1 Company Overview Products:
The Company is engaged in the business of manufacture of different
types of power driven pumps and industrial valves. Castings are mainly
produced for captive consumption.
The Company has factories at the following places:
A) Irrigation and Process Pumps Division (I.P.D.) at Pimpri
Manufacturing of submersible pumps, vertical and horizontal pumps,
series and non-series pumps, Multistage pumps, chemical process pumps,
non clog pumps and water pumps.
B) Power Projects Division (P.P.D.) at Chinchwad
Manufacturing of primary heat transfer pumps, moderator pumps, main
boiler feed pumps and multistage condense extraction pumps, re-heater
drain pumps and auxiliary boiler feed pumps.
C) Foundry Division at Vambori
Manufacturing of steel & iron castings including for captive
D) Coimbatore Unit
Manufacturing of valves (Globe, Gate, Check, Butterfy & Ball valves).
E) Nasik Unit (Sinnar)
Established in 1995, this unit is engaged in the manufacture of high
pressure and submersible pumps.
Note 2 - Contingent Liabilities and Commitments
Particulars As at 31st As at 31st
December, 2014 December, 2013
Rs.in Million Rs.in Million
(i) Contingent Liabilities
(a) Claims against the Company not
acknowledged as debts 15.09 10.99
(b) Taxation matters in dispute pending
at various stages of appeal 46.57 63.20
(c) Bills Discounted/Cheques purchased
with banks 13.71 35.25
(d) Excise matters 120.69 75.46
(e) Guarantees given by the bankers on
behalf of the Company 1,061.70 1,186.38
Estimated amount of contracts remaining to
be executed on capital account and not
provided for (net of advances) -
-Tangible Assets 156.48 21.37
a) Principal amount payable to Micro and Small Enterprises (to the
extent identifed by the Company from available information) as at
31/12/2014 is Rs.1.75 Million (previous year Rs.0.22 Million) including
unpaid amounts of Rs. Nil (previous year Rs.0.01 Million) outstanding
for more than 45 days. Estimated interest due thereon is Rs.Nil
(previous year - Rs.Nil).
b) Amount of payments made to suppliers beyond 45 days during the year
is Rs.5.43 Million (Previous year Rs.1.19 Million). Interest paid
thereon is Rs.Nil (Previous Year Nil) and the estimated interest due
and payable thereon is Rs.0.15 Million ( Previous year - Rs.0.02
c) The amount of estimated interest accrued and remaining unpaid as at
31/12/2014 is Rs.1.88 Million (previous year Rs.1.73 Million).
d) The amount of estimated interest due and payable for the period from
01/01/2015 to actual date of payment or 30/01/2015 (whichever is
earlier) is Rs. Nil
1. As the Company also sells as spare parts (for goods manufactured
and sold by it), some of its bought-out components, the items shown
above as consumption include cost of such items sold, this being an
activity ancillary to its manufacturing activity.
2. The Company is of the opinion that the purchase & sale of such
bought-out components is a part of its activity to manufacture and
deliver a complete pump unit and, therefore, is not a trading activity
as referred to in paragraph 5(ii)(b) of Part II of Revised Schedule VI
to the Companies Act, 1956.
3. The consumption fgures in value are balancing fgures ascertained on
the basis of opening stocks plus purchases less closing stocks and
therefore, include adjustments for excesses and shortages ascertained
on physical count, etc.
Note 4 - Research and Development expenditure debited to the Statement
of Profit and Loss aggregating Rs.4.16 Million (previous year - Rs.2.43
Million) has been incurred by the Company and disclosed under
Miscelleneous expenses (Refer note 25).
Note 5 - The net exchange differences arising during the year
recognised appropriately in the Statement of Profit and Loss - net loss-
Rs. 50.71 Million (previous year - net loss- Rs. 0.43 Million).
Note 6 Disclosures under Accounting Standards
6.1 Details of Employee Benefits as required by the Accounting Standard
15 (Revised) Employee benefits are as under:
6.1.a Defined contribution Plan
Amount recognised as an expense in the Statement of Proft and Loss in
respect of Defned Contribution Plan towards Provident Fund is Rs.52.48
Million (previous year Rs.48.63 Million)
6.1.b Defined benefit plans
i. Actuarial gains and losses in respect of defned benefit plans are
recognised in the Statement of Profit & Loss.
ii. The Defned Benefit Plans comprise of Gratuity and superannuation.
Gratuity is a benefit to an employee based on 15/20/25/30 days
(depending on the grade/category of the employee and the completed
years of service) last drawn salary for each completed year of service.
Superannuation is a benefit to certain employees at Rs.1000/500/250
(depending on the grade/ catagory of the employee and the completed
years of service) per month for each completed year of service.
The Discount rate is based on the prevailing market yields of Indian
Government securities as at the Balance Sheet date for the estimated
terms of the obligations.
Expected Rate of Return of Plan Assets : This is based on the
expectation of the average long term rate of return expected on
investments of the Fund during the estimated term of obligations.
Salary Escalation Rate : The estimates of future salary increases
considered takes into account the infation, seniority, promotion and
other relevant factors.
Note 7 - Where a financial report contains both consolidated fnancial
statements and separate financial statement for the parent, segment
information needs to be presented only in case of consolidated financial
statements. Accordingly, segment information has been provided only in
the consolidated fnancial statements.
Note 8 - Earnings per Share
(a) The amount used as the numerator in calculating basic and diluted
earnings per share is the Profit for the year attributable to the equity
shareholders disclosed in the Statement of Profit and Loss.
(b) The weighted average number of equity shares used as the
denominator in calculating both basic and diluted earnings per share is
Note 9 - Repairs to machinery include Rs.36.12 million (previous year -
Rs.43.17 million) spares consumed.
Note 10 - Provision for taxation for the year is an aggregate of the
provision made for the year ended 31st March, 2014 as reduced by the
provision for 9 months up to 31st December, 2013 and the provision
based on the figures for the remaining 9 months up to 31st December,
2014. However, the ultimate tax liability for the remaining 9 months up
to 31st December, 2014 will be determined based on the results for the
year 1st April, 2014 to 31st March, 2015.
Note 11 - Previous year''s figures have been regrouped/reclassified
wherever necessary to correspond with the current year''s