TECHNOLOGY, TRANSFORMATION, INNOVATION

PRICOL LIMITED
ANNUAL REPORT 2024
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001 Annual Report 2024 Financial Statements 002

DISCLAIMER TABLE OF
CONTENTS
The contents of this Annual Report are for
informational purposes only and for the
reader’s personal non-commercial use.
The contents are intended but not achievements expressed or implied by
guaranteed to be correct complete or
such forward-looking statements. The
absolutely, accurate. This report also
contains forward-looking statements Company disclaims any obligation or About Us 03
based on the currently held beliefs and liability to any person for any loss or Our Presence 05
assumptions of the Management of the damage caused by errors or omissions
Company, which are expressed in good Our Product Verticals 07
whether arising from negligence,
faith and in their opinion are reasonable.
accident or any other cause. Esteemed Customers 09
Forward looking statements involve Vectors of change 11 Chairman's Desk 33
Recipients of this report are not to
known and unknown risks, contingencies,
Select Recent Business Wins 13 Managing Director's Desk 35
construe its contents or any prior or
uncertainties, market conditions and Our Board of Directors 37
subsequent communications from or ESG Vision and Goals 15
other factors which may cause the
actual results, nancial condition,
with the Company or its representatives
Key Quarterly Highlights 17 Celebrating People 41
as investment advice. In addition, this
performance or achievements of the Key Operational Highlights 19 Corporate Social Responsibility 43
report does not purport to be all inclusive
Company or industry results to differ Directors’ Report & Management
materially from the results, nancial
or to contain all the information that may Performance Highlights 21
be required to make a full analysis of the
Key Financial Highlights 23 Analysis 47
condition, performance or
Company and of the relevance and Report on Corporate Governance 68
adequacy of the information and Capital Market Data 25
should make such other investigations as Partnership with TYW 27 Business Responsibility & Sustainability
they deem necessary. Prestigious Award 29 Report 81

Customers Awards 30 Independent Auditor's Report 119

Awards & Accolades 31 Balance Sheet 129

Statement of Prot & Loss 131
Cash Flow Statement 134
Notes to Financial Statements 136
Consolidated Financial Statements 182
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Be Dynamic
Constantly innovate and nd better ways to
deliver value to our customers

ABOUT US Constantly Evolve

Improve in every sphere of our activity
Work Passionately
To enhance value to our customers,
Pricol Limited is one of India's leading employees, suppliers and shareholders

automotive technology and precision Be Sustainable

are supplied to leading automotive OEMs in
Care for the society and environment around us
engineered Products and solutions Company, the Two-/Three-Wheelers, Passenger Vehicles,

MISSION
headquartered in Coimbatore, India. Commercial Vehicles & Off Highway Vehicles
Commencing operations in the year 1975 and space across India and in International
being committed to attain leadership and Markets.
excellence, the Company has evolved into a
Today, the Company has 8 manufacturing
reputed brand in the global automotive
plants across India (Coimbatore, Manesar,

VALUES
industry. By being customer centric and
Pantnagar, Pune, Sricity and Satara), 1
pushing the boundaries on product and We will strive to attain leadership
manufacturing unit in Indonesia, and 3
process technology and innovation, Pricol, and excellence in all the
international ofces (Dubai, Tokyo and products and services that we
today, is recognized as a preferred partner to provide, through socially and
Singapore). Pricol Limited is powered by a Passion
many leading automotive Original Equipment
environmentally acceptable
5,500+ strong, dedicated workforce which means. Whatever we do, we do it from the bottom of
Manufacturers (OEMs) across the world. our heart.
resolutely pursues the mission to be
Respect
The Company's operations classied into two
PASSIONATE, SUSTAINABLE, DYNAMIC and We respect those who add value to our lives.
verticals, Driver Information and Connected Integrity
EVOLVING.
Vehicle Solution (DICVS) and Actuation, We never compromise on our values.
Our logo represents the synergistic relationship Collaboration
Control and Fluid Management System
between the four stakeholders working in a We believe in working towards a unied goal.
(ACFMS). More than 2,000+ product variants
convergent manner in order to create value
Ownership
We are responsible for all our actions.
for each other.
Listen
We listen to both the spoken and unspoken
before we act.
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OUR
PRESENCE
Japan

Pantnagar
1 Plant
National Capital Region (NCR)
2 Plants

Pune
Dubai 1 Plant

Satara
1 Plant

Sricity
1 Plant

Coimbatore
2 Plants

Singapore

Plant Locations

International Ofces

Indonesia
1Plant
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OUR PRODUCT
VERTICALS Actuation, Control & Fluid Management Systems

Driver Information & Connected Vehicle Solutions

Oil Pumps Coolant Pumps

E-Cockpit

Disc Brake System

TFT Cluster LCD Cluster

Electronic Electrical Electrical

Purge Valve Oil Pumps Coolant Pumps
Hybrid Cluster Heads Up Display (HUD) Telematics - 1

Wiping Cabin Tilting Fuel Pump

Systems System Module
TFR Type Reed Type Battery Management
Fuel Level Sensor Fuel Level Sensor System - 2

-1
For End–to-End Solution with Cloud & Cyber Security in Collaboration with Sibros Technologies
-2
In Collaboration with BMS PowerSafe
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ESTEEMED TRACTORS

CUSTOMERS
TWO WHEELERS

OFF ROAD VEHICLE

PASSENGER VEHICLES INDUSTRIAL

NEW AGE EV CUSTOMERS

COMMERCIAL VEHICLES
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VECTORS OF CHANGE
TECHNOLOGY

TRANSFORMATION

INNOVATION

Located in the heart of Coimbatore, India, Pricol's dedication to operational

Pricol Limited stands as a symbol of excellence is endorsed by prominent
innovation within the automotive sector. industry players, evidenced by numerous
With a legacy spanning over half a
accolades from our esteemed customers,
century, Pricol has been at the forefront of
afrming our role as their preferred
advancing automotive technology,
continually pushing boundaries to strategic supplier.
redene mobility through intelligent, safer,
and sustainable solutions. The company's products reach customers
worldwide and are backed by multiple
Central to Pricol's mission is its substantial ISO certications, including IATF
investment in cutting-edge product and
16949:2016, ISO 14001:2015, and ISO
process technologies, which have
45001:2018, reecting our commitment to
signicantly transformed the automotive
industry. Further, these innovations have maintaining the highest quality standards.
not only boosted operational efciencies Pricol serves some of the most prestigious
but also fostered a culture of continuous OEMs domestically and globally, earning
improvement within the organization. their trust. Approximately 4 % of our
Pricol's pioneering efforts have garnered revenue is invested in engineering and
widespread recognition, including technology and with the support of two
accolades such as the "TOP 50
advanced technology centers, Pricol
INNOVATIVE COMPANIES" award from the
Confederation of Indian Industries (CII). remains steadfast in its pursuit of
engineering excellence.
Further underscoring Pricol's commitment
to sustainable business practices is its By seamlessly integrating state-of-the-art
proactive stance in anticipating market products and solutions with substantial
demands and technological shifts. Our investments in technology and
diverse range of products and solutions,
innovation, Pricol not only participates in
designed to be propulsion-agnostic,
underscores Pricol's ability to innovate in but leads the market, delivering efcient,
tandem with global trends, solidifying our connected, and sustainable solutions for
leadership in our specialized eld. the global mobility industry.
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SELECT RECENT
BUSINESS WINS

Bajaj Bajaj Hero MotoCorp DAIMLER Switch Mobility TAFE

(Pulsar NS 200) (Pulsar N 250) (Xtreme 125R) (Prime model) (IeV3/4 Series- EV) (AM Series)

Quantum TVS Motors Hero MotoCorp Tata Motors Tata Motors Bajaj Auto
(PLASMA Lite) EV (Apache 310 RTR – 5 ” TFT) (Mavrick 440) (Punch) (Nexon) (3W) EV

Bajaj - KTM (Duke) Gaura Triumph Motorcycles Honda Motorcycle and Scooters India Force Motors FPT Powertrain Technologies
Fuel Pump Module Assembly (G5) EV (Speed 400) (Oil Pump Assembly) (TRAX) (Oil Pump Assembly)

EV - Electric Vehicles
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At Pricol we aim to foster sustainable

protability by proactively integrating ESG
considerations into all aspects of our
business, while striving for environmental
stewardship and inclusive development
for all stakeholders

Environmental
Ÿ Aim to signicantly reduce Scope 2 emissions by 2026, contributing
to global efforts to mitigate climate change.
Ÿ Achieve Zero-Waste to landll status by 2026, while also reinforcing

VISION AND GOALS the dedication to sustainable waste management and the
principles of the circular economy.
Ÿ Focusing on achieving Zero-Waste to landll status by 2026, further
emphasizing the commitment to sustainable waste management .
Ÿ Intended to use 100% renewable energy across all facilities by 2026,
reducing the reliance on non-renewable energy sources.

Social
Ÿ Build strong employee engagement programs with rewards and
recognitions, fostering a positive and inclusive workplace culture.
Ÿ Strive to achieve a 10% increase in Diversity, Equity, and Inclusion
(DE&I) by 2026.
Ÿ Aim to improve business efciency by increasing employee
productivity, enhancing overall operational efciency.
Ÿ Support sustainable development activities through the focused
use of CSR funds, which will be carefully allocated under
Environment (~40%), Education (~40%) and Healthcare (~20%).

Governance
Ÿ Intend to implement risk management systems based on
standards such as ISO 31000, ensuring robust risk management
practices are in place.
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FY24 KEY QUARTERLY

HIGHLIGHTS
Ÿ Expanded facilities including Tool room, Plastic Components Ÿ Partnered with Heilongjiang Tianyouwei Electronics (TYW) to advance
Molding shop, New Driver Information System assembly shop technologies in Driver Information System Solutions across various

Q1 Q3
oor, Surface Mount Technology lines, and Vision-based robotic vehicle segments.
inspection systems.
Ÿ Recognized by Daimler Truck with the "Technology and Innovation"
Ÿ Recognized by Suzuki Motorcycle India Limited for "Best Supply award at their 2023 Annual Supplier Meet.
Chain Management" at their 2023 Annual Supplier Conference.
Ÿ Awarded "Best Quality Performance" by JCB at the Supplier Meet
Ÿ Awarded "Supplier Samrat - National Runner Up in Proprietary" 2023.
by Ashok Leyland at the 2023 Supplier Summit.
Ÿ Received the Gold Award from Tata Motors for excellence in Total
Ÿ Successfully hosted Kids Summer Camp 2023 with over 220 Quality Management (TQM).
registrations and more than 170 children participating, fostering
Ÿ Pricol participated in Consumer Electronics Show (CES) 2024 along
a day of fun and engagement.
with our partner Sibros Technologies.
Ÿ Plant 5 (Pune) and Plant 9 (Manesar) teams achieved rst prizes
Ÿ Granted a patent for the invention titled "HALL EFFECT LEVEL SENSING
in the ACMA India state-level competition for Productivity
DEVICE WITH SINGLE MAGNET," effective for 20 years from December
Improvement and Cost Reduction in the West and North
21, 2015.
regions, demonstrating our commitment to excellence.
Ÿ Corporate Manufacturing Engineering department of Pricol Limited
secured the prestigious Gold Award at the 6th National Low-Cost
Automation Circle Competition 2023 organized.

Ÿ Honored with the "Best Support" award from Mitsubishi Ÿ Awarded the “Golden Peacock Innovative
Heavy Industries Group at their Supplier Conference Product/Service Award 2024" by Institute of Directors
(IOD) for our Driver Information System (DIS) with

Q2 Q4
and recognized as a "Self-Certied Supplier" for FY24.
Internet of Things (IoT) Features designed for
Ÿ Received the "Supplier Reliability Cluster Program"
Premium Scooters.
award from TVS Motors.
Ÿ Recognized with the Bronze Award for "Excellence in
Ÿ Expanded investments in Surface-mount technology
Export" at the ACMA Excellence Awards & 9th
(SMT) for printed circuit board (PCB) and Assembly Line, Technology Summit 2024.
as well as in Disc Brake system assembly lines.
Ÿ Expanded investments in two-wheeler DIS assembly
Ÿ Pricol was the only Indian supplier invited by TVS Motors lines specically for EV customers, alongside new
for the launch of premium EV scooter, X , powered by cabin tilt system assembly lines.
the next generation TVS Smart X connect platform at Ÿ Featured prominently at the 4th Edition Global
Burj Khalifa, Dubai. Summit & Exhibition, ACMA India EV Expo at
Manekshaw Centre, Delhi, under the theme
'Transforming Mobility', showcasing our
cutting-edge EV-ready product.
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KEY OPERATIONAL
HIGHLIGHTS
2.
1.

3.

4.
1. Two Surface-mount Technology (SMT) lines for
printed circuit board (PCB) assembly have been
upgraded, with additional upgrades planned for
the next scal year.

2. Signicant investments have been made in the

Tool Room for upgradation.

3. Investments have been directed towards

enhancing the Plastic Component
Manufacturing Shop (PCMS), with plans to add
more machines in the coming scal year.

4. Multiple assembly lines have been introduced

across all plants (DIS, Disc Brake, CTS, etc.)
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PERFORMANCE
HIGHLIGHTS
REVENUE
(in Crores)
*Y-o-Y Growth 16.05 % ROCE (%)

INR 2,191.75 Standalone

22.60 Standalone

INR 2,208.17 Consolidated

23.18 Consolidated

EBITDA
(in Crores) FREE CASH FLOW
*Y-o-Y Growth 22.81 %
(in Crores)

INR 271.72 Standalone

INR 20.31 Standalone

INR 286.22 Consolidated

INR 85.77 Consolidated

PROFIT BEFORE TAX

(in Crores)
*Y-o-Y Growth 35.83 %

CASH RESERVES
INR 173.21 Standalone (in Crores)

INR 185.90 Consolidated INR 2.75 Standalone

INR 113.29 Consolidated

At the consolidated level, the company has been debt-free since Q2

FY22 and continues to maintain the same

* On Consolidated basis
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KEY FINANCIAL
HIGHLIGHTS
2,191.75
(All Values in INR Crs)

130.91
1,871.92 (Standalone)
1,478.73
1,336.15

112.58
271.72
1,139.05

13.32 %
215.93

12.03 %

12.40 %
11.54 %
43.39
178.00

178.00

8.58 %
14.60
FY 20
97.78
FY 22*
FY 20

FY 21

FY 23

FY 24

FY 22*
FY 21

FY 23

FY 24
Revenue from Operations
Prot After Tax
173.21

FY 22*
FY 20

FY 21

FY 23

FY 24

(212.88)
131.25

10.74
EBITDA

FY 22*
FY 20

FY 21

FY 23

FY 24
9.24
70.48

EBITDA Margin (%)

46.52

3.56
1.34
FY 20

FY 20
FY 22*
FY 21

FY 23

FY 24

FY 22*
FY 21

FY 23

FY 24
Prot Before Tax

Basic Earnings Per Share (EPS)

(216.72)

* The data for FY22 is Restated pursuant to amalgamation

of Pricol Wiping System India Limited with Pricol Limited.
(20.41)
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CAPITAL
MARKET DATA

(Crs) 12.19

(Crs) 4,742.40

Public - 30.51% Promoter - 38.51%

Pricol Sensex

As on 31st March 2024(NSE)

52 WEEKS HIGH

INR 444.00
DII - 16.59% FII - 14.39%
(Domestic Institutional Investors) (Foreign Institutional Investors)
52 WEEKS LOW

INR 185.60
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PARTNERED WITH
Heilongjiang Tianyouwei Electronics Co Ltd (TYW)

Pricol Partnered With Heilongjiang Tianyouwei Electronics Co Ltd (TYW) for advanced
technologies in Driver Information System Solutions

Pricol Limited , one of India’s leading automotive technology companies, announced

a technology and supply partnership with Heilongjiang Tianyouwei Electronics Co Ltd,
(TYW), a company duly incorporated under the laws of People's Republic of China for
advanced technologies in Driver Information System Solutions for Indian vehicle
makers across various vehicle segments.

Pricol has entered into a Co-operation Agreement for Technology and Supply of Parts

“
and Systems with TYW for advanced technologies in Driver Information System
Solutions.

Commenting on the partnership, Mr. Vikram Mohan, Managing Director, Pricol Limited
said,

“ This partnership with TYW is a testament to our commitment to

driving innovation in the Indian automotive sector. We are
condent that our efforts will help in providing state-of-the-art
solutions in the Driver information system space, where Pricol has
a dominant position in Indian market. Pricol's domain expertise
From Left Mrs. Dong Fang, President of TYW, Mr. Wang Wenbo, Chairman of TYW, Mr. Vikram Mohan, Managing Director combined with TYW’s technological prowess marks a signicant
of Pricol Limited and Mrs. Lakshmi N Mohan, Managing Director of Pricol Holdings Private Limited.
step towards achieving a vision of enhancing the driving
experience for Indian Customers.”
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PRESTIGIOUS AWARD CUSTOMERS AWARDS

GOLDEN PEACOCK AWARD
FOR INNOVATIVE PRODUCT AND SERVICE

Technology & Innovation Award

from Daimler Truck

Best Supply Chain Management Award Best Quality Performance Award

from Suzuki Motorcycle from JCB

The Golden Peacock Award, presented by the National Human Rights Commission of India and
Institute of Directors (IOD) India, recognize global National Commission for Constitution of India Reforms.
organizations for excellence across domains such as
corporate governance, innovation, quality, At the 2024 UAE Global Convention in Abu Dhabi,
Gold Award for DWM (Daily Work Management) Best Support & Self-Certied Supplier Awards
sustainability, and overall business performance. Pricol Limited proudly received the 'Golden Peacock
from Tata Motors from Mitsubishi Heavy Industries
Innovative Product/Service Award'. We received the
honor in the presence of His Highness Sheikh Nahayan
The 'Golden Peacock Innovative Product/Service
Bin Mabarak Al Nahayan (Cabinet Member and
Award' specically honors organizations that have Hon'ble Minister of Tolerance & Coexistence, UAE)
developed groundbreaking products or services, and H.E. Sunjay Sudhir IFS, Ambassador of India to
setting new benchmarks in their industries through United Arab Emirates. Lt. Gen. Surinder Nath, PVSM,
creativity, technological advancement, and AVSM (Retd.), President, Institute of Directors.
addressing market needs with pioneering solutions.
The jury to shortly list the awardees composed of 10 This accolade acknowledges Pricol's commitment to
members of repute across various industries and innovation, particularly for its Driver Information
chaired by Hon'ble Justice M. N. Venkatachaliah, System (DIS) solutions integrated with IoT capabilities
former Chief Justice of India and former Chairman, for premium scooters.
Best Cost Saving Award
from TVS Motors Supplier Samrat National Runner Award
from Ashok Leyland
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AWARDS & ACCOLADES AWARDS & ACCOLADES

Bronze Award for Excellence in Export from ACMA 1st Prize in the ACMA state level competition organized at North region

“EXCELLENT AWARD” in 37th National Convention Gold award at the 8th Chapter Convention on Silver award in the 12th Edition of Productivity Conclave 1st Prize in the ACMA state level
on Quality Concepts (NCQC 2023) Quality Concepts organized by QCFI at Coimbatore. organized by Coimbatore Productivity Council competition organized at West region

Gold award at the 34th Quality Circle Convention organized Gold award at the 8th Chapter Convention on Quality “Safety Excellence Award” “Safety Excellence Award”
by Quality Circle Forum of India –Delhi Chapter NCR Concepts organized by QCFI at Coimbatore at the 7th Edition at the 7th Edition

“EXCELLENT AWARD” in 37th National Convention Gold award at the 34th Quality Circle Convention organized “First Prize” in the Quality Conclave organized by QCFI “First Prize” in the 4th BAL - BAVA Kaizen Competition,
on Quality Concepts (NCQC 2023) by Quality Circle Forum of India – Delhi Chapter NCR Region 9th Kaizen Contest organized by ACMA organized by Bajaj
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CHAIRMAN’S DESK
Dear Shareholders,
The Fourth Industrial Revolution is upon us, workforce of over 5,500 employees and
marked by the fusion of physical and digital more than 450 product and process
technologies that are transforming engineers, we continue to innovate and
industries and societies. Advances in are committed to deliver excellence in all
articial intelligence, robotics, the Internet facets of the business.
of Things (IoT), and biotechnology are Today, Pricol supplies products directly to
driving unprecedented innovation and 16+ countries and has earned numerous
efciency. This revolution is characterized certications demonstrating adherence to
by the seamless integration of cyber- the highest standards of quality and
physical systems, enabling smart factories, sustainability.
autonomous vehicles, and personalized
experiences. Pricol's key customers include some of the
most respected OEMs of the country and
As these technologies evolve, they are globally too - and it is for a reason that we
reshaping economies, creating new business exude such trust. Pricol invests
models, and posing both opportunities and approximately 4.5% of its total revenue in
challenges for workforce, development and engineering and technology, supported by
regulatory frameworks. Progress, however, 2 technology centres that showcase our

“
shall reap benets only amidst concerted commitment to engineering,
action towards creating a sustainable manufacturing, and testing excellence.
world-one that ensures intergenerational
equity. As a result, our innovative efforts have been
widely recognized, earning us over 15+ key
Halfway into 2024, and we are already awards and recognitions in the recent
witnessing climate shocks of alarming times, such as the Golden Peacock Award,
proportions that pose a risk to economic ACMA Excellence Awards, and a position
stability, and by extension that of the among the Top 50 Innovative Companies
society and mankind. The Reserve Bank of by the Confederation of Indian Industry
India, in its Annual Report highlighted that (CII).
low water levels in reservoirs, particularly in
the Southern States, and anticipated We reect on our remarkable journey,
above-normal temperatures in the early made possible by the unwavering support
months of 2024-25, require close of our shareholders, employees, customers,
monitoring. It's not all gloom and doom, as and suppliers. We are dedicated to
India continues to outperform the major enhancing these vital partnerships that
economies of the world and is expected to have been our steadfast foundation. With Our commitment to
register a real Gross Domestic Product deep gratitude, we thank each one of you
(GDP) growth of 7% for FY2025 with risks for your indispensable contributions and innovation, sustainability and
evenly balanced. This, in a world, that is eagerly anticipate your ongoing support in
expected to grow at 3.2% by the IMF. the years ahead. operational excellence will
With close to 5 decades of experience, I am continue to drive Pricol
proud to reect on Pricol’s journey and the
Best wishes,
milestones that we have achieved forward.
together. Today, with a dedicated

Vanitha Mohan
Vanitha Mohan
Chairman
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Dear Shareholders,

MANAGING DIRECTOR’S DESK As we march towards our 50th year of operations,

the past four decades evoke a sense of pride
and purpose. India has transformed itself,
instrumental in improving the margins, and we
remain steadfast in our pursuit of the same in the
coming times.
emerging as an economic superpower. We have
been at the heart of this revolution, mobilizing our Our dedication to sustainability reects our long-
expertise to power this growth engine. term vision of fostering responsible growth and
contributing to societal progress. With a
Today, we are synonymous with industry refreshed perspective on ESG goals, we are
leadership in the Driver Information System committed to integrating sustainable practices
space, with a signicant market share across into every facet of our business—people,
various vehicle segments. The industry is products, technology, and beyond. Our
undergoing rapid digitalization to enhance the commitment is to reduce signicantly reduce
vehicle driver's experience and we are at the carbon footprint in the near future and to inspire
epicentre of this transformation. We are pleased future generations to advance this legacy even
to report a steady increase in our market share further.
across various vehicle segments thereby
underscoring the strength of our product and Strategic Imperatives:
service offerings.
The recent spurt of activities in the EV ecosystem,
Despite many external challenges due to the charging infrastructure, and green mobility are
VUCA environment prevalent globally, we heartening. Notably, majority of our products are
remain steadfast in our commitment to our vision propulsion agnostic, positioning us as a preferred
and our condence in our ability to deliver partner for OEMs across diverse segments.
consistently improving performance. We deeply
appreciate your continued trust and support as In order to support our growth, we are
we navigate through these dynamic times. signicantly expanding capacities and also
Please be rest assured, that your company modernization and uplifting our plants in the
remains resolute in its dedication to delivering North, West and South of India, in addition to
value to all its stakeholders. adding one greeneld plant in Pune.

“
Financial Performance: We continue to invest heavily in new product
development, and process engineering
Growth in FY2024 was primarily fuelled by a amounting to nearly 4.5% of our annual turnover
steady growth in the 2-Wheeler segment, which through our engineering and technology group
was to some extent partially offset by the muted in order to deliver best in class products and
growth in the commercial vehicles (CV) and the services to our customers to maintain our market
tractor segments. We are pleased to inform you leadership. Our Company is committed to
that at consolidated level we have achieved a capitalizing on both volume and premiumization
16.05% increase in our revenue in FY 2024 over the opportunities within the automotive industry,
previous year. We have steadily increased our leveraging our strong growth indicators.
EBITDA margin and have achieved an EBITDA Furthermore, we are actively exploring avenues
margin of 12.62% in FY 2024 and are hopeful of for inorganic growth to diversify our product
maintaining this momentum in the coming years. portfolio and entering new geographies to
We are also happy to inform you that we have no improve our global footprint, albeit with
long-term debt and have started signicantly abundant and absolute caution.
reducing even our working capital deployment.
Our return on capital employed is at a very In conclusion, our strategic focus on sustainable
impressive 23.18% in FY 2024. growth, coupled with our commitment to
We remain focused on operational excellence, positions us well to
driving sustainable growth Outlook and Initiatives: deliver long-term value to all our stakeholders.
We are excited about the future and condent in
and delivering long-term We are optimistic about the future and we
anticipate maintaining the momentum that we
our ability to navigate the complexities of the
market, achieving success and creating lasting
value to all stakeholders. have set for growth in the past few years. value for our shareholders, employees,
Additionally, our focus on innovation is customers, and suppliers.
underscored by the introduction of new products Best Wishes,
Vikram Mohan to meet evolving market demands. Productivity
Managing Director and process enhancements have been

Vikram Mohan
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OUR BOARD OF DIRECTORS

Mrs. VANITHA MOHAN Mr. VIKRAM MOHAN
CHAIRMAN MANAGING DIRECTOR

Mr. R. VIDHYA SHANKAR Mr. P. M. GANESH Mr. P. SHANMUGASUNDARAM Mr. K. ILANGO

INDEPENDENT DIRECTOR CEO & EXECUTIVE DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR

Dr. S. K. SUNDARARAMAN Mr. NAVIN PAUL Mrs. SRIYA CHARI Mr. VIJAYRAGHUNATH
INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR
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BOARD OF DIRECTORS CHIEF FINANCIAL OFFICER

Mr. Priyadarsi Bastia
COMPANY SECRETARY
Mr. T. G. Thamizhanban

Mrs. Vanitha Mohan, Chairman (DIN: 00002168) STATUTORY AUDITOR SECRETARIAL AUDITOR
Mr. Vikram Mohan, Managing Director (DIN: 00089968) M/s. VKS Aiyer & Co., M/s. P. Eswaramoorthy and Company,
Mr. P. M. Ganesh, Chief Executive Ofcer & Executive Director (DIN: 08571325) Chartered Accountants, Company Secretaries,

Mr. R. Vidhya Shankar, Independent Director (DIN: 00002498) No. 380, VGR Puram, Off Alagesan Road, 44, 5th Street, Ramalinga Jothi Nagar,
Saibaba Colony, Coimbatore - 641 011 Ramanathapuram, Coimbatore - 641 045
Mrs. Sriya Chari, Independent Director (DIN: 07383240)

Dr. S.K. Sundararaman, Independent Director (DIN: 00002691)

COST AUDITOR BANKS
Mr. P. Shanmugasundaram, Independent Director (DIN: 00119411)
Mr. G. Sivagurunathan, ICICI Bank Limited
Mr. K. Ilango, Independent Director (DIN: 00124115) Cost Accountant, IndusInd Bank Limited
Mr. Navin Paul, Independent Director (DIN: 00424944) No.277 /1, Second Floor, Thadagam Road,
Mr. Vijayraghunath, Independent Director (DIN: 00002963) (Indian Bank Upstairs), Venkitapuram,
Coimbatore - 641 025.

REGISTERED OFFICE REGISTRAR & TRANSFER AGENTS

109, Race Course, Integrated Registry Management Services Private Limited
BOARD COMMITTEES
Coimbatore - 641 018, India. Iind Floor, “ Kences Towers”, No.1, Ramakrishna Street,
AUDIT COMMITTEE NOMINATION & REMUNERATION COMMITTEE Ph: +91 422 4336000 North Usman Road, [Link], Chennai - 600 017.

Mr. K. Ilango Dr. S.K. Sundararaman E-mail: cs@[Link] Ph: 044-28140801-03

Website: [Link] E-mail: einward@[Link]
Mr. Navin Paul Mr. Navin Paul
CIN: L34200TZ2011PLC022194 Website: [Link]
Mrs. Sriya Chari Mr. Vijayraghunath

Mr. Vijayraghunath

FACTORIES

Plant I Plant V Plant X

STAKEHOLDERS RELATIONSHIP COMMITTEE INVESTMENT AND BORROWING COMMITTEE 132, Mettupalayam Road, Global - Raisoni, Industrial Park, 650, Benjamin Road,
Dr. S.K. Sundararaman Mrs. Vanitha Mohan Perianaickenpalayam, Gat No.180 - 187, Alandi - Markal Road, Sri City - 517 646,
Mr. Vijayraghunath Mr. Vikram Mohan Coimbatore - 641 020, Phulgaon, Haveli Taluka, Andhra Pradesh, India

Mrs. Vanitha Mohan Dr. S.K. Sundararaman Tamilnadu, India. Pune - 412 216, Maharashtra, India.
Plant II Plant VII Plant XII
Mr. Vikram Mohan Mr. Vijayraghunath
Plot No. 34 & 35, Sector 4, Plot No. 45, Sector 11, K-7, MIDC, Satara - 415004
IMT Manesar, Gurugram - 122 050, Integrated Industrial Estate, Maharashtra, India
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE RISK MANAGEMENT COMMITTEE
Haryana, India. Pantnagar, SIDCUL,
Mrs. Vanitha Mohan Mr. Vikram Mohan Plant III Rudrapur - 263 153,
Mr. Vikram Mohan Mr. K. Ilango 4 / 558, Mettupalayam Road, Uttarakhand, India.
Mr. K. Ilango Chinnamathampalayam, Plant IX
Mr. P. M. Ganesh
Billichi Village, Press Colony Post, Plot No. 120, Sector 8,
Coimbatore - 641 019, IMT Manesar, Gurugram - 122 050,
Tamilnadu, India. Haryana, India.
 Corporate Overview
Pricol Limited Statutory Reports
041 Annual Report 2024 Financial Statements 042

CELEBRATING PEOPLE
People form the core for Pricol and they are one of the strongest pillars shaping our organization and
culture for what we are known for. To celebrate and recognize them we have undertaken various
people centric initiatives and engagements to strengthen their bond even further. We launched a
variety of recreational clubs like the Sports, Nature, Health, and Special Interest Clubs, tailored to our
diverse workforce's interests.

We encourage a healthy lifestyle through events such as marathons and trekking, empowering
employees to achieve personal goals. Off-site meetings, like #HRMeet, foster strategic discussions
and team bonding. Yoga sessions on International Yoga Day prioritize mental well-being, while
celebrating festivals together strengthens our inclusive culture.

Our dedication extends to organizing a Kids Summer Camp for Pricolians' children, fostering
community and enjoyment. These initiatives reect our commitment to a workplace where
employees feel valued, inspired, and empowered for personal and professional success.
 Corporate Overview
Pricol Limited Statutory Reports
043 Annual Report 2024 Financial Statements 044
Free Eye Camp for the General Public

CORPORATE SOCIAL
RESPONSIBILITY
Renovation of Valavadi Government School

Renovating government schools is crucial for creating a conducive learning environment. Dilapidated buildings,
broken furniture, and inadequate amenities like sanitation facilities can signicantly impede the learning process.
Improving physical infrastructure not only ensures safer and more welcoming surroundings for students but also
boosts their concentration and motivation to learn.

Additionally, it helps attract and retain qualied teachers, thereby enhancing overall educational quality. As part
of this effort, we are currently renovating Narayanaswamy Naidu Government Higher Secondary School in
Valavadi.

Renovation of Primary Health Centres

As part of our Corporate Social Responsibility (CSR) initiatives, Pricol Limited is dedicated to community welfare and
enhancing quality of life. We're organizing free eye camps to provide essential services, improve health, and foster
community spirit.

Aligning with our CSR goals, these camps aim to benet underserved communities by facilitating early disease detection
and treatment. In collaboration with Sankara Eye Hospital, we've conducted four camps in FY 23-24 at Pallapalayam,
Perumal Kovil Pathy (Siruvani), Karamadai and Perur Chettipalayam, beneting 250 individuals.

Free Eye camps for Government Schools

Education is the cornerstone of personal and societal development, but vision problems pose a signicant barrier to
learning for many children in government schools. Undiagnosed and untreated vision issues can lead to difculties in
reading, writing, and overall academic performance, affecting a child's prospects. Pricol's Corporate Social Responsibility
Renovating Primary Health Centres (PHCs) is crucial for providing essential healthcare services such as maternal (CSR) initiatives can play a crucial role in addressing this challenge by organizing free eye camps for government school
and child health, immunizations, disease treatment, and emergency care. Improved infrastructure not only students.
enhances care quality but also reduces pressure on higher-level facilities, ensuring healthcare access for all
socio-economic groups. We have provided Free eye camps for 52 Corporation schools in association with Sankara Eye Hospital. Total number of
12,370 students have been benetted from this camp. We are providing free spectacles for those identied with defects in
These initiatives signicantly enhance community health and well-being, making them integral to their vision.
comprehensive CSR strategies. As businesses embrace social responsibilities, PHC renovations represent a
Wildlife SOS
meaningful investment in societal health and future. We've selected Valavadi Primary Health Centre for Pricol is dedicated to Corporate Social Responsibility (CSR) and recognizes the importance of wildlife conservation. To
renovation due to its aging infrastructure. support this cause, we collaborate with Wildlife SOS, a non-prot organization committed to rescuing and rehabilitating
India's wildlife. This project includes rescue and rehabilitation of endangered and injured animals and ensures their
sustainability and protections of habitats.
 Corporate Overview
Pricol Limited Statutory Reports
045 Annual Report 2024 Financial Statements 046

CORPORATE SOCIAL
RESPONSIBILITY
With Pricol's longstanding commitment to social and employee welfare,
we are determined to help create a better society. As good corporate
citizens, we feel responsible to actively contribute our best efforts to
enhance the societal and the environmental needs.

As a part of our We Care Program, We've launched the Arogya Vanam

tree-planting initiative with Siruthuli, planting 93 species of native
medicinal plants. Over 900 trees, including 66 on behalf of shareholders
were planted. Additionally, we donated an electric waste disposal
vehicle, strengthening our commitment.

Arogya Vanam
 Pricol Limited
047 Annual Report 2024

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

Dear Members,

Your Directors with immense pleasure present the Thirteenth Annual Report of Pricol Limited (”Company”) on the business
and operations together with the audited financial statements (Standalone & Consolidated) for the financial year
ended 31st March, 2024 and Auditor's Report thereon.

FINANCIAL RESULTS ` Lakhs

Standalone Consolidated
The summarised financial results are:
2023-24 2022-23 2023-24 2022-23

Net Sales & Services

- Domestic 2,04,950.54 1,73,440.69 2,05,921.83 1,74,774.02

- Export 14,224.80 13,751.12 14,895.06 15,509.10

Revenue from Operations 2,19,175.34 1,87,191.81 2,20,816.89 1,90,283.12

Other Operating Revenue 6,361.34 5,572.95 6,361.34 5,572.95

Other Income 1,047.35 402.36 1,315.83 458.53

Total Income 2,26,584.03 1,93,167.12 2,28,494.06 1,96,314.60

Profit from Operations before Finance Cost,

Depreciation and Amortisation Expense,

Exceptional Items & Tax 27,171.53 21,593.24 28,621.52 23,306.03

Less : Finance Costs 1,820.71 1,827.36 1,825.00 1,828.25

: Depreciation and Amortisation Expenses 8,029.82 7,615.88 8,206.06 7,790.78

Profit / (Loss) before Exceptional Items & Tax 17,321.00 12,150.00 18,590.46 13,687.00

Add : Exceptional Item — 975.00 — 975.00

Profit / (Loss) Before Tax 17,321.00 13,125.00 18,590.46 14,662.00

Less : Tax Expense

Current Tax 4,750.53 3,313.86 5,045.19 3,620.32

Deferred Tax (451.07) (1,446.75) (425.48) (1,426.85)

Earlier years (Net) (69.95) — (90.40) —

Profit / (Loss) for the year (A) 13,091.49 11,257.89 14,061.15 12,468.53

Other Comprehensive Income for the year before tax (682.25) (310.57) (757.36) 273.92

Income tax relating to these items 171.71 78.16 167.17 67.58

Other Comprehensive Income for the year after tax (B) (510.54) (232.41) (590.19) 341.50

Total Comprehensive Income for the year (C) = (A) + (B) 12,580.95 11,025.48 13,470.96 12,810.03

Cash Profit 20,610.77 18,641.36 21,677.02 20,600.81

Earnings per share (EPS) Basic & Diluted (in ` ) 10.74 9.24 11.54 10.23

DIVIDEND & RESERVES

As the current year profit after setting off the losses of the previous years are inadequate to declare dividend, your
Directors do not recommend any dividend and not transferred any amount to reserves for the year 2023-24.
 Corporate Overview
Statutory Reports
Financial Statements 048

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

AUTO INDUSTRY
During the year, the Auto Industry's domestic sales grew by 12.5 % and exports by (5.5)%. The overall Auto Industry’s
production grew by 9% as against 12.5% in the previous financial year.

Vehicle Production*
Segment
2023-24 2022-23 Growth %
2 Wheeler / 3 Wheeler 2,24,66,469 2,03,17,602 10.58 %
Commercial Vehicle 10,66,429 10,35,626 2.97 %
Tractors 8,74,500 9,38,500 (6.82) %
4 Wheeler 49,01,844 45,87,116 6.86 %
Total 2,93,09,242 2,68,78,844 9.04 %

*As per Society of Indian Automobile Manufacturers (SIAM)

COMPANY 'S PERFORMANCE There was no change in Authorised, Issued, Subscribed

and Paid up capital during the financial year 2023-24.
OPERATIONS
SUBSIDIARY COMPANIES
In domestic market, Company primarily caters to
2 wheelers, Commercial Vehicles, Tractors, 4 wheelers Pricol Asia Pte Limited, Singapore
and Off-road vehicles.
This purchasing arm of our Company mainly assists in
STANDALONE global procurement of raw materials and components to
our Company and associate companies.
The Company's domestic sales was up by 18.17% and
overall Company's sales by 17.09% compared to the In the financial year 2023-24, Pricol Asia Pte Limited
previous year. The profit from operations before Finance achieved sales of USD 649.46 Lakhs (` 53,743.09 Lakhs) as
cost, Depreciation, Amortisation expenses, Exceptional against the previous year sales of USD 545.20 Lakhs
items & Tax is ` 27,171.53 Lakhs compared to (` 43,017.70 Lakhs). The Company made a profit of
` 21,593.24 Lakhs during the previous year. Profit before USD 14,99,287 (`1,240.68 Lakhs) during the year 2023-24 as
Exceptional items & Tax has increased from ` 12,150 Lakhs against USD 10,38,306 (` 819.26 Lakhs) in 2022-23.
to ` 17,321 Lakhs, due to increase in sales volume and
PT Pricol Surya Indonesia
better control on costs.
The company is supplying Instrument Clusters to the
CONSOLIDATED
2 Wheeler manufacturers in Indonesia & Thailand.
The profit from operations before Finance cost, In the financial year 2023-24, PT Pricol Surya Indonesia has
Depreciation, Amortisation expenses and Exceptional achieved a sales of IDR 3,71,635 Lakhs (` 1,993.82 Lakhs)
items & Tax has increased from ` 23,306.03 Lakhs to as against the previous year sales of IDR 6,59,014 Lakhs
` 28,621.52 Lakhs. The operational performance has (` 3,545.50 Lakhs) a decrease of 43.61% in IDR & 43.76 % in
improved due to increase in sales volume and better INR terms. The Company had a profit before tax of
control on costs. Profit before Exceptional items & Tax is IDR 73,488 Lakhs (` 394.26 Lakhs) as against the profit
` 18,590.46 Lakhs compared to ` 13,687.00 Lakhs. before tax of IDR 1,33,413 Lakhs (` 717.76 Lakhs) of previous
Share Capital year.
PT Sripri Wiring Systems, Indonesia
Authorised & Issued, Subscribed and Paid up Capital
During the year, PT Sripri Wiring Systems, the wholly owned
As on 31st March 2024,
subsidiary of PT Pricol Surya Indonesia, was closed.
a) Authorised share capital of the Company is Pricol Asia Exim DMCC, Dubai
` 79,45,00,000/- comprising of 79,45,00,000 Equity
The company, a Wholly Owned Subsidiary of Pricol Asia
Shares of ` 1 each.
Pte Limited, Singapore, is a purchasing arm of our
b) Issued, subscribed and paid-up Equity Share capital Company mainly assisting in global procurement of raw
of the Company is ` 12,18,81,498/- comprising of materials and components to our Company and
12,18,81,498 Equity Shares of ` 1 each. associate companies.
 Pricol Limited
049 Annual Report 2024

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

During the financial year 2023-24, the company during the COVID-19 pandemic, the Indian economy has
achieved sales of USD 47,60,648 (` 3,939.49 Lakhs) as demonstrated resilience and maintained healthy
against the previous year sales of USD 577 (` 0.46 Lakhs). macroeconomic fundamentals.
The Company made a profit of USD 75,699 (` 62.64 Lakhs) Strong domestic demand for consumption and
during the year 2023-24 as against the loss of USD 31,185 investment, along with Government’s continued
(` 24.61 Lakhs) during the previous year. emphasis on capital expenditure has been the key
Pricol Electronics Private Limited, India economic driver in FY24. India has registered the highest
The company, a Wholly Owned Subsidiary of Pricol Asia growth among major advanced and emerging market
Pte Limited, Singapore, was incorporated on 11th April economies and is likely to become the third-largest
2023. The Company is yet to commence its business economy in 2027 in USD terms. It is also estimated that
operations. During the year, the Company had a loss of India’s contribution to global growth will rise by 200 basis
` 1.35 Lakhs (Previous year: Nil). points in the next 5 years.

OUTLOOK, OPPORTUNITIES, CHALLENGES, RISKS & The IMF forecasts India's GDP to grow at 6.7% in 2024 and
CONCERNS 6.5% in 2025, driven by robust domestic demand and
government spending. Economic fundamentals are
Global Economy:
improving, with decreasing inflation, robust financial
The global economy has proven to be remarkably ecosystem, better fiscal management, and rising foreign
resilient to the shocks of the last year. This resilience was reserves.
mostly due to strong macroeconomic fundamentals in
The massive tripling of the capital expenditure outlay in
most of the advanced and emerging market economies
the past 4 years has resulted in a huge multiplier impact
and robust consumer and government spending. United
on economic growth and employment creation.
States managed to sidestep recessionary pressures, while
Manufacturing sector growth is on the rise supported by
Europe exhibited economic resilience surpassing earlier
government policies and initiatives, while the services
projections. China faced formidable challenges in
sector is adopting new technologies for global
regaining its economic momentum.
competitiveness. Government and RBI’s timely
Inflation remains above target in many countries interventions aided India's quick recovery from recent
however it continues to soften in all the major economies. global shocks. Reforms in taxation, banking, and ease of
Asia is more nuanced, because inflation did not rise as doing business, along with infrastructure investments will
much as in the west, and it is coming down faster. As a boost long-term economic growth potential.
result, interest rates have not risen as much. Global
The Indian Automotive Sector
Inflation is expected to decrease faster than anticipated,
reaching 5.8 percent in 2024 and 4.4 percent in 2025, led The Indian automotive industry is poised for substantial
by easing supply-side issues and tighter monetary growth, with projections indicating that it could reach a
policies. staggering $1 trillion valuation by 2035, making it the
world's fourth-largest automotive market. The industry has
The recovery in global economic growth is facing
set an ambitious target to double its size to INR 15 Lakh
challenges due to multiple crises, including high debt
Crore by the end of 2024. Within the domestic market,
levels, energy crisis and geopolitical tensions. The Red
two-wheelers and passenger cars holds significant
Sea crisis has disrupted global trade routes, leading to
market share of 76% and 17.4% respectively. Additionally,
increased transit times, shipping costs, insurance
the government in its Union Budget 2023 has also
premiums, etc.
increased the budget allocation for FAME II.
As per the International Monetary Fund (IMF) global
The industry’s ambitious expansion plan also includes
economy is projected to grow at 3.1% and 3.2% for 2024
$400 billion-plus contribution from design, development,
and 2025 respectively. This uptick in growth is attributed to
and other technological advancements, signalling
the resilience of the United States and certain emerging
India's transformation into a prominent global
markets, along with expected fiscal support in China.
automotive hub. However, achieving this milestone
However, this growth remains below the historical
requires industry players to enhance their capabilities
average, primarily due to elevated central bank policy
significantly, ensuring reliable and competitive
rates combating inflation, reduced fiscal support, and
manufacturing on a global scale. The domestic
sluggish productivity growth.
automobile companies are expected to make
Indian Economy: substantial investments in the coming years with an
Despite uncertainty from adverse geopolitical objective to establish a formidable global presence. This
developments and expansionary fiscal measures taken influx of private capital will be directed towards
 Corporate Overview
Statutory Reports
Financial Statements 050

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

developing new platforms, facilitating the evolution of America, Europe, and Asia saw significant increase with
these companies into integral components of global North America alone accounting for 32% of total exports.
supply chains. This underscores the industry's strong foothold in
The Indian automotive industry also stood as a global international markets and its ability to capitalize on global
powerhouse and has accomplished significant demand.
achievements across various segments. As India being The auto component aftermarket segment in India
the largest producer of tractors, 2nd largest continue to see notable growth in next few years and is
manufacturer of buses and 3rd largest producer of heavy expected to reach USD 32 billion by 2026 fuelled by strong
trucks worldwide, it demonstrated the country's international demand and resurgence in the local OEM
formidable position in the global heavy vehicles market. and Aftermarket segments. The industry is positioned for
Moreover, the sector is categorised into two-wheelers, further expansion and investment opportunities.
three-wheelers, passenger vehicles, and commercial
Government initiatives such as the Production Linked
vehicles, exhibited robust growth mainly driven by growth
Incentive (PLI) scheme and the extension of schemes like
in passenger cars and two–wheeler vehicles. As the
FAME (Faster Adoption and Manufacture of Electric
industry evolves, there's a notable shift towards electric
Vehicles) have been instrumental in driving growth and
vehicles (EVs) to address emissions concerns, with
innovation in the automotive sector. With significant
substantial investments and initiatives aimed at fostering
investments pouring in, particularly in the electric vehicle
a vibrant EV ecosystem.
(EV) segment, India's automotive industry is on track to
Furthermore, the industry's growth trajectory is achieve ambitious targets, including a projected
underscored by strategic investments and turnover of USD 200 billion by FY26 and a substantial
collaborations, both domestic and internationally. From contribution of 5-7% to India's GDP by 2026.
Tata Motors' acquisition of Renault Nissan's infrastructure
upgrades and Mahindra & Mahindra's partnership with Growth Drivers:
global investors for electric vehicle expansion, the sector
1) India is projected to become the youngest nation by
has witnessed significant developments. The
2025 with average age of 25 years, indicating a vast
government's supportive policies, coupled with initiatives
young population to enter the workforce which will
like the Bharat NCAP and the Vehicle Scrappage Policy,
drive consumption, including the demand for
further reinforce the industry's commitment to
vehicles.
sustainability and safety. As India chalks its plans towards
becoming a global manufacturing and R&D hub, these 2) The expected rise in vehicle penetration to 72
initiatives are pivotal in making India to lead in the vehicles per 1000 people by 2025 also suggests a
automotive sector leads in terms of innovation, growing market for automobiles, fuelled by factors
sustainability, and economic growth. such as urbanization, infrastructure development,
The Indian Auto Ancillaries Sector and rising disposable incomes.

