a) Provision and contingent liability:
On an ongoing basis, the Company reviews pending
cases, claims by third parties and other
contingencies. For contingent losses that are
considered probable, an estimated loss is recorded
as an accrual in financial statements. Loss
Contingencies that are considered possible are not
provided for but disclosed as Contingent liabilities in
the financial statements. Contingencies the
likelihood of which is remote are not disclosed in the
financial statements.
b) Evaluation of indicators for impairment of
assets:
The evaluation of applicable indicators of
impairment of assets requires assessment of several
external and internal factors which could result in
deterioration of recoverable amount of the assets.
c) Allowances for uncollected accounts receivable
and advances:
Trade receivables do not carry interest and are
stated at their normal value as reduced by
appropriate allowances for estimated irrecoverable
amounts. Individual trade receivables are written off
when management deems them not collectable.
Impairment is made on the expected credit loss
model, which is the present value of the cash shortfall
over the expected life of the financial assets. The
impairment provisions for financial assets are based
on assumption about the risk of default and
expected loss rates. Judgement in making these
assumptions and selecting the inputs to the
impairment calculation are based on past history,
existing market condition as well as forward looking
estimates at the end of each reporting period.
47. AMALGAMATION OF ERSTWHILE PRICOL LIMITED WITH THE COMPANY :
The Hon'ble High Court of Judicature at Madras vide its order dated 6th October, 2016 has sanctioned the
Scheme of Amalgamation of erstwhile Pricol Limited (‘Transferor Company') with erstwhile Pricol Pune Limited
(‘Transferee Company') with the appointed date as 1st April, 2015. Pursuant to the Scheme of Amalgamation,
the Transferee Company was renamed as "Pricol Limited" vide fresh Certificate of Incorporation granted by
Ministry of Corporate Affairs on 18th November, 2016.
The Amalgamation was accounted in financial year 2016-17 under the "Purchase Method” as per the then
prevailing Accounting Standard 14 - "Accounting for Amalgamation”, as per the Scheme of Amalgamation
approved by the High Court of Judicature at Madras, which is different from the accounting treatment
prescribed under Ind AS 103 - "Business Combinations”. The intangible assets, including Goodwill represented by
Customer relationship and Assembled work force, are being amortised over its estimated useful life of 15 years
from the appointed date.
Had the Company followed the accounting treatment prescribed under Ind AS 103, the amortisation charge
would have been lower by ' 993.40 Lakhs (Previous year - ' 993.40 Lakhs).
FAIR VALUE MEASUREMENTS (Contd.,)
iii. Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and 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 financial instruments.
Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly.
Level 3 : Unobservable inputs for the asset or liability.
* The Company has not disclosed the fair values for short term / current financial instruments (such as short term
trade receivables, short term trade payables, Current Loans and Short Term Borrowings etc), because their
carrying amounts are a reasonable approximation of Fair value.
The investments in Level 3 hierarchy has been valued at cost approach to arrive at the fair value
measurements and cost represents the estimate of fair value within that range considering the purpose and
restriction on the transferability of instruments.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating
the risk of financial loss from defaults.
Credit risk management
Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets.
* Life time expected credit loss (if required) is provided for trade receivables and for those financial assets where
the credit risk has increased significantly, since the initial recognition.
Based on business environment in which the Company operates, a default on a financial asset is considered
when the counterparty fails to make payments within the agreed time period as per contract. Loss rates
reflecting defaults are based on actual credit loss experience and considering differences between current and
historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose
balances are written off and attempts to enforce repayment. Any subsequent recoveries made are recognised
in statement of profit and loss.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability
under committed facilities. Management monitors rolling forecasts of the Company's liquidity position and
cash and cash equivalents on the basis of expected cash flows. The Company takes into account the
liquidity of the market in which the entity operates. In addition, the Company's liquidity management policy
involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring
balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans.
