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Pitti Engineering Ltd. के अकाउंट के लिये नोट
Mar 31, 2025
1.2.16PROVISIONS AND CONTINGENCIES
The Company creates a provision when there exists a
present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate
can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may
but probably will not require an outflow of resources.
When there is a possible obligation or a present obligation
in respect of which likelihood of outflow of resources is
remote no provision or disclosure is made.
The expenses relating to a provision is presented in the
Statement of Profit & Loss net of any reimbursement.
1.2.17TAXATION
Current Income Tax
Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted
or substantively enacted at the reporting date in the
countries where the Company operates and generates
taxable income.
Current income tax relating to items recognised outside
profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Current
tax items are recognised in correlation to the underlying
transaction either in Other Comprehensive Income (OCI)
or 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.
The Company has adopted and effected the reduced
corporate tax rate permitted under section 115BAA
of the Income Tax Act, 1961 as per the Taxation Laws
(Amendment) Ordinance, 2019. The tax calculations
for the year ended 31st March 2024 have been made
accordingly.
Deferred Tax
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the Standalone Financial Statements and the
corresponding tax bases used in the computation of
taxable profit.
Deferred tax assets are recognised to the extent it is
probable that taxable profit will be available against
which the deductible temporary differences and the carry
forward of unused tax losses can be utilised.
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 realised based on tax rates
(and tax laws) that have been enacted or substantively
enacted by the end of the reporting period. The carrying
amount of Deferred tax liabilities and assets are reviewed
at the end of each reporting period.
1.2.18FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial Assets
Initial Recognition and Measurement
All financial assets are initially recognised at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets, which are not at
Fair Value Through Profit or Loss, are adjusted to the fair
value on initial recognition. Purchases or sales of financial
assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace
(regular way trades) are recognised on the trade date i.e.
the date that the Company commits to purchase or sell
the asset.
However, Trade Receivables that do not contain significant
financing components are measured at transaction price.
Subsequent Measurement
For purposes of subsequent measurement financial
assets are classified in four categories
(i) Debt instruments at amortised cost
(ii) Debt instruments at fair value through other
comprehensive income (FVTOCI)
(iii) Debt instruments derivatives and equity instruments
at fair value through profit or loss (FVTPL)
(iv) Equity instruments measured at fair value through
other comprehensive income (FVTOCI)
Debt Instruments at Amortised Cost
A ''debt instrument'' is measured at the amortised cost if
both the following conditions are met
a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows and
b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding. This category is the most relevant
to the Company. After initial measurement such
financial assets are subsequently measured at
amortised cost using the Effective Interest Rate
(EIR) method.
Equity Investments
All equity investments in scope of Ind AS 109 are measured
at fair value. Equity instruments which are held for trading
and contingent consideration recognised by an acquirer in
a business combination to which Ind AS 103 applies are
classified as at FVTPL. For all other equity instruments the
Company may make an irrevocable election to present in
other comprehensive income subsequent changes in
the fair value. The Company makes such election on an
instrument by - instrument basis. The classification is
made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument
as at FVTOCI then all fair value changes on the instrument
excluding dividends are recognised in the OCI. There is no
recycling of the amounts from OCI to P&L even on sale
of investment. However, the Company may transfer the
cumulative gain or loss within equity.
Derecognition
A financial asset (or where applicable a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognised when
(i) The rights to receive cash flows from the asset have
expired or
(ii) The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a ''pass¬
through'' arrangement; and either
(a) The Company has transferred substantially all
the risks and rewards of the asset or
(b) The Company has neither transferred nor
retained substantially all the risks and rewards
of the asset but has transferred control of the
asset.
Impairment of Financial Assets
In accordance with Ind AS 109 the Company uses expected
credit loss model for evaluating impairment of financial
assets other than those measured at sale value through
profit and loss. Expected credit losses are measured
through a loss allowance at an amount equal to
- The twelve months expected credit losses (expected
credit losses that result from those default events
on the financial instrument but are possible within
twelve months after the reporting date): or
- Full lifetime expected credit losses (expected credit
losses that result from those default events over the
life of the financial instrument).
For trade receivables the Company applies a simplified
approach which requires expected lifetime losses to
be recognised from initial recognition of the receivables
at every reporting date the existing trade receivables
are reviewed and accordingly the required credit loss is
recognised in books.
For other assets (other than trade receivables) the
Company uses twelve months expected credit loss to
provide for impairment loss where there is no significant
increase in credit risk. If there is a significant increase in
credit risk full life time expected credit loss is used.
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are classified at initial recognition as
financial liabilities at fair value through profit or loss loans
and borrowings payables or as derivatives designated as
hedging instruments in an effective hedge as appropriate.
All financial liabilities are recognised initially at fair value
and in the case of loans and borrowings and payables net
of directly attributable transaction costs.
The Company''s financial liabilities include trade and other
payables loans and borrowings including bank overdrafts
financial guarantee contracts and derivative financial
instruments.
Subsequent Measurement
The measurement of financial liabilities depends on their
classification as described below
Loans and Borrowings
This is the category most relevant to the Company. After
initial recognition interest-bearing loans and borrowings
are subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method. Gains and losses
are recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation
process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is
included as finance costs in the statement of profit and
loss.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms or
the terms of an existing liability are substantially modified
such an exchange or modification is treated as the
derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
Derivative Financial Instrument and Hedge Accounting
The Company uses derivative financial instruments
such as forward exchange contracts and interest rate
risk exposures to hedge its risk associated with foreign
currency fluctuations and changes in interest rates.
Fair Value Measurement
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date
regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating
the fair value of an asset or a liability The Company takes
into account the characteristics of the asset or liability
if market participants would take those characteristics
into account when pricing the asset or liability at the
measurement date. Fair value for measurement and
/ or disclosure purposes in these standalone financial
statements is determined on such basis except for
measurements that have some similarities to fair value
but are not fair value such as net realisable value in
Ind AS 2.
Levels of Risk in Fair Value Measurement
Level 1 - The fair value of financial instruments quoted
in active markets is based on their quoted closing price at
the balance sheet date.
Level 2 - The fair value of financial instruments that are
not traded in an active market is determined by using
valuation techniques using observable market data. Such
valuation techniques include discounted cash flows,
standard valuation models based on market parameters
for interest rates, yield curves or foreign exchange
rates, dealer quotes for similar instruments and use of
comparable arm''s length transactions.
Level 3 - The fair value of financial instruments that are
measured on the basis of entity specific valuations using
inputs that are not based on observable market data
(unobservable inputs).
1.2.19EXCEPTIONAL ITEM
Exceptional items are disclosed separately in the
standalone financial statements where it is necessary
to do so to provide further understanding of the financial
performance of the Company. These are material items
of income or expense that have to be shown separately
due to their nature or incidence.
1.2.20GOVERNMENT GRANT
Government grants including any non-monetary grants
are recognised where there is reasonable assurance that
the grant will be received, and all attached conditions will
be compiled with. Government grants are recognised in
the statement of profit and loss on a systematic basis
over the periods in which the related costs, which the
grants are intended to compensate, are recognised as
expenses. Government grants related to property, plant
and equipment are presented at fair value and grants are
recognised as deferred income.
Grants from government authorities relating to income
are recognised in the profit or loss as other Income when
the reasonable assurance is established as per the terms
of the Scheme.
Securities premium
The amount received in excess of face value of the equity shares is recognised in Securities Premium.
The utilisation of Securities Premium will be as per Provisions of the Act.
Capital reserve
A Capital Reserve amounting to '' 12,055.29 lakhs has been created pursuant to the amalgamation of Pitti Castings Private Limited
and Pitti Rail and Engineering Components Limited with the Company, in accordance with the scheme of amalgamation approved by
the Hon''ble National Company Law Tribunal (NCLT).
General reserve
General reserve is created through an annual transfer of net profit in accordance with applicable regulations.
Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.
C) Employee share-based payment plans
The Company has established the Pitti ESOP Scheme 2024, which was approved by the shareholders through a Special
Resolution dated 13th June 2024. The objective of the scheme is to reward and motivate employees for their performance,
enhance their contribution to the growth and profitability of the Company, and promote long-term talent retention. The
scheme is administered through the Pitti Engineering Limited Employee Welfare Trust, which has been set up specifically
for this purpose.
Under the Pitti ESOP Scheme 2024, the Nomination and Remuneration Committee has been authorised to grant up to
13,00,000 stock options to eligible employees, in one or more tranches, each option conferring a right to apply for one fully
paid-up equity share of the Company having a face value of '' 5/-. The total number of options that may be granted to any
individual employee during the tenure of the scheme shall not exceed 2,00,000 options, in accordance with applicable laws
and regulatory requirements.
In accordance with the terms of the scheme, the minimum vesting period of an option shall not be less than 12 months
from the date of grant, or such other period as prescribed under the Companies Act, 2013 and SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations. A minimum of 25%, and up to a maximum of 50%, of the granted options shall
vest based on the satisfactory performance of the option grantee, as determined by the Nomination and Remuneration
Committee at the time of grant. The remaining options shall vest over a period of 8 years from the date of grant, with a cliff
period of 2 years. The vested options may be exercised by the grantee from the date of vesting up to a period of 5 years
from the vesting of the final tranche.
Pursuant to the scheme, the Nomination and Remuneration Committee granted 7,47,500 stock options to eligible
employees of Pitti Engineering Limited as on 13th March 2025, at an exercise price of '' 736.72 per option. In addition,
17,500 options were granted to employees of Pitti Industries Private Limited (PIPL) and 22,500 options to employees of
Dakshin Foundry Private Limited (DFPL) on the same date and at the same exercise price.
The eligible employees of the Company receive remuneration in the form of share-based payments in consideration of the
services rendered. Under the equity settled share-based payment, the fair value of the options is determined on the grant
date and is recognised as employee benefit expenses over the vesting period with a corresponding increase in equity. The
fair value of the options at the grant date is determined by an independent valuer using the Black Scholes valuation model.