India's economy has surged as the fastest-growing 3) India is gradually becoming an R&D hub as it
globally, driven by rising incomes, increased accounts for 40% of the global engineering and R&D
infrastructure investment, and incentives for spend, with 8% dedicated to the automotive sector.
manufacturing. This growth has particularly boosted the This signify opportunities for innovation,
automobile and auto components sector, with two- technological advancements, and product
wheelers benefiting the most due to the rising middle development, driving industry growth.
class. The country has become a focal point for original
equipment and auto component manufacturers, 4) The government's initiative to promote self-reliance
positioning itself as a hub of expertise. The Automotive through a comprehensive economic package of
Mission Plan (2016-26) targets a 5-7% GDP contribution INR 20 Lakh Crore aims to boost domestic
and aims to create 3.2 million direct jobs by 2026. manufacturing, including the automotive sector,
fostering investment, job creation, and industry
Furthermore, India's auto component industry, ranging
resilience.
from large corporations to micro-enterprises, plays a
pivotal role in exports and job creation, employing over 5) Despite its current modest value, the EV market is
37 million people. The sector's robust performance expected to expand rapidly, reaching USD 7.09
underscores India's growing prowess in automotive billion by 2025, mainly driven by rising awareness of
manufacturing and its potential as a global player in the environmental issues and sustainable development
industry. Notably, key export destinations such as North goals.
 Pricol Limited
051 Annual Report 2024

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

6) Initiatives like the Production-Linked Incentive (PLI) down the procedures to inform Board members about
Scheme provide financial incentives to boost risk assessment and minimisation procedures.
domestic manufacturing and attract investments,
The Risk Management policy has been placed on the
fostering industry growth and competitiveness.
website of the Company and the web link there to is
7) Adoption of digital sales channels, such as virtual [Link]
showrooms, facilitates easier and more convenient [Link]
vehicle purchases, catering to changing consumer
preferences and enhancing market accessibility. Risk management is an ongoing activity considering the
continuous changing business environment in which
Risk:
Company operates. During the year, Risk Management
1) The Covid-19 pandemic has exposed vulnerabilities Committee periodically met to identify, monitor,
in the automobile industry's supply chain, leading to evaluate and manage the risks of the Company.
production delays and increased costs due to At present, the Company has not identified any element
difficulties in sourcing critical components. of risk which may threaten the existence of the
2) The extended period of semiconductor shortage Company.
has the potential to hamper growth for passenger
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR
vehicles in particular.
ADEQUACY
3) If the commodity prices continue to inch higher, the
The Company has internal control systems commensurate
working capital requirement for the business would
with the nature of its business, the size, and complexity of
go up due to the higher cost of inventory.
its operations and such internal financial controls with
4) Compliance with safety, emissions, and fuel reference to the Financial Statements are adequate.
efficiency regulations poses challenges for
The Company also adopted policies and procedures for
automobile manufacturers, particularly smaller
the governance of the orderly and efficient conduct of its
companies with limited resources for research and
business including adherence to Company’s policies,
development.
safeguarding of its assets, the prevention and detection
5) Limited development of electric vehicle of frauds and errors, the accuracy and completeness of
infrastructure, including charging stations, presents a the accounting records and the timely preparation of
hurdle for the adoption of electric vehicles in India, reliable financial information and its disclosures. The
potentially hindering market acceptance and sales. Company has well documented policies and standard
operating procedures covering all financial and
6) High-interest rates and rising fuel costs may act as
operating functions.
headwinds.
The Company’s internal control systems have been
RISK MANAGEMENT
strengthened taking into account the nature of business
Risk Management Committee of the Board was and size of operations to provide for:
constituted in accordance with Regulation 21 of the SEBI
(Listing Obligations and Disclosure Requirements) • Reliability and integrity of financial and operational
Regulations, 2015. The Risk Management Committee is information;
responsible to frame, implement and monitor the risk • Effectiveness and efficiency of operations and assets;
management plan for the Company. The Committee is
responsible for development and implementation of a • Compliance with applicable statutes, policies, listing
Risk management Policy for the Company including requirements and management policies &
identification therein elements of risk, if any, which in the procedures.
opinion of the Board may threaten the existence of the
To further strengthen the internal control system, the
Company and is responsible for reviewing the risk
Company has a well established own corporate internal
management plan and its effectiveness.
audit team. Internal Audit team periodically reviews
Company’s Risk Management Policy has been adopted compliance of operations at all locations and all
for identifying and managing risk, at the strategic, functions, inline with the documented policies and
operational and tactical level. Our risk management procedures and assesses the effectiveness & efficacy of
practices are designed to be responsive to the ever the same in terms of effective internal controls. Internal
changing Industry dynamics. The Company has also laid audit team also monitors the status of management
 Corporate Overview
Statutory Reports
Financial Statements 052

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

actions on the previous internal audit findings. The (“UPSI”) by designated persons and their immediate
significant audit findings are reviewed on a quarterly relatives. The said code lays down guidelines, which
basis at the Audit Committee meetings. The Audit advises Designated Persons on the procedures to be
Committee at its meetings regularly reviews the financial, followed and disclosures to be made while dealing
operating, internal audit & compliance reports to with the shares of the Company and cautions them on
improve performance. The heads of various monitoring / consequences of non-compliances. The Company
operating departments are present for the Audit has Code of practices and procedures for fair
Committee meetings to answer queries raised by the disclosures of unpublished price sensitive information
Audit Committee. by including a policy for determination of legitimate
Based on the framework of internal financial controls and purposes. Further, the Company has put in place
compliance system established and maintained by the adequate & effective system of internal controls and
Company, work performed by the internal, statutory, standard processes to ensure compliance with the
cost, and secretarial auditors and external agencies requirements given under these regulations to
including audit of internal financial controls over financial prevent insider trading. The same is available on the
reporting by the statutory auditors and the reviews website of the Company h t t p s : / / p r i c o l . c o m / w p -
performed by Management and the relevant Board content/uploads/2023/01/ Code-of-Fair-
Committees, including the Audit Committee, the Board is [Link].
of the opinion that the Company’s internal financial 2) C o d e o f c o n d u c t f o r d i r e c t o r s a n d s e n i o r
controls were adequate and effective during FY 2023-24. management of the company
The Company has adopted the Code of Conduct for
The Company has adopted accounting policies which
Directors and Senior Management of the Company.
are in line with the Indian Accounting Standards notified
The same is available on the website of the Company
under Section 133 of the Act read with the Companies
[Link] uploads/ 2023/04/
(Indian Accounting Standards) Rules, 2015. Statutory
Code-of-Conduct-Board-of-Directors-Senior-
Auditors review the quarterly financial results at the end of
[Link]
each quarter and audit the annual financial statements
at the end of each financial year. FINANCE
During the year, the Company has not accepted /
CODE OF CONDUCT
renewed any deposit from public. The total deposits
1) Code of fair disclosure of UPSI remained unpaid or unclaimed as at 31st March, 2024 is
The Company has adopted a Code of Conduct to Nil. There is no default in repayment of deposits or
regulate, monitor and report trading by Designated payment of interest thereon during the year. The
Persons. This Code of Conduct is intended to prevent Company undertook several steps to keep a control over
misuse of Unpublished Price Sensitive Information borrowings and cost of borrowings.

CREDIT RATING :
Consequent to the good financial performance, your Company was able to improve its credit rating as follows.

Credit Agency Facility Present Ratings Previous Ratings

CRISIL Long Term – ` 14,500 Lakhs CRISIL A / Stable – Upgraded CRISIL A - / Stable
Fund-Based and Non Fund-Based IND A / Stable / IND A1 – Upgraded IND A - / Stable / IND A2+
India Ratings
Working Capital Limits– ` 8,000 Lakhs
and
Research Long Term Loans – ` 2,772 Lakhs IND A / Stable – Upgraded IND A- / Stable
(reduced from ` 4,560 Lakhs)

RELATED PARTY TRANSACTIONS Committee was obtained for the transactions, which
were of a foreseen and repetitive nature.
The Company has formulated a Policy on Related Party
Transactions, in line with the requirements of the All related party transactions that were approved by the
Companies Act, 2013 ("Act") and the SEBI Listing Audit Committee were periodically reported to the Audit
Regulations. During the financial year under review, all Committee. None of the Contracts, Arrangements or
related party transactions that were entered by the transactions with related parties required approval of the
Company were approved by the Audit Committee and Board / Shareholders under Section 188(1) of the Act or
were on arm's length basis and in the ordinary course of 23(4) of SEBI (Listing Obligations & Disclosure
the business. Prior omnibus approval of the Audit Requirements) Regulations, 2015.
 Pricol Limited
053 Annual Report 2024

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

During the year, there were no materially significant term due to his health conditions. Board places its
related party transactions made by the Company with appreciation for the valuable contributions made by
Promoters, Key Managerial Personnel or other [Link], to the Board & the Company
designated persons which may have potential conflict during his tenure as an Independent Director.
with the interest of the Company.
Shareholders, on 3rd April 2024, through postal ballot by
Details of related party transactions entered into by the way of special resolution, had approved the following:
Company, in terms of Ind AS-24 have been disclosed in a) Re-appointment of [Link], as an Independent
the notes to the Standalone/Consolidated financial Director for the second term of 5 (five) consecutive
statements forming part of this Report & Annual Accounts years with effect from 15th June 2024 to 14th June
2023-24. 2029.
The Company has also adopted the Policy on Related b) Appointment of [Link], as an Independent
Party Transactions and the same is available on the Director for the first term of 5 (five) consecutive years
website of the Company at [Link] commencing from 1st February 2024 to 31st January
content/uploads/2023/04/Policy-on-Related-Party- 2029.
[Link] c) Re-appointment & remuneration to [Link]
DIRECTORS Mohan, Chairman, for a period of three years
commencing from 1st April 2024 to 31st March 2027.
Independent Director
d) Re-appointment & remuneration to Mr. [Link],
As per the provisions of Section 149 of the Act, Regulation Chief Executive Officer & Executive Director, for a
25 of the SEBI (Listing Obligations and Disclosure period of three years commencing from 1st April 2024
Requirements) Regulations, 2015, the Members to 31st March 2027.
appointed Independent Directors as mentioned below:
In the opinion of the Board, the Independent Directors
Name of Independent Period of Appointment appointed / re-appointed during the year have the
Director integrity, expertise and experience (including the
Mr. P. Shanmugasundaram Upto 14th June 2024 proficiency) to act as independent director of the
(not opted for second term) Company.
Mr. [Link] Shankar Upto 31st July 2024
EXECUTIVE DIRECTOR / NON INDEPENDENT DIRECTOR
(Second term of 5 years)
Mr. Navin Paul Upto 21st October 2025 Members appointed Executive Directors / Non
(First term of 5 years) Independent Directors as mentioned below:
Mrs. Sriya Chari Upto 26th May 2026
Name of Director Period of Appointment
(Second term of 5 years)
Dr. S. K. Sundararaman Upto 29th May 2028 Mr. Vikram Mohan Upto 31st March 2025
(Second term of 5 years)
Mrs. Vanitha Mohan Upto 31st March 2027
Mr. Vijayraghunath Upto 31st January 2029
(First term of 5 years) Mr. P.M. Ganesh Upto 31st March 2027
Mr. K. Ilango Upto 14th June 2029
The Board of Directors, at their meeting held on 15th May
(Second term of 5 years)
2024 re-appointed [Link] Mohan as Managing
Director for a period of three years with effect from 1st
[Link] Shankar, Independent Director completes
April 2025 to 31st March 2028 and fixed the remuneration
his second term of 5 years on 31st July 2024 and as per
payable to him as set out in the AGM notice, subject to
regulations he cannot continue as an Independent the approval of the shareholders. The Board
director. Board places its high appreciation & records his recommends the re-appointment & remuneration
contribution in Board’s operations & Company’s payable to him.
performance. Board also appreciates the valuable
guidance provided by [Link] Shankar during his 19 [Link], a Non-Independent Director retires by
rotation at the ensuing Annual General Meeting and
years of service as Independent director.
being eligible offers himself for re-appointment. Details of
[Link], Independent Director [Link] being recommended by the Board for
completes his first term of 5 years on 14th June 2024. re-appointment is included in the notice of the ensuing
He did not opt for reappointment for the second Annual General Meeting.
 Corporate Overview
Statutory Reports
Financial Statements 054

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

EVALUATION BY THE BOARD, COMMITTEE & INDEPENDENT (5) years, from the conclusion of 12th Annual General
DIRECTORS Meeting until the conclusion of the 17th Annual General
Meeting of the Company to be held in the calendar year
In accordance with applicable provisions of the
2028.
Companies Act, 2013 (‘Act’) and SEBI Listing regulations,
the Board has made a formal annual evaluation of its M/s. VKS Aiyer & Co., Chartered Accountants have
own performance, Committees of the Board, furnished a certificate to the Board confirming that they
Independent Directors and Individual Directors of the are not disqualified from continuing as Auditors of the
Company. The Board's performance was evaluated Company.
based on the criteria like Structure, Governance,
The report of the Statutory Auditor forms part of this Report
Dynamics & Functioning, Approval & Review of
and Annual Accounts 2023-24. The said report does not
Operations, Financials, Internal Controls etc.
contain any qualification, reservation, adverse remark or
The performance of the Independent Directors as well as disclaimer. During the year under review, the Auditors did
Individual Directors including the Chairman of the Board not report any matter under Section 143(12) of the Act,
were evaluated based on the evaluation criteria laid therefore no detail is required to be disclosed under
down under the Nomination and Remuneration Policy Section 134(3)(ca) of the Act.
and the Code of Conduct as laid down by the Board.
COST AUDITOR
The Committees of the Board were evaluated
In terms of Section 148 of the Act, the Company is
individually based on the terms of reference specified by
required to maintain cost records and have the audit of
the Board to the said Committee. The Board of Directors
its cost records conducted by a Cost Accountant. Cost
were satisfied with the evaluation process which ensured
records are prepared and maintained by the Company
that the performance of the Board, its Committees,
as required under Section 148(1) of the Act .
Independent Directors and Individual Directors adhered
The Board of Directors at their meeting held on 15th May
to their applicable criteria.
2024, on the recommendation of the Audit Committee,
On 25th January 2024, Independent Directors had a appointed [Link], Cost Accountant,
separate meeting in which they evaluated the (ICWAI Membership No: 23127), as the Cost Auditor for
performance of the Non-Independent Directors, the conducting the Cost Audit for the financial year 2024-25,
Board as a whole and Chairman of the Company, based at a remuneration of ` 3.00 Lakhs in addition to
on the criteria laid down under Nomination and reimbursement of travel and out-of pocket expense.
Remuneration policy, Code of Conduct & SEBI’s [Link] have vast experience in the field of
guidance note and satisfied with their performance. cost audit and have been conducting the audit of the
The Nomination and Remuneration at its meeting held on cost records of the Company for the past several years.
22nd January 2024 evaluated the performance of the A resolution seeking members' ratification of the
individual directors and the Board as a whole and remuneration payable to Cost Auditor is included in the
satisfied with their performance. AGM Notice. The Cost Audit Report will be filed within the
stipulated period.
KEY MANAGERIAL PERSONNEL
SECRETARIAL AUDITOR
In terms of Section 203 of the Companies Act, the Key
The Board has appointed M/[Link] and
Managerial Personnel of the Company as stipulated
Company, (FCS No.: 6510, CP No.: 7069) Practicing
under Companies Act, 2013 are [Link] Mohan,
Company Secretaries to conduct Secretarial Audit of the
Managing Director, [Link] Bastia, Chief Financial
Company for the financial year 2024-25.
Officer & [Link], Company Secretary.
The Secretarial Audit Report for the financial year 2023-
STATUTORY AUDITORS
2024, as per Section 204 of the Companies Act and
M/s. VKS Aiyer & Co., Chartered Accountants, Regulation 24A of SEBI (Listing Obligations and Disclosure
Coimbatore (ICAI Firm Registration No: 000066S), were re- Requirements) Regulations, 2015, is annexed herewith as
appointed as Statutory Auditors of the Company, at the "Annexure A". There are no qualifications, observations,
AGM held on 9th August, 2023, for the second term of five adverse remarks or disclaimer in the said report.
 Pricol Limited
055 Annual Report 2024

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

SECRETARIAL STANDARDS and collective advancement. A total of 1,604 training

programs and 367 engagement activities were
The Company has in place proper systems to ensure
conducted across the plants during the financial year
compliance with the provisions of the applicable
2023-24.
secretarial standards issued by The Institute of Company
Secretaries of India and such systems are adequate and DIRECTORS RESPONSIBILITY STATEMENT
operating effectively. The Company had complied with
In accordance with the provisions of Section 134(3) (c) &
the applicable Secretarial Standards.
(ca) of the Companies Act, 2013, the Directors would like
CSR INITIATIVES to state that:

Pricol's Corporate Social Responsibility (CSR) activities a) in the preparation of annual accounts, the
reflect its philosophy of enhancing value to the society applicable accounting standards have been
and the environment around us. Company is committed followed and that there were no material
to operate & grow in a socially sustainable manner and departures;
continue to give back to the society. CSR activities of the
b) they had selected such accounting policies and
Company are focused in Environment, Health &
applied them consistently and made judgements
Education of needy sections, which are carried out
and estimates that were reasonable and prudent so
through implementing agencies in addition to the CSR
as to give a true and fair view of the state of affairs of
activities directly undertaken by the Company. The CSR
the Company at the end of the financial year and of
Policy is available on the website of the Company
the profit and loss of the Company for the year under
[Link]
review;
Policy_21.pdf. The Annual Report on CSR activities is
annexed herewith as "Annexure B". c) they had taken proper and sufficient care for the
maintenance of adequate accounting records in
DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL
accordance with the provisions of the Companies
RELATIONS
Act, 2013 for safeguarding the assets of the
With a proactive approach to employee development, Company and for preventing and detecting fraud
we invest significantly in training programs aimed at and other irregularities;
upskilling our workforce, ensuring they remain adept in
d) they had prepared the annual accounts on a going
cutting-edge technologies and industry trends. Through
concern basis;
strategic initiatives, the Company has achieved zero loss
of hours due to industrial relations issues, fostering a e) they had laid down internal financial controls to be
harmonious work environment conducive to productivity followed by the Company and such internal
and innovation. Our commitment to continuous financial controls are adequate and are operating
improvement is evident through our implementation of effectively; and
productivity engagement methodologies like Kaizen
and Poka Yoke, empowering employees to identify and f) they had devised proper systems to ensure
rectify inefficiencies while enhancing overall operational compliance with the provisions of all applicable laws
excellence. The number of people deployed as of and such systems were adequate and operating
31st March 2024 is 6,107. effectively.

Employee Engagement DISCLOSURES:

Employee engagement thrives on a multitude of 1. Independent Directors have given declarations that
enhancement endeavours, ranging from health camps, they meet the criteria of independence as provided
marathons, and outbound training to productivity in Section 149(6) of the Companies Act, 2013 and
initiatives like ‘Weekly Kaizen Drives' and awards Regulation 16 (1) (b) and Regulation 25 of SEBI (Listing
acknowledging contributions to Kaizen and QCC. Our Obligations and Disclosure Requirements)
recreational clubs offer employees the chance to Regulations, 2015. Further, in terms of Regulation
enhance their hobbies and interests while fostering social 25(8) of the Listing Regulations, the Independent
bonds and maintaining a healthy work-life balance. From Directors have confirmed that they are not aware of
trekking through scenic trails to engaging in various any circumstance or situation, which exist or may be
sports, our recreational clubs promote a dynamic reasonably anticipated, that could impair or impact
organizational culture that prioritizes employee welfare their ability to discharge their duties.
 Corporate Overview
Statutory Reports
Financial Statements 056

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

2. Salient features of the Nomination and 12. Details of transactions of the listed entity with any
Remuneration Policy is disclosed in the Report on person or entity belonging to the promoter /
Corporate Governance. promoter group which hold(s) 10% or more
shareholding in the listed entity:
3. Qualification, reservation or adverse remark or
disclaimer made by Statutory Auditor & Secretarial Details are given in Note.63 to the Standalone
Auditor in their report: NIL Financial Statements.

4. The p a rti c ul a rs of Loa ns , G ua ra ntees a nd 13. Number of other board of directors or committees in
Investments made by the Company under Section which a director is a member or Chairperson,
186 of the Companies Act, 2013 are given in Note.64 including separately the names of the listed entities
to the Standalone Financial Statements. where the person is a director and the category of
directorship:
5. Disclosure as required under Schedule V (A) (2) of
SEBI (Listing Obligations and Disclosure Disclosed in the Report on Corporate Governance
Requirements) Regulations, 2015 is given in Note.65 “Annexure E", point no: 2.
to the Standalone Financial Statements.
14. Detailed reasons for the resignation of an
6. There are no significant and material orders passed independent director who resigns before the expiry
by the Regulators / Courts / Tribunals which would of his tenure along with a confirmation by such
impact the going concern status and the director that there are no other material reasons
Company's operations in future. other than those provided.
7. There is no change in nature of business of the Not Applicable
Company during the year.
15. Business Responsibility and Sustainability Reporting
8. Material changes and commitments, affecting the
financial position of the Company which have Business Responsibility and Sustainability Reporting
occurred between the end of the financial year of as required pursuant to Regulation 34 of SEBI (Listing
the Company to which the financial statements Obligations and Disclosure Requirements)
relate and the date of the report: NIL. Regulations, 2015 read with SEBI Circular No. SEBI /
HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12th
9. Conservation of Energy, Technology Absorption and July 2023, is annexed herewith as “Annexure F”.
Foreign Exchange Earnings and Outgo:
16. Details of Subsidiary Companies, Joint Venture and
The information on conservation of energy, Associate Companies, and their financial position:
technology absorption and foreign exchange
earnings and outgo stipulated under Section 134(3) Pursuant to Section 129(3) of the Companies Act,
(m) of the Companies Act, 2013 read with Rule 8 (3) 2013, (“Act”) the consolidated financial statements
of the Companies (Accounts) Rules, 2014 is annexed of the Company and its subsidiaries prepared in
herewith as "Annexure C". accordance with the relevant Accounting
Standards specified under Section 133 of the Act,
10. Annual Return: read with Rule 7 of the Companies (Accounts) Rules,
Pursuant to Section 92 (3) of the Companies Act, 2014, forms part of this Annual Report.
2013 and Rule 12 of Companies (Management and
The information as required under the first proviso to
Administration) Rules, 2014, Annual Return in Form
sub-section (3) of Section 129 in Form AOC-1 is
MGT-7 is available at the Company's website at
annexed herewith as “Annexure G”.
[Link]
06/[Link]. 17. Names of companies which have become or
ceased to be its Subsidiaries, joint ventures or
11. Particulars of Remuneration to Directors and
associate companies during the year;
Employees:
During the year:
The information required pursuant to Section 197
read with Rule 5 of the Companies (Appointment (i) Pricol Electronics Private Limited, a wholly
and Remuneration of Managerial Personnel) Rules, owned subsidiary of Pricol Asia Pte Limited, was
2014 is annexed herewith as "Annexure D". incorporated on 11th April 2023.
 Pricol Limited
057 Annual Report 2024

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

(ii) PT Sripri Wiring Systems, a wholly owned 19. Details in respect of frauds reported by auditors
subsidiary of PT Pricol Surya Indonesia, was under Section 143(12) of the Companies Act, 2013:
closed.
During the year under review, there were no frauds
18. Particulars of contracts / arrangements entered into
reported by the auditors to the Audit Committee or
by the Company with related parties referred to in
the Board under Section 143(12) of the Companies
sub-section (1) of Section 188 of the Companies Act,
Act, 2013.
2013 including certain arm’s length transactions
under third proviso thereto:
20. List of credit ratings obtained by the entity along with
All the related party transaction entered by the any revisions thereto during the relevant financial
Company during the financial year 2023-24 are in year, for all debt instruments of such entity or any
the ordinary course of business and at arm’s length. fixed deposit programme or any scheme or
Details of material contracts / arrangements / proposal of the listed entity involving mobilisation of
transactions entered at arm’s length with the related funds, whether in India or abroad:
parties as required under Section 134 (3) (h) of the
Companies Act, 2013, in Form AOC-2 is annexed Disclosed under the heading “Finance” in this
herewith as “Annexure H”. Report.

21. Key Financial Ratios (Explanations for significant change i.e. change of 25% or more as compared to the
immediately previous financial year):

Key Financial Ratios 2023-24 2022-23 % Change Explanations, if any

i) Debtors Turnover 8.06 7.51 7.42

ii) Inventory Turnover 7.85 7.39 6.23 Not Applicable

iii) Current Ratio 1.26 1.14 10.38

iv) Interest Coverage Ratio 14.92 11.82 26.23

Reduction in term loans
v) Debt Equity Ratio 0.06 0.13 (55.91)

vi) Operating Profit Margin 8.97 7.78 15.29

vii) Net Profit Margin (%) or Not Applicable

sector-specific equivalent 5.97 6.01 (0.68)
ratios, as applicable.

22. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a
detailed explanation thereof.

Particulars 2023-24 2022-23 % Change Explanations, if any

Return on Net Worth 0.18 0.18 — Not Applicable

23. Your company is in receipt of Show Cause Notice challenging the Show Cause Notice. The Honourable
from the GST Authorities as to the classification of Court has granted interim stay, restraining the
Instrument Clusters. While we are classifying the Department from passing any order pursuant to the
Instrument Clusters under Chapter 90 attracting a Show Cause Notice.
GST rate of @ 18%, the GST Authorities seek to classify
the same under Chapter Heading 8708 which We understand that similar enquiries have been
attracts GST @ 28%. As per the legal opinion obtained initiated on various other suppliers of Instrument
in this regard, the classification proposed by the GST Clusters as well thus making it an industry-wide issue.
Department is incorrect. We have filed a Writ Petition We emphasize that this challenge is not isolated to
before the Honourable Madras High Court our Company but is a pervasive issue affecting
 Corporate Overview
Statutory Reports
Financial Statements 058

DIRECTORS' REPORT & MANAGEMENT ANALYSIS

multiple industry participants. In connection with the Practicing Company Secretary's Certificate regarding
same, various representations have been made to compliance of conditions of Corporate Governance, is
the Governmental Authorities by the Company even made a part of this Directors' Report. All the Board
before the Show Cause Notice was issued. Also, Members and Senior Management personnel have
other auto component manufacturers and industry affirmed compliance with the code of conduct for the
association have made representations as well. year 2023-24.

24. There is no proceeding pending under the CAUTIONARY STATEMENT

Insolvency and Bankruptcy Code, 2016.
Management Discussion and Analysis forming part of this
25. There was no instance of one-time settlement with Report is in compliance with SEBI (Listing Obligations and
any Bank or Financial Institution. Disclosure Requirements) Regulations, 2015 and such
statements may be "forward-looking" within the meaning
26. During the year, the Company’s security(s) are not
of applicable securities laws and regulations. Actual
suspended from trading.
results could differ materially from those expressed or
27. There are no agreements that subsist as on date implied, important factors that could make a difference
under clause 5A to para A of part A of Schedule III of to the Company's operations include economic
SEBI (Listing Obligations and Disclosure conditions affecting demand / supply and price
Requirements) Regulations, 2015. conditions in the domestic and overseas markets in which
the Company operates, changes in the Government
CORPORATE GOVERNANCE
regulations, tax laws and other statutes and other
Your Company re-affirms its commitment to good incidental factors.
corporate governance practices. The Company
ACKNOWLEDGEMENT
complies with corporate governance requirements
specified in regulation 17 to 27 and regulation 46 of the Your Directors place on record their sincere thanks and
SEBI (Listing Obligations and Disclosure Requirements) appreciation to Customers, Distributors, Dealers,
Regulations, 2015, whichever applicable. Suppliers, Shareholders, Bankers and Government
authorities for their continued support and co-operation.
Pursuant to Schedule V of SEBI (Listing Obligations and
Your Board also wish to place on record their
Disclosure Requirements) Regulations, 2015 the Report on
appreciation to the employees at all levels for their
Corporate Governance which forms a part of this Report,
continued co-operation and commitment.
has been annexed herewith as "Annexure E".

Chief Executive Officer and Chief Financial Officer have For and on behalf of the Board
certified to the Board with regard to the financial
statements and other matters as required under Vanitha Mohan
Regulation 17 (8) of the SEBI (Listing Obligations and Date : 15th May 2024 Chairman
Disclosure Requirements) Regulations, 2015. Place : Coimbatore (DIN : 00002168)
 Pricol Limited
059 Annual Report 2024

ANNEXURE “A” TO DIRECTORS’ REPORT

Form No. MR - 3
SECRETARIAL AUDIT REPORT b. The Securities and Exchange Board of India
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2024 (Prohibition of Insider Trading) Regulations, 2015;

[Pursuant to Section 204 (1) of the Companies Act, 2013 c. The Securities and Exchange Board of India (Issue
and Rule No. 9 of the Companies (Appointment and of Capital and Disclosure Requirements)
Remuneration of Managerial Personnel) Rules, 2014] Regulations, 2018 [Not applicable as the
To Company has not issued any security during the
The Members, Financial Year under review];
Pricol Limited, [CIN: L34200TZ2011PLC022194] d. The Securities and Exchange Board of India (Share
109, Race Course, Coimbatore - 641 018 based Employee benefits) Regulations, 2014 [Not
I have conducted the Secretarial Audit of the compliance of applicable as the Company does not have any
applicable statutory provisions and the adherence to good Scheme for share based employee benefits during
corporate practices by Pricol Limited (hereinafter called the Financial Year under review];
“the Company”). Secretarial Audit was conducted in a e. The Securities and Exchange Board of India (Issue
manner that provided me a reasonable basis for evaluating and Listing of Debt Securities) Regulations, 2008
the corporate conducts / statutory compliances and [Not applicable as the Company has not issued
expressing my opinion thereon. and listed any debt securities during the Financial
Based on my verification of the Company's books, papers, Year under review];
minute books, forms and returns filed and other records f. The Securities and Exchange Board of India
maintained by the Company and also the information
(Registrars to an Issue and Share Transfer Agents)
provided by the Company, its officers, agents and
Regulations, 1993, regarding the Companies Act
authorized representatives during the conduct of Secretarial
and dealing with client [Not applicable as the
Audit, I hereby report that in my opinion, the Company has,
Company is not registered as Registrar to an Issue
during the Audit period covering the Financial Year ended
and Share Transfer Agent during the Financial Year
31st March, 2024, complied with the statutory provisions listed
under review];
hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the g. The Securities and Exchange Board of India
extent, in the manner and subject to the reporting made (Delisting of Equity Shares) Regulations, 2009 [Not
hereinafter: applicable as the Equity Shares of the Company
have not been delisted during the Financial Year
I have examined the books, papers, minute books, forms and
under review];
returns filed and other records maintained by the Company
for the period ended 31st March, 2024 according to the h. The Securities and Exchange Board of India (Buy-
provisions of: back of Securities) Regulations, 2018 [Not
applicable as the Company has not bought back /
(i) The Companies Act, 2013 (the Act) and the rules made
proposed to buy back any of its securities during
thereunder;
the Financial Year under review];
(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA')
and the rules made thereunder; i. The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements)
(iii) The Depositories Act, 1996 and the Regulations and Regulations, 2015.
Bye-laws framed thereunder;
(vi) Investor Education and Protection Fund Authority
(iv) Foreign Exchange Management Act, 1999 and the (Accounting, Audit, Transfer and Refund) Rules, 2016.
rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment I have relied on the representation made by the Company
and External Commercial Borrowings; and its officers, relating to systems and mechanisms framed
by the Company, for ensuring compliance with the other
(v) The following Regulations and Guidelines prescribed Laws and Regulations as applicable to the Company.
under the Securities and Exchange Board of India Act,
1992 ('SEBI Act'):- I have also examined compliance with the applicable
clauses of the following:
a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers) (i) Secretarial Standards issued by The Institute of
Regulations, 2011; Company Secretaries of India.
 Corporate Overview
Statutory Reports
Financial Statements 060

ANNEXURE “A” TO DIRECTORS’ REPORT

(ii) The Listing Agreements entered into by the Company ANNEXURE TO SECRETARIAL AUDIT REPORT OF EVEN DATE
with BSE Limited and National Stock Exchange of India ISSUED BY COMPANY SECRETARY IN PRACTICE
Limited.
To
During the period under review, the Company has complied
with the provisions of the Act, Rules, Regulations, Guidelines, The Members,
and Standards wherever applicable. Pricol Limited, [CIN: L34200TZ2011PLC022194]
I further report that 109, Race Course, Coimbatore - 641 018

The Board of Directors of the Company is duly constituted My Secretarial Audit Report of even date is to be read along
with proper balance of Executive Directors, Non-Executive with this letter.
Directors and Independent Directors. The changes in the
composition of the Board of Directors that took place during 1. Maintenance of Secretarial Records, devising proper
the period under review were carried out in compliance with system to ensure compliance with the provisions of all
the provisions of the Act. applicable laws and regulations and ensuring that
systems are adequate and operate effectively, are
Adequate Notice is given to all Directors to schedule the
Board Meetings, agenda and detailed notes on agenda the responsibilities of the Management of the
were sent at least seven days in advance and a system exists Company. My responsibility is to express an opinion on
for seeking and obtaining further information and these Secretarial Records based on Audit.
clarifications on the agenda items before the meeting and
2. I have followed the audit practices and processes as
for meaningful participation at the meeting.
were appropriate to obtain reasonable assurance
I am informed that there were no dissenting members, on about the correctness of the contents of the
any of the matters, discussed at the Board Meetings during
Secretarial Records. The verification was done on test
the Financial Year under review, whose views were required
basis to ensure that correct facts are reflected in
to be captured and recorded as part of the minutes.
Secretarial Records. I believe that the processes and
I further report that based on the information provided by the practices, I followed provide a reasonable basis for my
Company, its officers and authorized representatives during opinion.
the conduct of the audit and on the review of the quarterly
compliance reports submitted by the respective 3. I have not verified the correctness and appropriateness
department heads and the Company Secretary which is of financial records and Books of Accounts of the
taken on record by the Board of Directors at their meeting(s), Company.
I am of the opinion that there are adequate systems and
processes in place in the Company which is commensurate 4. Wherever required, I have obtained the Management's
with the size and operations of the Company to monitor and representation about the compliance of laws, rules
ensure compliance with applicable laws, rules, regulations and regulations and happening of events etc.
and guidelines.
5. The compliance of the provisions of Corporate and
I further report that during the period covered under the
other applicable laws, rules, regulations, standards is
Audit, the Company has not made any specific events /
the responsibility of Management. My examination
actions having a major bearing on the Company's affairs in
pursuance of laws, rules, regulations and guidelines referred was limited to the verification of procedures on a test
to above, except a basis.

(i) Co-operation Agreement for Technology and Supply of 6. The Secretarial Audit report is neither an assurance as
Parts and Systems has been entered by the company to the future viability of the Company nor of the
with Heilongjiang Tianyouwei Electronics Co, Ltd, a efficacy or effectiveness with which the management
company incorporated under the laws of P.R. China on
has conducted the affairs of the Company.
11th October, 2023.

P. ESWARAMOORTHY AND COMPANY P. ESWARAMOORTHY AND COMPANY

Company Secretaries Company Secretaries
P. Eswaramoorthy P. Eswaramoorthy
Proprietor Proprietor
UDIN : F006510F000370071 UDIN : F006510F000370071
Date : 15th May 2024 FCS No.: 6510, CP No.: 7069 Date : 15th May 2024 FCS No.: 6510, CP No.: 7069
Place : Coimbatore Peer Review Cert. No.933/2020 Place : Coimbatore Peer Review Cert. No.933/2020
 Pricol Limited
061 Annual Report 2024

ANNEXURE "B" TO DIRECTORS' REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

(as per annexure attached to the Companies (Corporate Social Responsibility Policy) Rules, 2014)

1. Brief outline on CSR Policy of the Company:

Through Pricol's long standing commitment to service to the society, we strive to attain leadership in our business
through a socially and environmentally responsible way, while taking care of the interests of our stakeholders. We
work with the primary objective of contributing to the sustainable development of the society and creating a
greener and cleaner environment around us. Towards achieving these objectives, Pricol has initiated "We Care", a
program which executes various social and environmental development activities in and around its operational
locations. The main objective of Pricol's CSR policy is to lay down guidelines for the community centric activities
taken up by Pricol for the sustainable development of the society and the environment around it. In alignment with
the vision of the Company, Pricol, through its CSR initiatives, will strive to enhance value to the society and the
environment through continuous initiatives. Pricol will directly or indirectly take up projects in and around its
operational locations in keeping with the laid out guidelines.

2. Composition of CSR Committee:

Number of meetings Number of meetings
Designation / Nature of
S. No Name of Director of CSR Committee of CSR Committee
Directorship
held during the year attended during the year
1 Mrs. Vanitha Mohan Chairman 1 1
2 Mr. Vikram Mohan Managing Director 1 1
3 Mr. [Link] Independent Director 1 1

3. Provide the weblink where Composition of CSR committee, CSR policy and CSR projects approved by the board are
disclosed on the website of the company:
CSR Policy : [Link]
CSR Committee : [Link]
CSR Reports : [Link]

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in
pursuance of sub-rule (3) of rule 8, if applicable.
Impact Assessment of CSR projects is not applicable.
Amount in `
5. (a) Average net profit of the company as per section 135(5) 78,14,84,210
(b) Two percent of average net profit of the company as per section 135(5) 1,56,29,684
(c) Surplus arising out of the CSR projects or programmes or activities of the
previous financial years —
(d) Amount required to be set off for the financial year, if any —
(e) Total CSR obligation for the financial year (b + c - d ) 1,56,29,684

6. (a) Amount spent on CSR Projects:

(i) On going Project —
(ii) Other than On going Project 1,62,12,443
(b) Amount spent in Administrative Overheads —
(c) Amount spent on Impact Assessment, if applicable —
(d) Total amount spent for the Financial Year [(a)+(b)+(c)] 1,62,12,443
(e) CSR amount spent or unspent for the financial year:

Total Amount Unspent (in `)

Amount Spent Total Amount transferred to Unspent Amount transferred to any fund specified under
for the Financial CSR Account as per section 135(6) Schedule VII as per second proviso to section 135(5)
Year (in `) Amount Date of transfer Name of the Fund Amount Date of transfer
1,62,12,443 Not Applicable
 Corporate Overview
Statutory Reports
Financial Statements 062

ANNEXURE "B" TO DIRECTORS' REPORT

Amount
(i) Two percent of average net profit of the company as per section 135(5) 1,56,29,684

(ii) Total amount spent for the Financial Year 1,62,12,443

(iii) Excess amount spent for the financial year ((ii)-(i)) 5,82,759
(iv) Surplus arising out of the CSR projects or programmes or activities of the
—
previous financial years, if any
(v) Amount available for set off in succeeding financial years ((iii)-(iv)) 5,82,759 (2023-24)
13,21,507 (2022-23)
28,54,081 (2021-22)

7. Details of Unspent CSR amount for the preceding three financial years:

Amount Balance Amount Amount transferred to a fund Amount

transferred amount in spent in the as specified under remaining
Preceding to be spent in Deficiency,
to Unspent unspent Financial Schedule VII as per section
Financial succeeding
S. No CSR Account CSR amount Year 135(5), if any if any
Year financial years
under section under section (in `)
135(6) (in `) 135(6) (in `) Amount (in `) Date of transfer (in `)

1 2020-21

2 2021-22 Not Applicable

3 2022-23

TOTAL Not Applicable

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in
the Financial Year? : Yes

If Yes, enter the number of Capital assets created / acquired:

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:
Short particulars of
the property or asset(s) Pincode Amount
of the of CSR Details of entity/ Authority/
[including complete Date of
Sl. No beneficiary of the registered owner
address and location property creation amount
of the property] or asset(s) spent

1 2 3 4 5 6
CSR Registration Registered
Name
Number, if applicable address

1 School building, Toilet 641103 2023 - 50,01,636 NA Sulur Public Union

Blocks and Furnitures 2024 Primary School
at [Link].469/9,Ward [Link].469/9, Ward
No.15,Pallapalayam No.15, Pallapalayam
Town Panchayat, Town Panchayat,
Coimbatore Coimbatore - 641103

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):
Not Applicable

Vikram Mohan Vanitha Mohan

Date : 13th May 2024 Managing Director Chairman CSR Committee
Place : Coimbatore (DIN: 00089968) (DIN : 00002168)
 Pricol Limited
063 Annual Report 2024

ANNEXURE ''C'' TO DIRECTORS' REPORT

THE CONSERVATION OF ENERGY, TECHNOLOGY Industrial Research (DSIR), Ministry of Science

ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND and Technology, Government of India, New
OUTGO Delhi.

(Statement pursuant to Section 134(3)(m) of The • A proficient engineering workforce has been
established to provide comprehensive design
Companies Act, 2013, read with Rule 8(3) of The
and development support to our current and
Companies (Accounts) Rules, 2014)
prospective customers. This initiative ensures
A. CONSERVATION OF ENERGY: that we meet the evolving needs of our
i) the steps taken or impact on conservation of energy; customers, effectively and efficiently.
• Advanced technologies such as the Integrated
The following steps were taken on the energy
Connected Driver Information System with Thin
conservation:
Film Transistor (TFT) display with enhanced Touch
a) Throughout the ongoing endeavours to Performance, Wi-Fi, Bluetooth, Body Control
enhance the share of renewable energy in FY Module & Telematics are developed in-house
2023-24, a total of 16 Million units of renewable and managed with high degree of localization
energy power have been produced at various content to enhance competitiveness. They are
Pricol facilities. This production includes both strategically deployed horizontally to achieve
rooftop solar generation and the purchase of market leadership, fostering retention and
renewable energy power. growth.

b) Renewable Energy contribution across Pricol • The company has filed 20 patents for 15
plants is calculated to be 62%, while at inventions in India and abroad, with 17 patents
Coimbatore plants it stands at 80%. already granted and the rest under review.
Innovation remains a key focus across all
c) Various energy conservation projects have
product development functions to drive growth.
resulted in a total cost savings of ` 39.91 lakhs due
to the consistent implementation of initiatives • Our Technology Roadmaps are dynamic,
across all plants. tailored to anticipate and fulfill the diverse
needs of our customers, across all vehicle
ii) the steps taken by the company for utilising alternate
segments - 2 Wheelers, 4 Wheelers, Commercial
sources of energy:
Vehicles, and Off-Highway Vehicles. This
a) From the captive solar installations of capacity localisation fosters mutual growth in design,
2.62 MW, the cumulative generation of development, and manufacturing.
3.3 Million units of solar energy from the rooftop • Automotive OEMs are progressively increasing
for FY2023-24. safety, security, connected and smart features
b) In the FY2023-24, the total units procured are 12.6 in their Driver Information Systems and
Million units of renewable energy through a Infotainment systems. To accommodate this
power purchase agreement. The projected fast-evolving technology space, we are
purchase for FY2024–25 stands at 17 Million units. maturing our Psmart CORE (Pricol Smart Core)
platform by adding cutting edge features and
iii) the capital investment on energy conservation
maturing them well ahead of becoming market
equipment's:
relevant. A clear and quantified road map is
The capital investment on Energy saving products for developed for this progression, with innovation
the FY2023-24 is ` 30.97 lakhs. and cost reduction being the primary areas of
B. TECHNOLOGY ABSORPTION: focus.

I. Research and Development (R&D) • This evolving Platform approach (categorized

for 2-wheelers and 4-wheelers based on the
i) Specific areas of R & D:
segment of technologies expected in each
• The Company has two R & D centers, which are class), allows our customers to seamlessly
approved by the Department of Scientific and migrate from one generation to the next, with
 Corporate Overview
Statutory Reports
Financial Statements 064

ANNEXURE ''C'' TO DIRECTORS' REPORT

minimal time-to-market of productionized • We are continuously expanding the in-house

features that add immediate value to their State-of-the-Art Product Reliability & Proto Lab
vehicle lines. for early sample submission to customers &
• We have successfully designed and started approval.
development of the Pricol E-cockpit platform. • Auditing for National Accreditation Board for
Testing and Calibration Laboratories (NABL) has
• Supports multiple Full-HD displays (Infotainment,
been successfully completed, and we are
DIS, Navigation , e-Mirrors)
currently awaiting certification.
• Supports phone mirroring, ADAS, on-board • Successfully practicing Software Development
Navigation, 5G Telematics and Voice Process (ASPICE CL2).
features on a hypervisor based dual • Developed Fuel Pump (PMDC) module which is
operating system (Android and QNX) required for supply of fuel from fuel tank to
platform. engine in fuel injection system required to
• We have completed proof of concept (POC) for comply for BS VI emission requirements.
Wi-Fi, MAP mirroring on Pricol's Generation 2 Implemented in mass production for our OEM
platform. customers.
• Supports POI / destination suggestions, touch • To enhance reliability of performance, Fuel
feedback and pinch - in / out features, on a Pump with BLDC technology which is
MCU platform. compatible for Hydrous and anhydrous 100%
Ethanol, developed for the High flow rate
• We have kick-started Battery Management
application. Mass production supplies started
System (BMS) development along with our
since Dec'2022 to one of the major Indian OEM's
Technology partner BMS Power Safe.
for their export market compatible for Hydrous
• Developed a common and continuously Ethanol.
improved software platform for Pricol's • As a part of localization, Fuel Pump with BLDC
Generation-2 products, to help with seamless technology is co-designed and developed with
transition of enhancements across projects and Indian supplier and samples were tested and
to reduce overall time to Start of Production found meeting the requirement. Accordingly,
(SOP). one of the Indian OEM released supply schedule
• The Connected Vehicle Solutions platform has from Apr'24 onwards and for other customer,
been enhanced with the below features along SOP schedule is expected.
with the Technology partner Sibros Technologies: • One of the OEM has pain point of using a
• Deep logger and technology for fuel supply where Pricol
• Deep updater proposed a better solution with BLDC pump.
Vehicle level testing has been successfully
• Aggressive, systematic and structured value
completed with proto sample and the customer
engineering initiatives taken to minimize
has provided go-ahead for development of
wastages and to improve Productivity, Cost &
mass production tooling.
Quality to sustain.
• Since all OEMs started concentrating on
• We possess in-house state-of-the-art Tear down development of Electrical Vehicles, we have
and Bench marking facilities to facilitate learning developed prototype of all the engine driven
and delivery with Adopt, Adapt, and Evolve products (Oil pump, Water pump and pump for
approach to enrich our R&D activities across all CTS) to Electrically driven products for business
products. sustenance and growth.
• Electrical oil pump samples are submitted to
• We are consistently enhancing our in-house
export customer and under testing at customer end .
state-of-the-art Hardware in Loop (HIL) and
Software in Loop (SIL) systems, integrating • Design finalization along with customer for high
reusable test cases to enhance the functional and pressure high flow electrical oil pump is under
software quality of Driver Information Systems (DIS). progress with 2 export customers.
 Pricol Limited
065 Annual Report 2024

ANNEXURE ''C'' TO DIRECTORS' REPORT

• Electrical coolant pump with 58LPM delivery • Helped in optimizing our design process through
developed and samples submitted to OEM the utilization of reusable functional models,
customer for testing and approval to implement consequently reducing time-to-market and
in mass production. The same pump samples are elevating quality standards.
submitted to various domestic customers and • Teardown and Benchmarking studies has
one of the export customer. Samples are under facilitated understanding of emerging
testing at customer end. technologies, new processes, features, and cost
• Test worthy prototype of Electrical coolant pump optimization strategies.
is completed and under testing. • Prompted for Intellectual Property Rights (IPR)
· • Electrically operated pump for CTS is developed and triggered innovation to adopt with
acceleration.
and under testing at Pricol.

• Hybrid (Both Manual and Electrically operated) • Development Go-ahead received from various
of the EV OEM's for Disc Brake System. Tooled up
pump for CTS is developed and is under testing at
samples received for one of the customer and
Pricol. This design is unique and ideas are novel.
under testing at Pricol. Development under
Hence, applied for patent. Complete
progress for other customers.
specification filling under progress. The concept
has been appreciated by major commercial iii) In-house R & D and Future plan of action:
vehicles OEM's in India and packing study in the We are consistently driving advanced technology
vehicle is under progress.
development to meet customer demands over the
ii) Benefits derived from R&D: next three years across all R&D verticals, including

• Pricol secured a new business opportunity from Driver Information & Connected Vehicle Solutions
one of India's top scooter manufacturers for their and Actuation, Control & Fluid Management
Electronic Driver Information System (DIS) in the Systems.
Electric Vehicle segment during the FY 2022-23.
Expenditure on R&D 2023-24 (` Lakhs)
This marked our initial venture into the Electronic
DIS category with this customer. Building on our Capital 1,159.64
performance, we have continued to receive Revenue 6,282.59
additional business opportunities from them in Total 7,442.23
FY23-24.
R&D Expenditure as a percentage of sales: 3.40 %
• We have successfully secured new business
opportunities for TFT DIS in Commercial Vehicle II. Technology Absorption, Adaptation and Innovation
(CV) segment and commenced production Imported Technology
successfully. a) The Company had entered into a strategic
• Pricol Telematics Control Unit (TCU) with SIBROS technology partnership with Sibros
Software were installed & successfully running in Technologies Inc, a California-based
2 Wheeler, Off-Highway & Commercial vehicles Company providing Over-the-Air (OTA)
in Domestic & International customer side. connected vehicle software systems for
Business enquiries have been received from OEMs worldwide, to deliver deep
various customers, and conversions are being connected vehicle solutions in the Indian
worked on. and ASEAN markets. Pricol Telematics
• In order to minimize the revenue loss due to Control Unit (TCU) with SIBROS Software were
scarcity of electronic components, engineering installed & successfully running in 2Wheeler,
bandwidth have been extended to study OHV & CV vehicles in Domestic &
alternate designs and alternate parts. International customer side.

