| Related party transactions
1 . Details of Related Parties:
Description of relationship Names of related parties
a. ) Key Management Personnel 1 . Mr. Sanjay Gupta (Managing Director)
2 . Mr. S.K. Gupta (Director)
b. ) Associates 1. Prima Agro Limited
2. Ayyappa Roller Flour Mills Limited
3. Prima Beverage Pvt Limited
4. Prima Credits Limited
2. Employee benefit plans 1 Gratuity plan
The Company has a defined benefit gratuity plan. Gratuity is computed
as 15 days salary, for every completed year of service or part thereof
in excess of 6 months and is payable on
retirement/termination/resignation. The benefit vests on the employees
after completion of 5 years of service. The Gratuity liability has not
been externally funded. Company makes provision of such gratuity
liability in the books of accounts on the basis of company's own
valuation.
Particulars 31/03/2015 31/03/2014
(Rs.) (Rs.)
3. Contingent Liabilities
(a) Claims against the company not Nil Nil
acknowledged as debt;
(b) Guarantees;
- Guarantees issued by the bank Nil Nil
(c) Other money for which the company is
contingently liable
- Sales Tax demand disputed by the Company Nil Nil
- Central Sales Tax demand disputed by Nil Nil
the Company
- KGST demand disputed by the Company 5,365,029 5,365,029
- Penalty disputed by the Company Nil Nil
4. Commitments
(a) Estimated amount of contracts Nil Nil
remaining to be executed on capital
(b) Uncalled liability on shares and Nil Nil
other investments partly paid
(c) Other commitments - Dividend on 11,197,403 11,197,403
Cumulative Reedemable Preference
5. Corporate information
Prima Industries Limited (the "Company"), Indian Company registered
under the Indian Companies Act, 1956. The Company was promoted
primarily for Solvent Extraction and also for the refining of Oil.
6. Basis of accounting and preparation of financial statements
The Financial Statements have been prepared on the historical cost
convention. These statements have been prepared in accordance with the
generally accepted accounting principles and the applicable Mandatory
Accounting Standards and relevant requirements of The Companies Act,
1956 ('the Act1). The accounting policies have been consistently
applied by the Company. The preparation required adoption of estimates
and as sumptions that can affect the reported amounts of revenue and
expenditure and the assets and liabilities as well as the disclosure of
contingent liabilities. Differences between the actual results and
estimates are recognised in the year in which they become known or
materialises.
7. Use of estimates
Accounting estimates could change from period to period. Actual results
could differ from those estimates. Appropriate changes in estimates
are made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material ,their effects are disclosed in the notes to the financial
statements.
8. The Working Capital Loans are secured by hypothecation of present
and future goods, book debts and all other movable assets of the company
and second charge on the fixed assets and further guaranteed by the
Managing Director.
One Time Settlement with Banks
The interest waiver obtained on one time settlement with banks during
the year 2011 - 12 and 2012 - 13 have been credited to profit & loss
account. The interest waiver obtained in earlier years has been reduced
from the brought forward losses and the principal amount waived were
credited to the Capital Reserves. The OTS amount for the Term Loan
includes the value of Cumulative Redeemable Preference Shares allotted
to the Bank, against overdue interest upto 31/03/2012 and converting
the outstanding Principal amount and converting the present value of
savings on account of reduction in rate on a restructuring . The OTS
amount net of the value of the Cumulative Preference shares is
considered to be principal amount waiver and the entire interest
outstanding as per books is considered to be waived and has been
reduced from the brought forward losses.
9. In the opinion of the management, current assets, loans and advances
will realise the values as stated in the Balance Sheet, if realised in
the normal course of business.
10. The amount of borrowing costs capitalized during the year is Rs.
Nil.
11. As the company carries inventory of finished goods of various grade
/ quality, and the net realisable value of all such grade / quality are
not available , the valuation is done based on the rates as certified by
the Managing Director.
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