At the end of each reporting period, apart from the non-market vesting conditions, the expense is reviewed and adjusted
to reflect changes to the level of options expected to vest.
The expenditure recognised under the Scheme for the year ended 31st March 2025 is '' 55.54 lakhs (Previous Year - Nil).
25.5 Disclosure as per Section 186 of the Companies Act, 2013
The details of loans guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies
(Meetings of Board and its Powers) Rules, 2014 are as follows:
(i) Details of investment & loans made are given in Note 3A & 25.7
(ii) There are no guarantees issued by the Company in accordance with section 186 of the Companies Act, 2013 read with
rules issued there under
25.6 Financial Instruments
(A) Fair Values Hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement as follows
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Note:
1) As per Regulation 2(1)(ZC) (ii) SEBI LODR Regulations Dividend paid by Listed entity to related party as
part of Corporate Action is not a related party transaction, accordingly dividend paid to related party
is not included in the above statement.
2) Remuneration paid to the Key Management Personnel does not include the sitting fee amount of
'' 28.75 lakhs to the Independent Directors.
Terms & Conditions for Related Party Transactions
a) The Company has been entering into transactions with related parties for its business purposes. The
related party transactions are entered in the ordinary course of business and on an arm''s length basis,
with the approval of the Audit Committee, Board of Directors and Shareholders, as applicable
b) Transactions with Related Parties are shown net of taxes
c) The remuneration to the key managerial personnel does not include the provisions made for gratuity,
leave benefits, as they are determined on an actuarial basis for the Company as a whole.
NOTE 25 (CONTD.)
25.16. The previous year figures have been regrouped/rearranged to the extent necessary to be in line with the current period''s
classification. All the numbers have been rounded off to the nearest lakh.
25.17. Business Combinations
Scheme of Amalgamation
The Board of Directors, at its meeting held on 15th June 2023, approved a Scheme of Amalgamation involving Pitti Castings
Private Limited (PCPL), Pitti Rail and Engineering Components Limited (PRECL), and Pitti Engineering Limited (the Company),
along with their respective shareholders and creditors, under Sections 230 to 232 of the Companies Act, 2013 (âthe Scheme").
The Scheme provided for the amalgamation of PCPL and PRECL with the Company. The objective of amalgamating PCPL was
to achieve vertical integration, strengthen the Company''s position across the supply chain, and improve operating margins
and profitability. The amalgamation of PRECL aimed to simplify the corporate structure, reduce duplication in administrative
functions, and generate cost efficiencies.
The share exchange ratio approved for the amalgamation of PCPL was as follows
"1 (One) equity share of '' 5/- each fully paid-up in Pitti Engineering Limited for every 55 (Fifty-Five) equity shares of '' 10/-
each fully paid-up held in PCPL."
As PRECL was a wholly owned subsidiary, no consideration was payable upon its amalgamation.
The Scheme was approved by the Hon''ble National Company Law Tribunal (NCLT), Hyderabad Bench, vide its order dated
3rd October 2024, and became effective upon filing with the Registrar of Companies on 24th October 2024. The appointed date
of the Scheme is 1st April 2023.
In accordance with Ind AS 103 - Business Combinations, other applicable accounting standards, and the Ministry of Corporate
Affairs General Circular No. 9/2019 dated 21st August 2019, the impact of the amalgamation has been given effect from 1st April
2023, being the appointed date as per the Scheme and the financial results for the relevant periods have been restated to reflect
the accounting treatment prescribed in the Scheme.
The difference between the net assets of PCPL (after adjustment for inter-company transactions) and the aggregate value of
shares issued has been recorded as Capital Reserve, amounting to '' 12,055.29 lakhs under âOther Equity"
Acquisition
The Company had entered into a Share Purchase Agreement dated 11th March 2024 with Shri Chaitra Sundaresh and Smt Ronak
Bagadia (Sellers) for the acquisition of 100% of the equity share capital of Pitti Industries Private Limited (PIPL) (formerly Bagadia
Chaitra Industries Private Limited). The acquisition was completed on 6th May 2024, and with effect from 6th May 2024, PIPL has
become a Wholly Owned Subsidiary of the Company.
The Company had entered into a Share Purchase Agreement dated 25th July 2024 with Shivangini Bhartia Family Trust, Shivangini
Properties Private Limited (Sellers) for the acquisition of 100% of the equity share capital of Dakshin Foundry Private Limited
(DFPL). The acquisition was completed on 25th July 2024, and with effect from that date, DFPL has become a Wholly Owned
Subsidiary of the Company.
Note 1
(a) The decrease in the Debt-to-Equity ratio is primarily attributable to the increase in equity, mainly resulting from the
issuance of share capital through a Qualified Institutional Placement during the year.
(b) The increase in the Net Capital Turnover Ratio is primarily due to higher utilisation of working capital limits and an increase
in lease liabilities.
Definitions
(a) Current Assets = Total Current Assets
(b) Current Liabilities = Total Current Liabilities
(c) Debt = Long term and short-term borrowings as per Note 10A and Note 13A respectively of the Balance Sheet
(d) Average Equity = (Opening Total Equity Closing Total Equity)/2
(e) Earnings available for debt service (EBDIT) = Profit Before Tax Depreciation Interest on Term Loans Interest on working
capital borrowings
(f) Earnings before interest and taxes (EBIT) = Profit before tax -Interest on investment income/ICD''s - (Profit)/Loss on Sale
of PPE and Lease modification Interest Cost (all interest cost except Ind AS)
(g) Interest = Total Interest cost on Borrowings (Term Loans and Working Capital Borrowings)
(h) Revenue from Operations: Revenue from sales & Service Other operating revenue
(i) Average Inventory = (Opening Inventory Closing Inventory)/2
(j) Average Receivables = (Opening Receivables Closing Receivables)/2
NOTE 25 (CONTD.)
(k) Average Payables = (Opening Payables Closing Payables)/2
(l) Working Capital = Current Assets - Current Liabilities
(m) Capital Employed = Total Equity - Noncurrent Investment Longterm and Short term Borrowings Interest accrued
(n) Earnings from Investor Funds= Earnings from Investment
(o) Average Investment Funds = (Opening Investments Closing Investments)/2
25.19. Other Statutory Information
(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 quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.
(iii) The Company has not been declared willful defaulter by any Bank or Financial Institution or Government or any Government
Authority.
(iv) The Company does not have any transactions with companies struck off.
(v) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond
the statutory period.
(vi) The Company has complied with the requirements of the number of layers prescribed under clause (87) of section 2 of the
Companies (Restriction on number of Layers) Rules, 2017.
(vii) 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 guaranteed security or the like to or on behalf of the Ultimate Beneficiaries.
(viii) The Company has not received any funds from any person(s) or entity(ies) including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group 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 guaranteed security or the like on behalf of the Ultimate Beneficiaries.
(ix) The Company has not entered into any 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).
(x) Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, the Company has formed a Corporate Social Responsibility (CSR)
Committee. The Company is liable to incur CSR expense as per the requirement of Section 135 of Companies Act, 2013.
(a) Gross amount to be spent as per section 135 of the Companies Act, 2013: '' 158.70 lakhs (Previous year - '' 130.63
lakhs)
(b) Amount contributed during the year: '' 215.50 lakhs (Previous year - '' 134.65 lakhs)
(c) Amount spent during the year on
(i) Construction / acquisition of any assets: Nil (Previous year - Nil)
(ii) Other than Construction / acquisition of any assets: '' 215.50 lakhs (Previous year - '' 134.65 lakhs)
(xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
As per our report of even date For and on behalf of the Board of Directors of
Pitti Engineering Limited
CIN : L29253TG1983PLC004141
For Talati & Talati LLP Akshay S Pitti S Thiagarajan Y B Sahgal
Chartered Accountants Managing Director & Director Director
Firm''s Registration Number: Chief Executive Officer DIN: 02721001 DIN: 01622420
110758W/W100377 DIN:00078760
Amit Shah M Pavan Kumar Mary Monica Braganza
Partner Chief Financial Officer Company Secretary &
M.No: 122131 M. No: F216936 Chief Compliance Officer
M.No: F5532
Place : Hyderabad Place : Hyderabad
Date : 21st April 2025 Date : 21st April 2025
Mar 31, 2024
1.16. PROVISIONS AND CONTINGENCIES
The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may but probably will not require an outflow of resources.
When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote no provision or disclosure is made.
The expenses relating to a provision is presented in the Statement of Profit & Loss net of any reimbursement.
1.17. TAXATION
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income.
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in Other Comprehensive Income (OCI) or 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.
The Company has adopted and effected the reduced corporate tax rate permitted under section 115BAA of the Income Tax Act 1961 as per the Taxation Laws (Amendment) Ordinance 2019. The tax calculations for the year ended 31st March 2024 have been made accordingly.
Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Standalone Financial Statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax losses can be utilised.
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 realised based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
1.18. FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Assets
Initial Recognition and Measurement
All financial assets are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets, which are not at Fair Value Through Profit or Loss, are adjusted to the fair value on initial recognition. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognized on
the trade date i.e. the date that the Company commits to purchase or sell the asset.
However, Trade Receivables that do not contain significant financing components are measured at transaction price.
Subsequent Measurement
For purposes of subsequent measurement financial assets are classified in four categories:
(i) Debt instruments at amortized cost
(ii) Debt instruments at fair value through other comprehensive income (FVTOCI)
(iii) Debt instruments derivatives and equity instruments at fair value through profit or loss (FVTPL)
(iv) Equity instruments measured at fair value through other comprehensive income (FVTOCI)
Debt Instruments at Amortized Cost
A ''debt instrumentâ is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
This category is the most relevant to the Company. After initial measurement such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.
Equity Investments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognized by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument by- instrument basis. The classification is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FVTOCI then all fair value changes on the instrument excluding dividends are recognized in the OCI. There is no recycling of the amounts from OCI to P&L even on sale of investment. However the Company may transfer the cumulative gain or loss within equity.