• Products with new high-end technology helped b) Pricol had entered into an International
to achieve stiff target quality PPM with licensing agreement with BMS PowerSafe, a
enhanced reliability goals. part of Startec Group to manufacture and
 Corporate Overview
Statutory Reports
Financial Statements 066

ANNEXURE ''C'' TO DIRECTORS' REPORT

sell Battery Management System (BMS) for Generation Display Systems developed on
Indian Market. In this partnership, Pricol will P s m a r t CORE (Pricol Smart Core Journey)
be licensing the product and process platform.
technology of BMS from Partner and will be
e) The Company had entered a technology
manufacturing complete BMS in-house. This
partnership with Dongguan Shenpeng
partnership has opened up a new arena for
Electronics Co. Ltd., China for introduction
Pricol to add a pure play EV product in our
of Electric Coolant Pump (ECP) in India in
portfolio. The Company is recognized as the
2017-18. These pumps are used for all Electric
top 3 pure players of BMS suppliers in Europe.
Vehicle (EV), Hybrids and ICEs. These pumps
c) Pricol has partnered with Heilongjiang have been offered to both domestic&
Tianyouwei Electronics (TYW) Co., Ltd., China international OEMs for their new projects for
for advanced technologies in Driver vehicle level testing. Customers have
Information System Solutions across various completed testing and released mass
vehicle segments. This partnership is set to production schedules.
redefine the driving experience by
f) The Company had explored & finalized with
introducing cutting-edge Driver Information
PV Clean Mobility Technologies India
System Solutions such as E-cockpit and
Private Limited (PVCMT), India, in 2020-21 for
Heads-up Displays. The collaboration will
exclusive supply of BLDC type Fuel Pump.
add value to the Indian automotive
landscape by combining Pricol's domain g) We are constantly adding Technology
expertise in Driver Information System with Partners (both for capacity & technological
TYW's technological prowess. augmentation) to support and enhance our
in-house product development
d) The Company had entered a strategic
capabilities.
alliance with Candera, Austria for high end
Human Machine Interface (HMI) software C. FOREIGN EXCHANGE EARNINGS AND OUTGO
creation for connected vehicle solutions.
This Strategic Partnership will empower both During the year, the Company's foreign exchange
Companies to respond to automotive earnings were ` 14,224.80 Lakhs (` 13,751.12 Lakhs in
product design opportunities in India and 2022-23). The revenue expenditure in foreign
globally with collaborative concurrent HMI currency was ` 67,308.26 Lakhs (` 50,823.03 Lakhs in
development, shorter lead time, cost 2022-23) and the capital expenditure was ` 2,760.81
effective solutions – all made possible by Lakhs (` 2,723.20 Lakhs in 2022-23). The Company
having a single HMI tool to support Next will continue its efforts to enhance the export sales.
 Pricol Limited
067 Annual Report 2024

ANNEXURE ''D'' TO DIRECTORS' REPORT

Particulars of Remuneration of Directors and Employees pursuant to Section 197(12) of the Companies Act, 2013 read with
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
(i) The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the
financial year
No. of Meetings
[Link]. Name of Non Whole Time Director attended Ratio [Link]. Name of Whole Time Director Ratio

1 Mr. [Link] Shankar 19 1.86 1 Mrs. Vanitha Mohan,

2 Mrs. Sriya Chari 10 1.10 Chairman 61.52
3 Dr. [Link] 16 1.65
2 Mr. Vikram Mohan,
4 Mr. [Link] 11 1.17
Managing Director 93.56
5 Mr. [Link] 8 0.83
6 Mr. Navin Paul 5 0.62 3 Mr. [Link],
7 Mr. Vijayraghunath* 1 0.14 CEO & Executive Director 19.80

(ii) The percentage increase in remuneration of each Director, CFO, CEO and CS during the financial year
No. of meetings attended % Increase / (Decrease)
[Link]. Name of Non Whole Time Director
2023-24 2022-23 in remuneration

1 Mr. [Link] Shankar 19 22 (16)

2 Mrs. Sriya Chari 10 14 (27)
3 Dr. [Link] 16 14 4
4 Mr. [Link] 11 18 (39)
5 Mr. [Link] 8 10 (20)
6 Mr. Navin Paul 5 5 —
7 Mr. Vijayraghunath* 1 NA NA

Name of Whole Time director/CFO/CEO/CS % Increase / (Decrease)

[Link].
in remuneration

1 Mrs. Vanitha Mohan, Chairman 23.97

2 Mr. Vikram Mohan, Managing Director 22.45
3 Mr. [Link], Chief Executive Officer & Executive Director 32.12
4 Mr. Priyadarsi Bastia, Chief Financial Officer (From 1st July 2022) NA
5 Mr. [Link], Company Secretary 17.75

*Mr. Vijayraghunath was appointed as Independent Director from 1st February 2024

Whole Time Directors receive remuneration by way of Salary, Allowances, Perquisites and Benefits (fixed
component) and commission on net profit /variable pay (variable component), as approved by shareholders. Non-
Whole Time Directors receive remuneration by way of sitting fees and commission on net profit, which will be paid
broadly on the basis of Board Meetings and Committee Meetings attended by them. Shareholders at their meeting
held on 19th August 2021 approved commission upto 1% of the net profit, for a period of 5 years from the financial
year ended 31st March 2021 to financial year ended 31st March 2025.
(iii) The percentage increase / (decrease) in the median remuneration of employees in the financial year : 6.34 %
(iv) The number of permanent employees on the rolls of Company : 1,879
(v) Average percentile increase made in the salaries of employees other than the managerial personnel (Chairman,
Managing Director, CEO, CFO and CS) in the last financial year i.e. FY 2023-24 was 9.4%, whereas the increase in the
managerial remuneration for the same financial year was 14.37 % and the increase considering commission paid to
[Link] Mohan, Chairman and [Link] Mohan, Managing Director was 23.73 %.
(vi) We affirm that the remuneration paid to Directors and Key Managerial Personnel are as per the remuneration policy
approved by the Board of Directors of the Company.
(vii) Information relating to employees as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(2)
and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is available for
inspection by the Members at the Registered Office of the Company during the business hours on all working days of
the Company upto the date of the forthcoming Annual General Meeting. Any member interested in obtaining such
information may write to the Company Secretary.
 Corporate Overview
Statutory Reports
Financial Statements 068

ANNEXURE "E" TO DIRECTORS' REPORT

REPORT ON CORPORATE GOVERNANCE
1. COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE :
Company's philosophy on Corporate Governance envisages striving for excellence in all facets of its operations
through socially and environmentally acceptable means. The Company wants to be a responsible corporate
citizen and share the benefits with society and also will make its customers, employees, suppliers and shareholders
feel proud of their association with the Company through highest level of fairness and transparency in its dealings.
2. BOARD OF DIRECTORS:
a. Composition of the Board:
As on 31st March 2024, the Company's Board comprised of 10 Directors. The Board consists of 3 (30%) Executive
Directors of whom one is a Woman Director and 7 (70%) Non-Executive Directors, of whom all are Independent
Directors including one Woman Director. Details are given in the table below:
The members of the Board are well-experienced professionals and industrialists. The day-to-day management and
affairs are handled by [Link] Mohan, Managing Director, subject to the supervision, control and direction of the
Board of Directors and is supported by [Link] Mohan, Chairman and [Link], Chief Executive Officer
& Executive Director. The composition of the Company's Board is in conformity with the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (SEBI LODR).
b. Category of Directors, Attendance and Committee Membership:

Attendance No. of Committee Positions

No. of
Particulars including Pricol Limited
Name of the Director DIN Category shares
Board Last Member Chairman held
Meeting AGM * # * #

Mr. [Link] Shankar 00002498 Non-Executive - 4 ✓ 4 9 1 3 —

Independent
Mrs. Sriya Chari 07383240 Non-Executive - 3 ✓ 1 3 — — —
Independent
Dr. [Link] 00002691 Non-Executive - 4 7 8 11 2 2 —
Independent
Mr. [Link] 00119411 Non-Executive - 3 ✓ 3 5 3 3 —
Independent
Mr. [Link] 00124115 Non-Executive - 4 ✓ 1 4 — — 9,547
Independent
Mr. Navin Paul 00424944 Non-Executive - 4 ✓ 2 5 — 1 —
Independent
[Link] $ 00002963 Non-Executive - 1 NA 4 8 1 1 —
Independent
Mrs. Vanitha Mohan 00002168 Executive - 4 ✓ 2 3 — 1 57,31,468
Chairman Promoter

Mr. Vikram Mohan 00089968 Executive - 4 ✓ 1 3 — 1 76,25,506

Managing Director Promoter

Mr. P.M. Ganesh 08571325 Executive 4 ✓ — 1 — — —

Chief Executive Ofcer &
Executive Director

As detailed in the table above, none of the directors is a member of more than Ten Board level Committees (*) of
public Companies in which they are Directors nor a Chairman of more than five such Committees.
$ [Link] was appointed as Additional Director (Independent) with effect from 1st February 2024. His
appointment as Independent Director was approved by shareholders by Special Resolution through postal
ballot on 3rd April 2024.
* As per regulation 26 of the SEBI LODR, only Chairman / Member of Audit Committee and Stakeholders
Relationship Committee considered.
# Statutory Committees referred under SEBI LODR and Companies Act, 2013 were considered.
 Pricol Limited
069 Annual Report 2024

ANNEXURE "E" TO DIRECTORS' REPORT

c. No. of Directorship in other Companies including the Name of Listed companies :
No. of Directorship in other Companies
Name of other Listed Category of directorship
Name of the Director Public Private Foreign
Company (s) in that Listed Company(s)
Company Company Company

Mr. R. Vidhya Shankar 3 — — 1. L G Balakrishnan & 1. Independent Director

Bros Limited
2. The Karur Vysya Bank 2. Additional Director
Limited # Independent #
Mrs. Sriya Chari 1 3 — 1. India Motor Parts & 1. Independent Director
Accessories Limited
Dr. S.K. Sundararaman 5 7 — 1. Shiva Mills Limited 1. Director
2. Shanthi Gears Limited 2. Independent Director
3. Shiva Texyarn Limited 3. Managing Director
Mr. [Link] 2 — — 1. L G Balakrishnan & 1. Independent Director
Bros Limited
2. LGB Forge Limited 2. Independent Director
Mr. [Link] 4 2 1 1. Rajshree Sugars & 1. Independent Director
Chemicals Limited
Mr. Navin Paul 2 — — 1. IP Rings Limited 1. Independent Director
Mr. Vijayraghunath $ 3 — 1 1. Eligi Rubber Company 1. Independent Director
Limited
2. Precot Limited 2. Independent Director
Mrs. Vanitha Mohan — 2 — Nil NA
Mr. Vikram Mohan — 6 2 Nil NA
Mr. P.M. Ganesh — 1 — Nil NA
# Appointed as Independent Director in The Karur Vysya Bank Limited with effect from 22nd April 2024.
$ [Link] was appointed as Additional Director (Independent) with effect from 1st February 2024. His
appointment as Independent Director was approved by shareholders by Special Resolution through postal ballot on
3rd April 2024.
d. A chart or a matrix setting out the skills / expertise / competence of the Board of Directors:
To carry out the duties and responsibilities of a director in the Company, following skills / expertise / competence of the
Board of Directors were identified and the names of the Directors who possess the skills / expertise / competence:
Knowledge, Skills and Experience

Executive / Non Executive

Previous board experience

Promoter / Non Promoter

Business Management
Risk and compliance

Financial Knowledge

Compliance & Legal

Strategic Planning
Board Experience

innovative thinker
Industry Exposure
Auto Component

Human Resource

Qualication Mix
Years on Board

and negotiator
& Governance

Integrity Ethics
Management
Management

Critical and

Leadership
Inuencer
oversight

Gender

Age

Board Members

Skills (Governance - G
Industry - I Personal - P G G G G I I I I P P P P O O O O O O
Others - O)
Essential (E) / Desirable (D) E E E E D E D D E E E E D D D D D D
Mrs. Vanitha Mohan 25 ✓ ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ ✓ ✓ F 71 ✓ [Link], PGDBM E P
Mr. Vikram Mohan 15 ✓ ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ ✓ ✓ M 49 ✓ BE E P
Mr. [Link] Shankar 19 ✓ ✓ ✓ ✓ - ✓ - ✓ ✓ ✓ ✓ ✓ M 54 ✓ BL NE NP
Mrs. Sriya Chari 8 ✓ ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ ✓ ✓ F 50 ✓ [Link]., MBA NE NP
Dr. [Link] 6 ✓ ✓ ✓ ✓ - ✓ ✓ - ✓ ✓ ✓ ✓ M 51 ✓ MBBS, MBA NE NP
Mr. [Link] 5 ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ ✓ ✓ ✓ M 75 ✓ [Link]., LLB., FCA NE NP
Mr. [Link] 5 ✓ ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ ✓ ✓ M 59 ✓ BE NE NP
Mr. Navin Paul 3.5 ✓ ✓ ✓ ✓ ✓ ✓ - - ✓ ✓ ✓ ✓ M 66 ✓ [Link]., MBA NE NP
Mr. Vijayraghunath 0.2 ✓ ✓ ✓ ✓ ✓ ✓ - ✓ ✓ ✓ ✓ ✓ M 56 ✓ [Link]., BL NE NP
Mr. P.M. Ganesh 2.5 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ M 55 ✓ B.E., M.B.A., E NP
 Corporate Overview
Statutory Reports
Financial Statements 070

ANNEXURE "E" TO DIRECTORS' REPORT

e. Mrs. Vanitha Mohan and Mr. Vikram Mohan are related to each other. Mrs. Vanitha Mohan is the mother of
Mr. Vikram Mohan. No other directors are related to each other.

f. Board confirms that in the opinion of the Board, the Independent Directors fulfill the conditions specified for
Independent Directors in Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and are independent of the management.

g. Detailed reasons for the resignation of the Independent Director : Not applicable

h. The Company conducts familiarization programmes for the Independent Directors and the details of such
programmes have been disclosed on the website of the Company and the weblink: [Link]
content/uploads/2024/04/[Link]. An exclusive
meeting of the Independent Directors of the Company was held on 25th January 2024, without the attendance of
the Non-Independent Directors and members of the management, to discuss inter alia the matters specified under
Schedule IV of the Companies Act, 2013.

i. Board Meetings:

The Company, in consultation with the Directors, prepares and circulates a tentative annual calendar for the
meetings of the Board and Audit Committee in order to assist the Directors in planning their schedules to participate
in the meetings.

During the year 2023-24, the Board met 4 times on 10th May 2023, 2nd August 2023, 8th November 2023 and 1st
February 2024. The gap between two meetings did not exceed 120 days.

j. Brief note on Directors seeking appointment / re-appointment at the ensuing AGM:

The Board of Directors, at their meeting held on 15th May 2024 re-appointed Mr. Vikram Mohan as Managing
Director for a period of three years with effect from 1st April 2025 to 31st March 2028 and fixed the remuneration
payable to him as set out in the text of the resolution in the AGM notice, subject to the approval of the shareholders.
The Board recommends the re-appointment & remuneration payable to him.

[Link], a Non-Independent Director retires by rotation at the ensuing Annual General Meeting and being
eligible offers himself for re-appointment. Details of [Link] being recommended by the Board for
re-appointment is included in the notice of the ensuing Annual General Meeting.

3. AUDIT COMMITTEE:

a. The Committee is mandated with the same terms of reference as specified in Regulation 18 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and also conforms to the provisions of Section 177 of
the Companies Act, 2013.

The web link of the Audit Committee Charter is [Link] /uploads /2023/01/ AuditCommittee
[Link]

b. Composition, Name of Members / Chairman, Meetings held and Members present during the year 2023-2024:

Date of Meeting / Members present

Name of the member Category
10-May-23 2-Aug-23 8-Nov-23 1-Feb-24
Mr. P. Shanmugasundaram Non-Executive - Independent
✓ — ✓ ✓
(Chairman)
Mr. R. Vidhya Shankar Non-Executive - Independent ✓ ✓ ✓ ✓
Mrs. Sriya Chari Non-Executive - Independent ✓ ✓ — ✓
Dr. S. K. Sundararaman Non-Executive - Independent ✓ ✓ ✓ ✓
Mrs. Vanitha Mohan Executive - Promoter ✓ ✓ ✓ ✓
 Pricol Limited
071 Annual Report 2024

ANNEXURE "E" TO DIRECTORS' REPORT

c. The Company Secretary acts as the Secretary to the Committee. Chief Executive Officer, Chief Financial Officer,
Internal Audit team and the Statutory Auditors of the Company are permanent invitees to the meetings of the Audit
Committee. The heads of various monitoring / operating departments are invited to the meetings, as and when
required to explain details about the operations.

4. NOMINATION AND REMUNERATION COMMITTEE:

a. The Committee shall formulate the criteria for determining qualifications, positive attributes and independence of a
Director and recommend to the Board a policy, relating to remuneration for the Directors, Key Managerial
Personnel and other employees.

b. The Committee shall identify the persons who are qualified to become Directors / Senior Management Personnel of
the Company in accordance with the criteria laid down, recommend to the Board their appointment, the
remuneration including commission, perquisites and benefits payable to the Directors and their removal. It shall also
carry out the evaluation of every Director's performance.

c. Composition, Name of Members / Chairman, Meetings held and Members present during the year 2023-2024:

Date of Meeting / Members present

Name of the member Category
3-Apr-23 21-Jul-23 22-Jan-24
Mr. R. Vidhya Shankar (Chairman) Non-Executive - Independent 3 3 3
Mrs. Sriya Chari Non-Executive - Independent 3 3 3
Mr. P. Shanmugasundaram Non-Executive - Independent 3 3 3

d. Nomination and Remuneration Policy :

In pursuance of the Company's policy to consider human resources as its invaluable assets, to pay equitable
remuneration to all Directors, Key Managerial Personnel (KMP) and employees of the Company, to harmonize the
aspirations of human resources consistent with the goals of the Company and in terms of the provisions of the
Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended
from time to time, the policy on the nomination and remuneration of Directors, Key Managerial Personnel and Senior
Management has been formulated by the Nomination and Remuneration Committee and approved by the Board
of Directors.
The Objectives of the Policy are:
I. To guide the Board in relation to the appointment and removal of Directors, Key Managerial Personnel and
Senior Management.
II. To evaluate the performance of the Directors, Key Managerial Personnel and Senior Management and provide
necessary reports to the Board for their further evaluation.
III. To recommend the remuneration payable to the Directors, Key Managerial Personnel and Senior Management.
IV. To provide to the Key Managerial Personnel and Senior Management, rewards linked directly to their effort,
performance, dedication and achievement in relation to the Company's operations.
V. To attract, retain, motivate and promote talent and to ensure the long term sustainability of talented
managerial persons and create a competitive advantage.
VI. To devise a policy on Board diversity.
VII. To develop a succession plan for the Board and to regularly review the plan.
The Nomination and Remuneration policy of the Company has been disclosed on the website of the Company
and the web link thereto is [Link]
[Link]
e. Performance evaluation criteria for Independent Directors:
Performance of Independent Directors has to be evaluated by the Board of Directors, based on the following
criteria:
I. Evaluation Criteria laid down under Nomination and Remuneration Policy.
II. Code of Conduct as laid down by the Board and
III. Code of Independent Directors prescribed in Schedule IV read with Section 149 (8)
 Corporate Overview
Statutory Reports
Financial Statements 072

ANNEXURE "E" TO DIRECTORS' REPORT

5. STAKEHOLDERS RELATIONSHIP COMMITTEE:
The Committee comprises of [Link] Mohan, [Link] Mohan, [Link] Shankar and
Dr. [Link]. The Committee approves the issue of new / duplicate share certificates.
The Committee oversees and reviews all matters connected with share transfers / transmission / demat / remat /
issue of share certificates and other issues pertaining to shares. The Committee specifically look into the various
aspects of interest of shareholders / stakeholders. The Committee also looks into the investor relations / grievances
and redressal of the same, on a periodical basis.
The Committee met 7 times during the year on 3rd April 2023, 11th April 2023, 8th May 2023, 21st July 2023,
3rd October 2023, 9th October 2023 and 17th January 2024. [Link] Shankar chaired all the meetings.
[Link], Company Secretary is the Compliance Officer.
During the year, no letters were received as complaint from the investors regarding non-receipt of dividend
warrants / annual reports / share certificates / rights issue matters, etc.,
6. RISK MANAGEMENT COMMITTEE:
a. The Committee is mandated with the same terms of reference as specified in Regulation 21 and Part D of Schedule II
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The web link of the risk management
policy is [Link]
b. Composition, Name of Members / Chairman, Meetings held and Members present during the year 2023-2024:

Date of Meeting / Members present

Name of the member Category
10-Jul-2023 3-Jan-2024
Mr. Vikram Mohan (Chairman) Executive - Promoter ✓ ✓

Mr. [Link] Non-Executive - Independent ✓ ✓

Mr. [Link] Executive ✓ ✓

7. REMUNERATION TO DIRECTORS:

The remuneration payable to the Executive Directors is determined by the Board on the recommendation of the
Nomination and Remuneration Committee with the approval of the shareholders at the Annual General Meeting.
The Company pays remuneration by way of Salary, Allowances, Perquisites and Benefits (fixed component) and
commission on net profit / variable pay (variable component) to its Executive Directors.

The sitting fees and commission to the Non-Executive Directors will be distributed broadly on the basis of Board
Meetings and Committee Meetings attended by them. The Company has not provided any Stock Options to any
of its directors and employees.

The remuneration paid / payable to the Executive Directors for the year 2023 – 2024:
` Lakhs
Salary,
perquisites
Name of the Director Designation Service Contract Commission Total
& benefits
(Gross)
Mrs. Vanitha Mohan Chairman 1st April 2021 to
153.34 249.01 402.35
31st March 2024

Mr. Vikram Mohan Managing Director 1st April 2022 to

279.88 332.01 611.89
31st March 2025

Mr. [Link] Chief Executive Ofcer 8th November 2021

129.52 — 129.52
and Executive Director to 31st March 2024

Notice period and Severance pay will be as per the Company's Policy.
 Pricol Limited
073 Annual Report 2024

ANNEXURE "E" TO DIRECTORS' REPORT

The remuneration paid / payable to the Non-Executive Directors for the year 2023-2024 and the shares held by them
are given below: ` Lakhs

Name of the No of Shares held on

Commission Sitting Fees
Non-Executive Director 31st March 2024
Mr. [Link] Shankar 6.75 5.40 —

Mrs. Sriya Chari 4.00 3.20 —

Dr. [Link] 6.00 4.80 —

Mr. [Link] 4.25 3.40 —

Mr. [Link] 3.00 2.40 9,547

Mr. Navin Paul 2.25 1.80 —

Mr. Vijayraghunath $ 0.50 0.40 —

The Company had availed the services of Mr.R. Vidhya Shankar, Advocate and Mr. Vijayraghunath, Advocate
Non-Executive-Independent Directors, in their professional capacity and paid ` 20 Lakhs & ` 2 Lakhs, respectively.
The said transaction value does not exceed ten per cent of the gross turnover of their legal firm.
$ [Link] was appointed as Additional Director (Independent) with effect from 1st February 2024. His
appointment as Independent Director was approved by shareholders by Special Resolution through postal ballot on
3rd April 2024.

8. GENERAL BODY MEETINGS:

Year Date & Time Special Resolution Location

2021 – 19th August 2021 a. Re-appointment and Remuneration to Through video

10th AGM 3.00 PM [Link] Mohan, Chairman conference (VC)
2022 – 10th August 2022 a. Re-appointment and Remuneration to
11th AGM 3.00 PM Mr. Vikram Mohan, Managing Director
Through video
b. Appointment of [Link] Mohan (70 Years)
conference (VC)
c. Re-appointment of [Link],
as an Independent Director
2023 – 9th August 2023 Nil Through video
12th AGM 3.00 PM conference (VC)

• Court convened meeting of the members held during the year 2023 - 2024 : NIL
• Special resolution passed during the year 2023- 2024, through postal ballot :
i. Re-appointment of [Link], as an Independent Director
ii. Appointment of [Link], as an Independent Director Voting Results are available in
[Link]
iii. Re-appointment & Remuneration to [Link] Mohan, Chairman
uploads/2024/07/[Link]
iv. Re-appointment & Remuneration to [Link], CEO & ED
• Person who conducted the postal ballot exercise
M/s. P Eswaramoorthy and Company, Practising Company Secretaries, Coimbatore.
• During 2024 - 2025, there is no proposal to conduct postal ballot to pass any special resolution
9. MEANS OF COMMUNICATION:
The quarterly / annual financial results of the Company are published in the Business Line (English) and The Hindu
(Tamil). The financial results, annual reports, Press releases, Investor presentation of the Company are uploaded on
the Company's website: [Link] and on the Stock Exchange websites: [Link] and
[Link].
Management Discussion & Analysis forms part of the Annual Report.
 Corporate Overview
Statutory Reports
Financial Statements 074

ANNEXURE "E" TO DIRECTORS' REPORT

10. GENERAL SHARE HOLDER INFORMATION:

a. Annual General Meeting

Date & Time : Wednesday, 7th August, 2024, 3.00 p.m.
Venue : Company is conducting the meeting through VC / OAVM pursuant to the MCA
Circular dated 25th September 2023 and as such there is no requirement to
have a venue for the AGM. For details please refer to the Notice of this AGM
b. Financial Year : 1st April 2023 to 31st March 2024
c. Date of Book Closure /
Record Date : Not Applicable
d. Financial Calendar : Financial Reporting
Financial Calendar
for the quarter ended
30th June, 2024 Between 15th July and 14th August 2024
30th September, 2024 Between 15th October and 14th November 2024
31st December, 2024 Between 15th January and 14th February 2025
31st March, 2025 Between 15th April and 30th May 2025

e. Particulars of Dividend : No Dividend has been recommended for the Financial Year 2023-24.
Weblink of the Dividend Distribution Policy:
[Link]

f. Listing on Stock Exchanges : National Stock Exchange of India Limited, BSE Limited,
Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers,
Bandra Kurla Complex, Dalal Street,
Bandra(E), Mumbai - 400 051 Mumbai - 400 001
g. Stock Code : National Stock Exchange of India Limited : PRICOLLTD
BSE Limited : 540293
h. International Security
Identification Number (ISIN) : INE726V01018
i. Listing and Custodial Fee : For the year 2024-25:
i) Annual Listing Fees were paid to National Stock Exchange of India Limited
and BSE Limited.
ii) Custodial Fees were paid to Central Depository Services (India) Limited and
National Securities Depository Limited.
j. Stock Market Data:
National Stock Exchange of India Limited BSE Limited
Month Price (`) Nifty500 (Points) Price (`) BSE-Small Cap (Points)
High Low High Low High Low High Low
April-23 251.40 207.25 15,235.45 14,541.60 251.35 204.80 28,944.79 27,042.08
May-23 259.10 225.50 15,823.90 15,239.50 258.15 225.05 30,554.15 28,985.46
June-23 253.00 225.80 16,437.45 15,743.40 252.30 225.90 32,765.32 30,565.54
July-23 284.40 211.00 17,072.80 16,485.30 286.85 211.25 35,039.71 32,693.70
August-23 346.15 272.05 17,102.10 16,661.00 346.00 273.00 37,197.20 34,460.20
September-23 345.35 289.05 17,754.05 16,931.50 345.30 287.85 38,769.33 36,549.37
October-23 385.70 310.90 17,494.50 16,466.25 385.00 310.75 38,753.80 35,271.13
November-23 371.90 316.30 18,007.10 16,719.10 372.25 317.15 40,407.85 36,856.54
December-23 393.00 328.00 19,450.10 18,053.15 392.45 329.10 42,728.21 40,273.91
January-24 390.00 342.95 19,923.30 19,080.50 390.20 343.20 45,763.05 42,476.90
February- 24 444.00 381.15 20,365.65 19,508.75 442.30 381.65 46,821.39 43,200.02
March-24 411.25 330.05 20,483.25 19,465.85 414.00 330.50 46,000.31 40,097.13
 Pricol Limited
075 Annual Report 2024

ANNEXURE "E" TO DIRECTORS' REPORT

k. Registrar and Transfer Agents:

For Physical transfer and Dematerialisation of shares:

The Company has appointed M/s. Integrated Registry Management Services Private Limited, 2nd Floor, "KENCES"
Towers, No.1, Ramakrishna street, North Usman Road, [Link], Chennai - 600 017 as Common Transfer Agent for all
aspects of investor servicing relating to shares in both physical and demat form.

l. Share Transfer System:

In terms of Regulation 40(1) of SEBI Listing Regulations, as amended, securities can be transferred, transmitted or
transpositioned only in dematerialised form. Members holding shares in physical form are requested to consider
converting their holdings to dematerialised form. Transfers of equity shares in electronic form are effected through
the depositories with no involvement of the Company. Physical shares received for dematerialisation are processed
and completed within the stipulated time, if the documents are complete in all respects.

The Company obtains from M/s. [Link] & Co., Company Secretaries, Chennai, the following certificates:

a. Pursuant to Regulation 40(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on
yearly basis, for due compliance of share transfer formalities by the Share Transfer Agent of the Company.

b. Pursuant to SEBI (Depositories and Participants) Regulations, 2018, on quarterly basis, to reconcile the total
admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) with the total issued / paid up capital of the Company.

m. Distribution of Shareholding as on 31st March 2024:

Shares held by No of Holders* No of Shares* % of Total Paid-up Capital

1 to 500 1,18,738 84,03,463 6.89
501 to 1000 5,189 38,88,559 3.19
1001 to 2000 2,498 36,32,282 2.98
2001 to 3000 926 23,34,407 1.92
3001 to 4000 384 13,56,112 1.11
4001 to 5000 305 14,08,145 1.16
5001 to 10000 531 37,41,452 3.07
10001 and above 481 9,71,17,078 79.68
Total 1,29,052 12,18,81,498 100.00

* Based on PAN consolidation

n. Dematerialisation of shares and liquidity as on 31st March 2024:

Shares of the Company can be held and traded in Electronic form. As stipulated by SEBI, the shares of the Company
are accepted in the Stock Exchanges for delivery only in dematerialised form.

No of % of No of No of % of Total
Particulars paid-up Capital
holders holders Shares
i. National Securities Depository
Limited (NSDL) 38,732 29.43 10,56,42,299 86.67

ii. Central Depository Services

(India) Limited (CDSL) 92,507 70.29 1,53,52,873 12.60

Demat Form ( i + ii ) 1,31,239 99.72 12,09,95,172 99.27

iii. Physical Form 374 0.28 8,86,326 0.73

Total ( i + ii + iii ) 1,31,613 100.00 12,18,81,498 100.00

 Corporate Overview
Statutory Reports
Financial Statements 076

ANNEXURE "E" TO DIRECTORS' REPORT

o. Transfer of Unclaimed Shares to Demat Account:

In terms of the Listing Agreement entered with the Stock Exchanges, intimations have been sent to the shareholders
to claim the unclaimed shares. Even after the reminders some of the shares have not been claimed by the
Shareholders and as per Clause 5A of the Listing Agreement entered with the Stock Exchanges these shares have
been kept in a separate Demat Account opened for this purpose. The voting rights on these shares shall remain
frozen till the rightful owner of such shares claims the shares.
Unclaimed Shares Unclaimed Rights Unclaimed
Suspense Suspense Escrow Suspense Escrow
Particulars Account Account Demat Account
No. of No. of No. of
No. of No. of No. of
Share Share Share
Shares Shares Shares
holders holders holders
Opening (a) 764 10,77,370 48 47,478 — —
Transferred from Unclaimed
Shares Suspense account upto
31st March 2023 (b) 525 7,64,345 43 44,905 — —
Closing Balance as on
31st March 2023 (c = a - b) 239 3,13,025 5 2,573 — —
Claimed / Transferred
to IEPF during the year 2023-24 130 1,56,585 Nil Nil — —
Transferred from Unclaimed Shares
Suspense account during
the year 2023-24 (d) 130 1,56,585 Nil Nil — —
Letter of confirmation issued,
shareholders not claimed (e) — — — — 1 350

Closing Balance as on
31st March 2024 (f = c - d + e) 109 1,56,440 5 2,573 1 350

The shareholders are requested to contact the Registrar and Share Transfer Agent for claiming the shares.
p. As on 31st March 2024, there are no Outstanding GDRs / ADRs / Warrants or any Convertible Instruments.
q. Commodity price risk or foreign exchange risk and hedging activities:
Refer Note.53 to Notes to Standalone Financial Statements.

r. Plant locations:

Plant I : 132, Mettupalayam Road, Perianaickenpalayam, Coimbatore - 641 020, Tamilnadu, India.

Plant II : Plot No.34 & 35, Sector 4, IMT Manesar, Gurugram - 122 050, Haryana, India

Plant III : 4/558, Mettupalayam Road, Chinnamathampalayam, Billichi Village, Press Colony Post,
Coimbatore - 641 019, Tamilnadu, India.

Plant V : Global - Raisoni, Industrial Park, Gat No.180-187, Alandi-Markal Road, Phulgaon, Haveli Taluka,
Pune - 412 216, Maharashtra, India

Plant VII : Plot No. 45, Sector 11, Integrated Industrial Estate, Pantnagar, SIDCUL, Rudrapur - 263 153,
Uttarakhand, India

Plant IX : Plot No.120, Sector - 8, IMT Manesar, Gurugram - 122 050, Haryana, India

Plant X : 650, Benjamin Road, Sri City - 517 646, Andhra Pradesh, India

Plant XII : K-7, MIDC, Satara - 415 004, Maharashtra, India

 Pricol Limited
077 Annual Report 2024

ANNEXURE "E" TO DIRECTORS' REPORT

s. Address for correspondence:
Registrar & Transfer Agents Company
M/[Link] Registry Management Services Private Limited, Pricol Limited,
Unit: Pricol Limited Secretarial Department
2nd Floor, "Kences Towers", 109, Race Course,
No.1, Ramakrishna Street, North Usman Road, Coimbatore - 641 018, India.
T Nagar, Chennai - 600 017, India Phone: +91 422 4336238 / 6272
Phone: +91 44 28140801 - 03 E mail: einward@[Link] E mail: cs@[Link] / investor@[Link]
t. List of Credit Ratings obtained by the Company : Details are provided in the Directors Report.

u. Website address : [Link]

v. Name of the Compliance Officer : [Link], Company Secretary

11. DISCLOSURES :

a. The Company has not entered into any materially significant related party transactions that may have potential
conflict with the interest of the Company at large. Details of transactions with related parties are provided in
Note.63 to Notes to Standalone Financial Statements in accordance with the provision of Indian Accounting
Standards. The Company has formulated a policy on related party transactions which has been placed on the
website of the Company and the weblink: [Link]
[Link]

b. There was no instance of non-compliance by the Company on any matters relating to the capital markets, nor
was there any penalties, strictures, imposed by stock exchange(s) or SEBI or any statutory authority, on any
matter related to capital markets, during the last three years.

c. The Company has established a Vigil Mechanism / Whistle Blower Policy to enable the Stakeholders of the
Company to report their genuine concerns and grievances. The Policy provides for adequate safeguards
against victimization of stakeholders who avail the vigil mechanism and direct access to the Chairman of the
Audit Committee of the Company, in exceptional cases. The Protected Disclosures, if any, reported under this
Policy will be appropriately and expeditiously investigated by the Chairman.

The Company hereby affirms that no stakeholders including Director / employee has been denied access to the
Chairman of the Audit Committee and that no complaints were received during the year. The Whistle Blower
Policy has been disclosed on the website of the Company and the weblink: [Link]
content/uploads/2023/01/Whistle-Blower-Policy_20.pdf

d. The Company has complied with all the mandatory requirement of corporate governance norms as specified in
Chapter IV of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

e. The Company has formulated a Policy on Subsidiary & Material Subsidiary Company and has placed it on the
website of the Company and the weblink: [Link]
Subsidiary_policy_20.pdf

f. Disclosure of commodity price risks and commodity hedging activities. Refer Note. 53 to Notes to Standalone
Financial Statements.

g. During the financial year, the Company has not raised any funds through preferential allotment or qualified
institutions placement as specified under Regulation 32 (7A).

h. Certificate from a company secretary in practice that none of the directors on the board of the company have
been debarred or disqualified from being appointed or continuing as directors of companies by the Board /
Ministry of Corporate Affairs or any such statutory authority, is annexed as part of this report.

i. The Board has accepted all the recommendation of the Committees of the Board which is mandatorily required,
in the relevant financial year.
 Corporate Overview
Statutory Reports
Financial Statements 078

ANNEXURE "E" TO DIRECTORS' REPORT

j. The Company has complied with all the requirements as specified in sub-paras (2) to (10) of Schedule V of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 in the Corporate Governance report.

k. Total fees for all services paid by the listed entity and its subsidiaries, on a consolidated basis, to the statutory
auditor and all entities in the network firm / network entity of which the statutory auditor is a part, is as follows:

(` Lakhs)

Particulars Pricol Limited Subsidiaries

For Audit 50.00 —

For Consolidation 4.00 —
For Tax Audit & Services 19.75 —
For Certification & Others 1.65 —
Reimbursement of Expenses 1.32 —
Total 76.72 —

l. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013:

The Company has implemented a Prevention of Sexual Harassment Policy in accordance with the mandates
outlined in The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013.
To address complaints related to sexual harassment, an Internal Complaints Committee (ICC) has been duly
constituted in adherence to the provisions of the POSH Act. Regular awareness sessions and training programs
have been organized for members of the internal complaint committee to underscore the significance of
Preventing Sexual Harassment (POSH). This policy extends its coverage to all employees, including permanent,
contractual, temporary, and trainees. The Company has conducted 25 meetings, 18 awareness programs and
has not received any sexual harassment complaints during the year 2023-24.

m. Disclosure by the listed entity and its subsidiaries of "loans and advances in the nature of loans to firms /
companies in which directors are interested", by name and amount - Refer Note No.65 to notes to standalone
financial statements

n. Details of material subsidiaries of the listed entity; including the date and place of incorporation and the name
and date of appointment of the statutory auditors of such subsidiaries.

Name of Material Date and Place of Name & Date of appointment of the statutory auditors
Subsidiary(s) incorporation
Pricol Asia Pte 27th August 2012, Prudential Public Accounting Corporation, Public
Limited Singapore Accountants and Chartered Accountants, Singapore
27th August 2012

o. The Company has complied with the following Discretionary requirements as specified in Part E of Schedule II of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

Ÿ Adopted the best practices to ensure a regime of financial statements with unmodified audit opinion.

p. The Company has complied with all the requirements specified in Regulation 17 to 27 and disseminate the
information under a separate section on the website, as required under clauses (b) to (i) of sub-regulation (2) of
Regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
 Pricol Limited
079 Annual Report 2024

ANNEXURE "E" TO DIRECTORS' REPORT

q. Senior Management:

Name of the
Designation
Senior Management Personnel

Mr. Ameer Dastagir Director - Quality Systems

Mr. Siddharth Manoharan Director - Strategy

Mr. Priyadarsi Bastia Chief Financial Officer

Mr. Dinesh Govind Dodmane Chief Technology Officer (CTO) – Driver Information and Connected
Vehicle Solutions

Mr. Kanakaraju K Chief Technology Officer (CTO) – Actuation, Control and Fluid
Management Systems

Mr. Tarun Tandon Regional Head – North

Mr. Senthilkumar K Regional Head - South & West

Mr. [Link] Company Secretary

Mr. Shyam Sundar R Head – Human Resources

Mr. Venkatesh K Internal Auditor

There was no change in senior management personnel during the year 2023-24.

For and on behalf of the Board

Vanitha Mohan
Date : 15th May 2024 Chairman
Place : Coimbatore (DIN : 00002168)

CODE OF CONDUCT

The Company has laid down a code of conduct for all Board members and senior management
personnel. The code of conduct is available on the website of the Company under the web link
[Link]
[Link]. The declaration of the Chief Executive Officer is given below:

DECLARATION

All the Board members and senior management personnel affirmed compliance with the code of conduct of
the Company for the financial year ended 31st March 2024.

[Link]
Date : 15th May 2024 Chief Executive Officer
Place : Coimbatore (DIN : 08571325)
 Corporate Overview
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Financial Statements 080

ANNEXURE "E" TO DIRECTORS' REPORT

CERTIFICATE OF NON-DISQUALIFICATION OF Ensuring the eligibility for the appointment / continuity of

DIRECTORS every Director on the Board is the responsibility of the
(Under Regulation 34(3) read with Part C (10) (i) of management of the Company. Our responsibility is to
Schedule V of the Securities Exchange Board of India express an opinion on these based on our verication.
(Listing Obligations and Disclosure Requirements) This certicate is neither an assurance as to the future
Regulations, 2015) viability of the Company nor of the efciency or
To effectiveness with which the management has
The Members of Pricol Limited conducted the affairs of the Company
(CIN: L34200TZ2011PLC022194) P. ESWARAMOORTHY AND COMPANY
109, Race Course, Company Secretaries
Coimbatore – 641018 P. Eswaramoorthy
Proprietor
I have examined the relevant registers, records, forms, FCS No.: 6510, CP No.: 7069
Date :15th May 2024 UDIN:F006510F000370115
returns and disclosures received from the Directors of
Place :Coimbatore Peer review Cert. No.933/2020
Pricol Limited having CIN L34200TZ2011PLC022194 and
having registered ofce at 109, Race Course,
CORPORATE GOVERNANCE COMPLIANCE
Coimbatore – 641018 (hereinafter referred to as 'the
CERTIFICATE
Company'), produced before me by the Company for
To
the purpose of issuing this Certicate, in accordance with
The Members of Pricol Limited
Regulation 34(3) read with Schedule V Para-C Sub clause
10(i) of the Securities Exchange Board of India (Listing (CIN: L34200TZ2011PLC022194)
Obligations and Disclosure Requirements) Regulations, 109, Race Course, Coimbatore – 641018
2015. I have examined all the relevant records of Pricol Limited
(“hereinafter called as the “Company") for the
In my opinion and to the best of my information and purpose of certifying compliance with the conditions
according to the verications (including Directors of Corporate Governance stipulated in Chapter IV of
the SEBI (Listing Obligations and Disclosure
Identication Number (DIN) status at the portal
Requirements) Regulations, 2015 for the Financial
[Link]) as considered necessary and Year ended 31st March, 2024. I have obtained all the
explanations furnished to me by the Company & its information and explanations which to the best of my
ofcers, I hereby certify that none of the Directors on the knowledge and belief were necessary for the purpose of
Board of the Company as stated below for the Financial certication.
Year ending on 31st March, 2024 have been debarred or The compliance with the conditions of Corporate
disqualied from being appointed or continuing as Governance is the responsibility of the Management.
My examination was limited to the procedure and
Directors of companies by the Securities and Exchange implementation process adopted by the Company for
Board of India, Ministry of Corporate Affairs, or any such ensuring compliance with the conditions of Corporate
other Statutory Authority. Governance.
This certicate is neither an assurance as to the future
DIN/DPIN Date of
[Link]
/PAN
Full Name Designation
Appointment viability of the Company nor of the efcacy or
effectiveness with which the management has
1 00002168 Vanitha Mohan Chairman and 01/11/2016
conducted the affairs of the Company.
Wholetime Director
2 00089968 Vikram Mohan Managing Director 01/06/2013 In my opinion and to the best of my information and
3 00002498 Ramani Vidhya Independent Director 01/11/2016 according to the explanations given to me, I certify that the
Shankar Company has complied with the conditions of Corporate
4 00002691 Sangampalayam Independent Director 30/05/2018 Governance as stipulated in the SEBI (Listing Obligations and
Kandasami Disclosure Requirements) Regulations, 2015.
Sundararaman
5 00119411 Palanisamy Independent Director 15/06/2019 P. ESWARAMOORTHY AND COMPANY
Shanmugasundaram
Company Secretaries
6 00124115 Kasthurirangaian Independent Director 15/06/2019
P. Eswaramoorthy
Ilango
Proprietor
7 00424944 Navin Paul Independent Director 22/10/2020
FCS No.: 6510, CP No.: 7069
8 07383240 Sriya Chari Independent Director 01/11/2016
9 08571325 Panchapagesa Wholetime Director 08/11/2021
Date :15th May 2024 UDIN:F006510F000370126
Muthuswamy Ganesh Place :Coimbatore Peer review Cert. No.933/2020
10 00002963 Vijayraghunath Independent Director 01/02/2024
 Pricol Limited
081 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT (BRSR)
[Pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

SECTION A: GENERAL DISCLOSURES

I. DETAILS OF THE LISTED ENTITY

1. Corporate Identity Number (CIN) of the Listed Entity L34200TZ2011PLC022194

2. Name of the Listed Entity Pricol Limited

3. Year of Incorporation 2011

4. Registered office address 109, Race Course, Coimbatore - 641 018, India.

5. Corporate office address 109, Race Course, Coimbatore - 641 018, India.

6. E-mail id cs@[Link]

7. Telephone 04224336000

8. Website [Link]

9. Financial year for which reporting is being done 2023 - 2024

10. Name of the Stock Exchange(s) where shares 1. BSE Limited (BSE)
are listed 2. National Stock Exchange of India Limited (NSE)

11. Paid-up capital ` 1,218.81 Lakhs

Mr. T.G. Thamizhanban

12. Name and contact details of the person who may
Company Secretary, Pricol Limited
be contacted in case of any queries on the BRSR
Tel : +0422 4336272
report
Email : cs@[Link]

13. Reporting boundary The disclosures under this report are made on
Standalone basis.

14. Name of the assurance provider NA

15. Type of assurance obtained NA

II. PRODUCTS / SERVICES

16. Details of business activities (accounting for 90 % of the turnover) :

[Link]. Description of Main Activity Description of Business Activity % of Turnover of the entity

Electrical & Electronics equipment, General

1 Manufacturing Purpose and Special purpose machinery & 100
equipment, Transport equipment

17. Products/Services sold by the entity (accounting for 90% of the entity's Turnover) :
Product/Service NIC Code % of total Turnover contributed
Auto components
- Oil Pumps
- Motor Vehicles 28132, 29301, 29304 & 30913 100
- Motor Cycles
- Three Wheelers
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III. OPERATIONS
18. Number of locations where plants and/or operations/offices of the entity are situated:

[Link]. Location Number of plants Number of offices Total

1 National 8 1 9

2 International * 1 3 4

* Including Subsidiary Entities

19. Markets served by the entity:
a. Number of locations

[Link]. Locations Number

1 National (No. of States) 24 States & 3 Union Territories

2 International (No. of Countries) 22

b. What is the contribution of exports as a percentage of the total turnover of the entity?

6.49% of the total turnover of the entity.

c. A brief on types of customers

Pricol Limited is one of India's leading automotive technology and precision engineered products and solutions
providing company that serves to all major global OEM's including TVS Motor Company, Hero MotoCorp, Bajaj
Auto, Royal Enfield, Honda Motorcycle and Scooter India, Yamaha Motor India, KTM, Triumph, Piaggio, Ducati,
Harley Davidson, Kawasaki, Suzuki Motorcycle India, TATA Motors, Ashok Leyland, Volvo Eicher Commercial
Vehicle, Mahindra and Mahindra, PSA Grope, Skoda, Renault Nissan, Maruti Suzuki, Mitsubishi, Force Motors,
Swaraj Mazda, Daimler, CNH Industrial, John Deere, Caterpillar, JCB, Escorts, TAFE, Polaris, Generac, Deutz,
TATA Hitachi, Hyundai Construction Equipments, Swaraj, Sonalika, Indo Farm Equipment Limited, Kubota,
Greaves Cotton Limited, Mitsubishi Diesel Engines Pvt Ltd, Cummins India Ltd, Kirloskar Oil Engines Ltd. Pricol is a
leading supplier of various components for the companies in India and around the world.

IV. EMPLOYEES
20. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):

Male Female
[Link] Particulars Total (A)
No. (B) % (B / A) No. (C) % (C / A)

EMPLOYEES

1. Permanent (D) 1,112 1,025 92 87 8

2. Other than Permanent (E) 42 36 86 6 14

Total employees (D + E) 1,154 1,061 92 93 8

WORKERS

3. Permanent (F) 767 568 74 199 26

4. Other than Permanent (G) 4,186 3,534 84 652 16

Total workers (F + G) 4,953 4,102 83 851 17

 Pricol Limited
083 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

b. Differently abled Employees and workers:

Male Female
[Link] Particulars Total (A)
No. (B) % (B / A) No. (C) % (C / A)

DIFFERENTLY ABLED EMPLOYEES

1. Permanent (D) 2 1 50 1 50

2. Other than Permanent (E) — — — — —

Total differently abled employees (D + E) 2 1 50 1 50

DIFFERENTLY ABLED WORKERS

3. Permanent (F) 1 — — 1 100

4. Other than Permanent (G) — — — — —

Total differently abled workers (F + G) 1 — — 1 100

21. Participation / Inclusion / Representation of women

No. and percentage of Females

Total (A)
No. (B) % (B/A)

Board of Directors 10 2 20

Key Management Personnel 5 1 20

22. Turnover rate for permanent employees and workers

FY '22
FY '24 FY '23
(Turnover rate in the year
(Turnover rate in current FY) (Turnover rate in previous FY)
prior to the previous FY)

Male Female Total Male Female Total Male Female Total

Permanent Employees 15.56 1.26 16.82 21.98 29.85 22.54 4.82 — 4.36

Permanent Workers 3.39 3.13 6.52 5.41 10.21 6.74 1.54 4.58 2.41
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ANNEXURE “F” TO DIRECTORS’ REPORT

V. HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES (INCLUDING JOINT VENTURES)

23. Names of holding / subsidiary / associate companies / joint ventures

Does the entity

Indicate whether indicated at column
Name of the holding/ subsidiary/ % of shares
holding/ Subsidiary/ (A) participate in the
[Link]. associate companies/ held by listed
Associate/ Business Responsibility
joint ventures (A) entity
Joint Venture initiatives of the listed
entity? (Yes/No)

1 Pricol Asia Pte. Limited, Singapore Subsidiary 100 % No

2 PT Pricol Surya Indonesia Subsidiary 100 % No

3 PT Sripri Wiring Systems, Indonesia * Subsidiary 100 % No

4 Pricol Asia Exim DMCC, Dubai ** Subsidiary 100 % No

5 Pricol Electronics Private Limited, India ** Subsidiary 100 % No

NOTE: * Subsidiary of PT Pricol Surya Indonesia - closed during the year.

** Subsidiary of Pricol Asia Pte. Limited, Singapore.

VI. CSR Details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

(ii) Turnover * - ` 1,871.92 Crores

(iii) Net worth *- ` 678.06 Crores

*The Above mentioned turnover and net worth is as per FY2022-23.

VII. TRANSPARENCY AND DISCLOSURES COMPLIANCES

25. Complaints / Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:

FY 2024 Current Financial Year FY 2023 Previous Financial Year

Grievance Redressal
Stakeholder group Mechanism in Place Number of Number of
Number of Number of
from whom (Yes/No) complaints complaints
complaints complaints
complaint is (If Yes, then provide pending pending
filed filed
received web-link for grievance resolution Remarks resolution Remarks
during the during the
redress policy) at close of at close of
year year
the year the year

Yes
Communities — — — — — —
[Link]

Investors (other
NA — — — — — —
than shareholders)

Yes — — — — — —
Shareholders
[Link]

Employees and Yes — — — — — —

Workers (Available on Intranet Portal)

Customers Yes
— — — — — —
[Link]

Value Chain Yes — — — — — —

Partners [Link]
 Pricol Limited
085 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

26. Overview of the entity's material responsible business conduct issues:
Financial implications
Material Indicate Rationale for In case of risk, of the risk or
[Link]. issue whether risk or identifying the risk / approach to adapt opportunity (Indicate
identified opportunity (R/O) opportunity or mitigate positive or negative
implications)

1. Our Engineering team has

converted many designs
with next generation ICs
and continue to take the
Currently utilizing approach in a phased
legacy ICs in some manner. Strategic tie-up's
End of life for of our design's and Negative
legacy ICs used were made with key IC
1 Risk they are nearing suppliers for support on financial
in some of their end-of-life as implication
our design Priority.
per the supplier
2. All new developments are
programs.
being considered to be
compatible with alternate
ICs.