FINANCIAL RISK MANAGEMENT (Contd.,)
d. Financial Currency Risk
The Company's functional currency is Indian Rupees ('). The Company undertakes transactions
denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in
exchange rates affects the Company's revenue from export markets and the costs of imports.
Adverse movements in the exchange rate between the Rupee and any relevant foreign currency results in
increase in the Company's overall debt position in Rupee terms without the Company having incurred
additional debt and favourable movements in the exchange rates will conversely result in reduction in the
Company's receivables in foreign currency. In order to hedge exchange rate risk, the Company has a policy
to hedge cash flows (either using natural hedge or an artificial hedge) upto a specific tenure using forward
exchange contracts and hedges based on their Internal Foreign Curreny Exposure and risk management
policy as approved by the management and in accordance with the applicable regulations where the
Company operates.
The following table details the Company's sensitivity to a 1% increase and decrease in the INR against the
relevant foreign currencies net of hedge accounting impact. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in
foreign currency rates, with all other variables held constant. A positive number below indicates an increase in
profit or equity where INR strengthens 1% against the relevant currency. For a 1% weakening of INR against the
relevant currency, there would be a comparable impact on profit or equity, and the balances below would be
negative.
50. CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital and all other
equity reserves. The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. The Company monitors capital using a
gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing
loans and borrowings, less cash and cash equivalents.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define
capital structure requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31,2025 and March 31,2024.
>1. Income Tax Assessments are completed upto Assessment year 2022-23.
a) The Company has filed revised returns / made additional claims in respect of certain deductions, exemptions
and losses which are under litigation. Necessary adjustments, would be made as and when the matters are
finally adjudicated.
b) As professionally advised the Company has claimed the loss on disposal of investment in subsidiary (Pricol
Espana S.L. Spain) amounting to ' 40,798.58 Lakhs as business loss in the return filed for the assessment year
2021-22. The Company has accounted for current taxes in accordance with - Ind AS 12, Appendix - C
"Uncertain tax position".
The Company has disclosed the suppliers who have registered themselves under "Micro, Small and Medium
Enterprises Development Act, 2006" to the extent they have confirmed.
58. EVENTS OCCURING AFTER THE BALANCE SHEET DATE
No adjusting or significant non-adjusting events have occurred between 31 March 2025 and the date of
authorisation of these Standalone Financial Statements.
DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013
63. DIVIDEND
The Company has not proposed / paid any dividend during the year.
64. ADDITIONAL DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013
(i) Details of Benami property:
No proceedings have been initiated or are pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(ii) Utilisation of borrowed funds and share premium:
A) 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.
B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or
b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(iii) Compliance with number of layers of Companies:
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) Undisclosed income:
There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(v) Details of crypto currency or virtual currency:
The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year.
(vi) Valuation of Property, Plant & Equipment, intangible asset and investment property:
The Company has not revalued its property, plant and equipment (including Right of Use Assets) or
intangible assets or both during the current or previous year.
(vii) Compliance with approved scheme(s) of arrangements:
Refer Note. 47 in relation to the Scheme of Amalgamation with Erstwhile Pricol Limited. The intangible
assets, including Goodwill represented by Customer relationship and Assembled work force are being
amortised over its estimated useful life of 15 years from the appointed date.
(viii) Loans to Related Parties and others:
The Company has not granted any loans or advances in the nature of loans to promotoers, directors, KMP's
and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person that :
a) are repayable on demand or
b) without specifying any terms or period of repayment.
(ix) Struck off Companies:
Details of transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560
of the Companies Act, 1956:
(x) Wilful Defaulter:
The Company had not been declared a wilful defaulter by any bank or financial institution or other lender
(as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on
wilful defaulters issued by the Reserve Bank of India.
(xi) The Company does not have Charges or Satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.
65. Previous year's figures are reclassified / recasted wherever necessary to conform to the current year's
classification.
66. All figures are in Lakhs unless otherwise stated.
As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co. Vanitha Mohan Vikram Mohan
bartered Accountants Chairman Managing Director
lCAl Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.°28328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2025 (DIN : 08571325)
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