Derecognition
A financial asset (or where applicable a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when:
(i) The rights to receive cash flows from the asset have expired or
(ii) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''passthroughâ arrangements and either
(a) The Company has transferred substantially all the risks and rewards of the asset or
(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.
Impairment of Financial Assets
In accordance with Ind AS 109 the Company uses expected credit loss model for evaluating impairment of financial assets other than those measured at sale value through profit and loss. Expected credit losses are measured through a loss allowance at an amount equal to :
- The twelve months expected credit losses (expected credit losses that result from those default events on the financial instrument but are possible within twelve months after the reporting date.) : or
- Full life time expected credit losses (expected credit losses that result from those default events over the life of the financial instrument).
For trade receivables the Company applies simplified approach which requires expected lifetime losses to be recognized from initial recognition of the receivables at every reporting date the existing trade receivables are reviewed and accordingly required credit loss is recognized in books.
For other assets (other than trade receivables) the Company uses twelve months expected credit loss to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full life time expected credit loss is used.
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss loans and borrowings payables or as derivatives designated as hedging instruments in an effective hedge as appropriate.
All financial liabilities are recognized initially at fair value and in the case of loans and borrowings and payables net of directly attributable transaction costs.
The Companyâs financial liabilities include trade and other payables loans and borrowings including bank overdrafts financial guarantee contracts and derivative financial instruments.
Subsequent Measurement
The measurement of financial liabilities depends on their classification as described below:
Loans and Borrowings
This is the category most relevant to the Company. After initial recognition interest-bearing loans and borrowings are subsequently measured at amortized cost using the Effective Interest Rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
Derivative Financial Instrument and Hedge Accounting
The Company uses derivative financial instruments such as forward exchange contracts and interest rate risk exposures to hedge its risk associated with foreign currency fluctuations and changes in interest rates.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability the Company takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure purposes in these standalone financial statements is determined on such basis except for measurements that have some similarities to fair value but are not fair value such as net realizable value in Ind AS 2.
Levels of Risk in Fair Value Measurement:
Level 1 - The fair value of financial instruments quoted in active markets is based on their quoted closing price at the balance sheet date.
Level 2 - The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques using observable market data. Such valuation techniques include discounted cash flows, standard valuation models based on market parameters for interest rates, yield curves or foreign exchange rates, dealer quotes for similar instruments and use of comparable armâs length transactions.
Level 3 - The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).
1.19. EXCEPTIONAL ITEM
Exceptional items are disclosed separately in the standalone financial statements where it is necessary to do so to provide further understanding of the financial performance of the Company. These are material items of income or expense that have to be shown separately due to their nature or incidence.
1.20. GOVERNMENT GRANT
Government grants including any non-monetary grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be compiled with. Government grants are recognized in the statement of profit and loss on a systematic basis over the periods in which the related costs, which the grants are intended to compensate, are recognized as expenses. Government grants related to property, plant and equipment are presented at fair value and grants are recognized as deferred income.
Grants from government authorities relating to income are recognised in the profit or loss as other Income when the reasonable assurance is established as per the terms of the scheme.
25.3 Capital Management
The Companyâs Capital management is intended to create value for shareholders by facilitating the achievement of long-term and short-term goals of the Company.
The Company determines the amount of capital required based on an annual business plan coupled with long-term and shortterm strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations, long-term and short-term bank borrowings.
The Company monitors the capital structure based on net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
Net debt includes interest bearing borrowings excluding lease obligations less cash and cash equivalents, other bank balances (including non-current earmarked balances) and current investments.
NOTE 25: STANDALONE NOTES ON ACCOUNTS (Contd..)
25.12 Segment Reporting
Segments are identified in line with Indian Accounting Standards (Ind AS) 108 "Operating Segmentsâ taking into consideration the internal organization and management structure.
Operating Segments are components of the Company whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segment and assesses it performance and for which discreet information is available.
The operating segment of the Company is identified to be manufacturing of "Engineering Products of Iron and Steelâ and the CODM reviews business performance at an overall Company level as one segment. Hence no separate disclosure is provided.
Information by Geographies
In presenting geographic information segment revenue has been based on the location of the customer and segment assets are based on geographical location of assets.
c) Revenue from Major Customers
Details of single external customer from whom the Company receives more than 10% of the revenue.
Revenue from two customers of the Company having more than 10% of the total revenue aggregating to H 63128.18 lakhs (previous year three customers H 49934.28 lakhs).
25.13 Financial Instruments
(A) Fair Values Hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates.
(B) Financial Risk Management
The Company has exposure to the following risk:
Credit Risk:
Credit risk is the risk that counterparty will not meet its obligations leading to a financial loss. The Company is exposed to credit risk arising from its operating (primarily trade receivables) and investing activities including deposits placed with banks, financial institutions and other corporate deposits. The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of financial assets. Financial assets are classified into performing, under-performing and non-performing. All financial assets are initially considered performing and evaluated periodically for expected credit loss. A default on a financial asset is when there is a significant increase in the credit risk which is evaluated based on the business environment. The assets are written off when the Company is certain about the non-recovery.
Liquidity Risk:
Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Companyâs approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has sufficient short term fund based lines, which provides healthy liquidity and these carry highest credit quality rating from reputed credit rating agency.
Market Risk:
Market risk is the risk that the fair value of the future cash flows will fluctuate because of changes in the market prices.
25.14 Related party disclosures
List of Related parties:
I Wholly Owned Subsidiary
(i) Pitti Rail and Engineering Components Limited
II Entity having significant influence over the entity
(i) Pitti Electrical Equipment Private Limited
III Key Management Personnel Executive Promoter Directors
(i) Shri Sharad B Pitti, Founder & Chairman
(ii) Shri Akshay S Pitti, Managing Director & Chief Executive Officer
NOTE 25: STANDALONE NOTES ON ACCOUNTS (Contd..)
Independent & Non-Executive Directors
(iii) Ms. Gayathri Ramachandran, Independent Director
(iv) Shri G. Vijaya Kumar, Independent Director
(v) Shri M. Gopalakrishna, Independent Director
(vi) Shri N.R Ganti, Independent Director
(vii) Shri S. Thiagarajan, Independent Director
(viii) Shri Y B Sahgal, Independent Director (From 09-11-2023)
(ix) Shri DV Aditya, Independent Director (10-08-2022 to 21-10-2022)
Others
(x) Shri N K Khandelwal, President Corporate Resource & CFO (till 13.04.2022)
(xi) Shri M Pavan Kumar, Chief Financial Officer (From 12.11.2022)
(xii) Ms. Mary Monica Braganza, Company Secretary & Chief Compliance Officer
IV Other Related Parties with whom transactions have taken place.
The Enterprises over which KMP or relatives of KMP having significant influence.
(i) Pitti Casting Private Limited
(ii) Pitti Trade & Investment Private Limited
The Relative of Executive Promoter Directors
(iii) Smt Madhuri S Pitti
(iv) Smt Radhika A Pitti
(v) Sharad B Pitti (HUF)
25.23. The Previous year figures have been regrouped/rearranged to the extent necessary to In line with the current periodâs classification. All the numbers have been rounded off to the nearest lakh.
25.24. Business Combinations
Scheme of Amalgamation
The Board of Directors at their meeting held on 15th June 2023 considered and approved the Scheme of Amalgamation among Pitti Castings Private Limited (PCPL) and Pitti Rail and Engineering Components Limited (PRECL) and Pitti Engineering Limited and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013 and the rules framed thereunder (Scheme).
The Scheme, inter-alia, provides for amalgamation of PCPL and PRECL with Pitti Engineering Limited.
The amalgamation of PCPL is proposed to be undertaken with the objective of achieving vertical integration, broaden the Companyâs footprint across the supply chain and enhance the Companyâs margins and profitability. The amalgamation of PRECL is proposed to be undertaken with the objective of simplifying the corporate structure and elimination of duplication in administrative cost and multiple record keeping thus resulting in cost savings.
The Board of the Company has recommended the following share exchange ratio for the amalgamation of PCPL with the Company:
"01â (One) equity share of PEL of INR 05/- each, fully paid-up for every 55 (Fifty-Five) equity shares of PCPL of INR 10/- each, fully paid-up ("Share Exchange Ratioâ)
Since all the shares of PRECL are held by the Company, no consideration shall be payable pursuant to the amalgamation of PRECL. The Company had filed the Scheme with Stock Exchanges on 26th June 2023 and received their no objection on 26th October 2023. Further, the Company has received approval from the shareholders and creditors pursuant to an National Company Law Tribunal (NCLT) convened meeting on 22nd March 2024. A joint petition has been filed with the NCLT, Hyderabad bench on 29th March 2024 and the same is reserved for hearing on 07th June 2024. Pending receipt of necessary approvals, no effect of the Scheme has been given in the financial results for the quarter and year ended 31st March 2024.
Note1:
(a) Increase in Debt Equity ratio due to Increase in Term loans to the extent Property, Plant & Equipment got increased and also increase in utilization working capital limits.
(b) Decrease in debt service coverage ratio due to increase in Term loans.
(c) Decrease in Net Capital Turnover ratio due to increase in utilization of working capital limits.
Definitions:
(a) Current Assets = Total Current Assets as per Balance Sheet
(b) Current Liabilities = Total Current Liabilities as per Balance Sheet
(c) Debt = Long term and short-term borrowings as per Note 10A and Note 13A respectively of the Balance Sheet
(d) Equity/Shareholder Equity = Total Equity as per Balance Sheet
(e) EBDIT = Profit Before Tax Depreciation Interest on Term Loans Interest on working capital borrowings
(f) Interest = Total Interest cost on Borrowings (Term Loans and Working Capital Borrowings)
(g) Average Inventory = (Opening Inventory Closing Inventory)/2
(h) Average Receivables = (Opening Receivables Closing Receivables)/2
(i) Average Payables = (Opening Payables Closing Payables)/2
(j) Working Capital = Current Assets - Current Liabilities
(k) Capital Employed = Total Assets- Current Liabilities
(l) Earnings from Investor Funds= Earnings from Investment
(m) Average Investment Funds = (Opening Investments Closing Investments)/2
25.26. Other Statutory Information
(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 quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts.