1. Active discussions were

undertaken with customers
to control such delays
Delays in recovery 2. Regular engagement with
of customer customer teams with clear
Delay in Negative
Customer compensations account statements to financial
2 Risk
Compensations every quarter facilitate the amounts to be implication
from key recovered
customers 3. Weekly monitoring
mechanism has
implemented with internal
teams

Safe management
of both hazardous
and non-hazardous
wastes is of utmost
importance for
Pricol. Waste
management is very
critical aspect for our
industry.
Waste We undertake Positive
3 Opportunity NA
Management various waste financial
management impact
practices with an
aim to recycle and
reduce the waste
generated while
transforming them
into valuable
resources.

Various Employee
Centric initiatives
have been under
taken for better
employee
engagement and
Employee Positive
4 Opportunity motivation. NA
Engagement financial
Similarly HR
Policies are being impact
renewed inline to
change in market
standards and
demands
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SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards
adopting the NGRBC Principles and Core Elements.

The National Guidelines for Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate Affairs
advocates nine principles referred as P1- P9 as given below:

Principle1(P1) Businesses should conduct and govern themselves with integrity in a manner that is ethical,
transparent and accountable

Principle 2 (P2) Businesses should provide goods and services in a manner that is sustainable and safe

Principle 3 (P3) Businesses should respect and promote the well-being of all employees, including those in their value
chains

Principle 4 (P4) Businesses should respect the interests of and be responsive towards all its stakeholders

Principle 5 (P5) Businesses should respect and promote human rights

Principle 6 (P6) Businesses should respect, protect and make efforts to restore the environment

Principle 7 (P7) Businesses when engaging in inuencing public and regulatory policy, should do so in a manner that
is responsible and transparent

Principle 8 (P8) Businesses should promote inclusive growth and equitable development

Principle 9 (P9) Businesses should engage with and provide value to their consumers in a responsible manner

Policy and Management Processes

1. a. Whether your entity's policy/policies cover each principle and its core elements of the NGRBCs ? (Yes/No)

P1 P2 P3 P4 P5 P6 P7 P8 P9

Yes Yes Yes Yes Yes Yes Yes Yes Yes

b. Has the policy been approved by the Board? (Yes/No)

P1 P2 P3 P4 P5 P6 P7 P8 P9

Yes Yes Yes Yes Yes Yes Yes Yes Yes

c. Web Link of the Policies, if available

P1 P2 P3 P4 P5 P6 P7 P8 P9

[Link]
 Pricol Limited
087 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

2. Whether the entity has translated the policy into procedures? (Yes / No)

P1 P2 P3 P4 P5 P6 P7 P8 P9

Yes Yes Yes Yes Yes Yes Yes Yes Yes

3. Do the enlisted policies extend to your value chain partners? (Yes/No)

P1 P2 P3 P4 P5 P6 P7 P8 P9

Yes Yes Yes Yes Yes Yes Yes Yes Yes

4. Name of the national and international codes / certifications / labels / standards adopted by your entity and
mapped to each principle.
P1 Pricol Limited Code of Conduct

P2 IATF 16949:2016 (QMS Certification for Automotive Parts)

P3 No

P4 ISO 45001:2018 (Safety Management System Certification)

P5 No

P6 ISO 14001:2015 (Environment Management System Certification)

P7 No

P8 No

P9 No

5. Specific commitments, goals and targets set by the entity with defined timelines, if any.

P1 P2 P3 P4 P5 P6 P7 P8 P9

Pricol Limited is committed to implement the following :

1. ISO 50001 Energy Management
2. ISO 27001 Data Security Management System
3. 75 % Renewable Energy by next financial year

6. Performance of the entity against the specific commitments, goals and targets along-with reasons in case the
same are not met.

P1 P2 P3 P4 P5 P6 P7 P8 P9

1. ISO 50001 Energy Management – The Company is in the process of implementing the systems for the standard
2. ISO 27001 Data Security Management System – Under assessment by authority and expected to be
completed by FY2024-25
3. 75 % Renewable Energy by next financial year – We have achieved 62% of energy consumption through
renewable sources. The company is striving to achieve the target in FY2024-25

Governance, Leadership and oversight

7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets
and achievements
Board oversees the ESG / Sustainability initiatives of the company. The management has approved the Roadmap
with specific goals and targets of ESG. The Board will monitor the implementation of actions for their progress.
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ANNEXURE “F” TO DIRECTORS’ REPORT

8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies).
Board of the company continuously evaluates the Company's social, environmental, governance, and economic
obligations.
9. Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability
related issues?
No, currently the Board is responsible for decision making on sustainabilty related issues.
10. Details of Review of NGRBCs by the Company:

Indicate whether review was

undertaken by Director/ Committee Frequency (Annually/ Half yearly/
Subject for Review of the Board/ Any other Committee Quarterly/ Any other -please specify)

P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9

The Board reviews the Company's

policies every year. During this
Performance against above evaluation, the policy's effective Annually
policies and follow up action implementation is assessed, and
required policy and procedure
adjustments are adopted.

Compliance with statutory The Company complies with all legal

responsibilities that are relevant to the
requirements of relevance Annually
principles, and in case of any non-
to the principles and rectification compliances, the Board looks into and
of any non-compliances rectifies the issues.

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency?
(Yes/No). If yes, provide name of the agency.

P1 P2 P3 P4 P5 P6 P7 P8 P9

No

12. If answer to question (1) above is "No" i.e. not all Principles are covered by a policy, reasons to be stated:

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

The entity does not consider the Principles

material to its business (Yes/No)

The entity is not at a stage where it is in a

position to formulate and implement the
policies on specified principles (Yes/No)
Not Applicable
The entity does not have the financial
or/human and technical resources available
for the task (Yes/No)

It is planned to be done in the next financial

year (Yes/No)
 Pricol Limited
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ANNEXURE “F” TO DIRECTORS’ REPORT

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
PRINCIPLE 1
Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and
Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

% of persons
Total number of
Topics / principles in respective
training and
Segment covered under category covered
awareness
the training and its impact by the awareness
programmes held
programmes

Board of Directors (BOD) Nil Nil Nil

Key Managerial Personnel Nil Nil Nil
Key Topics : POSH, Six Sigma, Time
Management, Team Building, Reliability
Employees other 516 Workshop, Operational Excellence, Lean Tracking
than BoD and KMPs mechanism is in
Manufacturing, Communication Skill,
Leadership Skill. process of
implementation.
Workers 1,088 Key Topics : POSH, 5S, Team Building,
First Aid, Poka Yoke & Kaizen, Behaviour
Based Safety, Daily Work Management.

2. Details of fines / penalties / punishment / award / compounding fees / settlement amount paid in proceedings (by
the entity or by directors / KMPs) with regulators / law enforcement agencies / judicial institutions, in the financial
year:
No fines / penalties / punishment / award / compounding fees / settlement amount were paid in any proceedings
(by the entity or by directors / KMPs) with regulators / law enforcement agencies / judicial institutions, in the financial
year.

3. Of the instances disclosed in Question 2 above, details of the Appeal / Revision preferred in cases where monetary
or non-monetary action has been appealed.

Not Applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide
a web-link to the policy?

Yes, Pricol Limited maintains a strong stance against corruption and bribery, as evidenced by its comprehensive
Anti-Corruption and Anti-Bribery Policy. This policy applies to all employees, subsidiaries, and affiliates of the
Company, regardless of their position or location. Upholding the highest standards of integrity is expected from
every employee in every aspect of their work. The Company ensures compliance with various anti-bribery and anti-
corruption laws and regulations across all its facilities. Additionally, all agents, suppliers, contractors, and business
partners are made aware of the Company's zero tolerance policy towards bribery and corruption at the beginning
of their engagement with Pricol Limited. The Company's commitment to maintaining the highest ethical standards
remains unwavering in all its operations worldwide. The policy is readily accessible to stakeholders through the
company's website.
Weblink : [Link]
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5. Number of Directors / KMPs / employees / workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery / corruption:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Directors — —

KMPs — —

Employees — —

Workers — —

6. Details of complaints with regard to conflict of interest:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Number Remarks Number Remarks

Number of complaints received in relation

to issues of Conflict of Interest of the Directors — — — —

Number of complaints received in relation to

issues of Conflict of Interest of the KMPs — — — —

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators / law enforcement agencies / judicial institutions, on cases of corruption and conflicts of interest.

Not Applicable

8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured):

Number of days of FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)
accounts payables 66 77

9. Open-ness of business

Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with
loans and advances & investments, with related parties:
` in Lakhs
FY 2024 Current FY 2023 Previous
Parameter Metrics Financial Year Financial Year

Concentration a. Purchases from trading houses as % of total purchases 41.53 % 34.78 %

of Purchases b. Number of trading houses where purchases are made from 302 265
c. Purchases from top 10 trading houses as % of total
purchases from trading houses 96.45 % 96.05 %

Concentration a. Sales to dealers / distributors as % of total sales 5.30 % 5.56 %

of Sales b. Number of dealers / distributors to whom
sales are made 169 146
c. Sales to top 10 dealers / distributors as % of
total sales to dealers / distributors 29.38 % 32.25 %

Share of a. Purchases (Purchases with related parties / 39.83 % 34.86 %

RPTs in Total Purchases)
b. Sales (Sales to related parties / Total Sales) 0.31% 0.36 %
c. Loans & advances (Loans & advances given to
related parties / Total loans & advances) NA NA
d. Investments ( Investments in related parties /
Total Investments made) 98.29 % 98.29 %
 Pricol Limited
091 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

Leadership Indicators

1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

[Link]. Total number of Topics / principles % age of value chain partners covered
awareness covered under (by value of business done with such partners)
programmes held the training under the awareness programmes

Nil Nil Nil

2. Does the entity have processes in place to avoid / manage conflict of interests involving members of the
Board?(Yes/No) If Yes, provide details of the same.

Yes, Pricol has established procedures to prevent and handle conflicts of interest among board members, in
accordance with the Terms of Appointment of Directors to the Board. The Company's Code of Conduct mandates
that Board members and Senior Management must refrain from participating in discussions, voting, or influencing
decisions on any issue where a conflict of interest exists or may arise. Additionally, they are required to refrain from
serving as a Director of a company that competes directly with Pricol, unless approved by the Company's Board of
Directors beforehand.

PRINCIPLE 2

Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made by the entity,
respectively.
` in Lakhs
FY 2024 Current FY 2023 Previous Details of improvements in
Financial Year Financial Year environmental and social impacts

We have not tracked the investments made in

Revenue 2.87% 3.57% specific technologies to improve the environmental
and social impacts of product and processes to total
R&D and capex investments made by the entity,
Capex 0.53% 0.45% respectively.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)

Yes

b. If yes, what percentage of inputs were sourced sustainably?

It is challenging to determine the proportion of inputs obtained from the suppliers that contribute to the overall
inputs, as the Company utilizes various materials in its manufacturing process. We work to create a framework
that will efficiently collect and store data in the years to come.

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of
life, for:

a. Plastics (including packaging) b. E-waste

c. Hazardous waste d. Other waste

We, Pricol Limited, supply the product directly to the OEMs. The Company has limited scope for reclaiming it at the
end of its life cycle. However, the company has system in place to:

i) reduce the plastic waste, by sending our finished goods in reusable bins to OEMs.

ii) ensure safe disposal of Plastic packing, E- waste, Hazardous waste are disposed to authorized Pollution
Control Board approved vendors and the recycling certificate is obtained from the authorized vendors.
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Also, the Company has taken sustainability goals to reduce the waste generation. Currently all the wastes are
disposed through authorized vendor for safe recycling of product.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes/ No). If yes, whether the
waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control
Boards? If not, provide steps taken to address the same.
Yes. We have registered for Plastic waste EPR under importer category. All the plastic waste operation is disposed
through authorized recycler as per Plastic waste management rules.
Leadership Indicators
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing
industry) or for its services (for service industry)? If yes, provide details:

Whether
Boundary for which Results
conducted by
% of total the life Cycle communicated in
Name of independent
[Link]. NIC Code Turnover Perspective / public domain
Product / Service external
Contributed Assessment (Yes / No) if yes,
agency
was conducted provide the web - link
(Yes / No)
The Company aims to integrate sustainability principles into every stage of the product life cycle to the fullest
extent possible. However, due to the direct supply of products to OEMs, the Company's ability to conduct life
cycle assessments is limited.
2. If there are any significant social or environmental concerns and /or risks arising from production or disposal of your
products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means,
briefly describe the same along-with action taken to mitigate the same.

Name of Product Description of the

[Link]. / Service risk / concern Action Taken

1 Oil Pump 1. Different materials used in the products indicated

are recyclable.
2 Water Pump
There is no risk or concern 2. Parts made out of different materials found to be
3 Fuel Pump Module involved in the products
defective at Pricol are recycled at Pricol end.
indicated.
4 Cabin Tilt System 3. Products sold to our end customers are recycled as
per the procedure laid out by them.
5 E - Purge Valve
1. All materials used in the indicated products are
6 Driver Information recyclable, except Electronic Sub. Assembly &
System (DIS) Components (E-Waste).
There is no risk or concern
involved in the products 2. E-Waste is shipped to the appropriate vendor
7 Telematics Control
indicated. approved by Pollution Control Board, for scraping /
Unit (TCU)
recycling.

8 Sensors 3. Finished Products sold to OEM are recycled as per

the procedure laid out by them.

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).

Recycled or re-used input material to total material

[Link]. Indicate input material FY 2024 Current Financial Year FY 2023 Previous Financial Year

1 Waste Water 100 % 100 %

2 Raw Material
Working on a mechanism to capture the data
3 Finished good packing reuse
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4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled,
and safely disposed:
FY 2024 FY 2023
Current Financial Year Previous Financial Year
Safely Safely
Re-Used Recycled Re-Used Recycled
Disposed Disposed

Plastics (including packaging)

E-waste Since the products are directly supplied to the OEMs, the Company
has limited scope for reclaiming it at the end of its life cycle
Hozardous waste

Other waste

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Reclaimed products and their packaging

[Link] Indicate Product Category
materials as % of total products sold in respective category

Since the product is directly supplied to the OEMs, the Company has limited scope for reclaiming it at the end of its
life cycle.

PRINCIPLE 3

Businesses should respect and promote the well-being of all employees, including those in their value chains
Essential Indicators

1. a. Details of measures for the well-being of employees:

% of employees covered by
Health Insurance Accident Insurance Moternity Benefits Poternity Benefits Day Care facilities
Category Total
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)

Permanent Employees

Male 1,025 1,025 100 % 1,025 100 % — — — — — —

Female 87 87 100 % 87 100 % 87 100 % — — 87 100 %

Total 1,112 1,112 100 % 1,112 100 % 87 100 % — — 87 100 %

Other than Permanent Employees

Male 36 36 100 % 36 100 % — — — — — —

Female 6 6 100 % 6 100 % 6 100 % — — 6 100 %

Total 42 42 100 % 42 100 % 6 100 % — — 6 100%

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b. Details of measures for the well being of the workers:

% of workers covered by
Health Insurance Accident Insurance Moternity Benefits Poternity Benefits Day Care facilities
Category Total
(A) Number % Number % Number % Number % Number %
(B) (B/A) (C) (C/A) (D) (D/A) (E) (E/A) (F) (F/A)

Permanent Workers

Male 568 568 100 % 568 100 % — — — — — —

Female 199 199 100 % 199 100 % 199 100 % — — 199 100 %

Total 767 767 100 % 767 100 % 199 100 % — — 199 100 %

Other than Permanent Workers

Male 3,534 3,534 100 % 3,534 100 % — — — — — —

Female 652 652 100 % 652 100 % 652 100 % — — 652 100 %

Total 4,186 4,186 100 % 4,186 100 % 652 100 % — — 652 100 %

c. Spending on measures towards well-being of employees and workers (including permanent and other than
permanent) :

FY 2024 FY 2023
Cost incurred on wellbeing measures as Current Financial Year Previous Financial Year
a % of total revenue of the company
0.69% 0.66%

2. Details of retirement benefits, for Current Financial Year and Previous Financial Year.

FY 2024 Current Financial Year FY 2023 Previous Financial Year

No. of employees No. of workers Deducted and No. of employees No. of workers Deducted and
[Link]. Benefits deposited with deposited with
covered as a covered as a covered as a covered as a
% of total % of total the authority % of total % of total the authority
employees workers (Y/N/N.A.) employees workers (Y/N/N.A.)

1 PF 100 % 100 % Y 100 % 100 % Y

2 Gratuity 100 % 100 % Y 100 % 100 % Y

3 ESI 100 % 100 % Y 100 % 100 % Y

Note: The above calculation is based on the eligible employees / workers as per applicable laws.

3. Accessibility of workplaces

Are the premises / offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the
entity in this regard.

The Company has ensured that all of its locations, including the offices and premises, are equipped with ramps, lifts,
and handrails for stairwells. This thoughtful provision aims to enhance accessibility for individuals with disabilities,
making the Company's premises truly inclusive and accommodating.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide
a web-link to the policy? Yes.

Weblink: [Link]
 Pricol Limited
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5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Company do not have Parental Leave Policy.

Permanent employees Permanent workers

Gender
Return to work rate Retention rate Return to work rate Retention rate

Male NA NA NA NA

Female NA NA NA NA

Total NA NA NA NA

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.

Permanent Other than Permanent Other than

Workers Permanent Workers Employees Permanent Employees

Yes. The Company's Grievance Policy provides a platform for employees to address any work-related concerns
they may have. This policy ensures that a designated Grievance Committee, in alignment with the Organization's
existing policies, addresses grievances promptly, fairly, and impartially. It covers issues related to a supervisor's,
co-worker's or Management's conduct, lack of action, or proposed decisions affecting the employee. As per the
grievance resolution process outlined in the policy, the initial step towards resolving any matter is open
communication. Employees are encouraged to first attempt informal resolution with their immediate supervisor.
If this informal approach proves ineffective and the concern escalates to a grievance level, the employee has the
option to formally file a grievance following the procedures outlined in the policy to seek a just resolution.

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
FY 2024 Current Financial Year FY 2023 Previous Financial Year

No. of employees No. of employees

Total / workers in Total / workers in
Category employees respective employees respective
/ workers in category, % (B / A) / workers in category, % (D / C)
respective who are part respective who are part
category (A) of association (s) category (C) of association (s)
or Union (B) or Union (D)

- Male 1,025 — — 981 — —

- Female 87 — — 74 — —
Total Permanent Employees 1,112 — — 1,055 — —
- Male 568 491 86 % 594 523 88 %
- Female 199 188 94 % 223 218 98 %
Total Permanent Workers 767 679 89 % 817 741 91 %
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8. Details of training given to employees and workers:
FY 2024 Current Financial Year FY 2023 Previous Financial Year *
On Health and On Health and
On Skill upgradation On Skill upgradation
Category safety measures safety measures
Total Total
Number % Number % Number % Number %
(A) (D)
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)

Employees

Male 1,061 981

Female 93 902 78% 1,154 100% 74 229 22% 1,055 100%

Total 1,154 1,055

Workers

Male 4,102 594

Female 851 3,237 65% 4,953 100 % 223 334 41 % 817 100 %

Total 4,953 817

Note: Above data is captured for overall training given to employees and workers, bifurcation of Male and female
will be captured in upcoming years. Pricol provided Health awareness sessions behavior based safety, POSH
awareness, First AID training as a health and safety / Wellness measure.
9. Details of performance and career development reviews of employees and worker:
FY 2024 Current Financial Year FY 2023 Previous Financial Year *
Category
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)

Employees

Male 1,061 1,061 100 % 981 981 100 %

Female 93 93 100 % 74 74 100 %
Total 1,154 1,154 100 % 1,055 1,055 100 %
Workers

Male 4,102 4,102 100 % 594 594 100 %

Female 851 851 100 % 223 223 100 %
Total 4,953 4,953 100 % 817 817 100 %

* For FY2023, Permanent workers only considered.

10. Health and Safety Management System:
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/
No). If yes, the coverage such system?
Yes; All manufacturing plants of the Company have obtained certification for ISO 14001:2015 Environmental
Management System and ISO 45001:2018 Occupational Health and Safety (OH&S) Management System
Standards to ensure the implementation of an effective occupational health and safety management system.
The commitment to safety is upheld by the Top Management, with the ultimate goal of achieving ZERO harm.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine
basis by the entity?
At Pricol Limited, our top priority is safety. We are dedicated to ensuring a safe working environment by
thoroughly assessing and addressing work-related hazards. Our machines undergo rigorous audits and
certifications by our Environment, Health, and Safety (EHS) team during the design stage. To effectively
manage work-related hazards, we utilize the HIRA Tool (Hazard Identification and Risk Assessment) to review all
activities. Additionally, our Permit to Work system is implemented to control non-routine work-related hazards.
To ensure continuous improvement, external auditors conduct yearly audits of our work-related hazards.
 Pricol Limited
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c. Whether you have processes for workers to report the work related hazards and to remove themselves from
such risks. (Yes/ No)
Yes, the company has put in place a Safety Committee and Near Miss reporting system.
d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
(Yes/ No)
Yes. Pricol Limited is committed to providing its employees with a comprehensive financial support system that
goes beyond their salary. Our company ensures that all employees have access to a range of health and
wellness benefits, such as medical insurance and accident insurance for both the employee and their
immediate family. These benefits offer financial assistance in case of any unforeseen accidents or serious
illnesses.
11. Details of safety related incidents:

Safety Incident / Number Category FY 2024 Current FY 2023 Previous

Financial Year Financial Year

Lost Time Injury Frequency Rate (LTIFR) Employees — —

(per one million-person hours worked)
Workers — —

Employees — —
Total recordable work-related injuries
Workers — —

Employees — —
No. of fatalities
Workers — —

High consequence work-related injury Employees — —

or ill-health (excluding fatalities)
Workers — —

12. Describe the measures taken by the entity to ensure a safe and healthy work place.

Safety Policy, Competence, Communications system / policy, Insurance Systems, First Aid, Training, Occupational
Health, Inspection Systems, Audits, Procurement, Contractors Control & Risk Assessments: Pricol Limited has
established comprehensive safety policies and procedures to address various aspects of health and safety
management. This includes ensuring competence and communication among employees, implementing
insurance systems, providing first aid services, conducting training programs, focusing on occupational health,
implementing inspection systems and audits, managing procurement processes, and controlling risks associated
with contractors.

Compliance with statutory requirements: The company ensures that it complies with all preventive healthcare and
occupational health and safety requirements mandated by relevant laws and regulations. Pricol Limited aims to
proactively identify hazards and determine controls to eliminate or minimize risks to an acceptable level.
Additionally, it identifies relevant risks and opportunities related to the occupational health and safety
management systems objectives. The Company also organises health awareness programes and medical camps
for employees and workers.

Training programs: Pricol Limited provides comprehensive safety training to its employees, including specific
training on working at heights, confined space entry, refresher training, on-site emergency response training, and
on-the-job safety training. This ensures that employees are equipped with the necessary knowledge and skills to
handle various safety situations.

Safety Committee: The Company has established a Safety Committee that collaborates with management to
achieve the objectives outlined in the Health, Safety, and Environment (HSE) Policy. The committee addresses
health, safety, and environmental matters, provides practical solutions to problems, promotes safety awareness
among workers, and conducts educational, training, and promotional activities.

The health and safety management systems at Pricol Limited involve active involvement and participation from
shop floor workers to management. The Company focuses on hazard identification, risk assessment, health and
well-being programs, emergency response planning, compliance with local regulations, and management
 Corporate Overview
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systems. Additional measures include wellness initiatives, medical check-ups, workplace audits, co-operation with
global health and safety leaders, and floor-based safety control measures.

By implementing these measures, Pricol Limited strives to create a safe and healthy work environment for its
employees, ensuring their well-being and minimizing the likelihood and consequences of potential hazards and
risks.
13. Number of Complaints on the following made by employees and workers:

FY 2024 Current Financial Year FY 2023 Previous Financial Year

Pending Pending
Filed during Filed during
resolution at the Remarks resolution at the Remarks
the year the year
end of year end of year

Working Conditions — — NA — — NA

Health & Safety — — NA — — NA

14. Assessments for the year:

% of your plants and offices that were assessed (by entity

or statutory authorities or third parties)
Health and safety practices 100 %

Working Conditions 100 %

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of health & safety practices and working conditions.
At Pricol Limited, we diligently monitor accidents across all our facilities. The significant decrease in health and
safety incidents can be attributed to the unwavering dedication of both our management and employees in
maintaining a secure work environment. By adhering to our established management approach and embracing a
health and safety mindset, we strive to ensure the well-being of everyone involved in our operations.

Leadership Indicators

1. Does the entity extend any life insurance or any compensatory package in the event of death of

a. Employees (Y/N) b. Workers (Y/N)

Yes, Pricol offers assistance in the event of a tragic occurrence such as death and also has a death relief settlement
in place for its employees and workers.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by
the value chain partners.
The Company ensures that all statutory dues are deducted and deposited by the value chain partners,
emphasizing the importance of adherence to support business responsibility principles and ideals of transparency
and accountability.

3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-health /
fatalities (as reported in Q.11 of Essential Indicators above), who have been are rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment:

No. of employees / workers that are rehabilitated and

Total no. of affected employees / workers placed in suitable employment or whose family
members have been placed in suitable employment

FY 2024 Current FY 2023 Previous FY 2024 Current FY 2023 Previous

Financial Year Financial Year Financial Year Financial Year
Employees — — — —

Workers — — — —
 Pricol Limited
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ANNEXURE “F” TO DIRECTORS’ REPORT

4. Does the entity provide transition assistance programs to facilitate continued employability and the management
of career endings resulting from retirement or termination of employment? (Yes / No): No

5. Details on assessment of value chain partners:

% of value chain partners (by value of business done

with such partners) that were assessed

Health and All the critical suppliers are evaluated for health and safety working condition practices.
safety practices Only ethical business suppliers are part of our value chain partners. Each of the suppliers
Working Conditions signs the Code of conduct of the company.

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
During the vendor selection process, we will assess Health and Safety working conditions and Environmental Legal
requirements. Only suppliers who meet these criteria will be considered for partnership, and they will undergo
periodic re-evaluation as needed.
PRINCIPLE 4
Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
Key Stakeholders are identified on the basis of the material influence they have on the Company or on how they are
materially influenced by the Company's corporate decisions and the consequences of those decisions.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Whether Channels of Frequency of

identied as communication engagement Purpose and scope of
Stakeholder Vulnerable & (Email, SMS, Newspaper, (Annually/ Half engagement including key
[Link]. topics and concerns raised
Group Marginalized Pamphlets, Advertisement, yearly/ Quarterly /
Group Community Meetings, others - please during such engagement
(Yes/No) Notice Board, Website), Other specify)

Internal web portal, Safety, professional growth of

1. Employees No employee newsletters, On need basis employees, well being, training
posters and notice boards. and awareness.

1. Educating the investor community

As Needed: about company integrated
value creation model and
Press releases and press Quarterly. Financial
Business Plan for the long term.
conferences, email statements, earnings
Investors / advisories, facility visits, in-
2. No c a l l , e x c h a n g e 2. Helping investors voice their
Shareholders person meetings, investor notifications, press concerns regarding Company
conferences, conference conferences policies, reporting, etc.
calls expectations.
3. Understanding Shareholder
expectations.
1. Supplier & Vendor meets
Suppliers & 2. Dialogue in the context
3. Service No of industry initiatives, joint On need basis Supply of material & services.
providers events, training courses,
presentations

Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and
social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
Pricol Limited formed an ESG Committee. The ESG committee will be responsible for keeping the Board informed
about various developments and seeking input from the Directors. Continuous stakeholder engagement,
combined with an in-depth assessment by the ESG committee, will aid the organisation in aligning its business
with ESG, allowing it to better serve its stakeholders.
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2. Whether stakeholder consultation is used to support the identication and management of environmental, and
social topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these
topics were incorporated into policies and activities of the entity.
Yes, Pricol Limited has consistently upheld a consistent and forward-thinking approach in engaging with its primary
stakeholders, enabling it to efficiently pursue its ESG strategies and ensure transparency in its results. In compliance
with existing regulations and ongoing stakeholder interactions, the Company conducts regular assessments to
revise and reissue policies as necessary.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalized stakeholder groups.
Please refer to the following link for information about the Company's community work: [Link]
PRINCIPLE 5
Businesses should respect and promote human rights.
Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity:
There have been no training program conducted during this year on human rights issues and policies.

2. Details of minimum wages paid to employees and workers:

FY 2024 Current Financial Year FY 2023 Previous Financial Year

Equal to More than Equal to More than
Category Minimum Wage Minimum Wage Minimum Wage Minimum Wage
Total Total
Number % Number % Number % Number %
(A) (D)
(B) (B/A) (C) (C/A) (E) (E/D) (F) (F/D)

Employees

Permanent 1,112 — — 1,112 100 % 1,055 — — 1,055 100 %

Male 1,025 — — 1,025 100 % 981 — — 981 100 %

Female 87 — — 87 100 % 74 — — 74 100 %

Other than
Permanent 42 — — 42 100 % 66 — — 66 100 %

Male 36 — — 36 100 % 61 — — 61 100 %

Female 6 — — 6 100 % 5 — — 5 100 %

Workers

Permanent 767 — — 767 100 % 817 — — 817 100 %

Male 568 — — 568 100 % 594 — — 594 100 %

Female 199 — — 199 100 % 223 — — 223 100 %

Other than
Permanent 4,186 — — 4,186 100 % 3,711 553 15 3,158 85 %

Male 3,534 — — 3,534 100 % 3,193 440 14 2,753 86 %

Female 652 — — 652 100 % 518 113 22 405 78 %

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3. Details of remuneration / salary / wages:

a. Median Remuneration / wages

Male Female
Median remuneration/ Median remuneration/
salary/wages of salary/wages of
Number respective Number respective
category (` in Lakhs) category (` in Lakhs)

Board of Directors (BoD) 8 9.23 2 204.77

Key Managerial Personnels 4 95.46 1 402.35

(Chairman, MD, CEO, CFO, CS)

Employees other than BoD and KMP 1,058 0.47 93 0.35

Workers 4,102 0.14 851 0.14

b. Gross wages paid to females as % of total wages paid by the entity:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Gross wages paid to females as % of total wages% 12 % 11 %

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues
caused or contributed to by the business? (Yes/No)
Yes, Employees are encouraged to bring forth their complaints or grievances to the Human Resource department.
No form of retaliation or reprisal will be tolerated against any employee or associate who raises concerns. An
investigative committee will be established to look into the reported issues. This committee will be tasked with
assessing the reported problems and ensuring that they are resolved. Working closely with Senior Management, the
committee will propose an appropriate course of action.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
To ensure a harmonious work environment devoid of employee complaints, it is crucial to have a reliable and
steadfast grievance redressal forum in place. This forum serves as a vital support system, guaranteeing a healthy
atmosphere for all employees. The management consistently ensures the existence of a formal grievance
procedure, communicates any procedural changes, promptly investigates all grievances, treats all employees
who file complaints fairly, maintains confidentiality throughout the process, resolves all grievances, and upholds a
strict no-retaliation policy. The mechanism operates by adhering to the following instructions:
• If an employee feels comfortable discussing the matter openly, they should approach their immediate
supervisor or reporting manager, or contact the location HR department to address and resolve the concern.
• If an employee is hesitant to discuss the matter openly, they should complete an employee grievance
redressal form (available with the location HR department or printed forms placed under the feedback box)
and submit it anonymously in the feedback box.
6. Number of Complaints on the following made by employees and workers:
FY 2024 Current Financial Year FY 2023 Previous Financial Year
Pending
Filed during Filed during Pending resolution
resolution at the Remarks
the year the year at the end of year Remarks
end of year

Sexual Harassment — — — — — —
Discrimination — — — — — —
at workplace
Child Labour — — — — — —

Forced / Involuntary — — — — — —
Labour
Wages — — — — — —

Other human rights — — — — — —

related issues
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7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013:

FY 2024 Current FY 2023 Previous

Financial Year Financial Year
Total Complaints reported under Sexual Harassment on of Women at Nil Nil
Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)
Complaints on POSH as a % of female employees / workers Nil Nil
Complaints on POSH upheld Nil Nil

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
During the handling of complaints within the grievance redressal mechanism, utmost care is taken to ensure that
the inquiry is conducted in a peaceful manner to prevent any stressful situations. The entire process is executed with
a high level of confidentiality. The Company's Grievance Policy mandates that any staff member involved in an
issue must maintain confidentiality at all times. Any harsh or disrespectful behavior during grievance proceedings is
not tolerated and will be considered misconduct under the Organization's disciplinary policies, leading to strict
actions against such unethical conduct.
9. Do human rights requirements form part of your business agreements and contracts? (Yes/No) : No
10. Assessments for the year:
% of your plants and offices that were assessed
(by entity or statutory authorities or third parties)
Child Labour 100 %
Forced Labour / Involuntary Labour 100 %
Sexual Harassment 100 %
Discrimination at Workplace 100 %
Wages 100 %

11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 10 above.
All the plants owned by the Company were determined to have no adverse effects, thus necessitating no
corrective measures on the aforementioned criteria.
Leadership Indicators
1. Details of a business process being modified / introduced as a result of addressing human rights
grievances/complaints. : Not applicable
2. Details of the scope and coverage of any Human rights due-diligence conducted.
Human rights due diligence is yet to be conducted. We are planning to take it up in the coming years.
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?: Yes
4. Details on assessment of value chain partners:
% of value chain partners (by value of business done
with such partners) that were assessed
Child Labour 100 %
Forced Labour / Involuntary Labour 100 %
Sexual Harassment 100 %
Discrimination at Workplace 100 %
Wages 100 %

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above. : Not applicable
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PRINCIPLE 6
Businesses should respect and make efforts to protect and restore the environment.

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Parameter
Value Unit Value Unit
From renewable sources

Total electricity consumption (A) 57,449 GJ 17,690 GJ

Total fuel consumption (B) — GJ — GJ

Energy consumption through

other sources (C) — GJ — GJ

Total energy consumption (A+B+C) 57,449 GJ 17,690 GJ

From non-renewable sources

Total electricity consumption (D) 32,769 GJ 57,847 GJ

Total fuel consumption (E) 12,907 GJ 11,869 GJ

Energy consumption through

other sources (F) — GJ — GJ

Total energy consumed from

non-renewable sources (D+E+F) 45,676 GJ 69,716 GJ

Total energy consumed (A+B+C+D+E+F) 103,125 GJ 87,406 GJ

Energy intensity per rupee of turnover

(Total energy consumed/ Revenue from

operations) 0.00000471 GJ/Rupee 0.00000467 GJ/Rupee

Energy intensity per rupee of turnover

adjusted for Purchasing Power Parity (PPP)

(Total energy consumed / Revenue from

operations adjusted for PPP) — — — —

Energy intensity in terms of physical output — — — —

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency : No

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve
and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT
scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

No
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3. Provide details of the following disclosures related to water:

Parameter FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Water withdrawal by source in kilolitre

(i) Surface water — — — —

(ii) Groundwater 92,455.65 m3 83,975.40 m3

(iii) Third party water 36,971.95 m3 26,430.15 m3

(iv) Seawater / desalinated water — — — —

(v) Others by the entity 50.00 m3 382.00 m3

Total volume of water withdrawal

(in kilolitres) (i + ii + iii + iv + v) 1,29,477.60 m3 1,10,787.55 m3

Total volume of water consumption

(in kilolitres) 1,29,477.60 m3 1,10,787.55 m3

Water intensity per rupee of turnover

(Water consumed / revenue from operations) 0.00000591 kilolitre/rupees 0.00000592 kilolitre/rupees

Water intensity per rupee of turnover

adjusted for Purchasing Power Parity (PPP)
(Total water consumption / Revenue from
operations adjusted for PPP) — — — —

Water intensity in terms of physical output — — — —

Water intensity (optional) – the relevant

metric may be selected by the entity — — — —

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency
(Y/N) If yes, name of the external agency: No

4. Provide the following details related to water discharged:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Parameter
Value Unit Value Unit
Water discharge by destination and level of treatment (in kilolitres)

(i) To Surface water — — — —

No treatment — — — —

With treatment — — — —

- Primary treatment — — — —

- Secondary treatment — — — —

- Tertiary treatment — — — —

(ii) To Groundwater 69,724 m3 53,904 m3

No treatment — — 558 m3

With treatment 69,724 m3 53,346 m3

- Primary treatment — — 1,803 m3

- Secondary treatment 69,724 m3 12,590 m3

- Tertiary treatment — — 38,953 m3

 Pricol Limited
105 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)
Parameter
Value Unit Value Unit
(iii) To Seawater — — — —
No treatment — — — —
With treatment — — — —
- Primary treatment — — — —
- Secondary treatment — — — —
- Tertiary treatment — — — —
(iv) Sent to third-parties 6,369 m3 — —
No treatment 2,260 m3 — —
With treatment 4,109 m3 — —
- Primary treatment 4,109 m3 — —
- Secondary treatment — — — —
- Tertiary treatment — — — —
(v) Others — — — —
No treatment — — — —
With treatment — — — —
- Primary treatment — — — —
- Secondary treatment — — — —
- Tertiary treatment — — — —

Total water discharged (in kilolitres) 76,093 m3 53,904 m3

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency
(Y/N) If yes, name of the external agency: No

5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
We Pricol Limited are working towards Zero Liquid discharge systems, our industrial process water are treated
through effluent treatment system having capacity of 10 Kilolitre / Day, Industrial water are 100% treated with
Effluent treatment system, Treated water is reused and Treated sludge from the process are disposed to the
authorized pollution control board vendor to reuse as alternate fuel resource in cement industry.
6. Please provide details of air emissions (other than GHG emissions) by the entity:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Parameter
Value Unit Value Unit
Air emissions (other than GHG emissions)
(i) NOx 0.56 MT 0.15 MT
(ii) SOx 0.09 MT — MT
(iii) Particulate Matter (PM) 0.09 MT 0.02 MT
(iv) Persistent Organic Pollutants (POP) — MT — MT
(v) Volatile Organic Compounds (VOC) — MT 1.76 MT
(vi) Hazardous Air Pollutants (HAP) — MT — MT

Note: Indicate if any independent assessment / evaluation / assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency.

Yes, the independent assessment is carried out by below listed external agency for the respective plants
Plant 1,3 &10 – SMS Labs Service Private Limited Plant 2 & 9 – Balwan Singh Universal Analytical Lab
Plant 7 – Newcon Consultants and Laboratories Plant 5 – Mitcon Consultants and Laboratories
Plant 12 – Eurofine Enviro Lab Private Limited
 Corporate Overview
Statutory Reports
Financial Statements 106

ANNEXURE “F” TO DIRECTORS’ REPORT

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:

Parameter Unit FY 2023 - 24 FY 2022 - 23

Total Scope 1 emissions (Break-up Metric tonnes 1,519 817

of the GHG into CO2, CH4, N2O, of CO2
HFCs, PFCs, SF6, NF3, if available) equivalent

Total Scope 2 emissions Metric tonnes of 6,554 14,582

(Break-up of the GHG into CO2, CO2 equivalent
CH4, N2O, HFCs, PFCs, SF6, NF3, if available)

Total Scope 1 and Scope 2 Metric tonnes of 0.00000037 0.00000082

emission intensity per rupee of turnover CO2 equivalent
/ rupee
(Total Scope 1 and Scope 2 GHG
emissions / Revenue from operations)

Total Scope 1 and Scope 2 emission intensity — — —

per rupee of turnover adjusted for
Purchasing Power Parity (PPP)
(Total Scope 1 and Scope 2 GHG emissions /
Revenue from operations adjusted for PPP)

Total Scope 1 and Scope 2 emission — — —

intensity in terms of physical output

Total Scope 1 and Scope 2 emission — — —

intensity (optional) – the relevant metric
may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency : No

8. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details

We Pricol Limited are working strongly towards reducing the Green House Gas emission, with list of projects as
mentioned below.

1. We are operating our plants with 62% renewal energy for FY 2024. We are working towards 100 % renewal
energy for FY 2026.

2. We have produced an annual power output of 3.3 million units through the utilization of rooftop solar energy.

3. We prioritize the use of natural lighting whenever feasible and actively encourage the adoption of energy-
efficient equipment to minimize greenhouse gas emissions.

4. In the fiscal year 2023-24, power purchase arrangement was utilized to procure a total of 12.6 million units of
renewable energy.

5. Started replacing all diesel operated internal goods movement vehicles with EVs.
 Pricol Limited
107 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

9. Provide details related to waste management by the entity:

FY 2024 (Current Financial Year) FY 2023 (Previous Financial Year)

Parameter
Total Waste generated (in metric tonnes)
Hazardous waste

Plastic waste (A) 454.96 318.65

E-waste (B) 45.98 38.05

Bio-medical waste (C) — —

Construction and demolition waste (D) 1,080.00 6.62

Battery waste (E) 1.23 0.73

Radioactive waste (F) — —

Other Hazardous waste (G)

Used or Spent oil 11.25 17.28

Waste or residue containing oil 2.13 17.50

Spent solvent 70.81 30.15

Process waste or residue 0.21 21.77

Chemical sludge 0.30 0.08

Oil & grease skimming — 0.62

Chemical container waste 5.30 7.21

Heavy metals (Zinc & Lead) 0.99 —

Other Non-hazardous waste generated (H)

Aluminum scrap 54.60 52.35

Metal Waste 419.69 161.24

Paper or cardboard waste 334.62 369.73

Polycarbonate Opaque Purge 21.86 3.68

Glass waste 3.96 4.69

Food waste 34.70 5.07

Municipal Waste (General Trash) 132.63 —

Other 168.73 122.83

Wooden Waste 123.82 —

Total ( A + B + C + D + E + F + G + H ) 2,967.77 1,178.25

 Corporate Overview
Statutory Reports
Financial Statements 108

ANNEXURE “F” TO DIRECTORS’ REPORT

Parameter FY 2023 - 2024 FY 2022 - 2023

Waste intensity per rupee of turnover (Total waste 0.0000001354 0.0000000629

generated / Revenue from operations)

Waste intensity per rupee of turnover adjusted for

Purchasing Power Parity (PPP) (Total waste generated / Revenue
from operations adjusted for PPP) — —

Waste intensity in terms of physical output — —

Waste intensity (optional) – the relevant metric may be

selected by the entity — —

For each category of waste generated, total waste recovered

through recycling, re-using or other recovery operations (in metric tonnes)

Category of waste FY 2023 - 2024 FY 2022 - 2023

(i) Recycled 2,967.77 1,178.25

(ii) Re-used — —

(iii) Other recovery operations — —

Total 2,967.77 1,178.25

For each category of waste generated, total waste disposed by nature of disposal method (in
metric tonnes)

Category of waste FY 2023 - 2024 FY 2022 - 2023

(i) Incineration — —

(ii) Landfilling — —

(iii) Other disposal operations — —

Total — —

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency : No

10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted
by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the
practices adopted to manage such wastes.

At Pricol, we place a strong emphasis on Waste Management and actively promote the principles of Reduce,
Recycle, and Reuse. We categorize waste based on its characteristics, and disposal is carried out by authorized
personnel designated by the Pollution Control Board, aligning with our commitment to the zero-landfill concept.

To conserve water Management, we have implemented measures such as collecting and replenishing 100% of
rainwater into the ground, enabling us to maximize the reuse of water and minimize our reliance on freshwater
sources. Our cumulative rainwater storage capacity is up to 2500 KL, allowing us to effectively capture and utilize
this valuable resource. Additionally, we treat and reuse wastewater for specific processes, further optimizing our
water usage.

Our Waste to Wealth Projects:-

Zero waste to landfill concepts are implemented in our plant. All the Hazardous waste generated is now being
recycled only through authorized recycler.
 Pricol Limited
109 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

To Reduce the waste Generation various initiatives are taken as listed below

• By optimizing the space in packing standard which reduced up to 2 ton of carton waste generation.

• By brainstorming ideas from various team, foam rolls (packing material) are reused till end of life cycle
and waste generation reduced up to 18,000 Kg Per year.

• By using the recycled material in packing systems carton waste reduced up to 96,000 Kg per year.

• We have optimized the Poly cover size for packing which reduces the plastic waste generation up to
1740 Kg per year.

11. If the entity has operations / offices in / around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where
environmental approvals / clearances are required:

Location of Whether the conditions of environmental approval /

[Link]. Type of operations clearance are being complied with? (Y/N) If no,
operations/offices the reasons thereof and corrective action taken, if any.

Not Applicable

12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year :

There is no requirement for environmental impact assessment.

13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act
and rules thereunder (Y/N). If not, provide details of all such non-compliances :

The Company is in compliance with all applicable environmental laws.

Leadership Indicators

1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):

No Pricol plant is located in water stress area.

2. Please provide details of total Scope 3 emissions & its intensity:

Parameter FY 2023 - 24 FY 2022 - 23

Total Scope 3 emissions

(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs,
Scope-3 emissions are not considered in Pricol
SF6, NF3, if available)
Limited emission calculations presently. We are
Total Scope 3 emissions per rupee of turnover in the process including the same in the
upcoming years.
Total Scope 3 emission intensity
(optional)- the relevant metric may be selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external
agency? (Y/N) If yes, name of the external agency : No

3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide
details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and
remediation activities.
Not applicable.
 Corporate Overview
Statutory Reports
Financial Statements 110

ANNEXURE “F” TO DIRECTORS’ REPORT

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the
same as well as outcome of such initiatives :

Initiative Details of the initiative (Web-link, if any,

[Link]. undertaken Outcome of the initiative
may be provided along-with summary)

1 Water The Sewage Water Treatment Plant (STP) data are

Conservation connected to online continual monitoring system. Effective use of resources.

2 Energy Electric power consumption

Light Motion sensors are installed.
conservation is reduced.

5. Does the entity have a business continuity and disaster management plan?
We Pricol limited, have "EMERGENCY PREPARDNESS AND RESPONSE" to identify potential environmental
emergency situations, accidents / incidence and subsequent prevention, control and mitigation of environmental
associated impacts and OHS related risks considering of environmental emergency plan.
We are having emergency communication matrix, which addresses the emergency communication matrix and
hierarchy of responsibility.
6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What
mitigation or adaptation measures have been taken by the entity in this regard.
Not applicable.
7. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
All of our value chain partners are accessed for environmental impacts.

PRINCIPLE 7
Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible
and transparent.
Essential Indicators
1. a. Number of affiliations with trade and industry chambers/ associations.
Pricol Limited affiliates with 8 trade and industry chambers/associations.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such
body) the entity is a member of/ affiliated to.

Reach of trade and industry

[Link]. Name of the trade and industry chambers/ associations chambers/ associations
(State/National)

1 Confederation of Indian Industries (CII) National

2 Automotive Components Manufacturers' Association (ACMA) National

3 Society of Indian Automobile Manufacturers (SIAM) National

4 Engineering Export Promotion Council of India (EEPC) National

5 Quality Circle Forum of India (QCFI) National

6 The Global Association for Electronics Manufacturing (IPC) National

7 Coimbatore Management Association State

8 Employers Federation of Southern India - EFSI National

 Pricol Limited
111 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

2. Provide details of corrective action taken or underway on any issues related to anti-competitive contact by the
entity, based on adverse orders from regulatory authorities.
There were no incidents of anti-competitive behavior involving the Company during the reporting period ( 2023-24)
Leadership Indicators
1. Details of public policy positions advocated by the entity:
Whether Frequency of Review by
Method information Board (Annually/
Public policy Web Link,
[Link]. resorted for available in
advocated Half yearly/ Quarterly / if available
such advocacy public domain?
(Yes/No) Others – please specify)

Not Applicable

PRINCIPLE 8
Businesses should promote inclusive growth and equitable development.
Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in
the current financial year.

Whether conducted
Name and by independent Results communicated
SIA Date of Relevant
brief details in public domain
of project Notification No. notification external agency Web link
(Yes / No)
(Yes / No)

There is no requirement for the company to do Social Impact Assessment

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by
your entity:

Name of Project Amounts paid to

No. of Project
[Link]. for which R&R is State District % of PAFs covered by R&R PAFs in the FY
Affected Families (PAFs)
ongoing (In Lacs INR)

Not Applicable

3. Describe the mechanisms to receive and redress grievances of the community.

Pricol Limited's CSR Team diligently oversees CSR Projects and maintains regular communication with the
communities in the operational areas. Any grievances that arise are promptly addressed and resolved by the CSR Team.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY 2024 (Current FY 2023 (Previous

Financial Year) Financial Year)

Directly sourced from MSMEs / small producers 35.6 % 40.5 %

Sourced directly from within the district and neighbouring districts 58.9 % 65.4 %

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers
employed on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost

Location FY 2023 - 24 FY 2022 - 23

Rural
Semi-urban We are working on capturing the data.
The details will be shared in the subsequent years.
Urban
Metropolitan
(Place to be categorized as per RBI Classification System - rural / semi-urban / urban / metropolitan)
 Corporate Overview
Statutory Reports
Financial Statements 112

ANNEXURE “F” TO DIRECTORS’ REPORT

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
[Link]. Details of negative social impact identified Corrective action taken
1 NIL NIL
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies:

[Link]. State Aspirational District Amount spent (In INR)

1 NIL NIL NIL
3. a. Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalized /vulnerable groups? (Y/N) : No
b. From which marginalized /vulnerable groups do you procure? : Not Applicable
c. What percentage of total procurement (by value) does it constitute? : Not Applicable

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in
the current financial year), based on traditional knowledge:

Intellectual Property based Owned/ Acquired Basis of calculating

[Link]. Benefit shared (Yes / No)
on traditional knowledge (Yes/No) benefit share
1 NIL NIL NIL NIL
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related
disputes wherein usage of traditional knowledge is involved.

