.89
(b) Tax matters under appeal
(IT/ST/ED etc) 668.52 773.00
(B) Commitments
Estimated amount of contracts
remaining to be executed on capital
account 10894.13 4581.70
and not provided for
Mar 31, 2010
1. Figures are given in Rs. Lakhs.
2) Quoted Investments are carried at their cost of acquisition.
3) The previous yearÃs figures have been regrouped and reclassified
wherever necessary to make them comparable with the figures of the
current year.
4) (a) The company has created a Trust which has taken a Group Gratuity
Policy with the Life Insurance Corporation of
India for future payment of gratuity to retired / resigned employees.
Based on the actuarial valuation, provision has been made for the full
value of the gratuity benefits as per the requirements of Accounting
Standard15 (AS-15) (Revised) issued by The Institute of Chartered
Accountants of India.
(b) The Company contributes to a Superannuation Fund covering specified
employees. The Contributions are by way of annual premia payable in
respect of a superannuation policy issued by the Life Insurance
Corporation of India, which confers benefits to retired / resigned
employees based on policy norms. No other liabilities are incurred by
the Company in this regard.
(c) Leave encashment benefit has been charged to Profit & Loss account
on the basis of actuarial valuation as at the year end in line with the
Accounting Standard (AS -15) (Revised) issued by the Institute of
Chartered Accountants of India.
DEFINED BENEFIT PLAN :
The Employeesà Gratuity fund scheme managed by a Trust is defined
benefit plan.
The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit method which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation as per Para 65 of the Accounting Standard AS Ã 15 (Revised),
issued by the Institute of Chartered Accountants of India.
The obligation for leave encashment is recognized in the same manner as
gratuity.
5) Fringe Benefit Tax (till the time of abolition) was paid under
protest, since the matter is pending before The HonÃble Supreme Court
of India. In case of a favourable decision, the company would be
entitled to seek refund of the same. Amount: Rs.197.37 Lakhs (P/Y:
Rs.184.78 lakhs.)
6) Interests includes Rs. 58.19 lakhs towards interest on fixed loan
(previous year Rs. 99.48 lakhs) and Rs.4.20 lakhs (previous year
Rs.4.20 lakhs) being interest on fixed deposit placed by Directors.
7) Contingent Liabilities : (Rs. in lakhs)
2009-2010 2008-2009
a) Bank Guarantees / LC 816.37 550.31
b) Estimated amount of contract
remaining to be executed on 429.80 54.40
Capital A/c. not provided for
c) Securitisation of Accounts
Receivables - 500.00
d) Tax matters under appeal( IT/ST/ED) 438.01 589.02
e) Property Tax under dispute-
Dooravaninagar property - 54.82
8) Based on data received from Vendors, the amount due to MSMED is
ascertained as Rs.476.08 lakhs.
9) The company has two segments namely Kitchen Appliances and Property
& Investment for reporting purposes.
10) Disclosure as per Accounting Standard 19
The company has acquired certain items of Vehicles on Financial Lease
on or after April 1, 2008 amounting to Rs. Nil (Previous year à Rs.
4.19 lakhs).
11) Related party transactions as per accounting standard-18 :
(a) The Company has transactions with the following entities.
Associates : Prestige Housewares India Limited
Others :
TTK Health Care Limited, Peenya packaging Products, TTK LIG Limited, TT
Krishnamachari & Co., TTK Services (P)
Limited and Mantra Inc., USA.
Key Management Personnel and their relatives: Mr. T T Jagannathan, Mr.
T T Raghunathan Mr.S.Ravichandran, Mr. K. Shankaran, Dr. (Mrs.) Latha
Jagannathan, Dr. T T Mukund, Mr. T T Lakshman, Mr. T T Venkatesh and
Ms. Bhanu Raghunathan.
12) The company established new Unit 2 at Uttarakhand for manufacturing
of Kitchen Appliances which commenced commercial production in March
2010. The unit is situated in a notified area and is eligible for
benefit of deduction under Sec 80-IC of the Income Tax Act and
exemption from Excise Duty in terms of notification No. 50/2003 as
amended.
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