Page 161 - Annual Report 2019-20

notes forming part of the financial statements notes forming part of the financial statements 159

53 other Information
a) During the year, Madhumala Ventures Pvt Ltd (Formerly known as Madhumala Traders Pvt Ltd) h) During current year, the Company decided to sell plant and machinery pertaining to Synthetic Elastomer PIDILITE ANNUAL REPORT 2019-20
(Madhumala), a wholly owned subsidiary of the Company: project located at Dahej having a carrying value of 60.52 crores as on 1 April 2019 (included in capital
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work in progress). Accordingly, reclassified these assets as “Assets held for sale” at fair market value of
(i) invested an amount of 2.00 crores in the Aapkapainter Solutions Pvt Ltd (Aapkapainter). 38.28 crores and an impairment loss amounting to 22.24 crores was provided in September 2019.
Madhumala has agreed to make an investment of 5.00 crores in Aapkapainter, a company engaged The Company has undertaken its best efforts to find buyers for these assets. In absence of buyer, as at
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in providing painting and waterproofing solutions to retail consumer. 31 March 2020, these assets were fair valued at estimated realizable scrap value in accordance with Ind
AS 113 “Fair Value Measurement”, being asset categorized as Level 3, whereby fair value is determined
(ii) invested an amount of 71.47 crores in the Trendsutra Platform Services Pvt Ltd (Pepperfry) by based on the inputs to the valuation technique.
subscription to Compulsory Convertible non-Cumulative Preference Shares. Pepperfry is an online
furniture chain in India. Out of these assets, Company has identified certain plant & machinery amounting to 5.33 crores for its
internal use and remaining plant & machinery amounting to 32.95 crores have been further impaired.
(iii) invested an amount of 49.00 crores in the homevista Décor & Furnishings Pvt Ltd (homeLane) by hence, an impairment loss aggregating to 55.19 crores is disclosed as an exceptional item in the
subscription to Compulsory Convertible Cumulative Preference Shares. homeLane is a fast growing financial statements.
home interiors company backed by strong tech-stack and presence in 7 cities with 16 experience
centers in India. i) During the year, the Company had paid Interim Dividend of 7.00 per equity share of 1 each for the
financial year 2019-20.
b) During previous year, Percept Waterproofing Services Limited (Percept) (80% Subsidiary of the
Company) was merged with nina Waterproofing Systems Pvt Ltd (nina) (70% Subsidiary of the j) In March 2020, the World health Organisation declared COVID-19 to be a pandemic. The operation of
Company), pursuant to the hon’ble national Company Law Tribunal, Mumbai Bench, order dated the Company were disrupted since mid of March 20. As on date, The Company has already restarted the
11 January 2019, w.e.f. the Appointed date i.e. 1 April 2017 and consequently, Percept stands dissolved operations albeit in a phased manner after obtaining necessary permissions as required. The Company
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without winding up. Further, post the said merger, w.e.f 27 March 2019, nina is known as AEKAM has adopted measures to curb the spread of infection in order to protect the health of its employees
and ensure business continuity with minimal disruption including remote working, maintaining social
Construction Specialties Private Limited (AEKAM) and w.e.f 15 April 2019, AEKAM is known as nina distancing, sanitization of work spaces etc.
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Percept Private Limited. Accordingly, the company’s investment in Percept are merged with nina Percept
Private Limited and the Company holds 71.53% stake in the merged entity. The Company has evaluated the impact of COVID-19 on the operations of the Company, order booking
and revenue, cash flow, assets and liabilities and factored in the impact of it upto the date of approval of
c) During the year, nina Percept Private Limited (nPPL), subsidiary of the Company along with Pidilite these financial statements on the carrying value of its assets and liabilities.
Speciality Chemicals Bangladesh Pvt Ltd (PSCB), step-down subsidiary of the Company, has
incorporated a subsidiary in Bangladesh namely ‘nina Percept (Bangladesh) Pvt Ltd’ to carry on the Even though, it is very difficult to predict the duration of the disruption and severity of its impact, on the
business of roofing and waterproofing services. nPPL shall hold 99% of the paid up share capital of nina basis of evaluation of overall economic environment, outstanding order book, liquidity position, debt
Percept (Bangladesh) Pvt Ltd and the balance 1% shall be held by PSCB. free status, recoverability of receivables, the Company expects to recover the carrying amount of these
assets and currently does not anticipate any further impairment of it. In assessing the recoverability,
d) During the year, the Company has incorporated a subsidiary in the name of ‘Pidilite Litokol Private the Company has considered internal and external information upto the date of approval of these Ind
Limited’ (PLPL). This subsidiary is incorporated to carry on the business of chemicals epoxy grouts, AS financial statements and has concluded that there are no material impact on the operations and the
chemical based products, etc. In terms of Shareholder’s agreement, the Company shall hold 60% of the financial position of the Company.
paid-up share capital and balance capital held by Litokol SPA, Italy.
Given the uncertainties, the impact of COVID-19 maybe different from that estimated as at the date of
e) During the year, The Company has incorporated a subsidiary in the name of ‘Pidilite Grupo Puma approval of these standalone financial statements, and the Company will continue to closely monitor the
Manufacturing Limited’ (PGPML) to carry on the business of manufacturing, processing, trading or developments.
dealing in technical mortars, building materials, high quality C2 tile adhesives, other materials used in
construction etc. The Company shall hold 50% of the paid-up share capital and balance capital held by 54 Events after reporting period
Corporacion Empresarial Grupo Puma S.L. (Grupo Puma).
The Company has entered into a definitive agreement with Tenax SPA Italy (Tenax Italy) for acquiring 70% of
f) The Board of Directors at its meeting held on 29 January 2020 have approved a restructuring proposal the share capital of Tenax India Stone Products Pvt Ltd (Tenax India) for cash consideration of approximately
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whereby the Company shall, for operational convenience and synergies, acquire the business of wholly 80.00 crores (depending upon the actual cash and working capital at the time of closing), subject to
owned entity, M/s nitin Enterprise (a partnership firm having two partners which are wholly owned certain preconditions being met prior to closing of the transaction. Tenax Italy is the leading manufacturer
subsidiaries of the Company) on a slump sale basis for a cash consideration of an amount not exceeding of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone industry.
18.50 crores. The Company has applied and awaiting for necessary approvals. Tenax India is a subsidiary of Tenax Italy engaged in the sales and distribution of Tenax Italy products for the
g) During the year, the Company has incorporated a Subsidiary Company in the name of “Pidilite C-Techos retail market in India.
Walling Limited” (PCWL) to carry on the business of construction of building works or any other
structural or architectural work of any kind using C-Techos wall technology, manufacturing of ACC panels 55 Approval of the financial statements
and other ancillary products. The Company shall hold 60% of the paid-up share capital and balance The financial statements are approved for issue by the Audit Committee and by the Board of Directors at
capital held by Chetana Exponential Technologies Pvt Ltd.
PIDILITE ANNUAL REPORT 2019-20
their respective meetings held on 17 June 2020.
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