Name of authority Brief of the Case Corrective action taken

NIL NIL NIL
6. Details of beneficiaries of CSR Projects:

% of beneficiaries
No. of persons
[Link]. CSR Project from vulnerable
benefitted from
and marginalized
CSR Projects
groups
1 Contribution to Government Hospital -
Medical Equipment and other infra structural Immeasurable NA
support (Satara, Maharashtra)
2 Tree Plantation (Coimbatore, Tamil Nadu) Immeasurable NA
3 Eye Camp at Govt. Schools (Coimbatore, Tamil Nadu) 12,370 NA
4 Eye Camp-Public (Coimbatore, Tamil Nadu) 250 NA
5 Renovation of Government school building (Tirupur, Tamil Nadu) 400 NA
6 Wildlife SOS (New Delhi) Non-measurable NA
7 Contribution to old age home (Pune, Maharashtra) 10 NA
8 Contribution to children education (Pune, Maharashtra) 50 NA
9 Primary Healthcare Centre - Renovation & Repair of Existing
building (Tirupur, Tamil Nadu) Immeasurable NA
10 Contribution to School – Computers & Accessories
(Coimbatore, Tamil Nadu) 130 NA
11 Contribution to School - Distribution of bags and water bottles
(Gurugram, Haryana) 275 NA
12 Contribution to Anganwadi Centre - Infrastructure Facility
(Sri City, Andhra Pradesh) 50 NA
13 Contribution to School - Infrastructure Facility (Satara, Maharashtra) 70 NA
14 Renovation of Government school building (Rudrapur, Uttarkhand) 70 NA
15 Construction of Government school building
(Coimbatore, Tamil Nadu) 150 NA
 Pricol Limited
113 Annual Report 2024

ANNEXURE “F” TO DIRECTORS’ REPORT

PRINCIPLE 9
Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Customer feedback and satisfaction play crucial roles at Pricol Limited. The Company interacts with customers
through multiple channels to grasp their needs. Feedback is collected through email, phone calls, quality forms,
and quarterly satisfaction surveys. Top management regularly analyzes satisfaction trends to identify areas for
enhancement.
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information
about:
As a percentage to total turnover

Environmental and social parameters relevant to Pricol products adhere to the specifications and
the product
regulatory demands of our customers,
encompassing labeling and identification to ensure
secure and responsible utilization, as well as end-of-
Safe and responsible usage life recycling and safe disposal. As the products are
directly supplied to the OEMs, the company's ability
to provide information regarding environmental and
Recycling and/or safe disposal social parameters, safe usage, recycling, and safe
disposal is limited.

3. Number of consumer complaints in respect of the following:

FY 2024 Current Financial Year FY 2023 Previous Financial Year

Received Pending Received Pending

during resolution Remarks during resolution at the Remarks
the year at end of year the year end of year

Data privacy — — — — — —

Advertising — — — — — —

Cyber-security — — — — — —

Delivery of — — — — — —
essential services

Restrictive Trade — — — — — —
Practices

Unfair Trade — — — — — —
Practices

Other — — — — — —

Note: Pricol Limited is a tier 1 supplier to automotive OEMs. As a B2B business we do not have any direct interaction
with the end consumer and do not receive any such complaints.

4. Details of instances of product recalls on account of safety issues:

Number Reasons for recall

Voluntary recalls — No Recalls

Forced recalls — No Recalls

 Corporate Overview
Statutory Reports
Financial Statements 114

ANNEXURE “F” TO DIRECTORS’ REPORT

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available,
provide a web-link of the policy.

IT Policies are available in our intranet portal.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services

Not Applicable

7. Provide the following information relating to data breaches:

a. Number of instances of data breaches – NIL

b. Percentage of data breaches involving personally

identifiable information of customers – NA

c. Impact, if any, of the data breaches - – NIL

Leadership Indicators

1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if
available).

Pricol Limited's website has information about all of the products it offers. The web-link for the site is [Link]

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.

As the Company's products are supplied directly to OEMs for assembly and distribution to end customers, Pricol
does not have the opportunity to educate or inform end users about the safe and responsible use of its products.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

Pricol has a restricted ability to communicate the potential risks of service disruption or discontinuation to end users,
as the Company's products are supplied directly to OEMs for assembly and distribution to customers.

4. Does the entity display product information on the product over and above what is mandated as per local laws?
(Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer
satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the
entity as a whole? (Yes/No)

Yes, the products are fabricated, devised, and examined in accordance with the OEM customer-specific
prerequisites, encompassing the obligatory standard examination essential for the merchandise.
 115
Form AOC - 1
Statement containing salient features of the financial statement of subsidiaries / associate companies / joint ventures
(Pursuant to first proviso to sub-section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Pricol Limited

Part - "A" - Subsidiaries

Information in respect of each subsidiary
` Lakhs
Annual Report 2024

Pricol Asia Exim DMCC, Pricol Electronics Private

PT Pricol Surya Pricol Asia Pte Limited, Dubai (Subsidiary of Limited, India(Subsidiary
Particulars Pricol Asia Pte Limited, of Pricol Asia Pte Limited,
Indonesia Singapore
Singapore) Singapore) #

Reporting Period Apr - Mar Apr - Mar Apr - Mar Apr - Mar
Reporting Currency Indonesian US Dollar US Dollar Indian Rupee
Rupiah (IDR) (USD) (USD) (INR)
Exchange Rate for 1 reporting currency as on 31st March 2024 (INR) 0.00525 83.34160 83.34160 N.A.
Share Capital 6,982.54 208.35 11.25 15.00
Reserves and Surplus (2,130.15) 6,326.42 37.10 (1.35)
Total Assets 5,516.75 16,920.73 3,633.33 13.90
ANNEXURE "G" TO DIRECTORS' REPORT

Total Liabilities 5,516.75 16,920.73 3,633.33 13.90

Investments — 26.63 — —
Turnover 1,993.82 53,743.09 3,939.49 —
Profit / (Loss) before Tax 394.26 1,457.75 62.64 (1.35)
Provision for Taxation 113.78 217.07 — —
Profit / (Loss) after Tax 280.48 1,240.68 62.64 (1.35)
Proposed Dividend — — — —
% of Shareholding 100% 100% 100% 100%

# From 11th April 2023

Notes:
1. Names of the subsidiaries which are yet to commence operations : Pricol Electronics Private Limited, India (Subsidiary of Pricol Asia Pte Limited, Singapore)
2. Names of the subsidiaries which have been liquidated or sold during the year : PT Sripri Wiring Systems Indonesia (Subsidiary of PT Pricol Surya Indonesia)

Part - "B" - Associates and Joint Ventures : Not Applicable

For and on behalf of the Board

Vanitha Mohan Vikram Mohan

Chairman Managing Director
(DIN : 00002168) (DIN : 00089968)

P.M. Ganesh Priyadarsi Bastia T.G. Thamizhanban

Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Form AOC - 2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of
the Companies Act, 2013 including certain arm's length transactions under third proviso thereto.

1. Details of contracts or arrangements or transactions not at arm's length basis

Not Applicable. During the year, all transactions with the related parties were entered at arm's length.

2. Details of material contracts or arrangement or transactions at arm's length basis

[Link]. Name of the related Nature of contracts/ Duration of the contracts/ Salient terms of Date(s) of Amount paid
party and Nature of arrangements/ arrangements/ the contracts or arrangements approval by the as advances,
relationship transactions transactions or transactions including Board, if any if any
the value, if any
ANNEXURE "H” TO DIRECTORS' REPORT

1. Pricol Asia Pte Limited, Agreement for One year – 1st April, Purchase of goods. Not applicable NIL
Singapore purchase of goods 2023 to 31st March, 2024
Value of transactions
(Wholly owned during the reporting
subsidiary of period is ` 53,846.13 Lakhs
Pricol Limited)

For and on behalf of the Board

Vanitha Mohan
Coimbatore Chairman
15th May 2024 (DIN : 00002168)
Financial Statements
Statutory Reports
Corporate Overview

116
 117
TEN YEARS PERFORMANCE AT A GLANCE
OPERATING RESULTS
Pricol Limited

` Lakhs
Annual Report 2024

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Year Ended 31st March Erstwhile Erstwhile Pricol Pricol Pricol Pricol Pricol Pricol Pricol Pricol
Pricol Pricol Limited Limited Limited Limited Limited Limited Limited Limited
Limited Limited

Net Sales & Services - Domestic 78,423.45 97,992.03 1,13,155.51 1,09,564.18 1,22,130.04 1,05,486.58 1,24,499.87 1,34,992.83 1,73,440.69 2,04,950.54
- Export 11,625.45 10,052.82 8,409.61 8,107.26 7,593.97 8,418.29 9,115.46 12,880.30 13,751.12 14,224.80
Total Net Sales & Services 90,048.90 1,08,044.85 1,21,565.12 1,17,671.44 1,29,724.01 1,13,904.87 1,33,615.33 1,47,873.13 1,87,191.81 2,19,175.34
Gross Surplus from Operation 2,328.39 10,665.39 13,186.52 15,050.28 9,372.63 8,514.65 17,050.90 17,079.11 21,190.88 26,124.18
Other Income 200.57 699.96 429.46 667.46 846.34 1,263.23 748.68 698.83 402.36 1,047.35
Depreciation & Amortisation Expense (a) 3,525.45 3,417.37 6,599.73 7,156.53 8,019.74 9,269.24 9,095.04 8,054.70 7,615.88 8,029.82
Finance Costs (b) 789.00 931.19 784.14 1,139.39 1,808.74 3,108.45 4,052.86 2,675.23 1,827.36 1,820.71
Profit / (Loss) from operations before
Exceptional Items and Tax (1,785.49) 7,016.79 6,232.11 7,421.82 390.49 (2,599.81) 4,651.68 7,048.01 12,150.00 17,321.00

Exceptional Items (Net) (467.68) (1,001.62) — — (23,197.75) (19,072.36) — — 975.00 —

Profit / (Loss) Before Tax (PBT) (c) (2,253.17) 6,015.17 6,232.11 7,421.82 (22,807.26) (21,672.17) 4,651.68 7,048.01 13,125.00 17,321.00
Tax Provision incl. Deferred Tax (453.45) 1,695.43 1,564.73 2,074.46 (14.31) (384.20) 3,191.47 2,709.30 1,867.11 4,229.51
Profit / (Loss) After Tax (PAT) (d) (1,799.72) 4,319.74 4,667.38 5,347.36 (22,792.95) (21,287.97) 1,460.21 4,338.71 11,257.89 13,091.49
Other Comprehensive Income for
the year after tax NA NA (112.87) 160.64 31.09 191.97 13.17 (57.93) (232.41) (510.54)
Total Comprehensive Income for the year NA NA 4,554.51 5,508.00 (22,761.86) (21,096.00) 1,473.38 4,280.78 11,025.48 12,580.95

Dividend (including tax) (e) — 1,140.95 1,140.95 1,142.82 — — — — — —

Retained Profit / (Loss) (1,799.72) 3,178.79 3,413.56 4,365.18 (22,761.86) (21,096.00) 1,473.38 4,280.78 11,025.48 12,580.95
As at 31st March 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
SOURCES OF FUNDS
Share Capital 947.97 947.97 947.97 947.97 947.97 947.97 1,218.81 1,218.81 1,218.81 1,218.81
Reserves & Surplus 25,805.92 28,984.71 82,612.01 86,979.06 63,074.38 41,978.38 51,132.97 55,562.17 66,587.65 79,168.60
Networth (f) 26,753.89 29,932.68 83,559.98 87,927.03 64,022.35 42,926.35 52,351.78 56,780.98 67,806.46 80,387.41
Deferred Tax Liability / (Asset) 140.00 (100.00) 3,714.00 5,468.55 5,470.94 5,189.85 5,735.66 5,631.66 4,106.75 3,483.97
Loan Funds (g) 6,401.02 5,000.00 10,834.74 12,725.27 26,022.67 34,328.77 22,983.45 12,806.34 8,920.25 4,662.37
Total Capital Employed (h) 33,294.91 34,832.68 98,108.72 1,06,120.85 95,515.96 82,444.97 81,070.89 75,218.98 80,833.46 88,533.75
TEN YEARS PERFORMANCE AT A GLANCE (Contd.,)
OPERATING RESULTS ` Lakhs

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Year Ended 31st March Erstwhile Erstwhile

Pricol Pricol Pricol Pricol Pricol Pricol Pricol Pricol
Pricol Pricol
Limited Limited Limited Limited Limited Limited Limited Limited
Limited Limited

APPLICATION OF FUNDS
Gross Fixed Assets 45,570.14 47,033.34 82,983.19 88,957.61 97,175.34 1,06,512.54 1,05,154.81 1,11,157.57 1,17,008.25 1,30,317.68
Accumulated Depreciation 27,963.29 28,987.74 12,604.25 19,474.67 27,401.60 36,652.38 42,083.76 50,439.43 57,145.04 64,557.58
Net Fixed Assets 17,606.85 18,045.60 70,378.94 69,482.94 69,773.74 69,860.16 63,071.05 60,718.14 59,863.21 65,760.10
Non-Current Investments 5,275.63 9,544.15 11,526.42 15,527.62 4,671.90 4,671.90 5,946.90 6,913.12 7,033.12 7,033.12
Other Assets (Net) 10,412.43 7,242.93 16,203.36 21,110.29 21,070.32 7,912.91 12,052.94 7,587.72 13,937.13 15,740.53
Net Assets Employed 33,294.91 34,832.68 98,108.72 1,06,120.85 95,515.96 82,444.97 81,070.89 75,218.98 80,833.46 88,533.75
Year Ended 31st March 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
PERFORMANCE INDICATORS
Equity shares ( Nos. in Lakhs ) (i) 947.97 947.97 947.97 947.97 947.97 947.97 1,218.81 1,218.81 1,218.81 1,218.81
Face Value of Equity Share (`) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Earnings per share (EPS) (`) (d/i) (1.90) 4.56 4.92 5.64 (24.04) (20.41) 1.34 3.56 9.24 10.74
Diluted Earnings per share (`) (1.90) 4.56 4.92 5.64 (24.04) (20.41) 1.34 3.56 9.24 10.74

Dividend per share (`) — 1.00 1.00 1.00 — — — — — —

Networth per share (NWPS) (`) (f/i) 28.22 31.58 88.15 92.75 67.54 45.28 42.95 46.59 55.63 65.96
Return on Average
Networth (RONW) (%) * (6.12) 15.24 5.69 6.24 (30.00) (39.81) 3.07 7.95 18.07 17.67
Return on Average Capital
Employed (ROCE) (%) ** (4.15) 20.39 7.64 8.38 (20.83) (20.86) 10.65 12.44 19.16 22.60
Total Debt to Networth (g/f) 0.24 0.17 0.13 0.14 0.41 0.80 0.44 0.23 0.13 0.06
Interest Coverage Ratio (a+b+c)/b 2.61 11.13 17.36 13.79 5.65 3.15 4.39 6.65 11.82 14.92

* RONW = ( PAT / {(Previous year Networth + Current Year Networth)/2}) x 100

** ROCE = ((PBT + Interest) / {(Previous Year Capital Employed + Current Year Capital Employed) / 2}) x 100
Financial Statements
Statutory Reports
Corporate Overview

118
 Pricol Limited
119 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS

To the Members of Pricol Limited Information Other than the Standalone Financial
Statements and Auditor's Report Thereon.
Report on the Audit of the Standalone Financial
Statements The Company's Management and the Board of Directors
are responsible for the preparation of the other
Opinion information. The other information comprises the
We have audited the accompanying Standalone information included in the annual report for example,
financial statements of Pricol Limited (“the Company”), Directors report and Management analysis including
which comprise the Balance Sheet as at March 31, 2024, annexures thereon, but does not include the
the Statement of Profit and Loss (including Other Standalone/Consolidated Financial Statements and our
Comprehensive Income), the Statement of Changes in auditor's report thereon.
Equity and the Statement of Cash Flows for the year then
The other information is expected to be made available
ended and notes to the Standalone financial statements
to us after the date of this auditor's report.
including a summary of material accounting policies and
other explanatory information (hereinafter referred to as Our opinion on the Standalone Financial Statements
“Financial Statements”). does not cover the other information and we do not
express any form of assurance conclusion thereon.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid In connection with our audit of the Standalone Financial
Standalone financial statements give the information Statements, our responsibility is to read the other
required by the Companies Act, 2013 (“the Act”) in the information identified above when it becomes available
manner so required and give a true and fair view in and, in doing so, consider whether the other information
conformity with the accounting principles generally is materially inconsistent with the Standalone Financial
accepted in India including the Indian Accounting Statements, or our knowledge obtained during the
Standards prescribed under section 133 of the Act read course of our audit or otherwise appears to be materially
with the Companies (Indian Accounting Standards) misstated.
Rules , 2015, as amended (“Ind AS”), of the state of affairs
When we read the other information, as stated above,
of the Company as at March 31, 2024, its profit including
which is expected to be received after the date of our
other comprehensive income, changes in equity and its
audit report, if we conclude that there is a material
cash flows for the year ended on that date.
misstatement therein, we are required to communicate
Basis for Opinion the matter to those charged with governance and take
We conducted our audit in accordance with the necessary actions, as applicable under applicable laws
Standards on Auditing (SAs) specified under section and regulations.
143(10) of the Act. Our responsibilities under those
Management's and Board of Director's Responsibilities for
Standards are further described in the Auditor's
the Standalone Financial Statements
Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of The Company's Management and the Board of Directors
the Company in accordance with the Code of Ethics are responsible for the matters stated in section 134(5) of
issued by the Institute of Chartered Accountants of India the Act with respect to the preparation of these
(“ICAI”) together with the ethical requirements that are Standalone Financial Statements that give a true and fair
relevant to our audit of the Standalone financial view of the financial position, financial performance
statements under the provisions of the Act and Rules including other comprehensive income, statement of
thereunder and we have fulfilled our other ethical changes in equity and cash flows of the Company in
responsibilities in accordance with these requirements accordance with the accounting principles generally
and the Code of Ethics. We believe that the audit accepted in India, including the Indian Accounting
evidence we have obtained is sufficient and appropriate Standards (Ind AS) specified under section 133 of the Act,
to provide a basis for our opinion. read with relevant rules issued thereunder. This
responsibility also includes maintenance of adequate
Key Audit Matters accounting records in accordance with the provisions of
Key Audit Matters are those matters that, in our the Act for safeguarding the assets of the Company and
professional judgment, were of most significance in our for preventing and detecting frauds and other
audit of the Standalone financial statements of the irregularities; selection and application of appropriate
current period. We have determined that there are no accounting policies; making judgments and estimates
key audit matters to communicate in our report. that are reasonable and prudent; and design,
 Corporate Overview
Statutory Reports
Financial Statements 120

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

implementation and maintenance of adequate internal 143(3)(i) of the Act, we are also responsible for
financial controls that were operating effectively for expressing our opinion on whether the company has
ensuring the accuracy and completeness of the adequate internal financial controls with reference
accounting records, relevant to the preparation and to Standalone Financial Statements in place and the
presentation of the Standalone Financial Statements that operating effectiveness of such controls.
give a true and fair view and are free from material
Ÿ Evaluate the appropriateness of accounting policies
misstatement, whether due to fraud or error.
used and the reasonableness of accounting
In preparing the Standalone Financial Statements, the estimates and related disclosures made by the
Board of Directors are responsible for assessing the management and the Board of Directors.
Company's ability to continue as a going concern,
Ÿ Conclude on the appropriateness of the
disclosing, as applicable, matters related to going
management and Board of Director's use of the
concern and using the going concern basis of
going concern basis of accounting and, based on
accounting unless Board of Directors either intends to
the audit evidence obtained, whether a material
liquidate the Company or to cease operations, or has no
uncertainty exists related to events or conditions that
realistic alternative but to do so.
may cast significant doubt on the Company's ability
The Management and the Board of Directors are also to continue as a going concern. If we conclude that
responsible for overseeing the Company's financial a material uncertainty exists, we are required to draw
reporting process. attention in our auditor's report to the related
disclosures in the Standalone Financial Statements
Auditor's Responsibilities for the Audit of the Standalone
or, if such disclosures are inadequate, to modify our
Financial Statements
opinion. Our conclusions are based on the audit
Our objectives are to obtain reasonable assurance evidence obtained upto the date of our auditor's
about whether the Standalone Financial Statements as a report. However, future events or conditions may
whole are free from material misstatement, whether due cause the Company to cease to continue as a going
to fraud or error, and to issue an auditor's report that concern.
includes our opinion. Reasonable assurance is a high
Ÿ Evaluate the overall presentation, structure and
level of assurance but is not a guarantee that an audit
content of the Standalone Financial Statements,
conducted in accordance with SAs will always detect a
including the disclosures, and whether the
material misstatement when it exists. Misstatements can
Standalone Financial Statements represent the
arise from fraud or error and are considered material if,
underlying transactions and events in a manner that
individually or in the aggregate, they could reasonably
achieves fair presentation.
be expected to influence the economic decisions of
users taken on the basis of these Standalone Financial Materiality is the magnitude of misstatements in the
Statements. Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic
As part of an audit in accordance with SAs, we exercise decisions of a reasonably knowledgeable user of the
professional judgment and maintain professional Standalone Financial Statements may be influenced.
skepticism throughout the audit. We also: We consider quantitative materiality and qualitative
Ÿ Identify and assess the risks of material misstatement factors in (i) planning the scope of our audit work and in
of the Standalone Financial Statements, whether evaluating the results of our work and (ii) evaluating the
due to fraud or error, design and perform audit effect of any identified misstatements in the Standalone
procedures responsive to those risks, and obtain Financial Statements.
audit evidence that is sufficient and appropriate to
We communicate with those charged with governance
provide a basis for our opinion. The risk of not
regarding, among other matters, the planned scope and
detecting a material misstatement resulting from
timing of the audit and significant audit findings,
fraud is higher than for one resulting from error, as
including any significant deficiencies in internal control
fraud may involve collusion, forgery, intentional
that we identify during our audit.
omissions, misrepresentations, or the override of
internal control. We also provide those charged with governance with a
Ÿ Obtain an understanding of internal control relevant statement that we have complied with relevant ethical
to the audit in order to design audit procedures that requirements regarding independence, and to
are appropriate in the circumstances. Under section communicate with them all relationships and other
 Pricol Limited
121 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

matters that may reasonably be thought to bear on our record by the Board of Directors, none of the
independence, and where applicable, related directors is disqualified as on March 31, 2024
safeguards. from being appointed as a director in terms
of section 164(2) of the Act;
From the matters communicated with those charged
with governance, we determine those matters that were vi) With respect to the adequacy of the internal
of most significance in the audit of the Standalone financial controls with reference to
Financial Statements of the current period and are Standalone Financial Statements of the
therefore the key audit matters. We describe these Company and the operating effectiveness
matters in our auditor's report unless law or regulation of such controls, we give our separate report
precludes public disclosure about the matter or when, in in “Annexure 2”.
extremely rare circumstances, we determine that a
(B) With respect to the other matters to be included
matter should not be communicated in our report
in the Auditor's Report in accordance with Rule
because the adverse consequences of doing so would
11 of the Companies (Audit and Auditors) Rules,
reasonably be expected to outweigh the public interest
2014, as amended in our opinion and to the best
benefits of such communication.
of our information and according to the
Report on Other Legal and Regulatory Requirements explanations given to us:

(1) As required by the Companies (Auditor's Report) (i) The Company has disclosed the impact of
Order, 2020 (“the Order”) issued by the Central pending litigations as on March 31, 2024 on
Government of India in terms of section 143(11) of its financial position in its Standalone
the Act, we give in “Annexure 1”, a statement on the Financial Statements – Refer Note 48 on
matters specified in paragraphs 3 and 4 of the Order, Contingent Liabilities to the Standalone
to the extent applicable. Financial Statements;
(ii) The Company did not have any long-term
(2) (A) As required by section 143(3) of the Act, we
contracts including derivative contracts for
report that:
which there were material foreseeable
losses;
i) We have sought and obtained all the
information and explanations which to the (iii) There has been no delay in transferring
best of our knowledge and belief were amounts, required to be transferred, to the
necessary for the purposes of our audit; Investor Education and Protection Fund by
the Company.
ii) In our opinion, proper books of account as (iv) a) The Management has represented that,
required by law have been kept by the to the best of its knowledge and belief,
Company so far as it appears from our as disclosed in the note 68(ii)(A) to the
examination of those books; Standalone Financial Statements, no
funds (which are material either
iii) The Standalone Balance Sheet, the
individually or in the aggregate) have
Standalone Statement of Profit and Loss
been advanced or loaned or invested
including the Statement of Other
(either from borrowed funds or share
Comprehensive Income, the Standalone
premium or any other sources or kind of
Statement of Changes in Equity and the
funds) by the Company to or in any
Standalone Statement of Cash Flows dealt
other persons or entities, including
with by this report are in agreement with the
foreign entities (“Intermediaries”), with
books of account;
the understanding, whether recorded in
iv) In our opinion, the aforesaid Standalone writing or otherwise, that the
Financial Statements comply with the Intermediary shall:
Accounting Standards specified under · Directly or indirectly lend or invest in
section 133 of the Act read with relevant other persons or entities identified in
rules issued thereunder; any manner whatsoever (“Ultimate
v) On the basis of the written representations Beneficiaries”) by or on behalf of the
received from the directors and taken on Company or
 Corporate Overview
Statutory Reports
Financial Statements 122

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

· Provide any guarantee, security or account which has a feature of

the like on behalf of the Ultimate recording audit trail (edit log) facility
Beneficiaries. and the same has operated throughout
the year for all relevant transactions
b) The Management has represented, that, to the recorded in the software.
best of its knowledge and belief, as disclosed in
Note No 68(ii)(B) of Standalone Financial b) Further, during the course of our audit
Statements, no funds (which are material either we did not come across any instance of
individually or in the aggregate) have been audit trail feature being tampered with.
received by the Company from any person or (C) With respect to the other matters to be included
entity, including foreign entity (“Funding in the Auditor's Report in accordance with the
Parties”), with the understanding, whether requirements of section 197(16) of the Act, as
recorded in writing or otherwise, that the amended;
Company shall:
In our opinion and to the best of our information
· Directly or indirectly, lend or invest in other and according to the explanations given to us,
persons or entities identified in any manner the remuneration paid/provided by the
whatsoever (“Ultimate Beneficiaries”) by or Company to its directors during the year is in
on behalf of the Funding Party or accordance with the provisions of section 197 of
the Act: The remuneration paid to any director is
· Provide any guarantee, security or the like
not in excess of the limit laid down under Section
on behalf of the Ultimate Beneficiaries.
197 of the Companies Act.
c) Based on the audit procedures as considered
reasonable and appropriate in the
circumstances, nothing has come to our notice
that has caused us to believe that the
For VKS Aiyer & Co
representations under sub-clause iv (a) and (b)
Chartered Accountants
contain any material misstatement.
ICAI Firm Registration No.000066S
v) The company has not proposed / paid any CS Sathyanarayanan
dividend during the year. Partner
vi) a) The company has used an accounting Coimbatore Membership No.028328
software for maintaining its books of 15th May 2024 UDIN: 24028328BKGSVH3735
 Pricol Limited
123 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT verification of property, plant and equipment,
[Referred to in paragraph 1 under 'Report on Other Legal by which all the property, plant and equipment
and Regulatory Requirements' in the Independent are verified in a phased manner over a period
Auditor's Report of even date to the members of Pricol of 3 years. In accordance with the programme
Limited on the Standalone financial statements for the certain property, plant and equipment were
year ended 31st March,2024] verified during the year. This periodicity of
physical verification is reasonable having
In our opinion and to the best of knowledge and belief,
regard to the size of the Company and the
the books of accounts and records examined by us and
nature of its assets. No material discrepancies
according to the information and explanations given to
were noticed on such verification and the
us, we report that
discrepancies noticed have been properly
(i) (a) (A) The Company has maintained proper
dealt with the books of accounts.
records showing full particulars, including
(c) The title deeds of all the immovable properties,
quantitative details and situation of
recorded as property, plant and equipment
Property, Plant and Equipment.
and investment property (other than
(B) The Company has maintained proper
immovable properties where the Company is
records showing full particulars, including
the lessee and the lease agreements are duly
quantitative details and situation of
executed in favour of the Company) are held
Intangible assets.
in the name of the Company except for the
(b) The Company has a regular program of following:

Gross Carrying Whether promoter,

Description of the Held in the Reason for not held in the name
value of Right of director or their Period Held
leased property name of of the company
Use Asset (` Lakhs) relative or employee

Pricol Wiping Systems India Limited

was amalgamated with Pricol Limited
Leasehold land Pricol Wipings during the Financial Year 2022-23
From FY
situated at Satara 954.53 Systems India No and the company is in the process of
2022 - 23
Maharashtra Limited changing the name in the
lease agreement

(d) The Company has not revalued any of its more in the aggregate for each class of
property, plant and equipment and intangible inventory. In respect of inventories held with
assets during the year. third parties, these have been confirmed
substantially and in respect of goods in transit,
(e) There were no proceedings initiated or
the goods have been received subsequent to
pending against the Company for holding any
the year-end.
benami property under Prohibition of Benami
(b) The Company has been sanctioned working
Property Transactions Act, 1988 (as amended in
capital limits in excess of ` 5 Crores, in
2016) and rules made thereunder.
aggregate, from banks on the basis of security
(ii) (a) The inventories, except for goods-in-transit and of current assets. The quarterly returns and
inventories with third parties, were physically statements comprising stock, creditors and
verified during the year by the Management at book debt filed by the Company with such
reasonable intervals. The coverage and banks are having differences with the
procedure of such verification by the unaudited books of account of the Company,
Management is appropriate having regard to of the respective quarters for which
the size of the Company and the nature of its reconciliation has been furnished to us. The
operations. No discrepancies were noticed on differences are on account of provisions and
physical verification between the physical cut-off procedures in respect of each of the
stock and the book records that were 10% or quarters. On verification of books and records,
 Corporate Overview
Statutory Reports
Financial Statements 124

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT (Contd.,)

we find that the company has not overdrawn of the Companies Act, 2013, and are of the opinion
its eligible working Capital borrowing limit that, prima facie, the prescribed cost records have
against such inventory and trade receivable been made and maintained by the Company. We
for each of the quarters. have, however, not made a detailed examination
(iii) The Company has not made any investments in, of the cost records with a view to determine whether
provided any guarantee or security, and granted they are accurate or complete.
any loans or advances in the nature of loans, (vii) In respect of statutory dues:
secured or unsecured, to companies, firms, Limited
(a) Undisputed statutory dues, including Goods
Liability Partnerships or any other parties during the
and Service tax, Provident Fund, Employees'
year, and hence reporting under clause (iii) of the
State Insurance, Income-tax, Sales Tax, Service
Order is not applicable.
Tax, duty of Custom, duty of Excise, Value
(iv) The Company has not granted any loans, made Added Tax, cess and other material statutory
investments or provided guarantees or securities dues applicable to the Company have been
and hence reporting under clause (iv) of the Order is regularly deposited by it with the appropriate
not applicable. authorities during the year.
(v) The Company has not accepted any deposit or There were no undisputed amounts payable in
amounts which are deemed to be deposits. Hence, respect of Goods and Service tax, Provident
reporting under clause (v) of the Order is not Fund, Employees' State Insurance, Income-tax,
applicable. Sales Tax, Service Tax, duty of Custom, duty of
(vi) The maintenance of cost records has been Excise, Value Added Tax, cess and other
specified by the Central Government under section material statutory dues in arrears as at March
148(1) of the Companies Act, 2013. We have 31, 2024 for a period of more than six months
broadly reviewed the books of account maintained from the date they became payable.
by the Company pursuant to the Companies (Cost (b) Details of statutory dues referred to in sub-
Records and Audit) Rules, 2014, as amended, clause (a) above which have not been
prescribed by the Central Government for deposited as on March 31, 2024 on account of
maintenance of cost records under Section 148(1) disputes are given below:
 Pricol Limited
125 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT (Contd.,) ` Lakhs

Amount Remarks /
(Net of Period to Deposits
Name of Forum where
Nature of dues Deposits paid) which the paid under
the Statute dispute is pending
amount relates Protest,
(` Lakhs) if any

219.27 2003-04 to 2009-10 CESTAT (Tribunal) 16.77

i) Excise Duty
168.99 1997-98 to 2014-15 Departmental adjudication 4.57

Central 359.73 2012-13 to 2014-15 CESTAT (Tribunal) 66.43

Excise Act /
Customs Act
8.95 2007-08 Joint Secretary – Ministry of Finance —
ii) Customs Duty
60.16 2007-08 to 2010-11 Departmental adjudication —

17.91 2017-18 to 2019-24 Assistant Commissioner of customs —

302.78 2009-10 to 2013-14 Additional Commissioner (Appeals) —

Central 7.63 2012-13 Assistant Commissioner of Sales Tax —

Sales Tax CST
Act
3.49 2007-08 Assistant Commissioner of Sales Tax —

3.95 2015-16 Assistant Commissioner of Sales Tax —

17.69 2017-18 Commissioner (appeals) 0.85

The Superintendent, Audit

83.79 2017-18 to 2018-19 Circle (GST) —

Goods and 2.15 2023-24 Office of the State Tax officer —

Services GST
Tax act The Deputy Commissioner GST
60.96 2017-18 —
& Central Excise
The Superintendent, Audit
1.51 2017-18 —
Circle (GST)
The commissioner of GST and
20.84 2017-18 2.31
Central Excise (Appeals)
Employees
State Insurance ESI 81.95 2010-11 ESI Corporation 25.31
Act, 1948

Provident Funds
PF 106.82 2013-14 High Court —
Act,1925

The Income Tax

Income Tax 399.41 2015-16 High Court —
Act, 1961

Total 1,927.98 116.24

(viii) There were no transactions relating to previously government or any government authority.
unrecorded income that were surrendered or
disclosed as income in the tax assessments under (c) The Company has not taken any term loan
the Income Tax Act, 1961 (43 of 1961) during the year. during the year and there are no unutilized
(ix) (a) In our opinion, the Company has not term loans at the beginning of the year and
defaulted in the repayment of loans or other hence, reporting under clause (ix)(c) of the
borrowings or in the payment of interest Order is not applicable.
thereon to any lender during the year.
(d) On an overall examination of the financial
(b) The Company has not been declared willful statements of the Company, funds raised on
defaulter by any bank or financial institution or short- term basis have, prima facie, not been
 Corporate Overview
Statutory Reports
Financial Statements 126

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT (Contd.,)

used during the year for long-term purposes by (xvi) (a) The Company is not required to be registered
the Company. under section 45-IA of the Reserve Bank of
India Act, 1934. Hence, reporting under clause
(e) The Company has not made any investment in (xvi)(a) and (b) of the Order is not applicable.
or given any new loan or advances to any of its
subsidiaries, associates or joint ventures during (c) The company is not a core-investment-
the year and hence, reporting under clause Company (CIC) as defined by regulations
(ix)(e) of the Order is not applicable. made by RBI. Hence, reporting under clause
(f) The Company has not raised loans during the (xvi)(c) of the Order is not applicable.
year on the pledge of securities held in its
(d) The Group does not have any CIC as part of
subsidiaries or joint ventures or associate
the group and accordingly reporting under
companies.
clause (xvi)(d) of the Order is not applicable.
(x) (a) The Company has not raised moneys by way
of initial public offer or further public offer (xvii) The Company has not incurred cash losses during
(including debt instruments) during the year the financial year covered by our audit and the
and hence reporting under clause (x)(a) of the immediately preceding financial year.
Order is not applicable
(xviii)There has been no resignation of the statutory
(b) During the year the Company has not made auditors of the Company during the year.
any preferential allotment or private
placement of shares or convertible (xix) On the basis of the financial ratios, ageing and
debentures (fully or partly or optionally) and expected dates of realization of financial assets
hence reporting under clause (x)(b) of the and payment of financial liabilities, (Asset Liability
Order is not applicable to the Company. Maturity (ALM) pattern) other information
accompanying the financial statements and our
(xi) (a) No fraud by the Company and no material knowledge of the Board of Directors and
fraud on the Company has been noticed or Management plans and based on our examination
reported during the year.
of the evidence supporting the assumptions,
(b) No report under sub-section (12) of section 143 nothing has come to our attention, which causes us
of the Companies Act has been filed in Form to believe that any material uncertainty exists as on
ADT-4 as prescribed under rule 13 of the date of the audit report indicating that
Companies (Audit and Auditors) Rules, 2014 Company is not capable of meeting its liabilities
with the Central Government, during the year existing at the date of balance sheet as and when
and upto the date of this report. they fall due within a period of one year from the
balance sheet date. We, however, state that this is
(c) There were no whistle blower complaints not an assurance as to the future viability of the
received by the Company during the year.
Company. We further state that our reporting is
(xii) The Company is not a Nidhi Company and hence based on the facts up to the date of the audit report
reporting under clause (xii) of the Order is not and we neither give any guarantee nor any
applicable. assurance that all liabilities falling due within a
period of one year from the balance sheet date, will
(xiii) The Company is in compliance with Section 177 and get discharged by the Company as and when they
188 of the Companies Act, where applicable, for all fall due.
transactions with the related parties and the details
of related party transactions have been disclosed (xx) The Company has fully spent the required amount
in the financial statements etc. as required by the towards Corporate Social Responsibility (CSR) and
applicable accounting standards. there are no unspent CSR amount for the year.
(xiv)(a) The Company has an adequate internal audit
system commensurate with the size and the
nature of its business. For VKS Aiyer & Co
Chartered Accountants
(b) We have considered, the internal audit reports
issued till date for the period under audit. ICAI Firm Registration No.000066S
CS Sathyanarayanan
(xv) The Company has not entered into any non-cash Partner
transactions with its directors or persons connected
with its directors and hence, reporting under clause Coimbatore Membership No.028328
(xv) of the Order is not applicable. 15th May 2024 UDIN: 24028328BKGSVH3735
 Pricol Limited
127 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' in the Independent Auditor's
Report of even date to the members of Pricol Limited on the standalone financial statements for the year
ended 31st March,2024]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over applicable to an audit of internal financial controls, both
financial reporting of Pricol Limited (“the Company”) as issued by the ICAI. Those Standards and the Guidance
of March 31, 2024 in conjunction with our audit of the Note require that we comply with ethical requirements
standalone financial statements of the Company for the and plan and perform the audit to obtain reasonable
year ended on that date. assurance about whether adequate internal financial
Opinion controls over financial reporting was established and
In our opinion, the Company has, in all material respects, maintained and if such controls operated effectively in
an adequate internal financial controls system over all material respects.
financial reporting and such internal financial controls Our audit involves performing procedures to obtain
over financial reporting were operating effectively as at audit evidence about the adequacy of the internal
March 31, 2024, based on the internal control over financial controls system over financial reporting and
financial reporting criteria established by the Company their operating effectiveness. Our audit of internal
considering the essential components of internal control financial controls over financial reporting included
stated in the Guidance Note on Audit of Internal obtaining an understanding of internal financial controls
Financial Controls Over Financial Reporting issued by the over financial reporting, assessing the risk that a material
Institute of Chartered Accountants of India (the weakness exists, and testing and evaluating the design
“Guidance Note”). and operating effectiveness of internal control based on
Management's Responsibility for Internal Financial the assessed risk. The procedures selected depend on
Controls the auditor's judgement, including the assessment of the
The Company's management is responsible for risks of material misstatement of the financial statements,
establishing and maintaining internal financial controls whether due to fraud or error.
based on the internal control over financial reporting We believe that the audit evidence we have obtained is
criteria established by the Company considering the sufficient and appropriate to provide a basis for our audit
essential components of internal control stated in the opinion on the Company's internal financial controls
Guidance Note. These responsibilities include the design, system over financial reporting.
implementation and maintenance of adequate internal
Meaning of Internal Financial Controls Over Financial
financial controls that were operating effectively for Reporting
ensuring the orderly and efficient conduct of its business, A company's internal financial control over financial
including adherence to company's policies, the reporting is a process designed to provide reasonable
safeguarding of its assets, the prevention and detection assurance regarding the reliability of financial reporting
of frauds and errors, the accuracy and completeness of and the preparation of financial statements for external
the accounting records, and the timely preparation of purposes in accordance with generally accepted
reliable financial information, as required under the accounting principles. A company's internal financial
Companies Act, 2013. control over financial reporting includes those policies
Auditors' Responsibility and procedures that (1) pertain to the maintenance of
Our responsibility is to express an opinion on the records that, in reasonable detail, accurately and fairly
Company's internal financial controls over financial reflect the transactions and dispositions of the assets of
reporting based on our audit. We conducted our audit in the company; (2) provide reasonable assurance that
accordance with the Guidance Note on Audit of transactions are recorded as necessary to permit
Internal Financial Controls Over Financial Reporting (the preparation of financial statements in accordance with
“Guidance Note”) and the Standards on Auditing generally accepted accounting principles, and that
specified under section 143(10) of the Act to the extent receipts and expenditures of the company are being
 Corporate Overview
Statutory Reports
Financial Statements 128

INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS (Contd.,)

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT (Contd.,)

made only in accordance with authorisations of reporting to future periods are subject to the risk that the
management and directors of the company; and internal financial control over financial reporting may
(3) provide reasonable assurance regarding prevention become inadequate because of changes in conditions,
or timely detection of unauthorised acquisition, use, or or that the degree of compliance with the policies or
disposition of the company's assets that could have a procedures may deteriorate.
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over
Financial Reporting For VKS Aiyer & Co
Because of the inherent limitations of internal financial Chartered Accountants
controls over financial reporting, including the possibility ICAI Firm Registration No.000066S
of collusion or improper management override of CS Sathyanarayanan
controls, material misstatements due to error or fraud Partner
may occur and not be detected. Also, projections of any Coimbatore Membership No.028328
evaluation of the internal financial controls over financial 15th May 2024 UDIN: 24028328BKGSVH3735
 Pricol Limited
129 Annual Report 2024

STANDALONE BALANCE SHEET AS AT 31st MARCH 2024

31-3-2024 31-3-2023
Note. ` Lakhs
` Lakhs

I. ASSETS

(1) Non-Current Assets

(a) Property, Plant and Equipment 2 44,843.53 38,393.69

(b) Right of Use 3 2,618.61 3,330.23

(c) Capital Work-in-progress 4 3,790.08 1,398.56

(d) Investment Property 5 668.61 694.97

(e) Goodwill 6 5,960.40 6,953.80

(f) Other Intangible assets 7 7,840.72 9,029.47

(g) Intangible Assets under Development 8 38.15 62.49

(h) Financial Assets

i) Investments 9 7,033.12 7,033.12

ii) Other Financial Assets 10 688.92 731.06

(i) Other Non-Current Assets 11 1,071.64 1,599.53

Total Non-Current Assets 74,553.78 69,226.92

(2) Current Assets

(a) Inventories 12 28,772.90 27,049.00

(b) Financial Assets

i) Investments 13 516.85 363.92

ii) Trade Receivables 14 28,188.94 26,184.18

iii) Cash and Cash equivalents 15 199.91 1,533.94

iv) Bank Balances other than (iii) above 16 109.34 54.30

v) Other Financial Assets 17 123.10 29.87

(c) Other Current Assets 18 1,177.37 1,490.40

Total Current Assets 59,088.41 56,705.61

Non-Current Assets held for Sale 19 — 1,956.91

— 1,956.91

59,088.41 58,662.52

TOTAL ASSETS 1,33,642.19 1,27,889.44

 Corporate Overview
Statutory Reports
Financial Statements 130

STANDALONE BALANCE SHEET AS AT 31st MARCH 2024

31-3-2024 31-3-2023
Note.
` Lakhs ` Lakhs

Standalone Balance Sheet as at 31st March 2024 (Contd.,)

II. EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 20 1,218.81 1,218.81
(b) Other Equity 21 79,168.60 66,587.65
Total Equity 80,387.41 67,806.46
LIABILITIES
(1) Non-Current Liabilities
(a) Financial Liabilities
i) Borrowings 22 — 2,675.81
ii) Lease Liabilities 23 747.72 1,307.61
iii) Other Financial Liabilities 24 88.27 80.97
(b) Provisions 25 1,712.77 1,302.78
(c) Deferred Tax Liabilities (Net) 26 3,483.97 4,106.75
(d) Other Non-Current Liabilities 27 199.24 127.89
Total Non-Current Liabilities 6,231.97 9,601.81

(2) Current Liabilities

(a) Financial Liabilities
i) Borrowings 28 4,662.37 6,244.44
ii) Lease Liabilities 29 542.08 704.53
iii) Trade Payables 30
- Total Outstanding dues of Micro
Enterprises and Small Enterprises 2,281.36 1,916.89
- Total Outstanding dues of creditors other
than Micro Enterprises and Small Enterprises 25,493.48 27,299.05
iv) Other Financial Liabilities 31 8,688.09 10,241.10
(b) Other Current Liabilities 32 2,612.69 2,206.40
(c) Provisions 33 2,692.82 1,111.27
(d) Current Tax Liabilities (Net) 34 49.92 85.49
Total Current Liabilities 47,022.81 49,809.17
Liabilities in relation to Non-Current Assets held for Sale 35 — 672.00

TOTAL EQUITY AND LIABILITIES 1,33,642.19 1,27,889.44

Material Accounting Policies & Notes form an integral part of the Financial Statements
As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Pricol Limited
131 Annual Report 2024

STANDALONE STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH 2024

2023-24 2022-23
Note. ` Lakhs
` Lakhs

INCOME

Revenue from Operations 36 2,19,175.34 1,87,191.81

Other Operating Revenue 37 6,361.34 5,572.95

Other Income 38 1,047.35 402.36

Total Income 2,26,584.03 1,93,167.12

EXPENSES

Cost of Materials Consumed 39 1,52,870.08 1,32,767.77

Purchases of Stock-in-Trade 7,148.60 5,972.32

Changes in inventories of Finished Goods, Stock-in-Trade and 40 (2,352.65) (995.29)

Work-in-progress

Employee Benefits Expense 41 25,607.40 22,037.69

Finance Costs 42 1,820.71 1,827.36

Depreciation and Amortisation Expense 43 8,029.82 7,615.88

Other Expenses 44 16,139.07 11,791.39

Total Expenses 2,09,263.03 1,81,017.12

Profit / (Loss) before Exceptional Items and Tax 17,321.00 12,150.00

Add: Exceptional Item 45 — 975.00

Profit / (Loss) Before Tax 17,321.00 13,125.00

Less : Tax Expense

Current Tax 4,750.53 3,313.86

Deferred Tax 56 (c) (451.07) (1,446.75)

Earlier years (Net) (69.95) —

Profit / (Loss) for the year (A) 13,091.49 11,257.89

 Corporate Overview
Statutory Reports
Financial Statements 132

STANDALONE STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH 2024

2023-24 2022-23
Note. ` Lakhs
` Lakhs

Standalone statement of Profit & Loss for the year ended 31st March 2024
(Contd.,)

Other Comprehensive Income

Items that will not be reclassified to profit or loss :

Remeasurement of post employment benefit obligations (682.25) (310.57)

Income tax relating to these items 56 (c) 171.71 78.16

Other Comprehensive Income for the year after tax (B) (510.54) (232.41)

Total Comprehensive Income for the year (A) + (B) 12,580.95 11,025.48

Earnings per Equity Share (Face Value of ` 1/-) in Rupees 46

Basic & Diluted 10.74 9.24

Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Pricol Limited
133 Annual Report 2024

STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH 2024

a) Equity Share Capital ` Lakhs

Balance at the Changes in Equity Balance at the

beginning of the current Share Capital during end of the current
reporting period the current year reporting period

As at 31st March 2024 1,218.81 — 1,218.81

As at 31st March 2023 1,218.81 — 1,218.81

` Lakhs
Other
b) Other Equity Reserves and Surplus Comprehensive
Income
Total
Deficit Remeasurement
Securities Capital Retained on of post
Premium Reserve Earnings Business employment
Combination benefit obligation

Balance as at 1st April 2023 88,642.77 827.33 (22,197.20) (677.02) (8.23) 66,587.65

- Profit / (Loss) for the year

2023-24 — — 13,091.49 — — 13,091.49

- Other Comprehensive
Income, Net off Income Tax — — — — (510.54) (510.54)

Balance as at 31st March 2024 88,642.77 827.33 (9,105.71) (677.02) (518.77) 79,168.60

Balance as at 1st April 2022 88,642.77 827.33 (33,455.09) (677.02) 224.18 55,562.17
- Profit / (Loss) for the year
2022-23 — — 11,257.89 — — 11,257.89
- Other Comprehensive
Income, Net off Income Tax — — — — (232.41) (232.41)

Balance as at 31st March 2023 88,642.77 827.33 (22,197.20) (677.02) (8.23) 66,587.65

Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Corporate Overview
Statutory Reports
Financial Statements 134

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2024

Year Ended Year Ended

31st March 2024 31st March 2023
` Lakhs ` Lakhs

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit / (Loss) Before Tax 17,321.00 13,125.00
Adjustments for :
Exceptional Item — (975.00)
Depreciation & Amortisation Expense 8,029.82 7,615.88
Bad Debts / Advances Written off
(Net off Loss Allowances) 6.49 66.26
Deferred Revenue from Government Grant (31.99) (6.37)
(Profit) / Loss on sale of Property, Plant and
Equipment (Net) / Assets Discarded
(Net of Impairment / (Reversals)) 43.37 (28.99)
Interest received (60.26) (40.68)
Exchange Fluctuation (Gain) / Loss on Re-statement 82.62 (521.82)
Gain on Fair Valuation / Disposal of Investments
at Fair Value through P&L (152.93) (0.91)
Finance Costs 1,820.71 1,827.36
9,737.83 7,935.73
Operating Profit before working capital changes 27,058.83 21,060.73
Adjustments for :-
(Increase) / Decrease in Trade Receivables (2,028.25) (2,411.83)
(Increase) / Decrease in Inventories (1,723.90) (3,451.03)
(Increase) / Decrease in Other Assets 303.87 444.61
Increase / (Decrease) in Trade Payables (1,479.99) 649.45
Increase / (Decrease) in Other Payables 312.49 1,194.21
(4,615.78) (3,574.59)
Cash generated from Operations 22,443.05 17,486.14
Direct taxes (3,903.18) (3,037.93)
Net cash from operating activities 18,539.87 14,448.21

B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Property, Plant and Equipment &
Investment Property (14,296.37) (8,488.93)
Sale of Property, Plant and Equipment 572.22 72.24
Adjustment for capital advances
& Capital Creditors (504.01) 366.35
Purchase of Non-Current Investments — (120.00)
Purchase of Current Investments — (149.99)
Advance received / Sale Proceeds against
disposal of asset held for sale 1,128.00 672.00
Settlement of Claims by the seller of Erstwhile
Step-down subsidiary — 975.00
Interest received 37.98 34.23
Net Cash used in investing activities (13,062.18) (6,639.10)
 Pricol Limited
135 Annual Report 2024

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2024

Year Ended Year Ended

31st March 2024 31st March 2023
` Lakhs ` Lakhs
Standalone Cash Flow Statement for the year ended
31st March 2024 (Contd.,)
C. CASH FLOW FROM FINANCING ACTIVITIES :
Proceeds from / (Repayment of) Current
Borrowings (Net) (419.55) 4,782.71

Proceeds from / (Repayment of) Non-Current (3,865.06) (8,675.43)

Borrowings (Net)
Repayment of Lease Liabilities (708.02) (636.66)
Finance Costs paid # (1,819.09) (1,807.92)
Net Cash used in financing activities (6,811.72) (6,337.30)

D. NET INCREASE / (DECREASE) IN CASH AND

CASH EQUIVALENTS (A+B+C) (1,334.03) 1,471.81
Cash and cash equivalents as at 1.4.2023
and 1.4.2022 (Opening Balance) 1,533.94 62.13
Cash and cash equivalents as at 31.3.2024
and 31.3.2023 (Closing Balance) (Refer Note. 15) 199.91 1,533.94
# Includes Interest on Lease Obligations of ` 174.49 Lakhs (Previous Year - ` 235.43 Lakhs)
Changes in Liability arising from financing activities, disclosing changes arising from Cash and Non Cash Flow :
` Lakhs
Non Current
Borrowings Current Lease
Particulars (including current Borrowings Liability
maturities)
As at 31-3-2024
Opening Balance as at 1st April, 2023 3,865.06 5,055.19 2,012.14
Cash Flows (Net) - Proceeds / (Repayment) (3,865.06) (419.55) (708.02)
Termination of lease — — (14.32)
Addition during the year - Impact on account of Ind AS 116 — — —
Exchange Fluctuation (Gain) / Loss on Re-statement — 26.73 —
De-recognition of unamortised portion of finance charges — — —
Closing Balance as at 31st March 2024 — 4,662.37 1,289.80
As at 31-3-2023
Opening Balance as at 1st April, 2022 12,514.95 291.39 2,514.79
Cash Flows (Net) - Proceeds / (Repayment) (8,675.43) 4,782.71 (636.66)
Addition during the year - Impact on account of Ind AS 116 — — 134.01
Exchange Fluctuation (Gain) / Loss on Re-statement — (18.91) —
De-recognition of unamortised portion of finance charges 25.54 — —
Closing Balance as at 31st March 2023 3,865.06 5,055.19 2,012.14
Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Corporate Overview
Statutory Reports
Financial Statements 136

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2024

1.A. Corporate Information:

Pricol Limited is a Company incorporated on 18th May, the present value of dened benet
2011 a n d i s e n g a g e d i n t h e b u s i n e s s o f obligations;
manufacturing and selling of Instrument clusters
• Long term borrowings are measured at
and other allied automobile components to
amortised cost using the effective interest rate
Original Equipment Manufacturers (OEM) and
(EIR) method.
replacement markets. The Equity share of the
company are listed on the National Stock 1. B. MATERIAL ACCOUNTING POLICIES
Exchange of India Limited (NSE) and the BSE Limited i. Revenue Recognition:
(BSE).
Sale of goods
General Information and Statement of Compliance
Revenue from customers is recognised when the
with Ind AS: Company satises performance obligation by
These Standalone Financial Statements ('financial transferring promised goods or services to the
statements') of the Company have been prepared customers. Revenue is measured based on
in accordance with the Indian Accounting transaction price, (net of variable consideration)
Standards (hereinafter referred to as the 'Ind AS') as allocated to that performance obligation. The
notified by Ministry of Corporate Affairs ('MCA') transaction price of goods sold, and services
under Section 133 of the Companies Act, 2013 ('the rendered is net of variable consideration on
Act') read with the Companies (Indian Accounting account of various trade discounts and allowances
Standards) Rules, 2015, as amended from time to offered by the Company as part of the contract.

time and other relevant provisions of the Act. The Revenue from sale of goods and associated
Company has uniformly applied the accounting services is recognised at the point of time when the
policies during the periods presented. The financial goods are sold or services rendered.
statements for the year ended 31st March 2024 Sale of services
were authorised and approved for issue by the
Service income is recognised as per the terms of
Board of Directors on 15th May 2024.
the contract with customers when related services
Basis of Preparation and Presentation : are rendered.
The Company considers any other promises in the
The financial statements have been prepared on
contract that are separate performance
going concern basis in accordance with
obligations to which a portion of the transaction
accounting principles generally accepted in India.
price needs to be allocated. In determining the
The presentation of financial statement is based on
transaction price for the goods, the Company
Ind AS Schedule III of the Companies Act, 2013. The
considers the effect of variable consideration, the
financial statements are prepared in Indian Rupees
existence of signicant nancing components, non
which is the functional and presentation Currency.
cash consideration and consideration payable to
The financial statements have been prepared & the customer, if any. A refund liability (included in
presented on the historical convention and on other nancial liabilities) is recognised for expected
accrual basis, except for the following material volume discounts payable to customers in relation
items in the Balance Sheet: to sales made until the end of the reporting period.
• Financial assets / liabilities are measured either No element of nancing is deemed present as the
at fair value or at amortised cost depending sales are made with a credit term of 30 days to 120
on their classication; days, which is consistent with market practice. The
Company's obligation to repair or replace faulty
• Derivative instruments are measured at their products under the standard warranty terms is
fair values; recognised as warranty provision.
• Employee dened benet assets/ liabilities are Export benets
recognised as the net total of fair value of plan Export incentive entitlement are recognised as
assets, adjusted for actuarial gains / losses and income when the right to receive credit as per the
 Pricol Limited
137 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,)

terms of the scheme is established in respect of the Schedule II to the Companies Act, 2013, except for
exports made and where there is no uncertainty leasehold improvements which are amortised as
regarding the ultimate collection of the exports depreciation over the useful life or lease period,
proceeds. which ever is lower and Dies, Tools and Moulds
Unbilled Revenue which are depreciated over a period of 3 years.

