Page 245 - Annual Report 2019-20

Notes forming part of the consolidated financial statements Notes forming part of the consolidated financial statements 243

56 Other Information 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.
a) During the previous year, Group has invested in convertible promissory note which contains an embedded hence, an impairment loss aggregating to Rs 55.19 crores is disclosed as an exceptional item in the financial PIDILITE ANNUAL REPORT 2019-20
derivative in the form of an equity conversion option upon qualifying conditions. Group has elected the statements.
option to measure the hybrid instrument at fair value in its entirety with changes in fair value recognised in
Profit and Loss. j) In March 2020, the World health Organisation declared COVID-19 to be a pandemic. The operation of the
Company were disrupted since mid of March 20. As on date, The parent company has already restarted
b) During the year, Madhumala Ventures Pvt Ltd (Formerly known as Madhumala Traders Pvt Ltd) the operations albeit in a phased manner after obtaining necessary permissions as required. The Company
(Madhumala), a wholly owned subsidiary of the Company: has adopted measures to curb the spread of infection in order to protect the health of its employees and
(i) invested an amount of 49 crores in the homevista Décor & Furnishings Pvt Ltd (homeLane) by ensure business continuity with minimal disruption including remote working, maintaining social distancing,
subscription to Compulsory Convertible Cumulative Preference Shares. homeLane is a fast growing sanitization of work spaces etc.
home interiors company backed by strong tech-stack and presence in 7 cities with 16 experience The Company has evaluated the impact of COVID-19 on the operations of the Company, order booking and
centers in India. revenue, cash flow, assets and liabilities and factored in the impact of it upto the date of approval of these
(ii) invested an amount of 71.47 crores in the Trendsutra PlatformServices Pvt Ltd (Pepperfry) by financial results on the carrying value of its assets and liabilities.
subscription to Compulsory Convertible non-Cumulative Preference Shares. Pepperfry is an online Even though, it is very difficult to predict the duration of the disruption and severity of its impact, on the
furniture chain in India. basis of evaluation of overall economic environment, outstanding order book, liquidity position, debt free
(iii) invested an amount of 2.00 crores in the Aapkapainter Solutions Pvt Ltd (Aapkapainter). Madhumala status, recoverability of receivables, the Company expects to recover the carrying amount of these assets
has agreed to make an investment of 5.00 crores in Aapkapainter, a company engaged in providing and currently does not anticipate any further impairment of it. In assessing the recoverability, the Company
painting and waterproofing solutions to retail consumer. has considered internal and external information upto the date of approval of these Ind AS financial results
and has concluded that there are no material impact on the operations and the financial position of
c) During the previous year, Percept Waterproofing Services Limited (Percept) (80% Subsidiary of the the Company.
Company) was merged with nina Waterproofing Systems Pvt Ltd (nina) (70% Subsidiary of the Company),
pursuant to the hon’ble national Company Law Tribunal, Mumbai Bench, order dated Given the uncertainties, the impact of COVID-19 maybe different from that estimated as at the date of
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11 January 2019, w.e.f. the appointed date i.e. 1 April 2017 and consequently, Percept stands dissolved approval of these consolidated financial results, and the Company will continue to closely monitor the
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without winding up. Further, post the said merger, w.e.f 27 March 2019, nina is known as AEKAM developments
Construction Specialties Private Limited (AEKAM) and w.e.f 15 April 2019, AEKAM is known as nina Percept k) During the year, the Company had paid Interim Dividend of 7.00 per equity share of 1 each for the
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Private Limited. Accordingly, the Company’s investment in Percept are merged with nina Percept Private financial year 2019-20.
Limited and the Company holds 71.53% stake in the merged entity.
d) During the year, nina Percept Private Limited (nPPL), subsidiary of the Company along with Pidilite 57 Events after reporting period
Speciality Chemicals 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 business of roofing and The Company has entered into a definitive agreement with Tenax SPA Italy (Tenax Italy) for acquiring 70% of
waterproofing services. nPPL shall hold 99% of the paid up share capital of nina Percept (Bangladesh) the share capital of Tenax India Stone Products Pvt Ltd (Tenax India) for cash consideration of approximately
Pvt Ltd and the balance 1% shall be held by PSCB. 80 crores (depending upon the actual cash and working capital at the time of closing), subject to certain
preconditions being met prior to closing of the transaction. Tenax Italy is the leading manufacturer of adhesives,
e) During the year, the Company has incorporated a subsidiary in the name of ‘Pidilite Litokol Private Limited’ coating, surface treatment chemicals and abrasives for the marble, granite and stone industry. Tenax India is
(PLPL). This subsidiary is incorporated to carry on the business of chemicals epoxy grouts, chemical based a subsidiary of Tenax Italy engaged in the sales and distribution of Tenax Italy products for the retail market
products, etc. In terms of Shareholder’s agreement, the Company shall hold 60% of the paid-up share capital in India.
and balance capital held by Litokol SPA, Italy.
f) During the year, The Company has incorporated a subsidiary in the name of ‘Pidilite Grupo Puma 58 Approval of financial statements
Manufacturing Limited’ (PGPML) to carry on the business of manufacturing, processing, trading or dealing
in technical mortars, building materials, high quality C2 tile adhesives, other materials used in construction The consolidated financial statements are approved for issue by the Audit Committee and by the Board of
etc. The Company shall hold 50% of the paid-up share capital and balance capital held by Corporacion Directors at their respective meetings held on 17 June 2020.
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Empresarial Grupo Puma S.L. (Grupo Puma).
g) The Board of Directors at its meeting held on 29 January 2020 have approved a restructuring proposal
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whereby the Company shall, for operational convenience and synergies, acquire the business of wholly
owned entity, M/s nitin Enterprise (a partnership firm having two partners which are wholly owned
subsidiaries of the Company) on a slump sale basis for a cash consideration of an amount not exceeding
18.50 crores. The Company has applied for and is awaiting for necessary approvals.
h) During the year, the Company has incorporated a Subsidiary Company in the name of “Pidilite C-Techos
Walling Limited” (PCWL) to carry on the business of construction of building works or any other structural
PIDILITE ANNUAL REPORT 2019-20 i) During current year, the Company decided to sell plant and machinery pertaining to Synthetic Elastomer
or architectural work of any kind using C-Techos wall technology, manufacturing of ACC panels and other
ancillary products. The Company shall hold 60% of the paid-up share capital and balance capital held by
Chetana Exponential Technologies Pvt Ltd.

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
38.28 crores and an impairment loss amounting to 22.24 crores was provided in September 2019.
The Company has undertaken its best efforts to find buyers for these assets. In absence of buyer, as at
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31 March 2020, these assets were fair valued at estimated realizable scrap value in accordance with Ind AS
113 “FairValue Measurement”, being asset categorized as Level 3, whereby fair value is determined based on
the inputs to the valuation technique.
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