(iii) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(iv) The Company does not have any transactions with companies struck off.
(v) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(vi) The Company has complied with the requirements of the number of layers prescribed under clause (87) of section 2 of the Companies (Restriction on number of Layers) Rules 2017.
(vii) 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.
(viii) 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 Group 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.
(ix) The Company has not entered into any 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).
(xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
As per our report of even date For and on behalf of the Board of Directors of
Pitti Engineering Limited
CIN : L29253TG1983PLC004141
For Talati & Talati LLP Sharad B Pitti Akshay S Pitti
Chartered Accountants Founder & Chairman Managing Director &
Firmâs Registration Number: DIN:00078716 Chief Executive Officer
110758W/W100377 DIN:00078760
Amit Shah G Vijaya Kumar M Pavan Kumar Mary Monica Braganza
Partner Director Chief Financial Officer Company Secretary &
M.No:122131 DIN:00780356 M. No: 216936 Chief Compliance Officer
M. No:F5532
Place: Hyderabad Place: Hyderabad
Date : 15th May 2024 Date : 15th May 2024
Mar 31, 2023
(a) Rights, preferences and restrictions attached to shares :
The Company has only one class of equity shares having a par value of H 5/- each and the holder of the equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the Annual General Meeting except in the case of interim dividend. In the event of liquidation of the Company the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to their share holding.
(b) Vehicle loans are secured by hypothecation of vehicles funded by respective lenders. Vehicle loans are repayable in monthly instalments till April 2029
(c) Unsecured loans J 2,510 lakhs (previous year 2,510 lakhs) brought in by the promoters and promoters group as subordinate debt to the secured debt.
Notes :
(a) Working capital facilities are availed at interest rate ranging from 5.50% p.a. to 9.30% p.a. which are secured on a pari paasu first charge basis against hypothecation of Inventory (stocks), Trade Receivables and all other current assets both present and future, pari passu second charge on movable and immovable properties of the Company both present and future, pledge of 19,44,530 shares owned by Promoters and secured by way of personal guaratee of the Promoters of the Company.
1) Pari passu 1st charge on present and future Fixed Assets of the Company and pari passu 2nd charge on present and future Current Assets of the Company. further all loans are guaranteed by the promoters of the company. Further, SBI is having exclusive charge on immovable properties of Promoters and pledge of 19,44,530 shares of Promoters holding. Term loans carry interest rate in the range of 8.50% to 10.75% p.a.
2) WCTL/GECL loans are secured by Pari Passu 2nd charge on present and future Fixed Assets and Current Assets of the Company and 2nd Pari Passue charge on 19,44,530 pledge of shares along with other working capital lenders in consortium and these are repayable at an interest rate range from 8.00% to 9.25%
The information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the company on records.
|
25.2 Contingent Liabilities and Commitment |
H in lakhs |
|
|
Particulars |
As at 31.03.2023 |
As at 31.03.2022 |
|
(A) Contingent Liabilities |
||
|
a. Claims against the Company not acknowledge as debts : |
||
|
i. Service Tax liability for which appeals preferred by the Company is pending with CESTAT Bangalore for the FY 2008-09 to 2011-12 up to December 2011. |
68.55* |
68.55* |
|
ii. GST liability for which appeals preferred by the Company for the FY 2017-18 and 2018-19 |
4.59* |
- |
|
iii. Income Tax liability for which appeal preferred by the Company is pending with Commissioner of Income Tax Hyderabad for the AY 2017-18. |
923.08* |
923.08* |
|
iv. Income Tax liability for which appeal preferred by the Company is pending with Commissioner of Income Tax Hyderabad for the AY 2018-19. |
5.14* |
5.14* |
|
v. Income Tax liability for which appeal preferred by the Company is pending with Commissioner of Income Tax Hyderabad for the AY 2020-21 |
38.24* |
|
|
b. Income recognized against the Scrip Generation (under RodTEP scheme) and pending for generation of EBRC |
17.01 |
- |
|
B) Commitments |
||
|
(i) Bank guarantees |
1236.45 |
1401.43 |
|
(ii) Estimated amount of liability on account of Capital Commitments |
4546.57 |
3181.55 |
|
* No provision is considered since the Company expects favorable decision and the above liability is excluding Interest and Penalty. The company has deposited H 193.29 lakhs towards Income Tax liabilities which are classified under "Income Tax and other taxes" under Current Assets. |
||
Sensitivity Analysis - Leave Encashment Plan
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period while holding all other assumptions constant.
(ii) There are no guarantees issued by your Company in accordance with section 186 of the Companies Act 2013 read with rules issued there under
Segments are identified in line with Indian Accounting Standards (Ind AS) 108 "Operating Segmentsâ taking into consideration the internal organization and management structure.
Operating Segments are components of the Company whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segment and assesses it performance and for which discreet information is available.
The operating segment of the Company is identified to be manufacturing of "Engineering Products of Iron and Steelâ and the CODM reviews business performance at an overall Company level as one segment. Hence no separate disclosure is provided.
Information by Geographies
In presenting geographic information segment revenue has been based on the location of the customer and segment assets are based on geographical location of assets.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates.
c) Revenue from Major Customers
Details of single external customer from whom the Company receives more than 10% of the revenue.
Revenue from three customers of the Company having more than 10% of the total revenue aggregating to H 49934.28 lakhs (previous year four customers H 39234.15 lakhs).
(A) Fair Value Hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement as follows:
(B) Financial Risk Management
The Company has exposure to the following risk:
Credit Risk:
Credit risk is the risk that counterparty will not meet its obligations leading to a financial loss. The Company is exposed to credit risk arising from its operating (primarily trade receivables) and investing activities including deposits placed with banks, financial institutions and other corporate deposits. The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of financial assets. Financial assets are classified into performing, under-performing and non-performing. All financial assets are initially considered performing and evaluated periodically for expected credit loss. A default on a financial asset is when there is a significant increase in the credit risk which is evaluated based on the business environment. The assets are written off when the Company is certain about the nonrecovery.
Liquidity Risk:
Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company''s approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all point in time. The Company has sufficient short term fund based lines, which provides healthy liquidity and these carry highest credit quality rating from reputed credit rating agency.
Market Risk:
Market risk is the risk that the fair value of the future cash flows will fluctuate because of changes in the market prices.
25.15 The Company has provided for cess as specified in section 441 A of the Companies Act 1956 and in the absence of any notification by the Central Govt. the Company could not deposit the same with the appropriate authority.
25.16 The assessment for impairment of assets has taken place at the end of reporting period as per guidelines laid down in Ind AS 36 ''Impairment of assets''. For the assets having recoverable amount less than its carrying amount the carrying amount of the asset is reduced to its recoverable amount and the resulting impairment loss is recognised in profit or loss.
(a) Increased earnings on account of overall business growth.
(b) Due to improvement in credit period by vendors, the payable outstanding has increased and it is favorable.
Definitions:
(a) Current Assets = Total Current Assets as per Balance Sheet
(b) Current Liabilities = Total Current Liabilities as per Balance Sheet
(c) Debt = Long term and short-term borrowings as per Note 10A and Note 13A respectively of the Balance Sheet
(d) Equity/Shareholder Equity = Total Equity as per Balance Sheet
(e) EBDIT = Profit Before Tax Depreciation Interest on Term Loans Interest on working capital borrowings
(f) Interest = Total Interest cost on Borrowings (Term Loans and Working Capital Borrowings)
(g) Average Inventory = (Opening Inventory Closing Inventory)/2
(h) Average Receivables = (Opening Receivables Closing Receivables)/2
(i) Average Payables = (Opening Payables Closing Payables)/2
(j) Working Capital = Current Assets - Current Liabilities
(k) Capital Employed = Total Assets- Current Liabilities
(l) Earnings from Investor Funds = Earnings from Investments
(m) Average Investment Funds = (Opening Investments Closing Investments)/2
25.24 Other Statutory Information
(i) The Company does not have any Benami property where any proceeding has been initiated or pending against the Group for holding any Benami property.
(ii) The quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts.
(iii) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(iv) The Company does not have any transactions with companies struck off.
(v) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.
(vi) The Company has complied with the requirements of the number of layers prescribed under clause (87) of section 2 of the Companies (Restriction on number of Layers) Rules 2017.
(vii) 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.
(viii) 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
(ix) The Company has not entered into any 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).
(xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Mar 31, 2018
NOTE 1: NOTES TO ACCOUNTS
Please refer to page 97 for notes to accounts
Note:
a) During the year an amount of â Nil (previous year Rs. 2.58 lakhs final dividend for the year 2008-09) was transferred to Investor Education and Protection Fund (IEPF).
b) Term Deposits are held as Margin money against Bank Guarntees and Letter of Credits.
Rights, preferences and restrictions attached to shares:
The Company has only one class of equity shares having a par value of Rs. 5/- each and the holder of the equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of the share holders in the Annual General Meeting except in the case of interim dividend. In the event of liquidation of the Company the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.
During the year under review the Company has alloted 22,22,222 convertable warrants at a price of Rs. 90/- each to be converted into 22,22,222 equity shares of Rs. 5/- (including a premium of Rs. 85/- per share) to the persons belonging to Promoter / Promoter Group. The subscription amount of 25% of warrant price has been received and fully paid-up equity shares of the Company will be alloted on receipt of balance 75% warrant price within 18 months from 14th February, 2018.
Notes:
(a) Term loans received from State Bank of India is primarily secured by first charge by way of equitable mortgage of movable and immovable properties on the present and future fixed assets of the company and secured by a second charge on the present and future current assets of the company. Further these loans are collaterally secured by :
- Personal immovable properties of a Promoter and his relative (exclusive to SBI).