Contract Assets are recognised when there is Where the cost of a part of the PPE is signicant to
excess of revenue earned over the contract billing. the total cost of the PPE and if that part of the PPE
Contract assets are classied as unbilled has a different useful life than the main PPE, the
receivables when there is an unconditional right to useful life of that part is determined separately for
receive payment as per the contractual terms. depreciation.
Claims
The Company has used the following useful lives to
Claims made by the Company including price provide depreciation on its Property, Plant and
escalations and those made on the Company are Equipment:
recognised in the Statement of Prot and Loss as
Class of Assets Useful Lives
and when the claims are accepted / Liability is
crystallised. Factory Buildings 30 years

ii. Property, Plant and Equipment & Depreciation: Improvement Useful life or lease
to Leasehold period whichever
Property, Plant and Equipment (PPE), being xed
Buildings is lower
assets are tangible items that are held for use in the
production or supply of goods or services, for rental Plant & Equipments 7.5 / 10 / 15 years
to others, or for administrative purposes and are (Based on Shift)
expected to be used for more than a period of
Furniture & Fixtures 10 years
twelve months. They are measured at cost less
accumulated depreciation and any accumulated Vehicles 8 years
impairment. Cost comprises of the purchase price Office Equipments 5 years
including import duties and non-refundable
Dies, Tools and Moulds 3 years
purchase taxes after deducting trade discounts
and rebates and any costs attributable to bringing Computer Equipments
the asset to the location and condition necessary - Servers and Networks 6 years
for it to be capable of operating in the manner - End User Devices 3 years
intended by the Management. Own manufactured
Spares 1 - 3 years
assets are capitalised at cost including an
appropriate share of overheads. Financing costs (if
The management believes that the useful lives
any) relating to acquisition of assets which take
adopted reflect the expected pattern of
substantial period of time to get ready for intended consumption of future economic benefits.
use are also included to the extent they relate to the The depreciation method applied to an asset is
period upto such assets are ready for their intended use. reviewed at each financial year-end and if there
Items such as spare parts, stand-by equipment and has been a significant change in the expected
servicing equipment are capitalised if they meet pattern of consumption of future economic
benefits embodied in the asset, depreciation is
the denition of property, plant and equipment.
charged prospectively to reflect the changed
Depreciation on Property, Plant and Equipment pattern.
(PPE) are provided under straight line method as The carrying amount of an item of PPE is
per the useful lives and manner prescribed under derecognised on disposal or when no future
 Corporate Overview
Statutory Reports
Financial Statements 138

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,)

economic benefits are expected from its use or If the Company decides to classify an equity
disposal. Gains or losses arising from derecognition instrument as at FVTOCI, then all fair value changes
of Property, Plant and Equipment are measured as on the instrument, excluding dividends, impairment
the difference between the net disposal proceeds
gains or losses and foreign exchange gains and
and the carrying amount of the asset and are
losses, are recognised in the OCI. Any gains or losses
recognised in the Statement of Profit and Loss when
the asset is derecognised. on de-recognition is recognised in the OCI and are

iii. Intangible assets and amortisation: not recycled to the Statement of Profit or Loss.

An intangible asset is an identifiable non-monetary Equity instruments included within the FVTPL

asset without physical substance. category are measured at fair value with all

Intangible assets are recognised only if it is probable changes recognised in the Statement of Profit and
that future economic benefits that are attributable Loss.
to the asset will flow to the enterprise and the cost of Investment in Subsidiaries, Associates and Joint
the asset can be measured reliably. ventures:
Computer software licenses are capitalised on the The Company's investment in equity instruments of
basis of costs incurred to acquire and bring to use subsidiaries, Associates and Joint Venture are
the specific software. Operating software is accounted for at cost less accumulated
capitalised and amortised along with the related impairment losses, if any. Where an indication of
fixed asset. impairment exists, the carrying amount of the
The Company has used the following useful lives to investment is assessed and written down
amortise its intangible assets: immediately to its recoverable amount. On disposal
Class of Assets Useful Lives of investments in subsidiaries, associates and joint
Specialised software 4 years venture, the difference between net disposal
Fees for Technical 4 years proceeds and the carrying amounts are
Know-how recognised in the Statement of Profit and Loss.
Intangible Assets 15 years (Based on v. Contingent liabilities:
acquired on technical opinion) A contingent liability is a possible obligation that
Amalgamation arises from past events whose existence will be
Goodwill acquired on 15 years (Based on confirmed by the occurrence or non-occurrence of
Amalgamation technical opinion) one or more uncertain future events beyond the
control of the company or a present obligation that
iv. Financial instruments: is not recognised because it is not probable that an
A financial instrument is any contract that gives rise outflow of resources will be required to settle the
to a financial asset of one entity and a financial obligation. A contingent liability also arises in
liability or equity instrument of another entity. extremely rare cases where there is a liability that
cannot be recognised because it cannot be
Equity investments (other than investments in
measured reliably. The Company does not
subsidiaries and joint ventures):
recognise a contingent liability but discloses its
All equity investments within the scope of Ind AS 109, existence in the financial statements.
'Financial Instruments', are measured at fair value Contingent Assets are not recognised but are
either through Statement of Profit and Loss or other disclosed when the inflow of economic benefits are
comprehensive income. The Company makes an probable.
irrevocable election to present in OCI the v i. Inventories:
subsequent changes in the fair value on an Inventories are valued at lower of cost and
instrument-by-instrument basis. The classification is estimated net realisable value. Net realisable value
made on initial recognition. is the estimated selling price in the ordinary course
 Pricol Limited
139 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,) a) Provision and contingent liability:

On an ongoing basis, the Company reviews pending
of business less the estimated costs of completion
and the estimated costs necessary to make the sale. cases, claims by third parties and other

The basis of determining cost for various categories contingencies. For contingent losses that are
of inventories is as follows:- considered probable, an estimated loss is recorded
i) Raw Materials, Packing Materials & Stores and as an accrual in financial statements. Loss
Spares: Weighted average basis. Contingencies that are considered possible are not
ii) Finished Goods and Work-In-Progress: Cost of provided for but disclosed as Contingent liabilities in
Direct Material, Labour & Other Manufacturing the financial statements. Contingencies the
Overheads.
likelihood of which is remote are not disclosed in the
Stores & Spares which do not meet the definition of
financial statements.
Property, Plant and Equipment are accounted as
b) E v a l u a t i o n o f i n d i c a t o r s f o r i m p a i r m e n t o f
inventories.
assets:
Significant accounting Judgments, estimates and
assumptions: The evaluation of applicable indicators of
The preparation of financial statements in conformity impairment of assets requires assessment of several
with the recognition and measurement principles of Ind external and internal factors which could result in
AS requires management to make judgements, deterioration of recoverable amount of the assets.
estimates and assumptions that affect the reported c) Allowances for uncollected accounts receivable
balances of revenues, expenses, assets and liabilities and advances:
and the accompanying disclosures, and the disclosure
Trade receivables do not carry interest and are
of contingent liabilities. Uncertainty about these
stated at their normal value as reduced by
assumptions and estimates could result in outcomes that
appropriate allowances for estimated irrecoverable
require a material adjustment to the carrying amount of
amounts. Individual trade receivables are written off
assets or liabilities affected in future periods.
when management deems them not collectable.
Impairment is made on the expected credit loss
The estimates and underlying assumptions are reviewed
model, which is the present value of the cash shortfall
on an ongoing basis. Revisions to accounting estimates
over the expected life of the financial assets. The
are recognised in the period in which the estimate is
impairment provisions for financial assets are based
revised if the revision affects only that period, or in the
on assumption about the risk of default and
period of the revision and future periods if the revision
expected loss rates. Judgement in making these
affects both current and future periods.
assumptions and selecting the inputs to the
The following are the areas of estimation uncertainty and impairment calculation are based on past history,
critical judgements that the management has made in existing market condition as well as forward looking
the process of applying the Company's accounting policies: estimates at the end of each reporting period.
NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)
2. PROPERTY, PLANT AND EQUIPMENT (PPE) ` Lakhs

Improve-
ments to Furniture
Plant & Office Computer
Particulars Land Buildings and Vehicles Total
Leasehold Equipment Equipments Equipments
Buildings Fixtures

Gross Carrying Value

As at 1st April, 2022 9,928.23 16,499.73 374.46 36,408.64 783.96 516.01 68.76 2,334.67 66,914.46
Additions during 2022-23 — 556.59 — 6,161.03 71.73 80.87 1.44 673.30 7,544.96
Deletions during 2022-23 0.38 — — 163.00 — 18.56 — 18.00 199.94
Re-classified as Non-Current Assets held for Sale
(Refer Note. 19) 185.59 700.57 — — — — — — 886.16
As at 31st March, 2023 9,742.26 16,355.75 374.46 42,406.67 855.69 578.32 70.20 2,989.97 73,373.32
Additions during 2023-24 3,039.05 1,959.88 — 6,418.12 125.61 73.51 40.48 211.20 11,867.85
Deletions / Adjustments during 2023-24 204.00 41.77 — 779.44 18.46 6.91 — 9.32 1,059.90
Re-classified as Non-Current Assets held for Sale
(Refer Note.19) — — — — — — — — —
As at 31st March, 2024 12,577.31 18,273.86 374.46 48,045.35 962.84 644.92 110.68 3,191.85 84,181.27
Accumulated Depreciation ` Lakhs
As at 1st April, 2022 — 5,022.22 213.83 23,061.63 427.24 172.72 47.18 1,821.08 30,765.90
Depreciation for the year 2022-23 — 777.73 36.57 3,228.00 67.90 55.88 5.46 274.90 4,446.44
Withdrawn during the year 2022-23 — — — 122.64 — 17.16 — 16.89 156.69
Re-classified as Non-Current Assets held for Sale
(Refer Note. 19) — 76.02 — — — — — — 76.02
As at 31st March, 2023 — 5,723.93 250.40 26,166.99 495.14 211.44 52.64 2,079.09 34,979.63
Depreciation for the year 2023-24 — 899.20 48.39 3,488.21 71.13 61.70 6.04 384.66 4,959.33
Withdrawn during the year 2023-24 — 27.14 — 542.52 16.31 6.52 — 8.73 601.22
Re-classified as Non-Current Assets held for Sale
(Refer Note.19) — — — — — — — — —
As at 31st March, 2024 — 6,595.99 298.79 29,112.68 549.96 266.62 58.68 2,455.02 39,337.74

Net Carrying Value ` Lakhs

As at 31st March, 2023 9,742.26 10,631.82 124.06 16,239.68 360.55 366.88 17.56 910.88 38,393.69
As at 31st March, 2024 12,577.31 11,677.87 75.67 18,932.67 412.88 378.30 52.00 736.83 44,843.53

Certain Property, Plant and Equipment have been given as security against borrowings availed by the Company (Refer Note. 22 & 28).
Title deeds of all immovable properties are held in the name of the Company.
Financial Statements
Statutory Reports
Corporate Overview

140
 Pricol Limited
141 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

3. RIGHT OF USE ` Lakhs

Computer
Particulars Land Buildings Total
Equipments

Gross Carrying Value

As at 1st April, 2022 1,875.53 2,938.72 673.28 5,487.53

Additions during 2022-23 — 137.92 — 137.92

Deletions during 2022-23 — 130.03 — 130.03

As at 31st March, 2023 1,875.53 2,946.61 673.28 5,495.42

Additions during 2023-24 — — — —

Deletions during 2023-24 30.38 — — 30.38

As at 31st March, 2024 1,845.15 2,946.61 673.28 5,465.04

Accumulated Depreciation ` Lakhs

As at 1st April, 2022 128.69 1,235.24 227.87 1,591.80

Depreciation for the year 2022-23 25.38 453.60 224.44 703.42

Withdrawn during the year 2022-23 — 130.03 — 130.03

As at 31st March, 2023 154.07 1,558.81 452.31 2,165.19

Depreciation for the year 2023-24 26.76 457.23 213.31 697.30

Withdrawn during the year 2023-24 16.06 — — 16.06

As at 31st March, 2024 164.77 2,016.04 665.62 2,846.43

Net Carrying Value ` Lakhs

As at 31st March, 2023 1,721.46 1,387.80 220.97 3,330.23

As at 31st March, 2024 1,680.38 930.57 7.66 2,618.61

Lease Agreement of Leasehold land at Satara, Maharashtra is held in the name of Pricol Wiping Systems India
Limited which was amalgamated with Pricol Limited vide NCLT, Chennai order dated 29th November, 2022.
(Refer Note. 51(b))
4. CAPITAL WORK-IN-PROGRESS ` Lakhs

As at As at
Particulars 31st March 2024 31st March 2023

As at the beginning of the year 1,398.56 844.02

As at the end of the year 3,790.08 1,398.56

Capital Work-in-progress ageing as at 31-3-2024 ` Lakhs

Amount in Capital Work-in-progress for a period of

Particulars Less than 2-3 More than Total
1-2 years
1 year years 3 years

Projects in progress 3,591.84 198.24 — — 3,790.08

Projects temporarily suspended — — — — —
 Corporate Overview
Statutory Reports
Financial Statements 142

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

CAPITAL WORK-IN-PROGRESS (Contd.,)
Capital Work-in-progress ageing as at 31-3-2023 ` Lakhs

Amount in Capital Work-in-progress for a period of

Particulars Less than 2-3 More than Total
1-2 years
1 year years 3 years

Projects in progress 1,395.74 2.82 — — 1,398.56

Projects temporarily suspended — — — — —

Capital Work-in-progress projects which have exceeded their original budgeted cost and / or planned time of
completion - Nil (Previous year - Nil).

5. INVESTMENT PROPERTY ` Lakhs

Particulars Land Building Total

Gross Carrying Value
As at 1st April, 2022 650.00 1,340.32 1,990.32
Additions during 2022-23 295.00 59.73 354.73
Re-classified as Non-Current Assets held for Sale
(Refer Note. 19) 757.00 708.04 1,465.04
Deletions during 2022-23 — — —
As at 31st March, 2023 188.00 692.01 880.01
Additions during 2023-24 — — —
Re-classified as Non-Current Assets held for Sale
(Refer Note. 19) — — —
Deletions during 2023-24 — — —
As at 31st March, 2024 188.00 692.01 880.01

Accumulated Depreciation ` Lakhs

As at 1st April, 2022 — 451.53 451.53

Depreciation for the year 2022-23 — 51.78 51.78
Re-classified as Non-Current Assets held for Sale
(Refer Note. 19) — 318.27 318.27
Withdrawn during the year 2022-23 — — —

As at 31st March, 2023 — 185.04 185.04

Depreciation for the year 2023-24 — 26.36 26.36
Re-classified as Non-Current Assets held for Sale
(Refer Note. 19) — — —

Withdrawn during the year 2023-24 — — —

As at 31st March, 2024 — 211.40 211.40

Net Carrying Value ` Lakhs

As at 31st March, 2023 188.00 506.97 694.97

As at 31st March, 2024 188.00 480.61 668.61
 Pricol Limited
143 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

INVESTMENT PROPERTY (Contd.,)

The Company has identified Land and Building at Poochiyur to be in the nature of investment property as they are
being held to earn rentals.
I) Amount recognised in Statement of Profit and Loss for investment properties : ` Lakhs

Particulars 2023-24 2022-23

Rental Income 57.64 64.18

Direct operating expenses arising from investment property that
generated rental income during the year :

Less : Depreciation expense 26.36 51.78

Less : Repairs and Maintenance - Buildings 2.82 —
Profit / (Loss) from Investment Property 28.46 12.40

ii) Fair Value of Land and Building held as Investment Property - ` 1,346.29 Lakhs (Previous year - ` 1,346.29
Lakhs).
Fair Valuation of Investment property is as per the Registered Valuer obtained during April, 2023.
The Management believes that the fair value as at the year end would not be significantly different from
the valuation obtained earlier.
iii) Contractual obligations to construct investment property or for Repairs & Maintenance or enhancement
- ` Nil (Previous year - ` Nil)

6. GOODWILL ` Lakhs

Particulars Amount

Gross Carrying Value

As at 1st April, 2022 15,479.67

Additions during 2022-23 —

Deletions during 2022-23 —

As at 31st March, 2023 15,479.67

Additions during 2023-24 —

Deletions during 2023-24 —

As at 31st March, 2024 15,479.67

Accumulated Amortisation ` Lakhs

As at 1st April, 2022 7,532.47

Amortisation for the year 2022-23 993.40

Withdrawn during the year 2022-23 —

As at 31st March, 2023 8,525.87

Amortisation for the year 2023-24 993.40

Withdrawn during the year 2023-24 —

As at 31st March, 2024 9,519.27

Net Carrying Value ` Lakhs

As at 31st March, 2023 6,953.80

As at 31st March, 2024 5,960.40

Refer Note. 51(a) in relation to Scheme of Amalgamation and accounting treatment.
 Corporate Overview
Statutory Reports
Financial Statements 144

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

7. OTHER INTANGIBLE ASSETS ` Lakhs

Patents &
Particulars Computer Technical Brand /
Developed Total
Software Knowhow Trade Mark
Technology
Gross Carrying Value
As at 1st April, 2022 900.75 510.82 4,914.00 14,116.00 20,441.57
Additions during 2022-23 106.47 — — — 106.47
Deletions during 2022-23 209.94 19.32 — — 229.26
As at 31st March, 2023 797.28 491.50 4,914.00 14,116.00 20,318.78
Additions during 2023-24 164.68 — — — 164.68
Deletions during 2023-24 — — — — —
As at 31st March, 2024 961.96 491.50 4,914.00 14,116.00 20,483.46
Accumulated Amortisation ` Lakhs
As at 1st April, 2022 706.22 510.82 2,293.20 6,587.49 10,097.73
Amortisation for the year 2022-23 152.17 — 327.60 941.07 1,420.84
Withdrawn during the year 2022-23 209.94 19.32 — — 229.26
As at 31st March, 2023 648.45 491.50 2,620.80 7,528.56 11,289.31
Amortisation for the year 2023-24 84.76 — 327.60 941.07 1,353.43
Withdrawn during 2023-24 — — — — —

As at 31st March, 2024 733.21 491.50 2,948.40 8,469.63 12,642.74

Net Carrying Value ` Lakhs

As at 31st March, 2023 148.83 — 2,293.20 6,587.44 9,029.47

As at 31st March, 2024 228.75 — 1,965.60 5,646.37 7,840.72

8. INTANGIBLE ASSETS UNDER DEVELOPMENT ` Lakhs

As at As at
Particulars 31st March 2024 31st March 2023

As at the beginning of the year 62.49 —

As at the closing of the year 38.15 62.49

Intangible Assets Under Development ageing as at 31-3-2024 ` Lakhs

Amount in Intangible Assets Under Development for a period of

Particulars Less than 2-3 More than Total

1-2 years
1 year years 3 years

Projects in progress 38.15 — — — 38.15

Projects temporarily suspended — — — — —

Intangible Assets Under Development ageing as at 31-3-2023 ` Lakhs

Amount in Intangible Assets Under Development for a period of

Particulars Less than 2-3 More than Total

1-2 years
1 year years 3 years

Projects in progress 62.49 — — — 62.49

Projects temporarily suspended — — — — —

Intangible Assets Under Development projects which have exceeded their original budgeted cost and / or
planned time of completion - Nil (Previous year - Nil).
 Pricol Limited
145 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

9. INVESTMENTS
Investments in Equity Instruments, fully paid-up
In Subsidiaries (at Cost)
In Equity Shares, unquoted
a) 10,500 Equity Shares of USD 1,000/- each fully paid-up in 6,762.74 6,762.74
PT Pricol Surya Indonesia -
(Previous year - 10,500 Equity Shares of USD 1,000/- each)
(Extent of holding - 100%)

b) 2,50,000 Equity Shares of USD 1/- each fully paid-up in 150.38 150.38
Pricol Asia Pte Limited, Singapore -
(Previous year - 2,50,000 Equity Shares of USD 1/- each)
(Extent of holding - 100%)

In Others (At Fair Value through OCI)

In Equity Shares, unquoted
a) 96,900 Equity Shares of ` 100/- each fully paid-up in 120.00 120.00
Shri Dhanalakshmi Spinntex Private Limited
(Previous year - 96,900 Equity Shares of ` 100/- each)
(Extent of holding - 5.38%)
7,033.12 7,033.12

Aggregate amount of Quoted and Unquoted investments

Investments in Equity Instruments

Aggregate amount of quoted investments — —

Aggregate market value of quoted investments — —

Aggregate amount of unquoted investments 7,033.12 7,033.12

Aggregate amount of impairment in value of investments — —

The investments in Level 3 hierarchy has been valued at cost approach to arrive at the fair value measurements
and cost represents the estimate of fair value within that range considering the purpose and restriction on the
transferability of instruments (Refer Note. 52).
 Corporate Overview
Statutory Reports
Financial Statements 146

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

10. OTHER FINANCIAL ASSETS

Unsecured Considered Good
Security Deposits 588.92 631.06
Earmarked Balances
In Margin Money Account 100.00 100.00
Unsecured Deposits Considered Doubtful
Security Deposits 76.96 76.96
Less : Allowance for doubtful deposits 76.96 76.96
— —
688.92 731.06
Note : -
Margin Money with banks is towards issue of Bank Guarantee.

11. OTHER NON-CURRENT ASSETS

Capital Advances 730.57 360.08
Less : Allowance for doubtful advances 3.00 12.33
727.57 347.75
Advance Tax, Net off Provision 97.26 910.23
Deposits with Government Authorities 348.97 427.98
Less : Allowance for doubtful deposits 102.16 86.43
246.81 341.55
1,071.64 1,599.53
 Pricol Limited
147 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

12. INVENTORIES
Raw Materials & Components 17,762.29 16,569.43
Goods in Transit - Raw Materials & Components 1,109.56 3,055.35
Work-in-progress 1,166.66 1,160.01
Finished Goods 7,677.15 5,522.22
Stores & Spares 573.34 449.16
Traded Goods 483.90 292.83
28,772.90 27,049.00

Mode of valuation of inventories is stated in Note. 1 (B) (vi) of material accounting policies.

Inventories have been given as security for the borrowings availed by the Company. Refer Note. 28.

Inventories as stated above is net off Provision for / (Reversal) of Non / Slow Moving Inventory of ` 255.47 Lakhs
(Previous year - ` (172.41) Lakhs)

Carrying amount of inventories pledged as security for liabilities ` 28,698.89 Lakhs (Previous year- ` 26,995.32 Lakhs)

Amount of write down of inventories recognised as an expenses - ` 33.21 Lakhs (Previous year - ` 24.40 Lakhs)

Amount of reversal of any write down - Nil (Previous year - Nil)

Cost of Inventory recognised as an expense

2023-24 2022-23
Particulars ` Lakhs ` Lakhs

Cost of Materials Consumed 1,50,708.50 1,31,646.36

Cost of Traded Goods Sold 6,957.53 6,098.44
Stores and Spares 309.79 283.34

13. INVESTMENTS ` Lakhs

Sl. No. Particulars 31-3-2024 31-3-2023

Investments in Mutual Funds (at Fair Value through P&L)

Quoted - Non Trade
1. Aditya Birla Sun Life Business Cycle Fund - Regular - Growth 65.05 49.70
2. ICICI Prudential Business Cycle Fund - Growth 68.23 44.32
3. AXIS Multicap Fund - Regular - Growth 42.96 28.38
4. HDFC Multicap Fund - Regular - Growth 65.71 44.06
5. SBI Multicap Fund - Regular Plan - Growth 68.14 50.25
6. ICICI Prudential Transportation & Logistics Fund - Growth 78.47 48.01
7. HDFC Business Cycle Fund - Regular - Growth 65.50 48.53
8. Aditya Birla Sun Life Multi Asset Allocation Fund - 62.79 50.67
Regular - Growth
Total 516.85 363.92
Aggregate amount of Quoted Investments 516.85 363.92
Aggregate Market Value of Quoted Investments 516.85 363.92
 Corporate Overview
Statutory Reports
Financial Statements 148

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

14. TRADE RECEIVABLES

Trade Receivables considered good - unsecured 28,546.60 26,316.74
Trade Receivables - which have significant increase in credit risk 109.67 76.62
Trade Receivables - Credit Impaired — —
Unbilled Revenue — —
Less : Allowance for Expected Credit Loss 467.33 209.18
28,188.94 26,184.18

Trade Receivables have been given as security for the borrowings availed by the Company. Refer Note. 28.
Trade Receivables are non interest bearing and generally on credit terms in the range of 30 - 120 days.

The carrying amount of trade receivables does not include receivables of ` 6,089.68 Lakhs (Previous year -
` 6,128.66 Lakhs) which are subject to factoring arrangement. Under this arrangement, the Company has
transferred the relevant receivables in exchange for cash on non recourse basis. The Company therefore, has
de-recognised the receivables under the said arrangement.

The Company's exposure to credit and currency risk and loss allowances related to Trade Receivables are
disclosed in Note. 53.

Movement in the allowance for Doubtful Trade Receivables

Balance at the beginning of the period 209.18 279.77
Expected Credit Loss Provided / (Reversal) 258.15 (70.59)
Balance at the end of the period 467.33 209.18

The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience
and adjusted for forward looking experience. The Expected Credit Loss is based on the ageing of the receivables
that are due and at the rates used in the provision matrix.
 Pricol Limited
149 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

TRADE RECEIVABLES (Contd.,)

Ageing as on 31-3-2024 ` Lakhs
Outstanding for following periods from due date of payment
Particulars 6 months 1-2 2-3 More than
Less than
Not Due -1 year years years Total
6 months 3 years

(i) Undisputed Trade receivables –

considered good 24,273.13 4,272.88 0.59 — — — 28,546.60
(ii) Undisputed Trade Receivables –
which have significant
increase in credit risk — — — 22.53 67.88 19.26 109.67
(iii) Undisputed Trade Receivables –
credit impaired — — — — — — —
(iv) Disputed Trade Receivables –
considered good — — — — — — —
(v) Disputed Trade Receivables –
which have significant
increase in credit risk — — — — — — —
(vi) Disputed Trade Receivables –
credit impaired — — — — — — —
(vii) Unbilled Revenue — — — — — — —

Total 24,273.13 4,272.88 0.59 22.53 67.88 19.26 28,656.27

Less : Allowance for Expected
Credit Loss 467.33

Total (Net) 24,273.13 4,272.88 0.59 22.53 67.88 19.26 28,188.94

Ageing as on 31-3-2023 ` Lakhs

Outstanding for following periods from due date of payment
Particulars 6 months 1-2 2-3 More than
Less than
Not Due -1 year years years Total
6 months 3 years

(i) Undisputed Trade receivables –

considered good 22,217.90 4,098.84 — — — — 26,316.74
(ii) Undisputed Trade Receivables –
which have significant
increase in credit risk — — — 59.00 17.62 — 76.62
(iii) Undisputed Trade Receivables –
credit impaired — — — — — — —
(iv) Disputed Trade Receivables –
considered good — — — — — — —
(v) Disputed Trade Receivables –
which have significant increase
in credit risk — — — — — — —
(vi) Disputed Trade Receivables –
credit impaired — — — — — — —
(vii) Unbilled Revenue — — — — — — —

Total 22,217.90 4,098.84 — 59.00 17.62 — 26,393.36

Less : Allowance for Expected
Credit Loss 209.18
Total (Net) 26,184.18
 Corporate Overview
Statutory Reports
Financial Statements 150

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

15. CASH AND CASH EQUIVALENTS

Balances with Banks
In Cash Credit Account 47.64 1,356.15
In Current Account 141.28 98.93
In Deposit Account — 71.58
(with original maturity of 3 months or less)
Cash on hand 10.99 7.28
199.91 1,533.94

16. BANK BALANCES OTHER THAN ABOVE

Earmarked Balances
In Unpaid Dividend Account 34.25 54.30
Others
In Fixed Deposit (with original maturity period of more 75.09 —
than 12 months)
109.34 54.30

17. OTHER FINANCIAL ASSETS

Unsecured, Considered Good
Accrued Income
Export Incentives 90.66 19.71
Interest from Banks / Others 32.44 10.16
123.10 29.87

18. OTHER CURRENT ASSETS

GST Input Credits 368.99 588.56
Customs Duty Receivable 23.39 64.83
Others
Advances to Suppliers 150.30 348.74
Less : Allowance for Doubtful Advances 4.75 4.57
145.55 344.17
Advances for Expenses 184.08 148.02
Prepayments 455.36 344.82
1,177.37 1,490.40

19. NON-CURRENT ASSETS HELD FOR SALE

Land — 942.59
Building — 1,014.32
— 1,956.91
 Pricol Limited
151 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

20. EQUITY SHARE CAPITAL

Authorised
79,45,00,000 Equity Shares of ` 1/- each 7,945.00 7,945.00
(As at 31st March 2023 - 79,45,00,000
Equity Shares of ` 1/- each )
Issued, Subscribed and Paid-up
12,18,81,498 Equity Shares of ` 1/- each 1,218.81 1,218.81
(As at 31st March 2023 - 12,18,81,498
Equity Shares of ` 1/- each)

Reconciliation of the Shares Outstanding at the beginning and at the end of the reporting year :

31-3-2024 31-3-2023
[Link] Shares ` [Link] Shares `
Equity Shares (in Lakhs) Lakhs (in Lakhs) Lakhs
At the beginning / Closing of the year 1,218.81 1,218.81 1,218.81 1,218.81

a) Terms / rights attached to equity shares :

The Company has only one class of equity shares having a par value of ` 1/- per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity
shares will be entitled to receive remaining assets of the Company, after distribution of all preferential
amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Details of Shareholders holding more than 5% shares in the Company :

31-3-2024 31-3-2023
No. of Shares % held No. of Shares % held
- Pricol Holdings Private Limited 1,10,01,762 9.03% 1,10,01,762 9.03%
- Vijay Mohan 1,04,65,364 8.59% 96,15,636 7.89%
- Vikram Mohan 76,25,506 6.26% 76,25,506 6.26%
- Viren Mohan 66,58,409 5.46% 66,58,409 5.46%
- PHI Capital Solutions LLP 5,40,503 0.44% 69,84,428 5.73%
- Minda Corporation Limited & SMC
Investments and Advisors Limited — — 1,91,40,342 15.70%

c) Details of Shares held by Holding Company :

There are no Shares held by Holding Company / Subsidiaries of ultimate Holding Company as on 31st March
2024.
d) There are no shares allotted by way of Bonus Shares and there have been no shares bought back in the
immediately preceding five years.
 Corporate Overview
Statutory Reports
Financial Statements 152

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

EQUITY SHARE CAPITAL (contd.,)

e) Promoter and Promoter Group Shareholding :
FOR THE YEAR 2023-24

No. of Shares % of Total No. of Shares % of Total % Change

Sl. as on 31-3-2024 Shares as on 31-3-2023 Shares during the
Name
No. (A) (B) year (A-B) / (B)

1. Vijay Mohan 1,04,65,364 8.59% 96,15,636 7.89% 8.84%

2. Vijay Mohan (BHUF) — — 8,49,728 0.70% -100.00%

3. Vikram Mohan 76,25,506 6.26% 76,25,506 6.26% —

4. Vanitha Mohan 57,31,468 4.70% 57,31,468 4.70% —

5. Viren Mohan 66,58,409 5.46% 66,58,409 5.46% —

6. Manasa Mohan 1,92,857 0.16% 1,92,857 0.16% —

7. Madhura Mohan 2,33,453 0.19% 2,33,453 0.19% —

8. Pricol Holdings Private Limited 1,10,01,762 9.03% 1,10,01,762 9.03% —

9. Saggitarius Investments Private Limited 23,65,360 1.94% 23,65,360 1.94% —

10. Shrimay Enterprises Private Limited 2,44,800 0.20% 2,44,800 0.20% —

11. Pricol Engineering Industries Private Limited 17,33,854 1.42% — — NA

12. Pricol Logistics Private Limited 6,82,000 0.56% — — NA

FOR THE YEAR 2022-23

No. of Shares % of Total No. of Shares % of Total % Change

Sl. as on 31-3-2023 Shares as on 31-3-2022 Shares during the
Name
No. (A) (B) year (A-B) / (B)

1. Vijay Mohan 96,15,636 7.89% 96,15,636 7.89% —

2. Vijay Mohan (BHUF) 8,49,728 0.70% 8,49,728 0.70% —
3. Vikram Mohan 76,25,506 6.26% 76,25,506 6.26% —
4. Vanitha Mohan 57,31,468 4.70% 57,31,468 4.70% —
5. Viren Mohan 66,58,409 5.46% 66,58,409 5.46% —
6. Manasa Mohan 1,92,857 0.16% 1,92,857 0.16% —
7. Madhura Mohan 2,33,453 0.19% 2,33,453 0.19% —
8. Pricol Holdings Limited 1,10,01,762 9.03% 1,10,01,762 9.03% —
9. Sagittarius Investments Private Limited 23,65,360 1.94% 23,65,360 1.94% —
10. Shrimay Enterprises Private Limited 2,44,800 0.20% 2,44,800 0.20% —

Note : The percentage change has been computed with respect to the number of shares held by
promoter and promoter group at the beginning of the year.
 Pricol Limited
153 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

21. OTHER EQUITY

Securities Premium 88,642.77 88,642.77

Capital Reserve 827.33 827.33

Surplus / (Deficit) in the Statement of Profit & Loss

Opening Balance (22,197.20) (33,455.09)
Add : Profit / (Loss) for the year 13,091.49 11,257.89
(9,105.71) (22,197.20)

Deficit on Business Combination (677.02) (677.02)

Other Comprehensive Income

Opening Balance (8.23) 224.18
Add : Addition during the year (510.54) (232.41)

(518.77) (8.23)
79,168.60 66,587.65

22. BORROWINGS
Non-Current portion Current Maturities
31-3-2024 31-3-2023 31-3-2024 31-3-2023
` Lakhs ` Lakhs ` Lakhs ` Lakhs
Secured Loans:
Rupee Term Loan From Banks — 2,675.81 — 1,189.25

— 2,675.81 — 1,189.25

` Lakhs
Description
As at As at
31-3-2024 31-3-2023
ICICI Bank Limited - ECLGS — 2,109.25
IndusInd Bank Limited - ECLGS — 1,755.81
Total — 3,865.06

For Current Maturities of Long Term Debt (Refer Note. 28).

 Corporate Overview
Statutory Reports
Financial Statements 154

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

23. LEASE LIABILITIES

Lease Liabilities - Non-Current (Refer Note. 57) 747.72 1,307.61

24. OTHER FINANCIAL LIABILITIES

Rental Advance Received 14.52 20.59
Security Deposits from Customers 73.75 60.38
88.27 80.97
25. PROVISIONS
For Employee Benefits :
- Gratuity (Refer Note. 58) 585.47 253.09
For Central Excise, Sales Tax / GST and Customs
Demands (Refer Note. 47) 599.16 470.08
For Potential Statutory Liabilities (Refer Note. 47) 528.14 579.61
1,712.77 1,302.78

26. DEFERRED TAX LIABILITIES (NET)

Deferred Tax Liability
On Property, Plant & Equipment and Others 3,917.62 4,279.36
On Other temporary differences 334.47 269.68
A 4,252.09 4,549.04
Deferred Tax Asset
On Disallowance under the Income Tax Act 707.69 410.50
On Other temporary differences 60.43 31.79
B 768.12 442.29

Deferred Tax Liabilities (Net) (Refer Note. 56 (c)) A-B 3,483.97 4,106.75
 Pricol Limited
155 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

27. OTHER NON-CURRENT LIABILITIES

Deferred Income from Government Grants 199.24 127.89

a) Nature and extent of grant recognised in

financial statement :
Customs duty saved on Purchase of PPE through EPCG Licence.

Opening Balance 127.89 —

Add : Customs duty saved during the year 103.34 134.26
Less : Amortised during the year 31.99 6.37
Closing Balance 199.24 127.89
b) Unfulfilled condition and other condition attached to the grant :
The export obligation shall be 6 times of the duty saved on import of capital goods on FOB basis within a
period of 6 years, to be achieved on following basis:
Block years - 1st to 4th year (1st Block) - 50% and 5th to 6th year (2nd Block) - 50%.

28. BORROWINGS
Secured Loans
Working Capital Facilities from Banks
- In Rupee 2,186.89 2,500.00
- In Foreign Currency 2,475.48 2,555.19
Current Maturities of Long Term Debt (Refer Note. 22) — 1,189.25
4,662.37 6,244.44
Working Capital Facilities from ICICI Bank Limited and IndusInd Bank Limited are secured by pari-passu first charge
on the current assets of the Company. Working Capital Facilities are further secured by pari-passu second
charge on the specific immovable properties situated at Plant I - Perianaickenpalayam, Coimbatore District,
Tamilnadu.
Working Capital Facilities from Banks are repayable on demand and carries interest rates varying from 6.22% to
8.80 % p.a.
The quarterly returns and statements comprising stock, creditors and book debt filed by the Company with such
banks are having differences with the unaudited books of account of the Company, of the respective quarters
for which reconciliation has been made. The differences are on account of provisions and cut-off procedures in
respect of each of the quarters. The Company has not overdrawn its eligible working Capital borrowing limit
against such inventory and trade receivable for each of the quarters.

29. LEASE LIABILITIES

Lease Liabilities - Current (Refer Note. 57) 542.08 704.53

30. TRADE PAYABLES

- Total Outstanding Dues of Micro Enterprises and 2,281.36 1,916.89
Small Enterprises (Refer Note. 61)
- Total Outstanding Dues of creditors other than 25,493.48 27,299.05
Micro Enterprises and Small Enterprises
27,774.84 29,215.94

The Company's exposure to currency risk related to Trade Payables are disclosed in Note. 53.
 Corporate Overview
Statutory Reports
Financial Statements 156

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

TRADE PAYABLES (Contd.,)

Ageing as on 31-3-2024 ` Lakhs
Outstanding for following periods from due date of payment
Particulars Less than 1-2 2-3 More than As on
Not Due 1 year years years 3 years 31-3-2024
(i) MSME
(a) Micro and Small 2,126.64 85.08 69.64 — — 2,281.36
(b) Medium 1,268.44 5.90 — — — 1,274.34
(ii) Others 17,365.80 6,816.18 5.32 6.22 18.73 24,212.25
(iii) Disputed dues – Micro and Small — — — — — —
(iv) Disputed dues – Medium — — — — — —
(v) Disputed dues - Others — — — — 6.89 6.89
Total 20,760.88 6,907.16 74.96 6.22 25.62 27,774.84
Ageing as on 31-3-2023 ` Lakhs
Outstanding for following periods from due date of payment
Particulars Less than 1-2 2-3
Not Due More than As on
1 year years years 3 years 31-3-2023

(i) MSME
(a) Micro and Small 1,791.73 120.32 4.84 — — 1,916.89
(b) Medium 2,022.15 48.60 — — — 2,070.75
(ii) Others 18,385.28 6,835.41 0.72 — — 25,221.41
(iii) Disputed dues – Micro and Small — — — — — —
(iv) Disputed dues – Medium — — — — — —
(v) Disputed dues - Others — — — 1.55 5.34 6.89
Total 22,199.16 7,004.33 5.56 1.55 5.34 29,215.94

31-3-2024 31-3-2023
` Lakhs ` Lakhs
31. OTHER FINANCIAL LIABILITIES
Interest accrued and not due on borrowings 3.14 1.52
Unpaid Dividend 34.25 54.30
Employee Benefits Payable 3,158.34 2,537.65
Retention Money Payable 270.88 198.47
Payable for Expenses 2,442.58 2,424.05
Creditors for Capital Goods 309.87 434.06
Acceptances 2,469.03 4,591.05
8,688.09 10,241.10

Acceptances represent bills discounted with recourse in respect of Trade Receivables with Banks.

32. OTHER CURRENT LIABILITIES

Statutory Dues Payable 2,048.21 1,846.91
Contract Liabilities / Advance from Customers 564.48 359.49
2,612.69 2,206.40
33. PROVISIONS
For Gratuity (Refer Note. 58) 412.29 275.02
For Labour Settlement (Refer Note. 47) 261.72 261.72
For Warranty Related Claims (Refer Note. 47) 2,018.81 574.53
2,692.82 1,111.27

34. CURRENT TAX LIABILITIES (NET) 49.92 85.49

35. LIABILITIES IN RELATION TO NON-CURRENT ASSETS HELD FOR SALE

Advance received against disposal of asset held for sale — 672.00
 Pricol Limited
157 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

36. REVENUE FROM OPERATIONS

Sale of Products and Services
Domestic 2,01,862.35 1,70,658.18
Export 14,224.80 13,751.12
Traded Goods 2,983.28 2,511.64
Service Income 104.91 270.87
2,19,175.34 1,87,191.81
Disaggregation of Revenue :-
1. Within India 2,04,950.54 1,73,440.69
2. Outside India 14,224.80 13,751.12
2,19,175.34 1,87,191.81

Reconciliation of Revenue recognised in Statement of Profit and Loss Account with contracted price:
Revenue from contract with customers as per contract Price 2,20,071.97 1,87,617.31
Less : Trade discounts, Volume Rebates, Refunds etc., 896.63 425.50
Revenue from contract with customers as per
Statement of Profit and Loss 2,19,175.34 1,87,191.81
Contract Balances:
Trade Receivables 28,188.94 26,184.18
Contract Assets - Unbilled Revenue — —
Contract Liabilities - Advance from Customers 564.48 359.49
Contract Assets are revenue earned by the Company but remaining unbilled at the close of the year end.
Contract Liabilities are amount received from Customers for which performance obligation are yet to be satisfied.

37. OTHER OPERATING REVENUE

Export Incentives 367.50 385.28
Sale of Traded Goods - Others 5,993.84 5,187.67
6,361.34 5,572.95
38. OTHER INCOME
Interest Income
From Banks 12.48 10.87
From Others 47.78 29.81
On Income Tax Refund 32.85 18.74
Gain on Fair Valuation of investments at Fair Value through P&L 152.93 0.91
Lease Rental Receipts 112.05 108.40
Profit on Sale of Property, Plant and Equipment 548.35 40.17
Deferred Income from Government Grant (Refer Note. 27) 31.99 6.37
Insurance Claim Received — 0.98
Miscellaneous Income 108.92 186.11
1,047.35 402.36
 Corporate Overview
Statutory Reports
Financial Statements 158

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

39. COST OF MATERIALS CONSUMED

Materials Consumed 1,52,870.08 1,32,767.77

40. CHANGES IN INVENTORIES OF FINISHED GOODS,

STOCK-IN-TRADE AND WORK-IN-PROGRESS
Opening Stock
Work-in-progress 1,160.01 843.68
Finished Goods 5,522.22 4,717.14
Traded Goods 292.83 418.95
6,975.06 5,979.77
Less : Closing Stock
Work-in-progress 1,166.66 1,160.01
Finished Goods 7,677.15 5,522.22
Traded Goods 483.90 292.83
9,327.71 6,975.06
(2,352.65) (995.29)

41. EMPLOYEE BENEFITS EXPENSE

Salaries and Wages 22,762.08 19,724.08
Contribution to Provident and other funds 1,337.21 1,072.57
Staff Welfare Expenses 1,508.11 1,241.04
25,607.40 22,037.69
42. FINANCE COSTS
Interest on Borrowings (Net) 581.31 752.18
Interest on Bill Discounting and Others 1,052.41 799.21
Interest on Lease Obligations (Refer Note. 57) 174.49 235.43
De-recognition of unamortised portion of
finance charges — 25.54
Other Borrowing Costs 12.50 15.00
1,820.71 1,827.36

Interest expense is net off interest income on derivatives of ` Nil (Previous year - ` 90.63 Lakhs).
Other Borrowing Costs represent processing fee in respect of working capital borrowings.

