Page 225 - Annual Report 2019-20

notes forming part of the consolidated financial statements Notes forming part of the consolidated financial statements 223

( in crores) ( in crores)
42 b) Non-Controlling Interest 43 Contingent Liabilities and Commitments
As at As at As at As at
31 March 31 March 31 March 31 March PIDILITE ANNUAL REPORT 2019-20
st
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2020 2019 2020 2019
Balance at the beginning of the year 207.15 175.01 A) Contingent liabilities not provided for:
Share of Profit for the year 5.63 3.48
1. Claims against the Group not acknowledged as debts comprises of:
Share of Other Comprehensive Income for the year 0.12 (0.05)
a) Income Tax demand against the Group not provided for and relating to issues of deduction 59.96 31.37
Non-Controlling Interests arising on the acquisition of: and allowances in respect of which the Group is in appeal
Pidilite East Africa Ltd 2.11 - b) Excise Duty and Service Tax claims disputed by the Group relating to issues of 51.12 31.13
Pidilite Litokol Pvt Ltd 0.40 - classifications
c) Sales Tax (VAT, CST, Entry Tax and GST) claims disputed by the Group relating to issues of 167.08 182.14
nina Lanka Construction Technologies (Private) Limited 0.18 -
declaration forms and classifications
nina Percept (Bangladesh) Pvt Ltd 0.10 - d) Other Matters (relating to disputed Electricity Duty, Gram Panchayat Tax, open access 6.64 5.49
Additional non-controlling interests arising on increase in capital of : charges, etc.)
Pidilite Lanka (Pvt) Ltd 0.35 2.11 2. Guarantees given by Banks in favour of Government and others * 57.60 62.72
ICA Pidilite Pvt Ltd - 26.60
* Guarantees given are for business purpose.
Dividend paid to Non-Controlling interests
B) Commitments:
Bamco Supply and Services Ltd (0.39) -
TOTAL 215.65 207.15 a) Estimated amount of contracts, net of advances, remaining to be executed on Property, 206.10 71.06
Plant and Equipment, investments and not provided for
b) For other commitments, refer note 50(E)(ii) Financial instruments, 45 Business
Non-wholly owned subsidiaries of the Group that have material non-controlling interests: Combinations, 54 Lease and note 56(b)(iii) & note 57 for committed investment in
other entities
Name of subsidiaries Place of Proportion of ownership C) The Supreme Court in a judgement has held that provident fund contributions are payable on basic wage, dearness
incorporation interests and voting allowances and all other monthly allowances, which are universally, necessarily and ordinarily paid to all the employees
and principal rights held by in the establishment across the board. There are numerous interpretative issues relating to the judgement. As such,
place of non-controlling interests the Company has, based on legal advice and as a matter of caution, made provision for an estimated amount on a
business
As at As at prospective basis.
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31 March 31 March ( in crores)
2020 2019
nina Percept Pvt Ltd [refer note 56(c)] India 28% 28% 44 Research & Development Expenditure
ICA Pidilite Pvt Ltd India 50% 50% For the For the
Cipy Polyurethanes Pvt Ltd India 30% 30% year ended year ended
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31 March 31 March
Building Envelope Systems India Pvt Ltd India 40% 40% 2020 2019
Pidilite Lanka (Pvt) Ltd Srilanka 24% 24% Capital expenditure included in Property, Plant and Equipment 2.52 1.27
Bamco Supply and Services Ltd Thailand 49% 49%
Revenue expenditure charged to Statement of Profit and Loss 70.20 64.89
TOTAL 72.72 66.16
( in crores)
Name of subsidiaries Profit/ (Loss) allocated to Other Comprehensive Accumulated
non-controlling interests Income non-controlling interest 45 (a) During the financial year 2015-16, pursuant to a Business Transfer Agreement (BTA) entered into by the Company
As at As at As at As at As at As at with nina Concrete Systems Private Limited (nCSPL), the Company acquired the waterproofing Business (the
31 March 31 March 31 March 31 March 31 March 31 March “Business”), including all its assumed assets and assumed liabilities, of nCSPL, a private limited company based in
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st
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2020 2019 2020 2019 2020 2019 India (the “Seller”), as a going concern and on a slump sale basis for a lump-sum consideration, with effect from
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17 April 2015.
nina Percept Pvt Ltd 0.86 2.88 0.03 (0.11) 42.03 41.14 The terms and conditions of the BTA included a total purchase consideration of 82.02 crores, out of which 78.90
[Refer note 56(c)] 0.77 (4.35) (0.11) (0.03) 122.09 121.25 crores was paid by the Company to the Seller as of 31 March 2020. A balance amount of 3.12 crores (refer note 28)
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PIDILITE ANNUAL REPORT 2019-20 Building Envelope Systems India (0.29) (0.72) (0.17) 0.08 3.59 0.08 (b) During the financial year 2017-18, 70% shareholding in CIPy Polyurathanes Pvt Ltd (CIPy) was acquired by entering
ICA Pidilite Pvt Ltd
including holdback Amount will be payable by the Company to the Seller by 31 October 2020 (The original terms of
0.07
st
BTA agreement is extended till 15 April 2020) and the settlement of which is to be completed by 31 October 2020,
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24.75
3.35
4.41
Cipy Polyurethanes Pvt Ltd
27.99
(0.11)
post verification of books of account.
-
0.52
9.51
0.01
0.84
8.66
An amount of net Working Capital, i.e. Receivables, Inventories, Retention Monies receivables, etc which would not
Pvt Ltd
have been fully realised by 15 April 2020, the settlement of which is to be completed by 31 October 2020, post
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st
verification of books of account), shall be deducted by the Company from the holdback amount payable to seller or
3.78
0.75
Bamco Supply and Services Ltd
0.37
will be recoverable from the seller.
0.05
7.60
7.49
0.12
Pidilite Lanka (Pvt) Ltd
2.84
0.24
(0.27)
-
Individually immaterial subsidiaries
(0.01)
into a share purchase agreement for cash consideration of 96.40 crores.
TOTAL
balance 30% of equity share capital of CIPy on or after expiry of 3 years from acquisition date i.e. on or after
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8 February 2021. Accordingly, a gross liability towards acquisition (refer note 28) has been recognised in this
with non-controlling interests 5.63 3.48 0.12 (0.05) 215.65 207.15 Pursuant to share purchase agreement, the Company has an option to purchase and the seller has an option to sell
222 financial statement based on a valuation report obtained from an independent valuer.