- Pledge of 20% of the promoters shares in the company (exclsive to SBI).
- Further these loans are guranteed by the Promoters of the company and their relative to the extent of secured property value. (Refer Note 14 C (a) point nos. (viii), (ix) and (x) for terms of repayment)
(b) (i) ECB Loan received from - DMG Mori Finance GmbH is secured by exclusive charge on the plant and machinery which are acquired on financial lease basis. The lease period is ranging from July 2017 to September 2022. (Refer Note 14 C (b) for terms of repayment)
(ii) Term loan (equipment finance) from others is secured by way of exclusive charge on the machinery purchased to the extent funded by the respective lenders. These loans are guaranteed by the promoters of the company. (Refer Note 14 C (a) point nos. (i to vii) and (xi to xiii) for terms of repayment)
(c) Secured against hypothecation of vehicles. (Refer Note 14 C (c) for terms of repayment)
(d) Represents 14 years interest free sales tax deferment loan received from State Government, which is repayable on annual basis based on the deferment availed in the respective years, commences from January, 2018 till November, 2020.
(e) IncludesRs. 1,470 lakhs (previous year Rs. 3,410 lakhs) brought in by the promoters and promoter group for the purpose of working capital and capital expenditure.
Note:
Working capital facilities from State Bank of India, Indian Overseas Bank and Kotak Mahindra Bank (at interest rate ranging from 7.95% to 11.20%) are secured on a pari passu first charge basis against hypothecation of Inventory (stocks), Trade Receivables and all other current assets both present and future. Further these are secured on a pari passu second charge on movable and immovables properties of the Company both present and future. Further Secured by way of Personal guaranty of the Promoters. Further these loans are guranteed by the Promoters of the company.
Note:
The information has been given in respect of such vendors to the extent they could be identified as Micro and Small enterprises on the basis of information available with the company on records. (Refer Note 2.19)
Notes:
a) Terms of repayment are given below:
(i) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 14.25% is repayable in 13 monthly instalments of Rs. 11.36 lakhs each till March, 2017 and balance amount of Rs. 11.32 lakhs is repayble by April, 2017 and the loan has been repaid on 24 April, 2017 in full during the current year.
(ii) Loan taken from L & T Finance Ltd., at interest rate of 13.50% is repayable in 3 monthly instalments of Rs.12.41 lakh including interest each till June, 2016 and the loan has been cleared on 15 June, 2016 in full during the previous year.
(iii) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 13.25% is repayable in 12 monthly instalments of Rs. 18.55 lakhs each till March 2019 (previous year 36 monthly instalments of Rs. 13.91 lakhs each) and 47 monthly instalments of Rs.0.44 lakhs each till March, 2020.
(iv) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 12% is repayable in 3 monthly instalments of Rs. 100 lakhs each till July, 2016 and the loan has been cleared on 24 July, 2016 in full during the previous year.
(v) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 12.75% is repayable in 27 monthly instalments of Rs. 13.82 lakhs (previous year 51 monthly instalments of Rs.0.72 lakhs) each till June, 2020 and against this loan Rs. 49.47 lakhs (previous year Rs. 321.64 lakhs) opened as Lien marked Fixed Deposits at interest rate of 7.25% for the purpose of repayment of this loan.
(vi) Loan taken from Hewlett Packard Financial Services India Pvt Ltd., at interest rate of 11.50% is repayable in 18 quarterly instalments of Rs. 8.75 lakhs including interest each till August, 2020.
(vii) Loan taken from Hewlett Packard Financial Services India Pvt Ltd., at interest rate of 11.50% is repayable in 19 quarterly instalments of Rs.0.88 lakhs including interest each till October, 2020.
(viii) Loan taken from State Bank of India., at interest rate of 12.50% is repayable in 6 quarterly instalments of Rs. 50.00 lakhs each till September, 2018.
(ix) Loan taken from State Bank of India., at interest rate of 12.50% is repayable in 20 quarterly instalments of Rs. 95.00 lakhs each from June, 2017 till March, 2022.
(x) Loan taken from State Bank of India., at interest rate of 12.50% is repayable in 20 quarterly instalments of Rs. 162.50 lakhs each from September, 2017 till June, 2022.
(xi) Loan taken from Hero Fincorp Ltd, at interest rate of 12.00% is repayable in 60 monthly instalments of Rs. 4.44 lakhs including interest each commences from April, 2018 till March, 2023.
(xii) Loan taken from Reliance Commercial Finance Ltd, at interest rate of 12.00% is repayable in 33 monthly instalments of Rs. 10.72 lakhs including interest each from March, 2018 till November, 2020.
(xiii) Loan taken from Tata Capital Financial Service Ltd, at interest rate of 12.00% is repayable in 60 monthly instalments of Rs. 9.42 lakhs each commences from May, 2018 till April, 2023.
(b) Terms of repayment are given below:
(i) ECB Loan taken from DMG Mori Finance GmbH, at interest rate of 2.50% is repayable in 61 monthly instalments including interest from September, 2017 till September, 2022, and the instalment amounts are as follows -
- 12 monthly equal instalments of Rs. 1.56 lakhs.
- 12 monthly equal instalments of Rs. 2.49 lakhs.
- 12 monthly equal instalments of Rs. 3.11 lakhs.
- 12 monthly equal instalments of Rs. 7.78 lakhs.
- 12 monthly equal instalments of Rs. 8.40 lakhs.
- Final month instalment of Rs. 47.37 lakhs.
(ii) ECB Loan taken from DMG Mori Finance GmbH, at interest rate of 2.50% is repayable in 61 monthly instalments including interest from September, 2017 till September, 2022, and the instalment amounts are as follows -
- 12 monthly equal instalments of Rs. 1.97 lakhs.
- 12 monthly equal instalments of Rs. 3.14 lakhs.
- 12 monthly equal instalments of Rs. 3.93 lakhs.
- 12 monthly equal instalments of Rs. 9.83 lakhs.
- 12 monthly equal instalments of Rs. 10.61 lakhs.
- Final month instalment of Rs. 59.82 lakhs.
(iii) ECB Loan taken from DMG Mori Finance GmbH, at interest rate of 2.50% is repayable in 59 monthly instalments including interest from November, 2017 till September, 2022, and the instalment amounts are as follows -
- 12 monthly equal instalments of Rs. 2.59 lakhs.
- 12 monthly equal instalments of Rs. 4.15 lakhs.
- 12 monthly equal instalments of Rs. 5.19 lakhs.
- 12 monthly equal instalments of Rs. 12.97 lakhs.
- 12 monthly equal instalments of Rs. 14.01 lakhs.
- Final month instalment of Rs. 106.98 lakhs.
(iv) ECB Loan taken from DMG Mori Finance GmbH, at interest rate of 2.50% is repayable in 52 monthly instalments including interest commences from June, 2018 till September, 2022, and the instalment amounts are as follows -
- 12 monthly equal instalments of Rs. 3.47 lakhs.
- 12 monthly equal instalments of Rs. 5.55 lakhs.
- 12 monthly equal instalments of Rs. 6.94 lakhs.
- 12 monthly equal instalments of Rs. 17.34 lakhs.
- 12 monthly equal instalments of Rs. 18.73 lakhs.
- Final month instalment of Rs. 270.27 lakhs.
(c) Terms of repayment are given below:
(i) Loan taken from Kotak Mahendra Prime Ltd., at interest rate of 9.39% is repayable by way of 50 monthly instalments of Rs. 3.36 lakhs including interest each till June, 2020.
(ii) Loan taken from Indian Overseas Bank., at interest rate of 8.90% is repayable by way of 60 monthly instalments of Rs.0.27 lakhs including interest each till October, 2022.
(iii) Loan taken from HDFC Bank Ltd., at interest rate of 8.51% is repayable by way of 60 monthly instalments of Rs. 2.71 lakhs including interest each till April, 2022.
(iv) Loan taken from HDFC Bank Ltd., at interest rate of 8.51% is repayable by way of 60 monthly instalments of Rs.0.88 lakhs including interest each till May, 2022.
Note : Other Misc. Receipts includes Rs. 57.02 lakhs for current year (Rs. 114.04 lakhs for previous year) towards Industrial Promotions Subsidy(IPS) for New Unit under Package Scheme of Incentive - 2013.
2.1. Disclosure as per Section 186 of the Companies Act, 2013 :
The details of loans, guarantees and investments under Section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014 are as follows:
(i) Details of investment made are given in Note 4A & 2.13
(ii) Details of loans given by the Company are as follows:
(iii) There are no guarantees issued by your Company in accordance with section 186 of the Companies Act, 2013 read with rules issued there under
2.2. Segment Reporting:
a) Primary Segment Reporting
The Company has one business segment only, comprising of tooling, stampings and machining. Hence the reporting is done as a single segment.
b) Secondary Segment by Geographical Segment
Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under
2.3. Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2.4. Related party disclosures:
I) List of Related parties:
(a) Directors
i. Shri Sharad B Pitti
ii. Shri Akshay S Pitti
iii. Shri Y.B. Sahgal*
iv. Shri N.R. Ganti
v. Shri G. Vijay Kumar
vi. Shri M. Gopalakrishna
vii. Ms. Gayathri Ramachandran
viii. Shri S. Thiagarajan
(b) Relatives of Directors with whom transactions have taken place
i. Smt Madhuri S Pitti
ii. Smt Radhika A Pitti
* Shri Y.B. Sahgal, Executive Director has resigned with effect from 30th SeptemberRs.2016 from the Board of the Company.