43. DEPRECIATION AND AMORTISATION EXPENSE

Depreciation on PPE (Refer Note. 2) 4,959.33 4,446.44
Right of Use Asset (Refer Note. 3) 697.30 703.42
Depreciation on Investment Property (Refer Note. 5) 26.36 51.78
Amortisation of Intangibles (Refer Note. 6 & 7) 2,346.83 2,414.24
8,029.82 7,615.88
 Pricol Limited
159 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

44. OTHER EXPENSES

Power & Utilities 2,323.27 2,245.33
Stores & Spares Consumed 309.79 283.34
Repairs and Maintenance :
- Machinery 1,101.01 1,062.37
- Building 200.02 109.68
- IT Assets 509.97 503.12
- Others 236.16 181.14
Postage & Telephone 144.65 124.16
Rates, Taxes & Licence 57.46 107.20
Insurance 306.75 318.82
Travelling & Conveyance 1,007.67 732.99
Freight & Forwarding 2,742.24 2,340.19
Warranty Expenses 3,056.08 1,024.60
Selling Expenses 249.50 361.42
Bad Debts / Advances Written off (Net off Loss Allowances) 6.49 66.26
Provision for Potential Statutory Expenses 117.38 52.46
Remuneration to Non-Whole Time Directors 48.15 58.05
Auditors' Remuneration (Refer Note. 50) 76.72 77.47
Professional Charges 2,375.15 1,606.97
Loss on Exchange Fluctuation (Net) 146.47 96.19
Assets Discarded / Impairment of PPE (Net off reversal) 591.72 11.18
CSR Expenses (Refer Note. 60) 162.12 75.44
Donations 51.00 —
Miscellaneous Expenses 319.30 353.01
16,139.07 11,791.39

45. EXCEPTIONAL ITEMS

Exceptional item represents settlement of claims by the seller of Erstwhile step-down subsidiary Pricol Wiping
Systems Czech s.r.o. as per the final settlement agreement dated 21st July, 2022.

46. EARNINGS PER SHARE

Profit / (Loss) After Tax 13,091.49 11,257.89
Weighted Average No. of Shares Outstanding :
Basic & Diluted (Nos. in Lakhs.) 1,218.81 1,218.81
Face Value per Equity Share ( in ` ) 1.00 1.00
Basic & Diluted Earnings per share (in `) 10.74 9.24
 Corporate Overview
Statutory Reports
Financial Statements 160

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

47. PROVISIONS AS ON THE CLOSING DATE ` Lakhs

Non-Current Provisions Current Provisions

Excise,
Total
Particulars Sales Tax Potential Warranty
Labour Provisions
/ GST & Statutory Total related Total
Settlement
Customs Liabilities claims
Demands

Balance as on 1-4-2022 476.61 568.38 1,044.99 261.72 617.95 879.67 1,924.66

Add : Addition 127.73 13.59 141.32 — 1,024.60 1,024.60 1,165.92
Less : Utilised / Reversed 134.26 2.36 136.62 — 1,068.02 1,068.02 1,204.64
Balance as on 31-3-2023 470.08 579.61 1,049.69 261.72 574.53 836.25 1,885.94
Add : Addition 392.10 323.55 715.65 — 3,056.08 3,056.08 3,771.73
Less : Utilised / Reversed 263.02 375.02 638.04 — 1,611.80 1,611.80 2,249.84
Balance as on 31-3-2024 599.16 528.14 1,127.30 261.72 2,018.81 2,280.53 3,407.83

48. CONTINGENT LIABILITIES AND COMMITMENTS :

i) CONTINGENT LIABILITIES
31-3-2024 31-3-2023
` Lakhs ` Lakhs
a) On account of Pending Litigations :
Sales Tax Matters (excluding Interest if any) — —
Excise, GST and Customs Matters 757.32 784.92
(excluding Interest if any)
(Of which ` 90.93 Lakhs has been paid under protest -
Previous year - ` 90.95 Lakhs)
Income Tax Matters 399.41 —
1,156.73 784.92
b) Labour related Matters
As at 31st March, 2024, the Company has various labour related cases pending before various legal
forums, amounting to ` 5,458 Lakhs (Previous year - ` 4,666 Lakhs).

c) Others :
Letter of Credit 548.91 1,097.94
Guarantees 328.49 230.71
Duty saved under EPCG 451.55 397.21
Other Claims not acknowledged as debts 295.64 295.64
1,624.59 2,021.50
The Company has reviewed all its pending litigations and proceedings and has adequately provided
for, where provisions are required or disclosed as contingent liability where applicable, in its financial
statements. The amount of provisions / contingent liabilities is based on management estimates and no
significant liability is expected to arise out of the same.

ii) COMMITMENTS
Estimated Value of Contracts remaining to be
executed on Capital account 1,826.30 1,785.02
 Pricol Limited
161 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

49. RESEARCH AND DEVELOPMENT EXPENDITURE :

Capital 1,159.64 838.51
Revenue 6,282.59 6,677.03
7,442.23 7,515.54
Note : Research and Development expenses of Revenue nature have been classified under the relevant heads
of accounts in the Statement of Profit and Loss and the expenditure of capital nature is grouped under PPE.

50. PAYMENTS TO STATUTORY AUDITORS (EXCLUSIVE OF GST) :

For Audit 50.00 47.50
For Consolidation 4.00 4.00
For Tax Audit & Services 19.75 23.00
For Certification & Others 1.65 1.49
Reimbursement of Expenses 1.32 1.48
76.72 77.47

51. (a) AMALGAMATION OF ERSTWHILE PRICOL LIMITED WITH THE COMPANY :

The Hon’ble High Court of Judicature at Madras vide its order dated 6th October, 2016 has sanctioned the Scheme
of Amalgamation of erstwhile Pricol Limited (‘Transferor Company’) with erstwhile Pricol Pune Limited (‘Transferee
Company’) with the appointed date as 1st April, 2015. Pursuant to the Scheme of Amalgamation, the Transferee
Company was renamed as "Pricol Limited" vide fresh Certificate of Incorporation granted by Ministry of Corporate
Affairs on 18th November, 2016.

The Amalgamation was accounted in financial year 2016-17 under the “Purchase Method” as per the then
prevailing Accounting Standard 14 – “Accounting for Amalgamation”, as per the Scheme of Amalgamation
approved by the High Court of Judicature at Madras, which is different from the accounting treatment prescribed
under Ind AS 103 - “Business Combinations”. The intangible assets, including Goodwill represented by Customer
relationship and Assembled work force, are being amortised over its estimated useful life of 15 years from the
appointed date.

Had the company followed the accounting treatment prescribed under Ind AS 103, the amortisation charge would
have been lower by ` 993.40 Lakhs (Previous year - ` 993.40 Lakhs).

(b) BUSINESS COMBINATION - PRICOL WIPING SYSTEMS INDIA LIMITED :

The National Company Law Tribunal, Chennai Bench vide its order dt. 29th November, 2022 has approved the
Scheme of Amalgamation of Pricol Wiping Systems India Limited ("Transferor Company") with Pricol Limited
("Transferee Company"). The appointed date is 1st April, 2021. The certified copy of the said order along with the
requisite form was filed with Registrar of Companies on 21st December, 2022 (effective date).

The effect of Scheme of Amalgamation has been accounted in accordance with the Scheme and Appendix “C”
of Indian Accounting Standards 103 (“Ind AS 103”) - "Business Combinations" by applying the ‘Pooling of Interest
Method’.
 Corporate Overview
Statutory Reports
Financial Statements 162

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

52. FAIR VALUE MEASUREMENTS

i. Financial instruments by category
The carrying value of financial instruments by categories as at 31st March 2024 are as follows:
` Lakhs

Cost / Total Total

Particulars Note. FVTPL FVTOCI Amortised Carrying Fair
cost value value
Financial assets
Investments 9 & 13 516.85 120.00 6,913.12 7,549.97 7,549.97
Trade receivables 14 — — 28,188.94 28,188.94 28,188.94
Cash and cash equivalents 15 — — 199.91 199.91 199.91
Other bank balances 16 — — 109.34 109.34 109.34
Other Financial assets 10 & 17 — — 812.02 812.02 812.02
Financial Liabilities
Borrowings 22 & 28 — — 4,662.37 4,662.37 4,662.37
Trade payables 30 — — 27,774.84 27,774.84 27,774.84
Lease Liabilities 23 & 29 — — 1,289.80 1,289.80 1,289.80
Other financial liabilities 24 & 31 — — 8,776.36 8,776.36 8,776.36

The carrying value of financial instruments by categories as at 31st March 2023 are as follows: ` Lakhs

Cost / Total Total

Particulars Note. FVTPL FVTOCI Amortised Carrying Fair
cost value value

Financial assets
Investments 9 & 13 363.92 120.00 6,913.12 7,397.04 7,397.04
Trade receivables 14 — — 26,184.18 26,184.18 26,184.18
Cash and cash equivalents 15 — — 1,533.94 1,533.94 1,533.94
Other bank balances 16 — — 54.30 54.30 54.30
Other Financial assets 10 & 17 — — 760.93 760.93 760.93
Financial Liabilities
Borrowings 22 & 28 — — 8,920.25 8,920.25 8,920.25
Trade payables 30 — — 29,215.94 29,215.94 29,215.94
Lease Liabilities 23 & 29 — — 2,012.14 2,012.14 2,012.14
Other financial liabilities 24 & 31 — — 10,322.07 10,322.07 10,322.07

ii. The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other
financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-
term maturity of these instruments. The fair value of the financial assets and liabilities is included at the amount at
which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale.

Investments in subsidiaries are carried at cost.

 Pricol Limited
163 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

FAIR VALUE MEASUREMENTS (Contd.,)

iii. Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into
three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to
the measurement, as follows:
Level 1 : Quoted prices (unadjusted) in active markets for financial instruments.
Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3 : Unobservable inputs for the asset or liability.

Given below are the fair values based on their hierarchy

` Lakhs
Carrying As at 31-3-2024 Carrying As at 31-3-2023
Amount Amount
Particulars
as on as on
31-3-2024 Level 1 Level 2 Level 3 31-3-2023 Level 1 Level 2 Level 3

Financial Assets measured

at Fair value through Profit
and Loss excluding
investment in subsidiaries
Investments in Mutual Funds 516.85 516.85 — — 363.92 363.92 — —
Financial Assets measured
at Fair value through OCI
Investments in Equity Shares 120.00 — — 120.00 120.00 — — 120.00
Financial Assets not
measured at Fair value
excluding investment in
subsidiaries*
Trade receivables 28,188.94 — — — 26,184.18 — — —
Cash and cash equivalents 199.91 — — — 1,533.94 — — —
Other bank balances 109.34 — — — 54.30 — — —
Other Financial assets 812.02 — — — 760.93 — — —
Financial Liabilities not
measured at fair value*
Borrowings
- Current 4,662.37 — — — 6,244.44 — — —
- Non-Current — — — — 2,675.81 — — —
Trade payables 27,774.84 — — — 29,215.94 — — —
Lease Liabilities 1,289.80 — — — 2,012.14 — — —
Other financial liabilities 8,776.36 — — — 10,322.07 — — —

* The Company has not disclosed the fair values for short term / current financial instruments (such as short term
trade receivables, short term trade payables, Current Loans and Short term borrowings etc), because their
carrying amounts are a reasonable approximation of Fair value.

The investments in Level 3 hierarchy has been valued at cost approach to arrive at the fair value
measurements and cost represents the estimate of fair value within that range considering the purpose and
restriction on the transferability of instruments.
 Corporate Overview
Statutory Reports
Financial Statements 164

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

53. FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors
has overall responsibility for the establishment and monitoring of the Company’s risk management framework.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
related impact in the financial statements.

Risk Exposure arising from Measurement

Credit risk Cash and cash equivalents, trade Ageing analysis, Credit ratings
receivables and other financial assets.
Liquidity risk Borrowings and other liabilities. Rolling cash flow forecasts

Market risk - Long-term borrowings at variable rates. Cash flow forecasting, Sensitivity
Interest rate risk analysis
Adverse movements in the exchange Internal Foreign Curreny Exposure
Market risk -
rate between the Rupee and any and risk management policy
Financial Currency Risk
relevant foreign currency.

a. Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating
the risk of financial loss from defaults.
Credit risk management
Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk B: Moderate credit risk C: High credit risk

Assets Group Description of category Provision for expected credit loss*

Assets where the counter-party has strong 12 month expected credit loss / life
Low credit risk capacity to meet the obligations and time expected credit loss
where the risk of default is negligible or nil
Assets where the probability of default is 12 month expected credit loss / life
considered moderate, counter-party time expected credit loss
Moderate credit risk
where the capacity to meet the
obligations is not strong
Assets where there is a high probability of 12 month expected credit loss / life
High credit risk default time expected credit loss / fully
provided for

* Life time expected credit loss (if required) is provided for trade receivables and for those financial assets where
the credit risk has increased significantly, since the initial recognition.

Based on business environment in which the Company operates, a default on a financial asset is considered
when the counterparty fails to make payments within the agreed time period as per contract. Loss rates
reflecting defaults are based on actual credit loss experience and considering differences between current and
historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose
balances are written off and attempts to enforce repayment. Any subsequent recoveries made are recognised
in statement of profit and loss.
 Pricol Limited
165 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

FINANCIAL RISK MANAGEMENT (Contd.,)

Classification of financial assets among risk categories:

As at 31st March 2024 ` Lakhs
Gross Carrying
Credit rating Particulars Carrying Provisions Amount net
Amount off Provisions

Low credit risk Cash and cash equivalents, other

bank balances, Current investments,
loans, trade receivables and other 30,371.35 544.29 29,827.06
financial assets
Moderate credit risk Nil — — —
High credit risk Nil — — —

As at 31st March 2023 ` Lakhs

Gross Carrying
Credit rating Particulars Carrying Provisions Amount net
Amount off Provisions

Low credit risk Cash and cash equivalents, other

bank balances, Current investments,
loans, trade receivables and other 29,183.41 286.14 28,897.27
financial assets
Moderate credit risk Nil — — —
High credit risk Nil — — —

Movement of Expected Credit Loss / Allowance for doubtful debts & advances in respect of Financial Assets
` Lakhs
Balance Balance Balance
Addition / Addition /
Financial Assets Note. as on as on as on
(Deletion) (Deletion)
1-4-2022 31-3-2023 31-3-2024
Trade Receivables 14 279.77 (70.59) 209.18 258.15 467.33
Non-Current Financial
Assets - Others 10 84.01 (7.05) 76.96 — 76.96
Total 363.78 (77.64) 286.14 258.15 544.29

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability
under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and
cash and cash equivalents on the basis of expected cash flows. The Company takes into account the
liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy
involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring
balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt
financing plans.
 Corporate Overview
Statutory Reports
Financial Statements 166

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

FINANCIAL RISK MANAGEMENT (Contd.,)

Maturities of financial liabilities: ` Lakhs

On Less than More than

31-3-2024 1-5 years Total
Demand 1 year 5 years

Borrowings 186.89 4,475.48 — — 4,662.37

Trade payables — 27,774.84 — — 27,774.84
Lease Liabilities — 542.08 713.37 34.35 1,289.80
Other financial liabilities — 8,776.36 — — 8,776.36

Total 186.89 41,568.76 713.37 34.35 42,503.37

` Lakhs

On Less than More than

31-3-2023 1-5 years Total
Demand 1 year 5 years

Borrowings — 6,244.44 2,675.81 — 8,920.25

Trade payables — 29,215.94 — — 29,215.94
Lease Liabilities — 704.53 1,253.56 54.05 2,012.14
Other financial liabilities — 10,322.07 — — 10,322.07

Total — 46,486.98 3,929.37 54.05 50,470.40

c. Interest rate risk

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest
rate risk as defined in Ind AS 107, ‘Financial Instruments - Disclosures’, since neither the carrying amount nor
the future cash flows will fluctuate because of a change in market interest rates. However, the Company’s
variable rate borrowings are subject to interest rate risk.

Below is the overall exposure of the borrowings:

Interest rate risk exposure ` Lakhs

Particulars 31-3-2024 31-3-2023

Fixed rate borrowing — —

Variable rate borrowing 4,662.37 8,920.25
Total 4,662.37 8,920.25

Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change (100 basis points) in interest rates
on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit
before tax is affected through the impact on variable rate borrowings, as follows:

Interest sensitivity ` Lakhs

Particulars 2023-24 2022-23

Interest rates – increase / decrease by 100 basis points 51.55 82.62

 Pricol Limited
167 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

FINANCIAL RISK MANAGEMENT (Contd.,)

d. Financial Currency Risk

The Company’s functional currency is Indian Rupees (`). The Company undertakes transactions
denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in
exchange rates affects the Company’s revenue from export markets and the costs of imports.
Adverse movements in the exchange rate between the Rupee and any relevant foreign currency results in
increase in the Company’s overall debt position in Rupee terms without the Company having incurred
additional debt and favourable movements in the exchange rates will conversely result in reduction in the
Company’s receivables in foreign currency. In order to hedge exchange rate risk, the Company has a policy
to hedge cash flows (either using natural hedge or an artificial hedge) upto a specific tenure using forward
exchange contracts and hedges based on their Internal Foreign Curreny Exposure and risk management
policy as approved by the management and in accordance with the applicable regulations where the
Company operates.
The carrying amounts of the Company's monetary assets and monetary liabilities at the end of the reporting
period are as follows :

As at 31st March 2024 ` Lakhs

OTHER
Particulars EURO GBP USD CHF JPY CURRENCIES

Financial Assets 1,513.02 59.49 2,232.58 — 7.76 0.03

Financial Liabilities 92.87 0.66 10,866.18 14.05 589.96 —

As at 31st March 2023 ` Lakhs

OTHER
Particulars EURO GBP USD CHF JPY CURRENCIES

Financial Assets 1,018.95 47.34 3,126.58 — 8.95 0.03

Financial Liabilities 128.16 0.94 11,289.39 1.54 519.19 —

The following table details the Company’s sensitivity to a 1% increase and decrease in the INR against the
relevant foreign currencies net of hedge accounting impact. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in
foreign currency rates, with all other variables held constant. A positive number below indicates an increase in
profit or equity where INR strengthens 1% against the relevant currency. For a 1% weakening of INR against the
relevant currency, there would be a comparable impact on profit or equity, and the balances below would be
negative.

Impact on Profit / (Loss) for the year for a 1% change:

` Lakhs

Particulars 2023-24 2022-23

increase / decrease by 1% 77.51 77.37

 Corporate Overview
Statutory Reports
Financial Statements 168

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

54. CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other
equity reserves. The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. The Company monitors capital using a
gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing
loans and borrowings, less cash and cash equivalents.
` Lakhs
Particulars 31-3-2024 31-3-2023
Borrowings (long-term and short-term, including current
maturities of long term borrowings) 4,662.37 8,920.25
Less : Cash and cash equivalents 199.91 1,533.94
Less : Other Bank Balances - Excluding balances in
unpaid dividend account (Balances with original maturity
period of more than 3 months) 75.09 —
Less : Margin Money Account 100.00 100.00
Net Debt (A) 4,287.37 7,286.31
Equity Share Capital 1,218.81 1,218.81
Other Equity 79,168.60 66,587.65
Total Equity (B) 80,387.41 67,806.46
Net Debt to Equity Ratio (A) / (B) X 100 5.33% 10.75%

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define
capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2024 and March 31, 2023.
55. Income Tax Assessments are provisionally completed upto Assessment year 2021-22.
a) The Company has filed revised returns / made additional claims in respect of certain deductions, exemptions
and losses which are under litigation. Necessary adjustments, would be made as and when the matters are
finally adjudicated.
b) As professionally advised, the Company has claimed the loss on disposal of investment in subsidiary (Pricol
Espana S.L. Spain) amounting to ` 40,798.58 Lakhs as business loss in the return filed for the assessment year
2021-22. The Company has accounted for current taxes in accordance with - Ind AS 12, Appendix - C
"Uncertain tax position".

56. NOTES ON TAXATION :

a. Income tax expense for the year reconciled to the accounting profit:
` Lakhs
Particulars 31-3-2024 31-3-2023

Profit / (Loss) before Tax 17,321.00 12,150.00

Applicable income tax rate 25.168% 25.168%
Expected Income tax expense 4,359.35 3,057.91
Tax Effect on adjustment to reconcile expected income tax expense
to reported income tax expense :
- Effect of concessions (Research and Development and other allowance) (289.18) (211.03)
- Impact arising on adoption of lower income tax rates on PPE — (1,509.69)
- Permanent disallowances 72.15 272.18
- Others 157.14 257.74
Tax Expense for the year (including deferred tax) 4,299.46 1,867.11

The above workings are based on the provisional computation of tax expenses and are subject to finalisation
including that of tax audit.
 Pricol Limited
169 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

NOTES ON TAXATION (Contd.,)

b. Income tax recognised in other comprehensive income ` Lakhs

Deferred tax
Remeasurement of defined benefit obligation - (Expense) / Income 171.71 78.16
Total income tax recognised in OCI 171.71 78.16

c. Statement of Changes in Deferred tax assets / Liabilities (Refer Note. 26)

As on 31-3-2024 ` Lakhs
Recognised in Recognised
Particulars As at 1-4-2023 As at 31-3-2024
Profit and Loss in OCI
Deferred Tax Liability
On PPE and others 4,279.36 (361.74) — 3,917.62
On Other temporary differences 269.68 64.79 — 334.47
4,549.04 (296.95) — 4,252.09
Deferred Tax Asset
On disallowance under the
Income Tax Act 410.50 125.48 171.71 707.69
On Other temporary differences 31.79 28.64 — 60.43
442.29 154.12 171.71 768.12
Total 4,106.75 (451.07) (171.71) 3,483.97

As on 31-3-2023 ` Lakhs
As at Recognised in Recognised As at 31-3-2023
Particulars 1-4-2022 Profit and Loss in OCI

Deferred Tax Liability

On PPE and others 6,516.38 (2,237.02) — 4,279.36
On Other temporary differences 8.92 260.76 — 269.68
6,525.30 (1,976.26) — 4,549.04
Deferred Tax Asset
On disallowance under the
Income Tax Act 728.40 (396.06) 78.16 410.50
On Other temporary differences 165.24 (133.45) — 31.79
893.64 (529.51) 78.16 442.29
Total 5,631.66 (1,446.75) (78.16) 4,106.75

` Lakhs

As at As at
Particulars
31-3-2024 31-3-2023

Tax Losses
Tax Losses carried forward (including Capital Losses) 47,106.86 48,369.67
Tax Losses for which no deferred tax asset were recognised
(including Capital Losses) 47,106.86 48,369.67

Significant Management Judgements are involved in determining provision for tax, deferred tax and recoverability of
deferred tax asset. The recoverability of Deferred Tax Asset is based on estimates of taxable income in future and the
management is fairly confident that there will be sufficient future profits to utilise the deferred tax asset.

The figures for tax losses disclosed above are based on provisional tax computation for the purpose of financial
statements and after considering Appendix - C to Ind AS 12 - "Uncertain tax position".
 Corporate Overview
Statutory Reports
Financial Statements 170

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

57. LEASES
DISCLOSURE AS REQUIRED UNDER IND AS 116
Movement of Lease Liability ` Lakhs
As at As at
Particulars
31-3-2024 31-3-2023
Opening Balance 2,012.14 2,514.79
Additions during the year — 134.01
Repayments during the year 708.02 636.66
Termination of lease during the year 14.32 —
Closing Balance 1,289.80 2,012.14
Current 542.08 704.53
Non-Current 747.72 1,307.61

Maturity Analysis of Lease Liabilities on Undiscounted basis

Within one year 650.54 879.93
1 - 5 years 824.42 1,472.86
More than five years 53.52 77.16

The broad range of effective Interest rate for the Lease Liabilities is 7% to 10.75%

The following are the amounts recognised in the Statement of Profit and Loss
` Lakhs

Particulars 2023-24 2022-23

Depreciation expense of Right of Use Assets 697.30 703.42

Interest Expense on Lease Liabilities 174.49 235.43
Expense relating to Short Term Lease Liabilities 30.52 28.97
Expense relating to Lease of Low Value Assets — —

Income from Right of Use 27.11 26.83

Maturity Analysis in respect of lease contract which are not recorded as lease liability ` Lakhs

Maturity Analysis
Within one year 16.15 15.68
1 - 5 years — —
More than five years — —
 Pricol Limited
171 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

58. EMPLOYEE BENEFITS

Defined contribution plan
The Company’s contribution to provident fund, superannuation fund and national pension scheme are
considered as defined contribution plans and are charged as an expense based on the amount of contribution
required to be made and when services are rendered by the employees. ` Lakhs

Particulars 2023-24 2022-23

Employer’s Contribution to Provident Fund 802.46 710.39

Employer’s Contribution to Superannuation Fund 47.92 35.99
Employer’s Contribution to National Pension Scheme 43.35 26.68

Particulars 2023-24 2022-23

Defined contribution plan contribution towards Key Managerial Personnel 56.06 44.29

Defined Benefit Plan

The Company has an obligation towards gratuity, a defined benefit obligation. The benefits are governed by the
Payment of Gratuity Act, 1972. The Company makes lumpsum payment to vested employees an amount based
on 15 days last drawn basic salary including dearness allowance (if any) for each completed year of service or
part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date.
The present value of the defined benefit obligations and the related current service cost and past service cost
were measured using the Projected Unit Credit Method.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee
benefit obligation as at balance sheet date:
` Lakhs

Gratuity (Funded)
Particulars
2023-24 2022-23
i) Reconciliation of opening and closing balances of
Defined Benefit Obligation
Defined Benefit Obligation at beginning of the year 3,538.07 3,122.18
Current Service Cost 290.23 219.81
Interest Cost 256.64 222.64
Remeasurements
Effect of changes in demographic assumptions — —
Effect of changes in financial assumptions 769.28 (15.30)
Effect of experience adjustments (114.70) 288.01
Benefits Paid (286.81) (299.27)
Defined Benefit Obligation at year end 4,452.71 3,538.07
- Non-Current 4,087.93 3,279.15
- Current 364.78 258.92
 Corporate Overview
Statutory Reports
Financial Statements 172

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,) ` Lakhs

Gratuity (Funded)
Particulars
2023-24 2022-23

ii) Reconciliation of opening and closing balances of fair value of Plan Assets
Fair value of Plan Assets at beginning of year 3,009.96 2,956.24
Interest Income 236.48 216.56
Remeasurements:
Return on plan assets (excluding interest income) (27.66) (37.87)
Transfer from Erstwhile Subsidiary — 4.82
Employer Contribution 522.98 169.48
Benefits Paid (286.81) (299.27)
Fair value of Plan Assets at year end 3,454.95 3,009.96

iii) Reconciliation of fair value of Assets and Obligations

Fair value of Plan Assets 3,454.95 3,009.96
Present value of Obligation 4,452.71 3,538.07
Amount recognised in Balance Sheet - Surplus / (Deficit) (997.76) (528.11)
- Non-Current (585.47) (253.09)
- Current (412.29) (275.02)

iv) Expenses recognised during the year

In Income Statement
Current Service Cost 290.23 219.81
Interest Cost 256.64 222.64
Return on Plan Assets (236.48) (216.56)
Net (Income) / Expense for the period recognised in
Statement of Profit and Loss 310.39 225.89
In Other Comprehensive Income
Remeasurement of net defined benefit liability
Effect of changes in demographic assumptions — —
Effect of changes in financial assumptions 769.29 (15.30)
Effect of experience adjustments (114.70) 288.00
(Return) on plan assets (excluding interest income) 27.66 37.87
Changes in asset ceiling (excluding interest income) — —
Net (Income) / Expense for the period recognised in OCI 682.25 310.57
 Pricol Limited
173 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,)

` Lakhs
Gratuity (Funded)
Particulars 2023-24 2022-23
(Ultimate) (Ultimate)

v) Actuarial assumptions
Discount Rate (per annum) 7.23% 7.56%
Rate of escalation in Salary (per annum) Uniform 10.00% Uniform 8.00%
Attrition Rate Uniform 4.00% Uniform 4.00%
Retirement Age 58 58
Pre-retirement mortality Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2012-14) (2012-14)
Ultimate Ultimate
Disability 5% of Mortality rate 5% of Mortality rate

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The
above information is certified by the actuary.

vi) The expected future contribution and estimated future benefit payments from the fund are as follows:

Amount
Particulars
` Lakhs
a) Expected contribution to the fund during the year ending March 31, 2025 412.29
b) Estimated benefit payments from the fund for the year ending March 31:
Year 1 400.77
Year 2 364.06
Year 3 444.86
Year 4 384.50
Year 5 223.56
Beyond 5 years 2,634.96

vii) Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase and employee turnover. The sensitivity analysis below, have been determined
based on reasonably possible changes of the assumptions occurring at end of the reporting period, while
holding all other assumptions constant. The result of Sensitivity analysis is given below:
` Lakhs

As at As at
Particulars
31st March 2024 31st March 2023

Discount rate +100 basis points (299.94) (218.44)

Discount rate -100 basis points 342.27 246.20
Salary Increase Rate + 100 basis points 328.17 240.95
Salary Increase Rate -100 basis points (293.66) (217.72)
Attrition Rate +100 basis points (71.06) (22.64)
Attrition Rate -100 basis points 80.50 24.99
 Corporate Overview
Statutory Reports
Financial Statements 174

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,)

viii) These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity
risk and salary risk.
Name of the Risk and its Description
Investment risk - The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting
period on government bonds.
Interest risk - A decrease in the bond interest rate will increase the plan liability; however, this will
be partially offset by an increase in the return on the plan debt investments.
Longevity risk - The present value of the defined benefit plan liability is calculated by reference to
the best estimate of the mortality of plan participants both during and after their
employment. An increase in the life expectancy of the plan participants will increase
the plan’s liability.
Salary risk - The present value of the defined plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants
will increase the plan’s liability.

Disclosure relating to KMPs:

Defined benefit obligation attributable towards KMPs cannot be determined since it is valued on actuarial
basis for the Company as a whole.

59. SEGMENT REPORTING

As per Ind AS 108 “Operating Segments”, segment information has been provided under the Notes to
Consolidated Financial Statements.

60. CSR EXPENDITURE ` Lakhs

Particulars 2023-24 2022-23

i) Gross amount required to be spent by the Company during the year 156.30 62.22

ii) Amount spent during the year 162.12 75.44

iii) Details of Related party Transactions

- Amount spent through implementing agency 140.75 62.83

iv) Provisions on account of contractual obligation — —

v) Amount of shortfall at the end of the year out of the amount required to
be spent by the Company during the year — —

vi) Total of previous years' shortfall amounts — —

vii) Nature of CSR Activities undertaken by the Company Health Care , Education
& Environment
 Pricol Limited
175 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

61. DISCLOSURE RELATING TO SUPPLIERS REGISTERED UNDER MICRO, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT
ACT, 2006
` Lakhs

As at As at
Particulars
31-3-2024 31-3-2023

The principal amount and the interest due thereon remaining

unpaid to any supplier as at the end of each accounting
year included in:
- Principal amount due to micro and small enterprises 2,138.66 1,847.25
- Interest due on above 142.70 69.64

Total 2,281.36 1,916.89

The amount of interest paid by the buyer in terms of Section 16

of the MSMED Act, 2006 along with the amounts of the payment
made to the supplier beyond appointed day. — —

The amount of interest due and payable for the period of delay
in making payment (which have been paid but beyond the
appointment day during the year) but without adding the interest
specified under the MSMED Act, 2006. 73.05 69.64

The amount of interest accrued and remaining unpaid at the

end of each accounting year. 142.70 69.64

The amount of further interest remaining due and payable even in

the succeeding years, until such date when the interest dues as
above are actually paid for the purpose of disallowance as a
deductible under Section 23 of the MSMED Act, 2006. — —

The Company has disclosed the suppliers who have registered themselves under "Micro, Small and Medium
Enterprises Development Act, 2006” to the extent they have confirmed.

62. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

No adjusting or significant non-adjusting events have occurred between 31 March 2024 and the date of
authorisation of these Standalone Financial Statements.
 Corporate Overview
Statutory Reports
Financial Statements 176

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

63. RELATED PARTY DISCLOSURE AS PER INDIAN ACCOUNTING STANDARD 24

i) Names of related parties and description of relationship:

1. Enterprises where control exists
Subsidiary Companies :
PT Pricol Surya Indonesia Pricol Asia Pte Limited, Singapore

Step Down Subsidiaries :

PT Sripri Wiring Systems, Indonesia - Subsidiary of PT Pricol Surya Indonesia (Closed during the year 2023-24),
Pricol Asia Exim DMCC, Dubai - Subsidiary of Pricol Asia Pte Limited, Singapore - From 18th August 2022,
Pricol Electronics Private Limited, India - Subsidiary of Pricol Asia Pte Limited, Singapore - From 11th April 2023

2. Related parties and nature of relationship with whom transaction have taken place :
(a) Key Management Personnel
(i) Executive Directors:
Mrs. Vanitha Mohan - Chairman
Mr. Vikram Mohan - Managing Director
Mr. P.M. Ganesh - Chief Executive Officer & Executive Director

(ii) Non-Executive Directors - Independent Director:

Mr. R Vidhya Shankar, Mrs. Sriya Chari, Dr. S.K. Sundararaman,
Mr. K. Ilango, [Link] Paul, Mr. P. Shanmugasundaram,
Mr. Vijayraghunath - From 1st February, 2024

(iii) Others
Mr. Priyadarsi Bastia - Chief Financial Officer - From 1st July 2022,
Mr. T.G. Thamizhanban - Company Secretary,
Mr. P. Krishnamoorthy - Chief Financial Officer - Upto 30th June 2022

(b) Entities in which the Key Managerial Personnel of the company and their relatives are able to
exercise control / significant influence:

(i) Partnership firms : Libra Industries

(ii) Private Limited Companies :

Pricol Holdings Private Limited (From 13th February 2024),
Pricol Gourmet Private Limited , PPL Enterprises Private Limited,
Pricol Engineering Industries Private Limited, Pricol Travel Private Limited,
Pricol Logistics Private Limited, Infusion Hospitality Private Limited (Upto 14th March 2024),
Shrimay Enterprises Private Limited, Sagittarius Investments Private Limited

(iii) Public Limited Companies :

Pricol Holdings Limited (Upto 12th February 2024),
Pricol Properties Limited (Upto 28th September, 2023),
Pricol Corporate Services Limited (Upto 24th December, 2022),
Target Manpower Services Limited (Upto 24th December, 2022),
Pricol Retreats Limited (Upto 28th September, 2023),
Prinfra Limited (Upto 28th September, 2023)

(iv) Trusts :
N D Foundation, Siruthuli, V M Foundation
 Pricol Limited
177 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

RELATED PARTY DISCLOSURE AS PER INDIAN ACCOUNTING STANDARD 24 (Contd.,)

ii) Related party transactions: ` Lakhs

Subsidiaries Key Management

including Step Down Personnel and Others
Nature of Transaction Subsidiaries their Relatives

2023-24 2022-23 2023-24 2022-23 2023-24 2022-23

Transactions during the year

Purchase / Labour Charges 57,802.43 43,509.21 — — 5,002.71 4,503.01
Purchase of Fixed Assets — — — — — —
Sale of Fixed Assets — — — — 516.57 —
Sales / Job Work Charges 363.52 457.43 — — 317.95 220.53
Receiving of
Management Services — — — — 625.61 360.00
Receiving of other Services — — 22.00 6.30 4,104.39 4,917.35
Remuneration to directors — — 1,191.91 980.37 — —
Remuneration to others — — 111.92 94.63 — —
Rendering of Services — 0.68 — — 208.61 241.85
Donation / CSR Expenses — — — — 140.75 62.84

Loans and Advances :

Rental Deposits Received — — — — — —
Rental Deposit Paid / Released — — — — 6.00 —

Investments:
a. Made during the year — — — — — —
b. Disposed during the year — — — — — —

Guarantees:
a. Made during the year — — — — — —
b. Adjustment on Exchange
Fluctuation — — — — — —
c. Released during the year — 6,351.61 — — — —

iii) Amount outstanding as at the balance sheet date : ` Lakhs

Subsidiaries Key Management

including Step Down Personnel and Others
Nature of Transaction Subsidiaries their Relatives

31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023

Trade Receivables and
Other Receivables 0.02 25.64 — — 82.53 64.29
Trade Payables and
Other Payables 7,906.55 8,825.19 608.66 466.93 892.90 1,176.27
Investments 6,913.12 6,913.12 — — — —
Guarantees — — — — — —

iv) The remuneration of KMP does not include the provision made for gratuity as they are determined on an
actuarial basis for the Company as a whole.
v) Debts due by directors or other officers of the Company or any of them either severally or jointly with any
other person or debts due by firms or private companies respectively in which any director is a partner or a
director or a member – Nil (Previous year - Nil).
 Corporate Overview
Statutory Reports
Financial Statements 178

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

64. DISCLOSURE OF INVESTMENTS, LOANS AND GUARANTEES AS REQUIRED UNDER SECTION 186(4) OF
COMPANIES ACT, 2013
a) INVESTMENTS ` Lakhs

Name of the Subsidiary As at As at

31-3-2024 31-3-2023
PT Pricol Surya Indonesia 6,762.74 6,762.74
Pricol Asia Pte Limited, Singapore 150.38 150.38

b) LOANS GRANTED ` Lakhs

As at As at
Name of the Subsidiary Purpose
31-3-2024 31-3-2023

PT Pricol Surya Indonesia — — —

Pricol Asia Pte Limited, Singapore — — —

c) GUARANTEES OR SECURITIES PROVIDED

As at 31-3-2024 As at 31-3-2023
Name of the Foreign Foreign Purpose
Currency
Company Currency ` Lakhs Currency ` Lakhs
in Lakhs in Lakhs
PT Pricol Surya — — — — — —
Indonesia
Pricol Asia Pte
Limited Singapore — — — — — —

65. DISCLOSURE AS REQUIRED UNDER REGULATION 34(3) OF SEBI LODR

As at 31st March 2024 ` Lakhs
Maximum Investment by
Outstanding
Loan / Advance the Loanee in
Amount
In the Accounts of Status outstanding Shares of
Loan /Advance
during the year Parent /
to Subsidiary Subsidiary
to Subsidiary
PT Pricol Surya Indonesia Subsidiary — 619.14 —
Pricol Asia Pte Limited, Singapore Subsidiary — — —
PT Sripri Wiring Systems, Indonesia Subsidiary of — — —
(Closed during the year 2023-24) PT Pricol Surya Indonesia
Pricol Asia Exim DMCC, Dubai Subsidiary of Pricol — — —
Asia Pte Limited,
Singapore
Pricol Electronics Private Limited, Subsidiary of Pricol — — —
India (From 11th April 2023) Asia Pte Limited,
(Yet to commence operations) Singapore

As at 31st March 2023 ` Lakhs

Maximum Investment by
Outstanding
Loan / Advance the Loanee in
Amount
In the Accounts of Status outstanding Shares of
Loan /Advance Parent /
during the year
to Subsidiary Subsidiary
to Subsidiary
PT Pricol Surya Indonesia Subsidiary 619.14 619.14 —
Pricol Asia Pte Limited, Singapore Subsidiary — — —
PT Sripri Wiring Systems, Indonesia Subsidiary of — — —
PT Pricol Surya
Indonesia
Pricol Asia Exim DMCC, Dubai Subsidiary of Pricol — — —
(From 18th August 2022) Asia Pte Limited,
Singapore
66. RATIO ANALYSIS AND ITS ELEMENTS 179

Ratio Numerator Denominator 2023-24 2022-23 % Change Reason for Variance where the
% of change is 25% or more
Pricol Limited

Current Ratio Current Assets Current Liabilities 1.26 1.14 10.38 Not Applicable
Annual Report 2024

Debt Equity Ratio Total Debt Shareholders' Equity 0.06 0.13 (55.91) Due to reduction in term loans
by ` 3,865.06 Lakhs
Debt Service Coverage Earnings for debt Debt Service = 6.42 6.20 3.47 Not Applicable
Ratio service = Net Profit Interest + Lease
after taxes + Payments + Principal
Depreciation and repayment of
Amortisation expense term loans (Excluding
+ Interest Prepayments)
Return on Equity Ratio Net Profit After Taxes Average 0.18 0.18 — Not Applicable
Shareholders'
Equity
Inventory Turnover Ratio Net Sales Average Inventory 7.85 7.39 6.23 Not Applicable

Trade Receivables Net Sales Average Trade 8.06 7.51 7.42 Not Applicable
Turnover Ratio Receivables
Trade Payables Turnover Cost of Materials Average Trade 5.53 4.77 16.08 Not Applicable
Ratio Consumed + Purchases Payables
of Stock-in-Trade +
Changes in Inventory
Net Capital Turnover Net Sales Working Capital = 18.17 23.15 (21.54) Not Applicable
NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

Ratio Current Assets -

Current Liabilities
(Excluding current
maturity of long term
borrowings)
Net Profit Margin % Net Profit after taxes Net Sales 5.97 6.01 (0.68) Not Applicable

Return on Capital Earnings before Capital Employed = 0.22 0.17 25.04 Due to reduction in term loans
Employed interest and taxes Networth + Total by ` 3,865.06 Lakhs
Debt + Deferred Tax
Liabilities
Return on Investment Interest Investment — — — Not Applicable
(Finance Income)
 Corporate Overview
Statutory Reports
Financial Statements 180

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013

67. DIVIDEND

The Company has not proposed / paid any dividend during the year.

68. ADDITIONAL DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013

(i) Details of Benami property:

No proceedings have been initiated or are pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Utilisation of borrowed funds and share premium:

A) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company (Ultimate Beneficiaries) or

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(iii) Compliance with number of layers of Companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(v) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or
previous year.

(vi) Valuation of Property, Plant & Equipment, intangible asset and investment property:

The Company has not revalued its property, plant and equipment (including Right of Use Assets) or
intangible assets or both during the current or previous year.

(vii) Compliance with approved scheme(s) of arrangements:

Refer Note. 51(a) in relation to the Scheme of Amalgamation with Erstwhile Pricol Limited. The intangible
assets, including Goodwill represented by Customer relationship and Assembled work force are being
amortised over its estimated useful life of 15 years from the appointed date.

Refer Note. 51(b) in relation to the Scheme of Amalgamation with Pricol Wiping Systems India Limited.
The Scheme has been accounted for in the books of accounts of the Company "in accordance with the
scheme" and "in accordance with the IND Accounting Standard".
 Pricol Limited
181 Annual Report 2024

NOTES TO STANDALONE FINANCIAL STATEMENTS (Contd.,)

ADDITIONAL DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013 (Contd.,)

(viii) Loans to Related Parties and others:

The Company has not granted any loans or advances in the nature of loans to promotoers, directors, KMP's
and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person that :

a) are repayable on demand or

b) without specifying any terms or period of repayment.

(ix) Struck off Companies:

Details of transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560
of the Companies Act, 1956:

Name of the CIN No. Nature of Balance Relationship

Company transactions Outstanding

— — — — —

(x) Wilful Defaulter:

The Company had not been declared a wilful defaulter by any bank or financial institution or other lender
(as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on
wilful defaulters issued by the Reserve Bank of India.

(xi) The Company does not have Charges or Satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

69. Previous year's figures are reclassified / recasted wherever necessary to conform to the current year's
classification.

