PPAP Notes to Accounts

1.1 During the year the company has not issued or bought back any share. Following is the reconciliation of number of shares outstanding as at the beginning and end of he year.


2 Equity shares carry voting rights at the general meeting of the company and are entitled to dividend.


3 There is no holding or subsidiary company of the Company.


4 The details of shareholders holding more than 5% equity shares in the Company.


5 The Company has not issued bonus shares or shares for a consideration other than cash in past five years.


Nature of security and terms of repayment for long term secured borrowings


Long term borrowings represent term loans and vehicle loans from ICICI bank limited and HDFC bank limited. Term loans are secured by 1st charge on all movable assets (present and future) of the Company. Term loans are further secured by way of equitable mortgage on factory land and building of the Company situated at Kasna, Greater Noida. The charges are ranked pari-passu with the charges shared with other multiple banker.


Vehicle loans are secured against respective assets financed from ICICI bank limited and HDFC bank limited. Vehicle loans are repaid in monthly installments.


Loan of '''' 80,938,027 from State Owned Corporation viz. The Pradeshiya Industrial & Investment Corporation of U.P. Limited. is secured by bank guarantee equivalent to 100% loan amount. The loan is free of interest and shall be repaid in one installment after seven years from the date of disbursement i.e. 29.10.2015.


There is no default in repayment of interest and principal on above loans.


6 Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (Revised), the details of which are as hereunder : Actuarial Method


a) Projected unit credit (PUC) actuarial method has been used to assess the plan’s liabilities of exit employees for retirement, death-in-service and withdrawals (Resignations / Terminations).


b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as of the beginning or end of period, but using member’s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.


7 Actuarial assumptions Economic assumptions


The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis. Valuation assumptions are as follows which have been agreed by the Company:_


* Total amount of ''''1,112,767 (previous year '''' 1,201,005) was required to be incurred towards CSR activities as per Section 135 of the Companies Act, 2013. The Company has incurred '''' 989,123 (previous year '''' 1,111,957) during the financial year in the field of education and health.


8 Related Party Disclosures


9A Related Party Transactions, as required by Accounting Standard - 18," Related Party Disclosures"


Related Parties in the group where common control exists :


Kalindi Farms Private Limited


Key Management Personnel of the Company :


Mr. Ajay Kumar Jain - Chairman & Managing Director Mr. Abhishek Jain - Whole Time Director


Joint Ventures:


PPAP Tokai India Rubber Private Limited


Associate Companies:


PPAP Automotive Chennai Private Limited PPAP Automotive Technology Private Limited PPAP Automotive Systems Private Limited


Relatives of the Key Management Personnel:


Mrs. Vinay Kumari Jain


*Other Services include management support fee, reimbursement of expenses, job work charges and rental income from PPAP Tokai India Rubber Private Limited.


10. Segment Reporting


Manufacturing of automotive components is the Company’s only business segment and domestic operations is the only significant geographical segment and hence disclosure of segment wise information is not applicable under Accounting Standard 17 - “Segment Reporting”.


Notes


(i) A demand of Rs, 55,655/- has been raised for the assessment year 2003-04. However an appeal is pending before the Hon’ble CIT Appeal.


(ii) A demand of Rs, 2,939,730/- has been raised for the assessment year 2010-11.The Hon''''ble CIT(A) has partly allowed the appeal in our favour. However department has filed the Appeal with ITAT (Delhi) against the order of the allow ability of the royalty amount. Balance liability of '''' 1,062,836 has been accepted and paid by the Company.


(iii) A demand of Rs, 243,430/- has been raised for the assessment year 2011-12. The Hon''''ble CIT(A) has decided the case in our favour. However department has filed the Appeal with ITAT(Delhi) against the order of the allow ability of the royalty amount.


(iv) A demand of Rs, 300,190/- has been raised for the assessment year 2012-13. The Hon''''ble CIT(A) has decided the case in our favour. The department has filed an appeal with ITAT (Delhi).


(v) Central sales tax assessment for the assessment year 2004-05 was completed under Section 9 of Central Sales Tax Act R/W 23(3) of Delhi Sales Tax Act,1975 wherein demand of '''' 166,697/- was raised which was reduced to Rs, 113,957/- vide review order. The Company had deposited a sum of Rs, 68,516/- being undisputed demand and Company had filed an appeal against the balance demand of Rs, 45,441/- before the Joint Commissioner of Sales Tax (Appeals). and stay granted vide order no F/PA/Jt. Comm. (KDU) /02/Stay/ 410-411 dated 18.08.06 out of total demand of Rs, 351,890/- the Company had deposited Rs, 306,449/- being undisputed demand.


(vi) A demand of Rs, 8,455,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The Company had filed a suit against BSES with District Court and won the case in its favour. However, BSES has filed an appeal with Hon''''ble High Court but the notice for listing the matter not received from the court.


(vii) Demand of excise duty of Rs, 105,896/- along with penalty of Rs, 105,896/- was imposed on the Company by Additional Commissioner, Central Excise, Delhi, for Cenvat credit taken on payment of duty through DEPB license, under the Central Excise Act, 1944. The Company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of central excise has rejected the appeal. Thereafter, the Company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.


(viii) Demand of excise duty of Rs, 3,536,033/- along with penalty of Rs, 3,536,033/- was imposed on the Company by Addl. Commissioner, Central Excise, Delhi, for Cenvat credit taken on payment of duty through DEPB license, under the Central Excise Act, 1944. The Company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the Company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending. (The case relates to the period August 2003 - August 2004).


(ix) With reference to Company''''s plant at Pathredi, RIICO has raised a demand of '''' 10,357,127/- towards delay in commencement of production along with stipulated investment. The Company has contested the same with RIICO Limited, Bhiwadi, Rajsthan to drop the demand.


* The details of amounts outstanding to Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 are as per the available information with the Company.


12. Information under Section 186(4) of the Companies Act 2013:


A. The Company has not provided any loan during the year.


B. Investment


There is no investment besides those shown in Note No. 11.


C. The Company has not provided any guarantee during the year.


D. The Company has not provided any security during the year.


13. Balances of certain debtors, creditors, loans and advances are subject to confirmation.


14. In the opinion of the Management current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated except where indicated otherwise.


15. The previous year’s figures have been accordingly regrouped / reclassified to conform to the current year’s classification.



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CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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