II) Key Managerial Personnel
i. Shri N. K. Khandelwal
ii. Shri Satyabrata Padhi**
iii. Ms Mary Monica Braganza***
** Shri Satyabrata Padhi, Company Secretary has resigned as Company Secretary with effect from 16.11.2017.
*** Ms Mary Monica Braganza, has been appointed as Company Secretary with effect from 14.12.2017.
III) Entities in which Directorsâ having interest
i. Pitti Castings Private Limited
ii. Pitti Electrical Equipment Pvt. Ltd.,
iii. Pitti Components Limited
iv. Pitti Holdings Private Limited
v. Badrivishal Pannalal Pitti Trust
2.5. The Company has provided for Cess as specified in section 441 A of the Companies Act, 1956 and in the absence of any notification by the Central Govt. the company could not deposit the same with the appropriate authority.
2.6. No asset is impaired during the year as the assets are having recoverable value which is more than the carrying amount.
2.7. Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)
Disclosure required as per section 22 of the Micro, Small and Medium Enterprise Development Act 2006 (MSMED Act) is given below
The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of information available with company.
2.8. Letters have been written for confirmation of debit and credit balances pertaining to debtors and creditors and reply from the parties is awaited.
2.9. Financial and derivative instruments:
2.10. First time adoption of Ind AS
These financial statements, for the year ended March 31, 2018, are the first set of financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (âIndian GAAPâ or âPrevious GAAPâ).
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April, 1 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.
Exemptions applies
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:
(a) As per Ind AS 20, benefit of a government loan at nil or below-market rate of interest (e.g. interest free sales tax deferral scheme) is treated as a government grant. A first time adopter can apply requirements in Ind AS 109 prospectively or retrospectively to government loans existing at the date of transition to Ind AS. Accordingly, the Company has chosen to use Indian GAAP carrying values as its carrying value under Ind AS and apply principles of Ind AS 109 prospectively.
(b) The Company has elected to regard carrying values for all of property, plant and equipment as deemed cost at the date of the transition.
(c) The Company has elected to avail Ind AS 101 exemption with regard to Long Term Foreign Currency Monetary Items and may continue to adopt for accounting for exchange differences arising from translation of long-term foreign currency monetary items to be recognized in financial statements.
(d) Under Ind AS 109, at initial recognition of a financial asset, an entity may take irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows such recognition of previously recognized financial asset as fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to Ind AS. Accordingly, the Company has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to Ind AS.
(e) In the preparation of separate financial statements, Ind AS 27 Separate Financial Statements requires an entity to account for its investments in subsidiaries, jointly controlled entities and associates either:
a) At cost, or
b) In accordance with Ind AS 109.
Estimates
The estimates as at April 01,2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from impairment of financial assets bases on expected credit loss model where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016 (transition date), March 31, 2017 and March 31, 2018.
Reconciliation between Previous GAAP and Ind AS
Ind AS 101, First time adoption of Indian Accounting Standards, requires an entity to reconcile equity, total comprehensive income and cash flow for prior period. The following tables represent the reconciliations from previous GAAP to Ind AS.
* The Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.
Explanations for reconciliation of balance sheet previously reported under IGAAP to Ind AS A. Property, Plant and Equipment
Items such as spares ,tools has been capitalized as they satisfy the definition of PPE & measurement criteria.
Accordingly depreciation has been charged on same where as under IGAAP it was charged on consumption basis, the same has been reversed.
B. Investments
Investment in equity instruments are carried at fair value through P&L in Ind AS, as compared to being carried at cost under IGAAP
C. Measurement of Financials Assets/Liabilities at amortised cost
Under Ind AS, certain financial assets and financial liabilities are measured at amortised cost which involves the application of effective interest method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or financial liability. The interest unwinding is charged through profit and loss in subsequent period.
D. Investments
Investment in equity instruments are carried at fair value through OCI in Ind AS, as compared to being carried at cost under IGAAP
E. Other equity
a) Adjustments to retained earnings and other comprehensive income have been made in accordance with Ind AS for the above-mentioned line items.
b) In addition, as per Ind AS 19, actuarial gains and losses are recognized in other comprehensive income as compared to being recognized in the Statement of Profit and Loss under IGAAP.
F. Transaction Cost
(i) Transaction costs in respect of bank loans are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method, as compared to charging to profit and loss in the initial year of loan when expense is incurred.
(ii) Such amortization of expense is being added to CWIP in accordance with Ind AS 23
G. Revenue From operations
Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented in notes to the statement of profit and loss.â
H. Employee Benefit Expense
Under the Previous GAAP, these remeasurements were forming part of the profit or loss for the year.
Under Ind AS, remeasurements i.e. actuarial gains and losses, are recognised in other comprehensive income instead of the statement of profit and loss.
Cash Flow Statements
There were no significant reconciliation items between cash flows prepared under IGAAP and those prepared under Ind AS
2.11. Disclosure on Specified Bank Notes.
During the previous year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308(E), dated March 30, 2017. The details of SBNs held and transacted during the previous year period from November 8, 2016 to December 30, 2016, the denomination-wise SBNs and other notes as per the notification are as follows:
* For the purpose of this clause, the term âSpecified Bank Notesâ (SBN) shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated November 8, 2016.
Mar 31, 2016
(b) Rights, preference and restrictions attached to Equity Shares
The Company has only one class of equity shares having a par value of '' 5 each per share (Previous Year : '' 10 each). Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts if any. The distribution will be in proportion to number of equity shares held by the shareholders.
Notes:
(a) (i) Term loans from scheduled bank - Oriental Bank of Commerce is secured by equitable mortgage of movable and immovable properties and first charge on the present and future fixed assets of the company situated at Plant I and Plant II Nandigaon, Mahaboobnagar district, Telangana and Plant III, Chakan MIDC, Pune District, Maharashtra. Further these are secured by a second charge on the present and future current assets of the company and personal guarantee provided by the Chairman and Managing Director & Vice Chairman and Managing Director.
(ii) Term loans from scheduled bank - State Bank of India is secured by equitable mortgage of movable and immovable properties and first charge on the present and future fixed assets of the company situated at Plant I and Plant II Nandigaon, Mahaboobnagar district, Telangana and Plant III, Chakan MIDC, Pune District, Maharashtra. Further these are secured by a second charge on the present and future current assets of the company and personal guarantee provided by the Chairman & Managing Director and Vice Chairman & Managing Director and their relative. (Refer Note 2.8 (a) for terms of repayment)
(b) Term loan (equipment finance) from others is secured by exclusive charge on the machinery purchased to the extent funded and personal guarantee provided by the Chairman & Managing Director and Vice Chairman & Managing Director. (Refer Note 2.8 (a) for terms of repayment)
(c) Secured against hypothecation of vehicles. (Refer Note 2.8 (b) for terms of repayment)
(d) Represents 14 years interest free sales tax deferment loan received from State Government. Repayment commences from January 2018 based on the deferment availed in the respective years.
Notes:
(a) Terms of repayment are given below:
(i) Loan taken from Oriental Bank of Commerce is repaid by way of quarterly installments of Rs.68.75 lacs each up to January, 2016 and the loan has been cleared in full during the current year.
(ii) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 14.25% is repayable in 13 monthly installments of Rs.11.36 lacs each till April, 2017.
(iii) Loan taken from L & T Finance Ltd., at interest rate of 13.50% is repayable in 3 monthly installments of Rs.12.41 lacs including interest each till Juneâ2016.
(iv) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 13.25% is repayable in 36 monthly installments of Rs.13.95 lacs each till March, 2019.
(v) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 12% is repayable in 3 monthly installments of Rs.100 lacs each till July, 2016.
(vi) Loan taken from TATA Capital Financial Service Ltd., at interest rate of 12.75% is repayable in 51 monthly installments of Rs.0.72 lacs each till June, 2020.
(vii) Loan taken from Hewlett Packard Financial Services India Pvt Ltd., at interest rate of 11.50% is repayable in 18 quarterly installments of Rs.8.75 lacs including interest each till August, 2020.
(viii) Loan taken from Hewlett Packard Financial Services India Pvt Ltd., at interest rate of 11.50% is repayable in 19 quarterly installments of Rs.0.88 lacs including interest, each till October, 2020.
(b) Terms of repayment are given below:
Loan taken from Kotak Mahendra Bank at interest rate of 9.39% is repayable by way of 50 monthly installments of Rs.3.36 lacs including interest each till June, 2020.
Note-1 : Segment Reporting:
a) Primary Segment Reporting
The Company has identified âManufacture of Electrical Stampings & Die Cast Rotorsâ as the only primary reportable segment.
b) Secondary Segment by Geographical Segment
Note- 2.
The Company has provided for Cess as specified in section 441 A of the Companies Act, 1956 and in the absence of any notification by the Central Govt. the company could not deposit the same with the appropriate authority.
Note- 3.
No asset is impaired during the year as the assets are having recoverable value which is more than the carrying amount.
Note- 4.
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)
Disclosure required as per section 22 of the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act.) as at 31.03.2016.
Note- 5.
The management has entered into an agreement subsequent of the strike by the workmen on 09.03.2016 which was called off on 20.04.2016 wherein the workmen are asked to accept transfer from Plant I to Plant III and also has a right to opt for severance package towards full and final settlement at 50 days wages for every year completed service including gratuity. A provision of Rs. 2 Crore has been made to that effect.
Note- 6.
Letters have been written for confirmation of debit and credit balances pertaining to debtors and creditors and reply from the parties is awaited.
All financial and forward contracts entered into by the company are for hedging purpose only.
Note- 7.
The Company has prepared these financial statements as per the format prescribed by schedule III to Companies Act, 2013 issued by Ministry of Corporate Affairs.
Previous yearâs figures have been regrouped/ rearranged wherever necessary to confirm to current yearâs grouping/ classification.
Mar 31, 2015
1. SEGMENT REPORTING
a) Primary Segment Reporting
The Company has identified "Manufacture of Electrical Stampings & Die
Cast Rotors" as the only primary reportable segment.
