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SENSEX NIFTY India | Notes to Account > Edible Oils & Solvent Extraction > Notes to Account from Prima Industries - BSE: 531246, NSE: N.A

Prima Industries

BSE: 531246|ISIN: INE723N01012|SECTOR: Edible Oils & Solvent Extraction
Aug 26, 15:40
Prima Industries is not listed on NSE
Mar 14
Notes to Accounts Year End : Mar '15
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
 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
 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
 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.
 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.
Source : Dion Global Solutions Limited
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