Page 121 - Annual Report 2019-20

Notes forming part of the financial statements notes forming part of the financial statements 119

Goodwill, Copyrights and Trademark 7 Investments - Non-Current
As at 31 March 2020 As at 31 March 2019
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Goodwill, copyrights and trademark in the books of the Company pertain to Consumer and Bazaar business Qty in crores Qty in crores PIDILITE ANNUAL REPORT 2019-20
of the Company.
Non-Current Investments
At the end of each reporting period, the Company reviews carrying amount of goodwill, copyrights and A] Investment in Equity Instruments
trademark to determine whether there is any indication that goodwill, copyrights and trademark has
suffered any impairment loss. Accordingly, recoverable amount of goodwill, copyrights and trademark is i) Quoted:
arrived basis projected cashflows from Consumer and Bazaar business. Investment in Associates (fully paid up) (at cost)
Equity Shares of 1 each of Vinyl Chemicals (India) Ltd 74,51,540 1.18 74,51,540 1.18
Recoverable amount of goodwill, copyrights and trademark exceeds the carrying amount of goodwill,
copyrights and trademark in the books as on 31 March 2020. Further there are no external indications of TOTAL Quoted (i) 1.18 1.18
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impairment of goodwill, copyrights and trademark. As a result, no impairment loss on goodwill, copyrights ii) Unquoted:
and trademark is required to be recognised. (a) Investment in Subsidiaries (fully paid up) (at cost unless otherwise
stated)
Projected cashflows from Consumer and Bazaar business Equity Shares of uSD 1 each of Pidilite International Pte Ltd 2,35,92,766 115.81 2,35,92,766 115.81
Equity Shares of AED 1 each of Pidilite Middle East Ltd 9,11,63,000 139.70 9,11,63,000 139.70
The recoverable amount of this cash-generating unit is determined based on a value in use calculation [Impairment in value of investments 65.92 crores
( 65.92 crores as at 31 March 2019)]
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which uses cash flow projections based on financial budgets approved by the management for next year, Equity Shares of BRL 1 each of Pulvitec do Brasil Industria e 7,43,02,867 175.04 7,43,02,867 175.04
estimates prepared for the next 4 years thereafter and a discount rate of 12.0% per annum (13.1% per Comercio de Colas e Adesivos Ltda
annum as at 31 March 2019). [Impairment in value of investments 110.20 crores
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( 110.20 crores as at 31 March 2019)]
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Cash flow projections during the budget period are based on the same expected gross margins and raw Equity Shares of uSD 1 each of Pidilite uSA Inc 1,47,80,000 64.77 1,47,80,000 64.77
materials price inflation throughout the budget period. The cash flows beyond that five-year period have Equity Shares of EGP 100 each of Pidilite Industries Egypt SAE 7,396 0.54 7,396 0.54
been extrapolated using a steady 8% per annum (8% per annum as at 31 March 2019) growth rate. The
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management believes that any reasonably possible change in the key assumptions on which recoverable Equity Shares of BIRR 100 each of Pidilite Chemical PLC 1,38,525 3.70 1,24,076 3.34
[refer note 38] [Impairment in value of investments 3.70 crores
amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable ( nil as at 31 March 2019)]
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amount of the cash-generating unit. Equity Shares of 10 each of Fevicol Company Ltd 2,69,260 2.24 2,69,260 2.24
Equity Shares of 10 each of Pagel Concrete Technologies Pvt Ltd 80,000 0.84 80,000 0.84
The key assumptions used in the value in use calculations for Consumer and Bazaar cash-generating unit are [Impairment in value of investments 0.84 crores ( 0.84 crores
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as follows: as at 31 March 2019)]
Equity Shares of 10 each of Bhimad Commercial Company Pvt Ltd 10,000 0.02 10,000 0.02
Budgeted sales growth Sales growth is assumed at 17.5% (CAGR) (14.5% as at 31 March 2019) in line Equity Shares of 10 each of Madhumala Ventures Pvt Ltd 1,62,395 126.49 10,000 0.02
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with current year projections. The values assigned to the assumption reflect (formerly known as Madhumala Traders Pvt Ltd)
past experience and current market scenario considering COVID-19 impact [refer note 53 (a)]
and are consistent with the managements’ plans for focusing operations in Equity Shares of 10 each of Building Envelope Systems India Ltd 50,10,000 8.88 50,10,000 8.88
these markets. The management believes that the planned sales growth per Equity Shares of 10 each of nina Percept Pvt Ltd 8,43,999 66.17 8,43,999 66.17
year for the next five years is reasonably achievable. [(refer note 53 (c)]
Equity Shares of 10 each of ICA Pidilite Pvt Ltd 28,33,964 125.96 28,33,964 125.96
Raw materials price Forecast for Material cost growth CAGR higher by 0.2% (1% as at 31 March Equity Shares of 10 each of Cipy Polyurethanes Pvt Ltd 65,816 139.01 65,816 139.01
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inflation 2019) vs. sales growth, considering impact of commodity cost inflation. Equity contribution towards 100% Membership Interest in Pidilite 1 7.41 1 7.41
Ventures LLC
Equity Shares of 10 each of Pidilite Litokol Pvt Ltd 6,00,000 0.60 - -
other budgeted costs Commercial spends (schemes and A&SP) have been continued at current [refer note 53 (d)]
year’s % to sales. Other fixed costs are in line with the current year’s growth. Equity Shares of 10 each of Pidilite Grupo Puma Manufacturing 5,000 0.01 - -
Ltd [refer note 53 (e)] (180.66) (176.96)
PIDILITE ANNUAL REPORT 2019-20 (b) Investment in other entity (fully paid up) (at FVTPL) 1,21,300 (0.12) 1,21,300 (0.12)
Less : Impairment in value of Investments
796.53
672.79
TOTAL (a)
0.12
0.12
Equity Shares of 10 each of Pal Peugeot Ltd
Less : Impairment in value of Investment
-
TOTAL (b)
-
672.79
TOTAL Unquoted [(a)+(b)] (ii)
797.71
118 Total Investment in Equity Instruments [(i)+(ii)] [A] 796.53 673.97