2. RELATED PARTY DISCLOSURES
Related parties where control exists or where significant influence
exists and with whom transactions have taken place during the year:
A. List of Related parties:
I) Directors / Relatives
Shri Sharad B Pitti
Shri Akshay S Pitti
Smt Shanti B Pitti
Smt Madhuri S Pitti
Smt Radhika A Pitti
Shri Y B Sahgal
Shri Sanjay Srivastava *
Shri GVSN Kumar
* Shri Sanjay Srivastava, Executive Director has resigned with effect
from 3rd May'2014 from the Board of the Company.
II) Directors' interest
1) Pitti Castings Private Limited,
2) Pitti Electrical Equipment Pvt. Ltd.,
3) Pitti Components Limited
4) Pitti Holdings Private Limited
5) Badrivishal Pannalal Pitti Trust
3. The Company has provided for Cess as specified in section 441 A of
the Companies Act, 1956 and in the absence of any notification by the
Central Govt, the company could not deposit the same with the
appropriate authority.
4. No asset is impaired during the year as the assets are having
recoverable value which is more than the carrying amount.
The information has been given in respect of such vendors to the extent
they could be identified as micro and small enterprises on the basis of
information available with company.
5. Letters have been written for confirmation of debit and credit
balances pertaining to debtors and creditors and reply from the parties
is awaited.
6. The Company has prepared these financial statements as per the
format prescribed by schedule III to Companies Act, 2013 issued by
Ministry of Corporate Affairs.
Previous year's figures have been regrouped/ rearranged wherever
necessary to confirm to current year's grouping/ classification.
Mar 31, 2014
Notes: 1
a i) Term loans from scheduled bank, Oriental Bank of commerce is
secured by equitable mortgage of movable and immovable properties and
first charge on the present and future fixed assets of the company
situated at Plant I and Plant II Nandigaon, Mahaboobnagar district. A.P
Further these are secured by a second charge on the present and future
current assets of the company and personal guarantee provided by the
Chairman and Managing Director & Vice Chairman and Managing Director.
(Refer Note 2.8 (a) for terms of repayment).
ii) Term loans from scheduled bank, State Bank of India is secured by
equitable mortgage of movable and immovable properties and first charge
on the present and future fixed assets of the company situated at Plant
I and Plant II Nandigaon, Mahaboobnagar district. A.P Further these are
secured by a second charge on the present and future current assets of
the company and personal guarantee provided by the Chairman and
Managing Director & Vice Chairman and Managing Director and their
relative.
b) The above term loan from others is secured by exclusive charge on
the machinery purchased to the extent funded and personal guarantee
provided by the Chairman and Managing Director & Vice Chairman and
Managing Director. (Refer Note 2.8 (a) for terms of repayment).
c) Secured against lien on FDR from Agroha Co-operative Urban Bank.
(Loan closed in September 2013).
d) Secured against hypothecation of vehicles. Long term liability for
previous year has been cleared during FY 2013-14 (Refer Note 2.8 (b)
for terms of repayment for current year liability).
e) Represents 14 years interest free sales tax deferment loan received
from Government of Andhra Pradesh. Repayment commences from January
2018 based on the deferment availed in the respective years.
Notes: 2
a) Terms of repayment are given below:
i) Loan taken from Oriental Bank of Commerce is repayable in quarterly
instalments of Rs. 68.75 lacs each till January 2016.
ii) Loan taken from TATA Capital Financial Service Ltd., is repayable
in quarterly instalments of Rs. 18.89 lacs each till April, 2017
iii) Loan taken from TATA Capital Financial Service Ltd., is repayable
in quarterly instalments of Rs. 2.36 lacs each till April'' 2017
iv) Loan taken from TATA Capital Financial Service Ltd., is repayable
in quarterly instalments of Rs. 12.82 lacs each inclusive of interest
till April'' 2017
v) Loan taken from L & T Finance Ltd., is repayable in quarterly
instalments of Rs. 29.25 lacs each till June''2016
b) Terms of repayment are given below:
i) Loan taken from Axis Bank is repayable in monthly instalments of Rs.
0.17 lacs each inclusive of interest till November 2014
Notes: 3
a) Terms of repayment are given below:
i) Loan taken from Oriental Bank of Commerce is repayable in quarterly
instalments of Rs. 68.75 lacs each till January 2016.
ii) Loan taken from TATA Capital Financial Service Ltd., is repayable
in quarterly instalments of Rs. 18.89 lacs each till April, 2017
iii) Loan taken from TATA Capital Financial Service Ltd., is repayable
in quarterly instalments of Rs. 2.36 lacs each till April'' 2017
iv) Loan taken from TATA Capital Financial Service Ltd., is repayable
in quarterly instalments of Rs. 12.82 lacs each inclusive of interest
till April'' 2017
v) Loan taken from L & T Finance Ltd., is repayable in quarterly
instalments of Rs. 29.25 lacs each till June'' 2016
b) Terms of repayment are given below:
i) Loan taken from Axis Bank is repayable in monthly instalments of
Rs. 0.17 lacs each inclusive of interest till November 2014
Rs. in lacs
Particulars As at As at
31st March, 31st March,
2014 2013
Note: 4 CONTINGENT LIABILITIES NOT
PROVIDED FOR
A) Claims against the Company not
acknowledged as debts:
i) Income Tax Liability in respect of the
appeals preferred by the company with CIT 122.18* 173.50*
(Appeals) and appeals preferred by the
Department in the High Court of Judicature
of A.P. Hyderabad, pending disposal.
(Net of refund receivable)
ii) Service Tax liability for which appeal
is pending 139.02* 134.19*
B) Commitments / Contingent Liabilities:
i) Liability against factoring of bills - -
ii) Estimated amount of contracts remaining
to be executed on Capital accounts 290.23 21.17
iii) Bank guarantees 265.32 308.50
* No provision is considered necessary since the company expects
favorable decision.
Note: 5
The Company has provided for Cess as specified in section 441 A of the
Companies Act, 1956 and in the absence of any notification by the
Central Govt. the company could not deposit the same with the
appropriate authority.
Note: 6
No asset is impaired during the year as the assets are having
recoverable value which is more than the carrying amount.
Note: 7
Letters have been written for confirmation of debit and credit balances
pertaining to debtors and creditors and reply from the parties is
awaited.
Note: 8
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to the Companies Act''1956 issued by
Ministry of Corporate Affairs.
Previous year''s figures have been regrouped/ rearranged wherever
necessary to confirm to current year''s grouping/ classification.
Mar 31, 2013
Note 1.1 Segment Reporting:
a) Primary Segment Reporting Â
The Company has identifi ed "Manufacture of Electrical Stampings & Die
Cast Rotors" as the only primary reportable segment.
b) Secondary Segment (by Geographical Segment)
Note 1.2 Related party disclosures:
Related parties where control exists or where signifi cant infl uence
exists and with whom transactions have taken place during the year:
A. List of Related parties:
I) Directors / Relatives
Shri Sharad B Pitti Shri Akshay S Pitti Smt Shanti B Pitti Smt Madhuri
S Pitti Smt Radhika A Pitti Shri Y B Sahgal Shri Sanjay Srivastava Shri
G Vijaya Kumar
II) Directors'' interest
1) Pitti Components Limited
2) Vaksh Steels Private Limited
3) Pitti Castings Private Limited
4) Pitti Electrical Equipment Private Limited
5) Pitti Holdings Private Limited
6) Badrivishal Pannalal Pitti Trust
Note 1.3
The Company has provided for Cess as specifi ed in section 441 A of the
Companies Act, 1956 and in the absence of any notifi cation by the
Central Govt. the Company could not deposit the same with the
appropriate authority.
Note 1.4
No asset is impaired during the year as the assets are having
recoverable value which is more than the carrying amount.
Note 1.5
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)
The information has been given in respect of such vendors to the extent
they could be identifi ed as micro and small enterprises on the basis
of information available with company.
Note 1.6
Letters have been written for confi rmation of debit and credit
balances pertaining to debtors and creditors and reply from the parties
is awaited.
Note 1.7
Financial and derivative instruments:
All fi nancial and forward contracts entered into by the Company are
for hedging purpose only.
Note 1.8
The Company has prepared these fi nancial statements as per the format
prescribed by Revised Schedule VI to the Companies Act, 1956 issued by
Ministry of Corporate Affairs.
Previous year''s fi gures have been regrouped/ rearranged wherever
necessary to confi rm to current year''s grouping/ classifi cation.
Mar 31, 2012
Note 1 CONTINGENT LIABILITIES NOT PROVIDED FOR
A) Claims against the Company not acknowledged as debts:
i) Income Tax Liability in respect of the
appeals preferred by the Department in
the High Court of Judicature of A.P.
Hyderabad, pending disposal 121.62* 121.62*
ii) Service Tax liability for which appeal
is pending 117.72* 22.52*
B) Commitments / Contingent Liabilities:
i) Liability against factoring of bills 487.31 1466.75
ii) Estimated amount of contracts remaining
to be executed on Capital accounts 537.56 588.89
iii) Bank guarantees 40.90 12.77
* No provision is considered necessary since the Company expects
favorable decision.
Note 2.1 EMPLOYEE BENEFIT PLANS
i) A summary of the Gratuity & Leave Encashment plans are as follows
Assumptions:
Note 2.2 SEGMENT REPORTING:
a) Primary Segment Reporting -
The Company has identified "Manufacture of Electrical Stampings & Die
cast Rotors" as the only primary reportable segment.
1. Total carrying amount of segment assets by geographical location of
assets, for each geographical segment whose assets are 10% or more of
the total assets of all geographical segments and the additions to the
same are as under.
Note 2.3 RELATED PARTY DISCLOSURES:
Related parties where control exists or where significant influence
exists and with whom transactions have taken place during the year:
A. List of Related parties:
I) Directors / Relatives
1) Shri Sharad B Pitti
2) Shri Akshay S Pitti
3) Smt Shanti B Pitti
4) Smt Madhuri S Pitti
5) Shri Y B Sahgal
6) Shri Sanjay Srivastava
7) Shri G Vijaya Kumar
II) Directors' interest
1) Pitti Components Limited
2) Vaksh Steels Private Limited,
3) Pitti Castings Private Limited,
4) Pitti Electrical Equipment Pvt. Ltd.,
5) Badrivishal Pannalal Pitti Trust
Note 2.4
The Company has provided for Cess as specified in section 441 A of the
Companies Act, 1956 and in the absence of any notification by the
Central Govt. the company could not deposit the same with the
appropriate authority.
Note 2.5
No asset is impaired during the year as the assets are having
recoverable value which is more than the carrying amount. Note|2.40|
MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED)
Disclosure required as per section 22 of the Micro, Small and Medium
Enterprise Development Act, 2006 (MSMED Act.) as at 31.03.2012.
Note 2.6
Letters have been written for confirmation of debit and credit balances
pertaining to debtors and creditors and reply from the parties is
awaited.
Note 2.7
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to the Companies Act'1956 issued by
Ministry of Corporate Affairs.
Previous year's figures have been regrouped/ rearranged wherever
necessary to confirm to current year's grouping/ classification.
Mar 31, 2011
2010-11 2009-10
(Rs. in (Rs. in
lacs) lacs)
1. Contingent Liabilities not provided
for Income Tax Liability in respect of
the appeals preferred by The Department
with ITAT and in the High Court of
Judicature of A.P Hyderabad pending
disposal 87.91* Nil
Service Tax Liability for which appeal
is pending 22.52* 12.19
Liability against factoring of bills 1466.75 1001.78
Estimated amount of contracts
remaining to be executed on
Capital accounts not provided for 588.89 469.60
* No provision is considered necessary since the company expects
favorable decision.
2. Segment Reporting :
a) Primary Segment Reporting -
The Company has identified ÃManufacture of Electrical Stampings & Die
cast Rotorsà as the only primary reportable segment.
3. Related Party Disclosures:
A. List of Related Parties:
I) Directors/Relatives
Shri Sharad B Pitti Shri Akshay S Pitti Smt Shanti B Pitti
Shri YB Sahgal Shri SK Agrawal Shri G Vijay Kumar
Shri Sanjay Srivastava - -
II) Directorsà interest
1) Hyderabad Laminations & Stampings
2) Vaksh Steels Pvt. Ltd.,
3) Badrivishal Pannalal Pitti Trust
4) Pitti Electrical Equipment Pvt. Ltd.,
4. The Company has provided for cess as specified in section 441 A of
the Companies Act, 1956 and in the absence of any notifi cation by the
Central Govt. the company could not deposit the same with the
appropriate authority.
5. No asset is impaired during the year as the assets are having
recoverable value which is more than the carrying amount.
6. Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)
The information has been given in respect of such vendors to the extent
they could be identified as micro and small enterprises on the basis of
information available with company.
7. Letters have been written for confirmation of debit and credit
balances pertaining to debtors and creditors and reply from the parties
is awaited.
8. Financial and derivative As on 31st March, As on 31st March
instruments: 2010 2010
Forward contracts Rs.5932.05 lacs Rs. 4641.30 lacs
All financial and forward contracts entered into by the company are for
hedging purpose only.
9. Previous yearÃs figures have been regrouped/ rearranged wherever
necessary to confirm to current yearÃs grouping/ classification.
Mar 31, 2010
2009-10 2008-09
Rs. in lacs Rs. in lacs
1. Contingent Liabilities
not provided for Income Tax
Liability in respect of the
appeal preferred by the
Department with ITAT
pending disposal Nil 145.48
Service Tax Liability for
which appeal is pending 12.19* 14.07
Sales Tax Liability for
which appeals are pending Nil 236.25
Liability against factoring
of bills 1001.78 2522.02
Estimated amount of contracts
remaining to be executed on
Capital accounts not
provided for 469.60 475.60
* No provision is considered necessary since the company expects
favorable decision.
2. The company has availed sales tax deferral benefit of Rs.283.92
lacs. Out of this the commercial tax department has disallowed the
companys claim of Rs.179.77 lacs. The company has paid a sum of
Rs.153.39 lacs to the department under protest and appealed to the
Appellate tribunal. The company had won the case vide Order T.A No:
717/08 dated 02nd June, 2009 and TA No 718/08 dated 4th November, 2009.
The same is included in the loans and advances.
3. Segment Reporting :
a) Primary Segment Reporting -
The Company has identified "Manufacture of Electrical Stampings & Die
cast Rotors" as the only primary reportable segment.
b) Secondary Segment (by Geographical Segment)
II) Directors interest in firm - 1) Hyderabad Laminations
& Stampings
2) Vaksh Steels Pvt. Ltd.,
3) Badrivishal Pannalal
Pitti Trust
4) Pitti Electrical Equipment
Pvt. Ltd.,
The information has been given in respect of such vendors to the extent
they could be identified as micro and small enterprises on the basis of
information available with the company. The identification of
enterprises as micro, small or medium suppliers has been carried out
during the current year.
4. Letters have been written for confirmation of debit and credit
balances pertaining to debtors and creditors and reply from the parties
is awaited.
5. Financial and derivative instruments: As on 31st March, 2010 As on
31st March, 2009 Forward contracts Rs.4641.30 lacs Rs.8048.70 lacs
a) All financial and forward contracts entered into by the company are
for hedging purpose only.
b) In respect of outstanding forward contracts there is a net loss of
Rs.139.87 lacs inclusive of premium taken on proportionate basis as on
31st March, 2010. The same is recognized in the books.
6. During the year the company has incurred non recurring expenditure
of a sum of 1.20 $ Million equivalent to Rs 548.31 lacs towards
Engineering analysis for repair procedures, actual repairs and other
associated costs and the same has been shown in the financial results
as an exceptional item of expenditure in the Profit & Loss Account.
7. The Other Income of Rs.721.32 lacs broadly consists of Export
Incentives which include Salable licenses, Forex Gain on Hedging
Operations, Interest on Deposits and Margins, Receipt of Duty Drawback.
8. Previous years figures have been regrouped/ rearranged wherever
necessary to confirm to current years grouping/ classification.
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Pitti Engineering Ltd. पर और जानकारी
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Pitti Engineering Ltd. टूल
- बल्क डील
-
Pitti Engineering Ltd. कंपनी का विवरण
- कंपनी का प्रोफाइल
- कंपनी का इतिहास
- मैनेजमेंट टीम
- पूंजी ढांचा
- प्रॉडक्ट मिक्स
- बैंकर/ऑडीटर/रजिस्ट्रार
-
कंपनी का इतिहास
- बीएसई मूल्य इतिहास
- एनएसई मूल्य इतिहास
-
Pitti Engineering Ltd. मुख्य वित्तीय अनुपात
- अनुपात
-
Pitti Engineering Ltd. परिणाम
- तिमाही परिणाम
- छहमाही परिणाम
- नौ महीने के परिणम
- वार्षिक परिणाम
-
Pitti Engineering Ltd. Financial Data
- ऑडिट के परिणाम
- नकदी प्रवाह
- बैलेंस शीट
-
Pitti Engineering Ltd. की रिपोर्ट
- लेखा नीति
- ऑडीटर की रिपोर्ट
- निदेशक की रिपोर्ट
- खाते के लिये नोट
-
Pitti Engineering Ltd. कॉर्पोरेट घोषणाएं
- बुक क्लोज़र
- लाभांश
- बोर्ड की मीटिंग
- नाम में परिवर्तन
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Stock Market Crash: युद्ध के डर से बाजार में हड़कंप, सेंसेक्स 900 अंक टूटा, बढ़ी बिकवाली, निवेशक हुए सतर्क -
Stock Market Crash: जंग का असर बाजार में हाहाकार, सेंसेक्स 2500 अंक से ज्यादा लुढ़का, निफ्टी 700 अंक क्रैश -
Stock Market Outlook: होर्मुज स्ट्रेट में संकट! क्या आने वाला है भारतीय शेयर बाजार में बड़ा गिरावट का दौर? -
मिडिल ईस्ट के बढ़ते तनाव ने बिगाड़ा बाजार का मूड, सेंसेक्स 1500 अंक लुढ़का, निफ्टी भी बुरी तरह फिसला -
Stock Market Today: मिडिल ईस्ट तनाव! शेयर बाजार में कोहराम, सेंसेक्स 900+ अंक टूटा, निफ्टी 24,900 के नीचे -
Stock Market: Anthropic के दावे से बढ़ी टेंशन! Nifty-Sensex में बड़ी गिरावट, शेयर बाजार किन 5 कारणों से धड़ाम? -
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Stock Alert: सस्ते में मिल रहे Nifty 50 के कई शेयर, यहां से होगी पैसों की बारिश? -
Stock Market Crash: बाजार में हाहाकार, सेंसेक्स 1,200 प्वाइंट से ज्यादा गिरा, निफ्टी भी 400 अंक क्रैश -
Stock Markets Today: बढ़त के साथ बंद हुआ बाजार, Sensex और Nifty की शानदार क्लोजिंग -
Stock Markets Today: Nifty वीकली एक्सपायरी के दिन बाजार में तेजी, IT और PSU इंडेक्स बढ़त के साथ बंद -
Defence Stock: Cochin Shipyard के शेयर में जबरदस्त उछाल, रक्षा मंत्रालय से बड़ा ऑर्डर -
Stock Markets Today: कारोबारी हफ्ते के पहले दिन बाजार की शानदार क्लोजिंग, Sensex और Nifty बढ़त के साथ बंद -
अमेरिका संग ट्रेड डील से SENSEX-NIFTY में दिखा जोश, इन 9 स्टॉक्स में लगा 20% का अपर सर्किट, आपके पास है कोई? -
Stock Market News: India-US ट्रेड डील का असर...शेयर बाजार में जबरदस्त रैली, निवेशकों को 20 लाख करोड़ का फायदा! -
Stock Market News: भारी गिरावट के बाद वापसी, सेंसेक्स-निफ्टी दिन के निचले स्तर से रिकवर, तेजी के पीछे का कारण?
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