70. All figures are in Lakhs unless otherwise stated.

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Corporate Overview
Statutory Reports
Financial Statements 182

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

To the Members of Pricol Limited requirements that are relevant to our audit of the
Consolidated Financial Statements under the provisions
Report on the Audit of the Consolidated Financial
Statements of the Act and Rules thereunder and we have fulfilled our
Opinion other ethical responsibilities in accordance with these
We have audited the accompanying Consolidated requirements and the Code of Ethics. We believe that
Financial Statements of Pricol Limited (“the Holding the audit evidence obtained by us along with the
Company”) and its subsidiaries including its step-down consideration of audit report of other auditors referred to
subsidiaries (the Holding Company and its subsidiaries in “Other Matter” paragraph below is sufficient and
together referred to as “the Group”), comprising of the appropriate to provide a basis for our opinion on the
Consolidated Balance Sheet as at March 31, 2024, the
Consolidated Financial Statements.
Consolidated Statement of Profit and Loss (including
Key Audit Matters
Other Comprehensive Income), the Consolidated
Statement of Changes in Equity and the Consolidated Key audit matters are those matters that, in our
Statement of Cash Flows for the year then ended and professional judgment, were of most significance in our
notes to the Consolidated Financial Statements audit of the Consolidated Financial Statements of the
including a summary of material accounting policies current year. These matters were addressed in the
and other explanatory information (herein after referred context of our audit of the Consolidated Financial
to as “Consolidated Financial Statements”). Statements as a whole and in forming our opinion

In our opinion and to the best of our information and thereon, and we do not provide a separate opinion on

according to the explanations given to us and based on these matters. We have determined that there are no
the consideration of reports of other auditors on key audit matters to be communicated in our report.
separate financial statements and on the other financial Information Other than the Consolidated Financial
information of the subsidiaries, the aforesaid Statements and Auditor's Report Thereon
Consolidated Financial Statements give the information The Holding Company's Management & Board of
required by the Companies Act, 2013 (“the Act”) in the Directors are responsible for the preparation of the other
manner so required and give a true and fair view in information. The other information comprises the
conformity with the accounting principles generally information included in the Annual report, for example,
accepted in India, including the Indian Accounting
Directors' Report and Management Analysis including
Standards prescribed under section 133 of the Act read
Annexures thereon but does not include the standalone
with the Companies (Indian Accounting Standards)
and Consolidated Financial Statements and our
Rules , 2015, as amended (“Ind AS”), of the consolidated
auditor's report thereon.
state of affairs of the Group as at March 31, 2024, their
consolidated profit including other comprehensive The other information is expected to be made available
income, consolidated changes in equity and their to us after the date of this auditor's report.
consolidated cash flows for the year ended on that
Our opinion on the Consolidated Financial Statements
date.
does not cover the other information and we do not
Basis for Opinion express any form of assurance conclusion thereon.
We conducted our audit in accordance with the In connection with our audit of the Consolidated
Standards on Auditing (SAs) specified under section Financial Statements, our responsibility is to read the
143(10) of the Act. Our responsibilities under those other information and, in doing so, consider whether the
Standards are further described in the Auditor's other information is materially inconsistent with the
Responsibilities for the Audit of the Consolidated Consolidated Financial Statements or our knowledge
Financial Statements section of our report. We are obtained during the course of our audit or otherwise
independent of the Group in accordance with the appears to be materially misstated. When we read the
Code of Ethics issued by the Institute of Chartered other information, as stated above, which is expected to
Accountants of India (“ICAI”) together with the ethical be received after the date of our audit report, if we
 Pricol Limited
183 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

conclude that there is a material misstatement therein, The respective management and Board of Directors of
we are required to communicate the matter to those the companies included in the Group are responsible for
charged with governance and take necessary actions, overseeing the financial reporting process of the Group.
as applicable under applicable laws and regulations.
Auditor's Responsibilities for the Audit of the
Management's and Board of Director's responsibility for Consolidated Financial Statements
the Consolidated Financial Statements Our objectives are to obtain reasonable assurance
The Holding Company's Management and Board of about whether the Consolidated Financial Statements
Directors are responsible for the matters stated in Section as a whole are free from material misstatement, whether
134(5) of the Companies Act, 2013 ("the Act") with due to fraud or error, and to issue an auditor's report that
respect to the preparation and presentation of these includes our opinion. Reasonable assurance is a high
Consolidated Financial Statements that give a true and level of assurance but is not a guarantee that an audit
fair view of the consolidated financial position, conducted in accordance with SAs will always detect a
consolidated financial performance, consolidated material misstatement when it exists. Misstatements can
changes in equity and consolidated cash flows of the arise from fraud or error and are considered material if,
Group in accordance with the accounting principles individually or in the aggregate, they could reasonably
generally accepted in India, including the Indian be expected to influence the economic decisions of
Accounting standards (Ind AS) specified under section users taken on the basis of these Consolidated Financial
133 of the Act, read with relevant rules issued thereunder. Statements.
The respective Management and Board of Directors of As part of an audit in accordance with SAs, we exercise
the companies included in the Group are responsible for professional judgment and maintain professional
maintenance of adequate accounting records in scepticism throughout the audit. We also:
accordance with the provisions of the Act for
safeguarding the assets of the Group and for preventing Ÿ Identify and assess the risks of material misstatement

and detecting frauds and other irregularities; selection of the Consolidated Financial Statements, whether

and application of appropriate accounting policies; due to fraud or error, design and perform audit

making judgments and estimates that are reasonable procedures responsive to those risks, and obtain

and prudent; and design, implementation and audit evidence that is sufficient and appropriate to

maintenance of adequate internal financial controls, provide a basis for our opinion. The risk of not
that were operating effectively for ensuring the detecting a material misstatement resulting from
accuracy and completeness of the accounting records, fraud is higher than for one resulting from error, as
relevant to the preparation and presentation of the fraud may involve collusion, forgery, intentional
Consolidated Financial Statements that give a true and omissions, misrepresentations, or the override of
fair view and are free from material misstatement, internal control.
whether due to fraud or error, which have been used for
Ÿ Obtain an understanding of internal control relevant
the purpose of preparation of the Consolidated
to the audit in order to design audit procedures that
Financial Statements by the Directors of the Holding
are appropriate in the circumstances. Under section
Company, as aforesaid.
143(3)(i) of the Act, we are also responsible for
In preparing the Consolidated Financial Statements, the
expressing our opinion on whether the group has
respective Board of Directors included in the Group are
adequate internal financial controls with reference
responsible for assessing the ability of the Group to
to Consolidated Financial Statements in place and
continue as a going concern, disclosing, as applicable,
the operating effectiveness of such controls.
matters related to going concern and using the going
concern basis of accounting unless the respective Ÿ Evaluate the appropriateness of accounting
management and board of directors either intends to policies used and the reasonableness of
liquidate the Group or to cease operations, or has no accounting estimates and related disclosures made
realistic alternative but to do so. by the management.
 Corporate Overview
Statutory Reports
Financial Statements 184

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

• Conclude on the appropriateness of Board of evaluating the results of our work and (ii) evaluating the
Director's use of the going concern basis of ef f ec t of a ny i d enti f i ed m i s s ta tem ents i n the
accounting and, based on the audit evidence Consolidated Financial Statements.
obtained, whether a material uncertainty exists
We communicate with those charged with governance
related to events or conditions that may cast
of the Holding Company and such other entities
significant doubt on the Group's ability to continue
included in the Consolidated Financial Statements of
as a going concern. If we conclude that a material
which we are the independent auditors regarding,
uncertainty exists, we are required to draw attention
among other matters, the planned scope and timing of
in our auditor's report to the related disclosures in the
the audit and significant audit findings, including any
Consolidated Financial Statements or, if such
significant deficiencies in internal control that we identify
disclosures are inadequate, to modify our opinion.
during our audit.
Our conclusions are based on the audit evidence
obtained upto the date of our auditor's report. We also provide those charged with governance with a
However, future events or conditions may cause the statement that we have complied with relevant ethical
Group to cease to continue as a going concern. requirements regarding independence, and to
communicate with them all relationships and other
Ÿ Evaluate the overall presentation, structure and
matters that may reasonably be thought to bear on our
content of the Consolidated Financial Statements,
independence, and where applicable, related
including the disclosures, and whether the
safeguards.
Consolidated Financial Statements represent the
underlying transactions and events in a manner that From the matters communicated with those charged
achieves fair presentation. with governance, we determine those matters that were
of most significance in the audit of the Consolidated
Ÿ Obtain sufficient appropriate audit evidence
Financial Statements of the current period and are
regarding the financial information of the entities or
therefore the key audit matters. We describe these
business activities within the Group to express an
matters in our auditor's report unless law or regulation
opinion on the Consolidated Financial Statements.
precludes public disclosure about the matter or when, in
We are responsible for the direction, supervision and
extremely rare circumstances, we determine that a
performance of the audit of the financial
matter should not be communicated in our report
statements of such entities included in the
because the adverse consequences of doing so would
Consolidated Financial Statements of which we are
reasonably be expected to outweigh the public interest
the independent auditors. For the other entities
benefits of such communication.
included in the Consolidated Financial Statements,
which have been audited by other auditors, such Other Matter
other auditors remain responsible for the direction, We did not audit the financial statements of 4 subsidiaries
supervision and performance of the audits carried which includes 2 step-down subsidiaries incorporated
out by them. We remain solely responsible for our outside India, whose financial statements reflects the
audit opinion. Our responsibilities in this regard are total assets of ` 25,096.02 Lakhs as at March 31, 2024,
further described in the section titled 'Other Matters' total revenues of ` 59,676.40 Lakhs, total profit (including
in this audit report. other comprehensive income) after tax of ` 1,004.28
Lakhs, and net cash inflows of ` 4,234.41 Lakhs for the
Materiality is the magnitude of misstatements in the
year ended on that date as considered in the
Consolidated Financial Statements that, individually or in
Consolidated Financial Statements, which have been
aggregate, makes it probable that the economic
prepared in accordance with accounting principles
decisions of a reasonably knowledgeable user of the
generally accepted in their respective countries and
Consolidated Financial Statements may be influenced.
which have been audited by other auditors under
We consider quantitative materiality and qualitative
generally accepted auditing standards applicable in
factors in (i) planning the scope of our audit work and in
 Pricol Limited
185 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

their respective countries. The Company’s e. On the basis of the written representations
management has converted the financial statements of received from the directors of the Holding
such subsidiaries located outside India from accounting Company taken on record by the Board of
principles generally accepted in their respective Directors of the Holding Company, none of the
countries to accounting principles generally accepted directors of the Group incorporated in India is
in India. We have audited these conversion adjustments disqualified as on March 31, 2024 from being
made by the Company’s management. Our opinion in appointed as a director in terms of section 164(2)

so far as it relates to the amounts and disclosures of such of the Act;

subsidiaries located outside India and our report in terms f. With respect to the adequacy of the internal
of sub-section (3) of section 143 of the Act is based on the financial controls over financial reporting of the
report of other auditors and the conversion adjustments group and the operating effectiveness of such

prepared by the management of the Company and controls, we give our separate report in the
“Annexure”.
audited by us.
(2) With respect to the other matters to be included in
Our opinion on the Consolidated Financial Statements
the Auditor's Report in accordance with Rule 11 of
and our report on the Other Legal and Regulatory
Requirements below, is not modified in respect of the the Companies (Audit and Auditors) Rules, 2014, as

above matter with respect to our reliance on the work amended in our opinion and to the best of our

done and the reports of the other auditors and the information and according to the explanations

financial information certified by the management. given to us and based on the consideration of the
reports of other auditors on the separate financial
Report on Other Legal and Regulatory Requirements
statements of the subsidiaries as stated in 'Other
(1) As required by section 143(3) of the Act, we report,
Matters' paragraph :
to the extent applicable, that:
(i) The Consolidated Financial Statements disclose
a. W e h a v e s o u g h t a n d o b t a i n e d a l l t h e
the impact of pending litigations as at March 31,
information and explanations which to the best
2024, on the consolidated financial position of
of our knowledge and belief were necessary for
the Group – Refer Note. 50 to the Consolidated
the purposes of our audit of the aforesaid
Financial Statements;
Consolidated Financial Statements;
(ii) The Group did not have any long-term contracts
b. In our opinion, proper books of account as
including derivative contracts for which there
required by law relating to preparation of the
were any material foreseeable losses during the
aforesaid Consolidated Financial Statements
financial year;
have been kept by the group so far as it appears
(iii) There has been no delay in transferring amounts,
from our examination of those books and the
required to be transferred, to the Investor
reports of the other auditors;
Education and Protection Fund by the Holding
c. T h e C o n s o l i d a t e d B a l a n c e S h e e t , t h e
Company and its subsidiary company
Consolidated Statement of Profit and Loss
incorporated in India;
(including Other Comprehensive Income), the
(iv) a) The management of the Holding company
Consolidated Statement of Changes in Equity
have represented that to the best of it's
and the Consolidated Statement of Cash Flows
knowledge and belief, as disclosed in the
dealt with by this report are in agreement with
Note 64(ii)(A) to the Consolidated
the relevant books of account maintained for
Financial Statement, no funds (which are
the purpose of preparation of the Consolidated
material either individually or in the
Financial Statements;
aggregate) have been advanced or
d. In our opinion, the aforesaid Consolidated
loaned or invested (either from borrowed
Financial Statements comply with the Indian
funds or share premium or any other
Accounting Standards (Ind As) specified under
sources or kind of funds) by the Company
section 133 of the Act read with relevant rules
to or in any other persons or entities,
issued thereunder;
 Corporate Overview
Statutory Reports
Financial Statements 186

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

including foreign entities (“Intermediaries”), audited under the Act, have used an
with the understanding, whether recorded accounting software for maintaining its books of
in writing or otherwise, that the Intermediary account which has a feature of recording audit
shall: trail (edit log) facility and the same has
• directly or indirectly lend or invest in operated throughout the year for all relevant
other persons or entities identified in transactions recorded in the software.
any manner whatsoever by or on
b) Further, during the course of our audit, we did
behalf of the Company (“Ultimate
not come across any instance of audit trail
Beneficiaries”) or
feature being tampered with.
• Provide any guarantee, security or the
(3) With respect to the other matters to be included in
like on behalf of the Ultimate
the Auditor's Report in accordance with the
Beneficiaries.
requirements of section 197(16) of the Act, as
b) The management of the Holding company
amended;
have represented that to the best of it's
(i) In our opinion and to the best of our information
knowledge and belief, as disclosed in the
and according to the explanations given to us,
Note 64(ii)(B) to the Consolidated Financial
the remuneration paid by the Holding company
Statement, no funds (which are material
to its directors during the year is in accordance
either individually or in the aggregate)
with the provisions of section 197 of the Act: The
have been received by the Company from
remuneration paid to any director is not in
any person or entity, including foreign entity
excess of the Limit laid down under Section 197
(“Funding Parties”), with the understanding,
of the Companies Act.
whether recorded in writing or otherwise,
that the Company shall: (ii) With respect to the matters specified in clause
(xxi) of paragraph 3 and paragraph 4 of the
• directly or indirectly, lend or invest in
Companies (Auditor's Report) order, 2020
other persons or entities identified in
("CARO"/ "the order") issued by the Central
any manner whatsoever by or on
Government in terms of Section 143(11) of the
behalf of the Funding Party (“Ultimate
Act, based on the CARO reports issued by us for
Beneficiaries”) or
the Company and its Indian subsidiary included
• Provide any guarantee, security or the
in the Consolidated Financial Statements of the
like on behalf of the Ultimate
Company, to which reporting under CARO is
Beneficiaries;
applicable, we report that there are no
c) Based on the audit procedures that have
qualifications or adverse remarks in these CARO
been considered reasonable and
reports.
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
For VKS Aiyer & Co
sub-clause iv (a) and (b) contain any
Chartered Accountants
material misstatement. ICAI Firm Registration No.000066S
v) The Group has not proposed / paid any dividend CS Sathyanarayanan
during the year. Partner
vi) a) The group which are companies incorporated Coimbatore Membership No.028328
in India whose financial statements have been 15th May 2024 UDIN: 24028328BKGSVI5541
 Pricol Limited
187 Annual Report 2024

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT

[Referred to under 'Report on Other Legal and Regulatory Requirements' in the Independent Auditor's Report of even
date to the members of Pricol Limited on the Consolidated Financial Statements for the year ended 31.03.2024]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)

In conjunction with our audit of the Consolidated Auditor’s Responsibility

Financial Statements of the Holding Company as of and
for the year ended March 31, 2024, We have audited the Our responsibility is to express an opinion on the
internal financial controls over financial reporting of the Company's internal financial controls over financial
Group, which are companies incorporated in India, as of reporting based on our audit. We conducted our audit in
that date.
accordance with the Guidance Note on Audit of

Opinion Internal Financial Controls Over Financial Reporting (the

“Guidance Note”) and the Standards on Auditing
In our opinion, the Group, which are companies specified under section 143(10) of the Act, to the extent
incorporated in India, have, in all material respects, an
applicable to an audit of internal financial controls, both
adequate internal financial controls system over
issued by the ICAI. Those Standards and the Guidance
financial reporting and such internal financial controls
Note require that we comply with ethical requirements
over financial reporting were operating effectively as at
March 31, 2024, based on the internal control over and plan and perform the audit to obtain reasonable

financial reporting criteria established by the Company assurance about whether adequate internal financial
considering the essential components of internal control controls over financial reporting was established and
stated in the Guidance Note on Audit of Internal maintained and if such controls operated effectively in
Financial Controls Over Financial Reporting issued by the all material respects.
ICAI (the “Guidance Note”).
Our audit involves performing procedures to obtain
Management’s Responsibility for Internal Financial
audit evidence about the adequacy of the internal
Controls
financial controls system over financial reporting and
The respective Board of Directors of the of the Group, their operating effectiveness. Our audit of internal
which are companies incorporated in India, are financial controls over financial reporting included
responsible for establishing and maintaining internal obtaining an understanding of internal financial controls
financial controls based on the internal control over
over financial reporting, assessing the risk that a material
financial reporting criteria established by the Company
weakness exists, and testing and evaluating the design
considering the essential components of internal control
and operating effectiveness of internal control based on
stated in the Guidance Note. These responsibilities
include the design, implementation and maintenance the assessed risk. The procedures selected depend on

of adequate internal financial controls that were the auditor's judgement, including the assessment of the
operating effectively for ensuring the orderly and risks of material misstatement of the financial statements,
efficient conduct of its business, including adherence to whether due to fraud or error.
the respective company's policies, the safeguarding of
its assets, the prevention and detection of frauds and We believe that the audit evidence we have obtained is
errors, the accuracy and completeness of the sufficient and appropriate to provide a basis for our audit
accounting records, and the timely preparation of
opinion on the Company's internal financial controls
reliable financial information, as required under the
system over financial reporting.
Companies Act, 2013.
 Corporate Overview
Statutory Reports
Financial Statements 188

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT (Contd.,)

Meaning of Internal Financial Controls Over Financial Inherent Limitations of Internal Financial Controls Over
Reporting Financial Reporting

Because of the inherent limitations of internal financial

A company's internal financial control over financial
controls over financial reporting, including the possibility
reporting is a process designed to provide reasonable
of collusion or improper management override of
assurance regarding the reliability of financial reporting controls, material misstatements due to error or fraud
and the preparation of financial statements for external may occur and not be detected. Also, projections of any
purposes in accordance with generally accepted evaluation of the internal financial controls over financial

accounting principles. A company's internal financial reporting to future periods are subject to the risk that the
internal financial control over financial reporting may
control over financial reporting includes those policies
become inadequate because of changes in conditions,
and procedures that (1) pertain to the maintenance of
or that the degree of compliance with the policies or
records that, in reasonable detail, accurately and fairly procedures may deteriorate.
reflect the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures of the company are being
made only in accordance with authorisations of For VKS Aiyer & Co
Chartered Accountants
management and directors of the company; and (3)
ICAI Firm Registration No.000066S
provide reasonable assurance regarding prevention or
CS Sathyanarayanan
timely detection of unauthorised acquisition, use, or Partner
disposition of the company's assets that could have a Coimbatore Membership No.028328

material effect on the financial statements. 15th May 2024 UDIN: 24028328BKGSVI5541
 Pricol Limited
189 Annual Report 2024

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2024

31-3-2024 31-3-2023
Note. ` Lakhs ` Lakhs

I. ASSETS
(1) Non-Current Assets
(a) Property, Plant and Equipment 2 45,920.05 39,586.29
(b) Right of Use 3 2,771.77 3,446.36
(c) Capital Work-in-progress 4 3,790.08 1,398.56
(d) Investment Property 5 668.61 694.97
(e) Goodwill 6 5,960.40 6,953.80
(f) Other Intangible Assets 7 7,840.71 9,029.46
(g) Intangible Assets under Development 8 38.15 62.49
(h) Financial Assets
i) Investments 9 120.00 120.00
ii) Other Financial Assets 10 691.30 732.52
(i) Deferred Tax Assets (Net) 11 29.61 34.62
(j) Other Non-Current Assets 12 1,438.05 2,321.40
Total Non-Current Assets 69,268.73 64,380.47

(2) Current Assets

(a) Inventories 13 32,026.50 27,167.92
(b) Financial Assets
i) Investments 14 516.85 363.92
ii) Trade Receivables 15 28,704.07 26,897.91
iii) Cash and Cash equivalents 16 11,254.23 5,599.68
iv) Bank Balances other than (iii) above 17 109.34 2,794.19
v) Other Financial Assets 18 147.80 29.96
(c) Other Current Assets 19 1,536.29 1,559.53
Total Current Assets 74,295.08 64,413.11

Non-Current Assets held for Sale 20 — 1,956.91

— 1,956.91

74,295.08 66,370.02

TOTAL ASSETS 1,43,563.81 1,30,750.49

 Corporate Overview
Statutory Reports
Financial Statements 190

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2024

31-3-2024 31-3-2023
Note.
` Lakhs ` Lakhs

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2024 (Contd.,)

II. EQUITY AND LIABILITIES

EQUITY
(a) Equity Share Capital 21 1,218.81 1,218.81
(b) Other Equity 22 83,308.40 69,209.46
Total Equity 84,527.21 70,428.27
LIABILITIES
(1) Non-Current Liabilities
(a) Financial Liabilities
i) Borrowings 23 — 2,675.81
ii) Lease Liabilities 24 802.69 1,357.95
iii) Other Financial Liabilities 25 88.27 80.97
(b) Provisions 26 1,901.61 1,486.48
(c) Deferred Tax Liabilities (Net) 27 3,483.97 4,106.75
(d) Other Non-Current Liabilities 28 199.24 127.89
Total Non-Current Liabilities 6,475.78 9,835.85
(2) Current Liabilities
(a) Financial Liabilities
i) Borrowings 29 4,662.37 6,244.44
ii) Lease Liabilities 30 623.27 754.61
iii) Trade Payables 31
- Total Outstanding dues of Micro
Enterprises and Small Enterprises 2,281.36 1,916.89
- Total Outstanding dues of creditors other
than Micro Enterprises and Small Enterprises 30,299.82 26,346.14
iv) Other Financial Liabilities 32 8,983.49 10,591.94
(b) Other Current Liabilities 33 2,755.25 2,586.38
(c) Provisions 34 2,692.82 1,111.27
(d) Current Tax Liabilities (Net) 35 262.44 262.70
Total Current Liabilities 52,560.82 49,814.37

Liabilities in relation to Non-Current Assets held for Sale 36 — 672.00

TOTAL EQUITY AND LIABILITIES 1,43,563.81 1,30,750.49

Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Pricol Limited
191 Annual Report 2024

CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH 2024

2023-24 2022-23
Note.
` Lakhs ` Lakhs

INCOME

Revenue from Operations 37 2,20,816.89 1,90,283.12

Other Operating Revenue 38 6,361.34 5,572.95

Other Income 39 1,315.83 458.53

Total Income 2,28,494.06 1,96,314.60

EXPENSES

Cost of Materials Consumed 40 1,50,972.39 1,32,411.44

Purchases of Stock-in-Trade 7,148.60 5,972.32

Changes in inventories of Finished Goods, Stock-in-Trade and 41 (2,599.01) (1,054.75)

Work-in-progress

Employee Benefits Expense 42 26,264.04 22,749.33

Finance Costs 43 1,825.00 1,828.25

Depreciation and Amortisation Expense 44 8,206.06 7,790.78

Other Expenses 45 18,086.52 12,930.23

Total Expenses 2,09,903.60 1,82,627.60

Profit / (Loss) before Exceptional Items and Tax 18,590.46 13,687.00

Add : Exceptional Item 46 — 975.00

Profit / (Loss) Before Tax 18,590.46 14,662.00

Less : Tax Expense

Current Tax 5,045.19 3,620.32

Deferred Tax 57 (c) (425.48) (1,426.85)

Earlier years (Net) (90.40) —

Profit / (Loss) for the year (A) 14,061.15 12,468.53

 Corporate Overview
Statutory Reports
Financial Statements 192

CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH 2024

2023-24 2022-23
Note.
` Lakhs ` Lakhs

Consolidated Statement of Profit & Loss for the year ended

31st March 2024 (Contd.,)

Other Comprehensive Income

Items that will not be reclassified to profit or loss :

Remeasurement of post employment benefit obligations (661.61) (262.46)

Income tax relating to these items 57 (c) 167.17 67.58

Items that will be reclassified to profit or loss :

Exchange differences on translation of foreign operations (95.75) 536.38

Other Comprehensive Income for the year after tax (B) (590.19) 341.50

Total Comprehensive Income for the year (A) + (B) 13,470.96 12,810.03

Earnings per Equity Share (Face Value of ` 1/-) in Rupees

Basic & Diluted 47 11.54 10.23

Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Pricol Limited
193 Annual Report 2024

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH 2024

a) Equity Share Capital ` Lakhs

Balance at the Changes in Equity Balance at the

beginning of the current Share Capital during end of the current
reporting period the current year reporting period

As at 31st March 2024 1,218.81 — 1,218.81

As at 31st March 2023 1,218.81 — 1,218.81

` Lakhs

b) Other Equity Reserves and Surplus Other Comprehensive Income

Total
Foreign Remeasurement
Securities Capital Retained Exchange of post
Premium Reserve Earnings Translation employment
Reserve benefit obligations

Balance as at 1st April 2023 88,642.77 827.33 (21,225.65) 867.10 97.91 69,209.46

- Profit / (Loss) for the year

2023-24 — — 14,061.15 — — 14,061.15

- Other Comprehensive
Income, Net off Income Tax — — — (95.75) (494.44) (590.19)

- Other Adjustments 2023-24 — — 641.74 (13.76) — 627.98

Balance as on 31st March 2024 88,642.77 827.33 (6,522.76) 757.59 (396.53) 83,308.40

Balance as at 1st April 2022 88,642.77 827.33 (33,694.18) 330.72 292.79 56,399.43

- Profit / (Loss) for the year

2022-23 — — 12,468.53 — — 12,468.53

- Other Comprehensive Income,

Net off Income Tax — — — 536.38 (194.88) 341.50

Balance as at 31st March 2023 88,642.77 827.33 (21,225.65) 867.10 97.91 69,209.46

Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Corporate Overview
Statutory Reports
Financial Statements 194

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2024

Year Ended Year Ended

31st March 2024 31st March 2023
` Lakhs ` Lakhs

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit / (Loss) Before Tax 18,590.46 14,662.00

Adjustments for :

Exceptional Item — (975.00)

Depreciation & Amortisation Expense 8,206.06 7,790.78

Bad Debts / Advances Written off (29.92) 117.71

(Net off Loss Allowances)

(Profit) / Loss on sale of Property, Plant and 43.37 (28.99)

Equipment (Net) / Assets Discarded
(Net of Impairment / (Reversals))

Write off of Investments and Advances in

step down subsidiary 641.74 —

Interest received (248.34) (96.85)

Deferred Revenue from Government Grant (31.99) (6.37)

Effect of Change in Foreign Currency (62.59) 485.69

Translation Reserve

Exchange Fluctuation (Gain) / Loss on Re-statement 82.62 (521.82)

Gain on Fair Valuation / Disposal of Investments at (152.93) (0.91)

Fair Value through P&L

Finance Costs 1,825.00 1,828.25

10,273.02 8,592.49

Operating Profit before working capital changes 28,863.48 23,254.49

Adjustments for :-

(Increase) / Decrease in Trade Receivables and 959.90 (2,766.02)

Other Receivables

(Increase) / Decrease in Inventories (4,858.58) (3,520.65)

Increase / (Decrease) in Trade Payables and

Other Payables 4,324.67 2,990.53

425.99 (3,296.14)

Cash generated from Operations 29,289.47 19,958.35

Direct taxes (3,811.74) (3,679.01)

Net cash from operating activities 25,477.73 16,279.34

 Pricol Limited
195 Annual Report 2024

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2024

Year Ended Year Ended

31st March 2024 31st March 2023
` Lakhs ` Lakhs

Consolidated Cash Flow Statement for the

year ended 31st March 2024 (Contd.,)

B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Property, Plant and Equipment & (14,330.12) (8,488.91)

Investment Property

Sale of Property, Plant and Equipment 572.22 68.87

Adjustment for Capital Advances & Capital Creditors (504.01) 395.48

Purchase of Non-Current Investments — (120.00)

Purchase of Current Investments — (149.99)

Advance received / Sale Proceeds against

disposal of asset held for sale 1,128.00 672.00

Settlement of Claims by the seller of Erstwhile

Step-down subsidiary — 975.00

Interest received 201.36 93.18

Net Cash used in from investing activities (12,932.55) (6,554.37)

C. CASH FLOW FROM FINANCING ACTIVITIES :

Proceeds from / (Repayment of) Current (419.55) 4,782.71

Borrowings (Net)

Proceeds from / (Repayment of) Non-Current (3,865.06) (8,675.43)

Borrowings (Net)

Repayment of Lease Liabilities (782.64) (682.35)

Finance Costs paid # (1,823.38) (1,808.81)

Net Cash used in financing activities (6,890.63) (6,383.88)

D. NET INCREASE / (DECREASE) IN CASH AND CASH

EQUIVALENTS (A+B+C) 5,654.55 3,341.09

Cash and cash equivalents as at 1.4.2023 &1.4.2022 5,599.68 2,258.59

(Opening Balance)
Cash and cash equivalents as at
31.3.2024 and 31.3.2023 11,254.23 5,599.68
(Closing Balance) (Refer Note. 16)
# Includes Interest on Lease Obligations of ` 178.78 Lakhs (Previous Year - ` 236.32 Lakhs)
 Corporate Overview
Statutory Reports
Financial Statements 196

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2024

Consolidated Cash Flow Statement for the year ended 31st March 2024 (Contd.,)
Changes in Liability arising from financing activities, disclosing changes arising from Cash and Non Cash Flow :

` Lakhs
Non Current
Borrowings Current Lease
Particulars (including Borrowings Liability
current maturities)
As on 31-3-2024
Opening Balance as at 1st April, 2023 3,865.06 5,055.19 2,112.56

Cash Flows (Net) - Proceeds / (Repayment) (3,865.06) (419.55) (782.64)

Termination of Lease — — (14.32)

Additions during the year - Impact on
account of Ind AS 116 — — 110.36

De-recognition of unamortised portion of finance charges — — —

Exchange Fluctuation (Gain) / Loss on Re-statement — 26.73 —

Closing Balance as at 31st March 2024 — 4,662.37 1,425.96

As on 31-3-2023

Opening Balance as at 1st April, 2022 12,514.95 291.39 2,535.49

Cash Flows (Net) - Proceeds / (Repayment) (8,675.43) 4,782.71 (682.35)

Additions during the year - Impact on

account of Ind AS 116 — — 259.42

De-recognition of unamortised portion of finance charges 25.54 — —

Exchange Fluctuation (Gain) / Loss on Re-statement — (18.91) —

Closing Balance as at 31st March 2023 3,865.06 5,055.19 2,112.56

Material Accounting Policies & Notes form an integral part of the Financial Statements

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
 Pricol Limited
197 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024

1. A. Corporate Information: • Derivative instruments are measured at their

fair values;
Pricol Limited is a Company incorporated on 18th
May, 2011 and is engaged in the business of • Employee dened benet assets / liabilities are
recognised as the net total of fair value of plan
manufacturing and selling of Instrument clusters
assets, adjusted for actuarial gains / losses and
and other allied automobile components to
the present value of dened benet
Original Equipment Manufacturers (OEM) and
obligations;
replacement markets. The Equity shares of the
• Long term borrowings are measured at
Holding company are listed on the National Stock
amortised cost using the effective interest rate
Exchange of India Limited (NSE) and the BSE Limited
(EIR) method;
(BSE). Refer Note 1.B.(i) below for details of
1. B. MATERIAL ACCOUNTING POLICIES
subsidiaries. The Company along with its
subsidiaries and Step down subsidiaries is referred to i. Principles of Consolidation :
as the Group. The Consolidated Financial Statements comprise
General Information and Statement of Compliance the financial statements of the Parent and its
subsidiaries including step-down subsidiaries.
with Ind AS:
Control is achieved when the Group is exposed, or
These Consolidated Financial Statements ('financial has rights, to variable returns from its involvement
statements') of the Group have been prepared in with the investee and has the ability to affect those
accordance with the Indian Accounting Standards returns through its power over the investee.
(hereinafter referred to as the 'Ind AS') as notified by Specifically, the Group controls an investee if and
Ministry of Corporate Affairs ('MCA') under Section only if the Group has:
133 of the Companies Act, 2013 ('the Act') read with • Power over the investee (i.e. existing rights that
the Companies (Indian Accounting Standards) give it the current ability to direct the relevant
Rules, 2015, as amended and other relevant activities of the investee)
provisions of the Act. The Group has uniformly • Exposure, or rights, to variable returns from its
applied the accounting policies during the periods involvement with the investee, and
presented. The Consolidated Financial Statements
• The ability to use its power over the investee to
for the year ended 31 March 2024 were authorised affect its returns
and approved for issue by the Board of Directors on
Generally, there is a presumption that a
15th May 2024.
majority of voting rights result in control. To
i. Basis of Preparation and Presentation: support this presumption and when the Group
The Consolidated Financial Statements have been has less than a majority of the voting or similar
rights of an investee, the Group considers all
prepared on going concern basis in accordance
relevant facts and circumstances in assessing
with accounting principles generally accepted in
whether it has power over an investee,
India. The presentation of consolidated financial including:
statement is based on Ind AS Schedule III of the
• The contractual arrangement with the other
Companies Act, 2013. The financial statements are
vote holders of the investee
prepared in Indian Rupees which is the functional
• Rights arising from other contractual
and presentation Currency.
arrangements
The Financial Statements have been prepared &
presented on the historical cost convention and on • The Group's voting rights and potential voting
accrual basis, except for the following material rights

items mentioned in the Balance Sheet: The Group re-assesses whether or not it controls an
• Financial assets / liabilities are measured either investee if facts and circumstances indicate that
at fair value or at amortised cost depending on there are changes to one or more of the three
their classication; elements of control.
 Corporate Overview
Statutory Reports
Financial Statements 198

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,) Extent of

Name of the subsidiary Country of
holding
Consolidation of a subsidiary begins when the Group Incorporation
(%)
obtains control over the subsidiary and ceases when the
PT Pricol Surya Indonesia Indonesia 100%
Group loses control of the subsidiary. Assets, liabilities,
Pricol Asia Pte Limited, Singapore 100%
income and expenses of a subsidiary acquired or
Singapore
disposed off during the year are included in the
consolidated financial statements from the date the PT Sripri Wiring Systems Indonesia 100%
Step-down Subsidiary
Group gains control until the date the Group ceases to
(Subsidiary of PT Pricol Surya
control the subsidiary. Indonesia)(Closed during
the year 2023-24)
Profit or Loss and each component of other Pricol Asia Exim DMCC, Dubai 100%
comprehensive income (OCI) are attributed to the Dubai Step-down Subsidiary
(Subsidiary of Pricol Asia Pte
equity holders of the parent of the Group. When
Limited, Singapore)
necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting Pricol Electronics Private
Limited, India India 100%
policies into line with the Group's accounting policies. All
(From 11th April, 2023)
intra-group assets and liabilities, equity, income, Step-down Subsidiary
expenses and cash flows relating to transactions (Subsidiary of Pricol Asia Pte
between members of the Group are eliminated in full on Limited, Singapore)(Yet
to commence operations)
consolidation.

ii. Revenue Recognition:

A change in the ownership interest of a subsidiary,
a. Sale of goods
without a loss of control, is accounted for as an equity
transaction. When the Group loses control over a Revenue from customers is recognised when
the Group satisfies performance obligation by
subsidiary, it derecognises the assets and liabilities of the
transferring promised goods or services to the
subsidiary, related Non-Controlling Interest, if any, and
customers. Revenue is measured based on
other components of equity. Any interest retained in the
transaction price, (net of variable
former subsidiary is measured at fair value at the date
consideration) allocated to that performance
the control is lost. Any resulting gain or loss is recognised in
obligation. The transaction price of goods sold,
profit or loss. and services rendered is net of variable
consideration on account of various trade
The Group combines the financial statements of the discounts and allowances offered by the
parent and its subsidiaries line by line adding together Company as part of the contract.
like items of assets, liabilities, equity, income and Revenue from sale of goods and associated
expenses. Intercompany transactions, balances and services is recognised at the point of time when
unrealised gains on transactions between group the goods are sold or services rendered.
companies are eliminated. Unrealised losses are also b. Sale of services
eliminated unless the transaction provides evidence of
Service income is recognised as per the terms
an impairment of the transferred asset. Accounting
of the contract with customers when related
policies of subsidiaries have been changed wherever
services are rendered.
necessary to ensure consistency with the policies
The Group considers any other promises in the
adopted by the group.
contract that are separate performance
obligations to which a portion of the
The Consolidated Financial Statement comprises the transaction price needs to be allocated. In
determining the transaction price for the
financial statements of the following subsidiaries:
goods, the Group considers the effect of
 Pricol Limited
199 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,)

variable consideration, the existence of appropriate share of overheads. Financing costs (if
significant financing components, non-cash any) relating to acquisition of assets which take
consideration and consideration payable to substantial period of time to get ready for intended
the customer, if any. A refund liability (included use are also included to the extent they relate to the
in other financial liabilities) is recognised for period upto such assets are ready for their intended
expected volume discounts payable to
use.
customers in relation to sales made until the
end of the reporting period. No element of Items such as spare parts, stand-by equipment and
financing is deemed present as the sales are servicing equipment are capitalised if they meet
made with a credit term of 30 days to 120 days, the definition of property, plant and equipment.
which is consistent with market practice. The
Group's obligation to repair or replace faulty Depreciation on Property, Plant and Equipment
products under the standard warranty terms is (PPE) are provided under straight line method so as
recognised as a warranty provision. to expense the depreciable amount ie., cost less
c. Export benefits estimated value, over its estimated useful lives as
Export incentive entitlement are recognized as per the useful lives and manner prescribed under
income when the right to receive credit as per Schedule II to the Companies Act, 2013, except for
the terms of the scheme is established in the certain asset class such as leasehold
respect of the exports made and where there is
improvements which are amortised as depreciation
no uncertainty regarding the ultimate
collection of the exports proceeds. over the lower of useful life or lease period and Dies,

d. Unbilled Revenue Tools and Moulds which are depreciated over a

period of 3 years.
Contract Assets are recognised when there is
excess of revenue earned over the contract Where the cost of a part of the PPE is significant to
billing. Contract assets are classified as unbilled the total cost of the PPE and if that part of the PPE
receivables when there is a unconditional right
to receive payment as per the contractual has a different useful life than the main PPE, the
terms. useful life of that part is determined separately for

e. Claims depreciation.

Claims made by the Group including price The Group has used the following useful lives to
escalations and those made on the Group are provide depreciation on its Property, Plant and
recognised in the Statement of Profit and Loss Equipment:
as and when the claims are accepted / Liability
Class of Assets Useful Lives
is crystallised.
Factory Buildings 20 - 30 years
iii. Property, Plant and Equipment and Depreciation:

Property, Plant and Equipment (PPE), being fixed Improvement to Useful life or lease
Leasehold Buildings period whichever is
assets are tangible items that are held for use in the
lower
production or supply of goods or services, for rental
to others, or for administrative purposes and are Plant & Equipments 7.5 - 8 /10 /15 years
expected to be used for more than a period of (Based on Shift)
twelve months. They are measured at cost less Furniture & Fixtures 10 years
accumulated depreciation and any accumulated Vehicles 8 years
impairment. Cost comprises of the purchase price Office Equipments 4 - 5 years
including import duties and non-refundable
Dies, Tools and Moulds 3 years
purchase taxes after deducting trade discounts
Computer Equipments
and rebates and any costs attributable to bringing
the asset to the location and condition necessary - Servers and Networks 6 years
for it to be capable of operating in the manner - End User Devices 3 years
intended by the Management. Own manufactured Spares 1 - 3 years
assets are capitalised at cost including an
 Corporate Overview
Statutory Reports
Financial Statements 200

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,)

The management believes that the useful lives v. Financial instruments:

adopted reflect the expected pattern of A financial instrument is any contract that gives rise
consumption of future economic benefits. to a financial asset of one entity and a financial
The depreciation method applied to an asset is liability or equity instrument of another entity.
reviewed at each financial year-end and if there Equity investments (other than investments in
has been a significant change in the expected subsidiaries and joint ventures)
pattern of consumption of future economic
All equity investments within the scope of Ind AS 109,
benefits embodied in the asset, depreciation is
‘Financial Instruments', are measured at fair value
charged prospectively to reflect the changed
either through Statement of Profit and Loss or other
pattern.
comprehensive income. The Group makes an
The carrying amount of an item of PPE is irrevocable election to present in OCI the
derecognised on disposal or when no future subsequent changes in the fair value on an
economic benefits are expected from its use or instrument-by-instrument basis. The classification is
disposal. Gains or losses arising from derecognition made on initial recognition.
of Property, Plant and equipment are measured as
If the Group decides to classify an equity instrument
the difference between the net disposal proceeds
as at FVTOCI, then all fair value changes on the
and the carrying amount of the asset and are
instrument, excluding dividends, impairment gains
recognised in the Consolidated Statement of Profit
or losses and foreign exchange gains and losses, are
and Loss when the asset is de-recognised.
recognised in the OCI. Any gains or losses on de-
iv. Intangible assets and amortisation: recognition is recognised in the OCI and are not

An intangible asset is an identifiable non-monetary recycled to the Statement of Profit or Loss.

asset without physical substance. Equity instruments included within the FVTPL category
are measured at fair value with all changes
Intangible assets are recognised only if it is probable
recognised in the Statement of Profit and Loss.
that future economic benefits that are attributable
to the asset will flow to the enterprise and the cost of vi. Contingent liabilities:
the asset can be measured reliably. A contingent liability is a possible obligation that
Computer software licenses are capitalised on the arises from past events whose existence will be
basis of costs incurred to acquire and bring to use confirmed by the occurrence or non-occurrence of
the specific software. Operating software is one or more uncertain future events beyond the
control of the Group or a present obligation that is
capitalised and amortised along with the related
not recognised because it is not probable that an
fixed asset.
outflow of resources will be required to settle the
The Group has used the following useful lives to obligation. A contingent liability also arises in
amortise its intangible assets: extremely rare cases where there is a liability that
cannot be recognised because it cannot be
Class of Assets Useful Lives
measured reliably. The Group does not recognise a

Specialised software 4 Years contingent liability but discloses its existence in the
financial statements.
Fees for Technical Know-how 4 Years
Contingent Assets are not recognised but are
Intangible Assets acquired 15 Years (Based disclosed when the inflow of economic benefits are
on Amalgamation on technical probable.
opinion)
vii. Inventories:
Goodwill acquired 15 Years (Based
Inventories are valued at lower of cost and
on Amalgamation on technical
estimated net realisable value. Net realisable value
opinion)
 Pricol Limited
201 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

MATERIAL ACCOUNTING POLICIES (Contd.,)

is the estimated selling price in the ordinary course The following are the areas of estimation uncertainty and
of business less the estimated costs of completion critical judgements that the management has made in
and the estimated costs necessary to make the the process of applying the Group's accounting policies:
sale.
a) Provision and contingent liability:
The basis of determining cost for various categories
On an ongoing basis, the Group reviews pending
of inventories is as follows:-
cases, claims by third parties and other
i) Raw Materials, Packing Materials & Stores and contingencies. For contingent losses that are
Spares: Weighted average basis. considered probable, an estimated loss is recorded
ii) Finished Goods and Work-In-Progress: as an accrual in financial statements. Loss
Contingencies that are considered possible are not
Cost of Direct Material, Labour & Other
provided for but disclosed as Contingent liabilities in
Manufacturing Overheads.
the financial statements. Contingencies the
Stores & Spares which do not meet the definition of
likelihood of which is remote are not disclosed in the
Property, Plant and Equipment are accounted as
financial statements.
inventories.
b) Evaluation of indicators for impairment of assets:
Significant accounting judgments, estimates and
The evaluation of applicable indicators of
assumptions:
impairment of assets requires assessment of several
The preparation of financial statements in conformity external and internal factors which could result in
with the recognition and measurement principles of Ind deterioration of recoverable amount of the assets.
AS requires management to make judgements,
c) Allowances for uncollected accounts receivable
estimates and assumptions that affect the reported
and advances:
balances of revenues, expenses, assets and liabilities
and the accompanying disclosures, and the disclosure Trade receivables do not carry interest and are

of contingent liabilities. Uncertainty about these stated at their normal value as reduced by
appropriate allowances for estimated
assumptions and estimates could result in outcomes that
irrecoverable amounts. Individual trade
require a material adjustment to the carrying amount of
receivables are written off when management
assets or liabilities affected in future periods.
deems them not collectable. Impairment is made
The estimates and underlying assumptions are reviewed on the expected credit loss model, which is the
on an ongoing basis. Revisions to accounting estimates present value of the cash shortfall over the
are recognised in the period in which the estimate is expected life of the financial assets. The impairment
revised if the revision affects only that period, or in the provisions for financial assets are based on
period of the revision and future periods if the revision assumption about the risk of default and expected
affects both current and future periods. loss rates. Judgement in making these assumptions
and selecting the inputs to the impairment
calculation are based on past history, existing
market condition as well as forward looking
estimates at the end of each reporting period.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)
2. PROPERTY, PLANT AND EQUIPMENT (PPE) ` Lakhs
Improvements Furniture Office Computer
Plant & and Vehicles Total
Particulars Land Buildings to Leasehold Equipments Equipments
Equipment Fixtures
Buildings
Gross Carrying Value
As at 1st April, 2022 10,629.86 17,610.48 374.46 38,188.16 783.96 516.01 331.46 2,360.40 70,794.79
Additions during 2022-23 — 556.59 — 6,161.03 71.73 80.87 1.44 673.30 7,544.96
Deletions during 2022-23 0.38 — — 169.53 — 18.56 (9.90) 18.00 196.57
Re-classified as Non-Current Assets held for
Sale (Refer Note. 20) 185.59 700.57 — — — — — — 886.16
Translation Adjustment 26.58 42.07 — 67.41 — — 9.95 0.68 146.69
As at 31st March, 2023 10,470.47 17,508.57 374.46 44,247.07 855.69 578.32 352.75 3,016.38 77,403.71
Additions during 2023-24 3,039.05 1,959.88 — 6,441.74 125.61 73.51 40.48 212.52 11,892.79
Deletions / Adjustments during 2023-24 204.00 41.77 — 779.44 18.46 6.91 — 9.32 1,059.90
Other Adjustments 2023-24 — — — (2.05) — 10.86 — — 8.81
Re-classified as Non-Current Assets held
for Sale (Refer Note. 20) — — — — — — — — —
Translation Adjustment (30.56) (48.38) — (77.24) — — (11.86) 2.32 (165.72)
As at 31st March, 2024 13,274.96 19,378.30 374.46 49,830.08 962.84 655.78 381.37 3,221.90 88,079.69

Accumulated Depreciation ` Lakhs

As at 1st April, 2022 — 5,812.37 213.85 24,566.78 427.24 172.70 319.58 1,846.83 33,359.35
Depreciation for the year 2022-23 — 882.83 36.57 3,266.21 67.90 55.88 5.88 274.90 4,590.17
Withdrawn during the year 2022-23 — — — 122.64 — 17.16 — 16.89 156.69
Re-classified as Non-Current Assets held
Sale (Refer Note.20) — 76.02 — — — — — — 76.02
Translation Adjustment — 31.88 — 57.72 — — 10.33 0.68 100.61
As at 31st March, 2023 — 6,651.06 250.42 27,768.07 495.14 211.42 335.79 2,105.52 37,817.42
Depreciation for the year 2023-24 — 960.42 48.39 3,524.60 71.13 64.33 6.42 385.98 5,061.27
Withdrawn during the year 2023-24 — 27.14 — 542.52 16.31 6.52 — 8.73 601.22
Other Adjustments 2023-24 — (0.01) — 1.52 — 1.32 (2.83) — —
Re-classified as Non-Current Assets held
for Sale (Refer Note. 20) — — — — — — — — —
Translation Adjustment — (40.23) — (68.01) — (0.08) (11.83) 2.32 (117.83)
As at 31st March, 2024 — 7,544.10 298.81 30,683.66 549.96 270.47 327.55 2,485.09 42,159.64

Net Carrying Value ` Lakhs

As at 31st March, 2023 10,470.47 10,857.51 124.04 16,479.00 360.55 366.90 16.96 910.86 39,586.29
As at 31st March, 2024 13,274.96 11,834.20 75.65 19,146.42 412.88 385.31 53.82 736.81 45,920.05

Certain Property, Plant and Equipment have been given as security against borrowings availed by the Holding Company (Refer Note. 23 & 29).
Title deeds of all immovable properties of Holding company are held in the name of the Company.
Financial Statements
Statutory Reports
Corporate Overview

202
 Pricol Limited
203 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

3. RIGHT OF USE
` Lakhs

Computer
Particulars Land Buildings Vehicles Total
Equipments

Gross Carrying Value

As at 1st April, 2022 1,875.52 2,967.96 673.28 15.25 5,532.01
Additions during 2022-23 — 238.24 — 21.18 259.42
Deletions during 2022-23 — 137.56 — — 137.56
Translation Adjustment — 6.31 — 0.58 6.89
As at 31st March, 2023 1,875.52 3,074.95 673.28 37.01 5,660.76
Additions during 2023-24 — 119.97 — — 119.97
Deletions during 2023-24 30.38 42.10 — — 72.48
Other Adjustments 2023-24 — — — (9.57) (9.57)
Translation Adjustment — 2.70 — (1.55) 1.15
As at 31st March, 2024 1,845.14 3,155.52 673.28 25.89 5,699.83

Accumulated Depreciation ` Lakhs

As at 1st April, 2022 128.69 1,247.09 227.88 11.43 1,615.09

Depreciation for the year 2022-23 25.38 479.66 224.44 5.11 734.59
Withdrawn during the year 2022-23 — 137.56 — — 137.56
Translation Adjustment — 1.75 — 0.53 2.28
As at 31st March, 2023 154.07 1,590.94 452.32 17.07 2,214.40
Depreciation for the year 2023-24 26.76 527.88 213.31 3.65 771.60
Withdrawn during the year 2023-24 16.06 42.10 — — 58.16
Other Adjustments 2023-24 — — — 0.04 0.04
Translation Adjustment — 0.97 — (0.79) 0.18
As at 31st March, 2024 164.77 2,077.69 665.63 19.97 2,928.06

Net Carrying Value ` Lakhs

As at 31st March, 2023 1,721.45 1,484.01 220.96 19.94 3,446.36

As at 31st March, 2024 1,680.37 1,077.83 7.65 5.92 2,771.77

In respect of Holding Company:

Lease Agreement of Leasehold land at Satara, Maharashtra is held in the name of Pricol Wiping Systems India
Limited which was amalgamated with Pricol Limited vide NCLT, Chennai order dated 29th November, 2022.
(Refer Note. 48(b))
 Corporate Overview
Statutory Reports
Financial Statements 204

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

4. CAPITAL WORK-IN-PROGRESS
` Lakhs

As at As at
Particulars 31st March 2024 31st March 2023

As at the beginning of the year 1,398.56 844.04

As at the end of the year 3,790.08 1,398.56

Capital Work-in-progress ageing as on 31-3-2024 ` Lakhs

Amount in Capital Work-in-progress for a period of
Particulars Less than 2-3 More than Total
1-2 years
1 year years 3 years

Projects in progress 3,591.84 198.24 — — 3,790.08

Projects temporarily suspended — — — — —

Capital Work-in-progress ageing as on 31-3-2023 ` Lakhs

Amount in Capital Work-in-progress for a period of
Particulars Less than 2-3 More than Total
1-2 years
1 year years 3 years

Projects in progress 1,395.74 2.82 — — 1,398.56

Projects temporarily suspended — — — — —

Capital Work-in-progress projects which have exceeded their original budgeted cost and / or Planned time of
completion : - Nil ( Previous year - Nil)
 Pricol Limited
205 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

5. INVESTMENT PROPERTY ` Lakhs

Particulars Land Building Total

Gross Carrying Value

As at 1st April, 2022 650.00 1,340.32 1,990.32
Additions during 2022-23 295.00 59.73 354.73
Reclassified as Non-Current Assets held
for Sale (Refer Note. 20) 757.00 708.04 1,465.04
Deletions during 2022-23 — — —
As at 31st March, 2023 188.00 692.01 880.01
Additions during 2023-24 — — —
Reclassified as Non-Current Assets held
for Sale (Refer Note. 20) — — —
Deletions during 2023-24 — — —
As at 31st March, 2024 188.00 692.01 880.01

Accumulated Depreciation ` Lakhs

As at 1st April, 2022 — 451.53 451.53

Depreciation for the year 2022-23 — 51.78 51.78

Reclassified as Non-Current Assets held

for Sale (Refer Note. 20) — 318.27 318.27

Withdrawn during the year 2022-23 — — —

As at 31st March, 2023 — 185.04 185.04

Depreciation for the year 2023-24 — 26.36 26.36

Reclassified as Non-Current Assets held

for Sale (Refer Note. 20) — — —

Withdrawn during the year 2023-24 — — —

As at 31st March, 2024 — 211.40 211.40

Net Carrying Value ` Lakhs
As at 31st March, 2023 188.00 506.97 694.97
As at 31st March, 2024 188.00 480.61 668.61

The Company has identified Land and Building at Poochiyur to be in the nature of investment property as they are
being held to earn rentals.
i) Amount recognised in Statement of Profit and Loss for investment properties : ` Lakhs
Particulars 2023-24 2022-23
Rental Income 57.64 64.18
Direct operating expenses arising from investment property that
generated rental income during the year
Less : Depreciation expense 26.36 51.78
Less : Repairs and Maintenance - Buildings 2.82 —

Profit / (Loss) from Investment Property 28.46 12.40

 Corporate Overview
Statutory Reports
Financial Statements 206

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

INVESTMENT PROPERTY (contd.,)

ii) Fair Value of Land and Building held as Investment Property - ` 1,346.29 Lakhs (Previous year - ` 1,346.29 Lakhs).

Fair Valuation of Investment property is as per the Registered Valuer obtained during April, 2023.

The Management believes that the fair value as at the year end would not be significantly different from the
valuation obtained earlier.

iii) Contractual obligations to construct investment property or for Repairs & Maintenance or enhancement - ` Nil
(Previous year - ` Nil)

6. GOODWILL
` Lakhs
Goodwill on
Particulars Goodwill # Total
Consolidation
Gross Carrying Value

As at 1st April, 2022 15,479.67 559.58 16,039.25

Additions during 2022-23 — — —

Deletions during 2022-23 — — —

As at 31st March, 2023 15,479.67 559.58 16,039.25

Additions during 2023-24 — — —

Deletions during 2023-24 — 559.58 559.58

As at 31st March, 2024 15,479.67 — 15,479.67

Accumulated Amortisation ` Lakhs

As at 1st April, 2022 7,532.47 559.58 8,092.05

Amortisation for the year 2022-23 993.40 — 993.40

Withdrawn during the year 2022-23 — — —

As at 31st March, 2023 8,525.87 559.58 9,085.45

Amortisation for the year 2023-24 993.40 — 993.40

Withdrawn during the year 2023-24 — 559.58 559.58

As at 31st March, 2024 9,519.27 — 9,519.27

Net Carrying Value ` Lakhs

As at 31st March, 2023 6,953.80 — 6,953.80

As at 31st March, 2024 5,960.40 — 5,960.40

# Refer Note. 48 (a) in relation to Scheme of Amalgamation and accounting treatment.

 Pricol Limited
207 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

7. OTHER INTANGIBLE ASSETS ` Lakhs

Computer Technical Brand / Patents & Total

Particulars Software Knowhow Trade Mark Developed
Technology

Gross Carrying Value

As at 1st April, 2022 900.72 510.82 4,914.01 14,116.00 20,441.55

Additions during 2022-23 106.47 — — — 106.47

Deletions during 2022-23 209.94 19.32 — — 229.26

As at 31st March, 2023 797.25 491.50 4,914.01 14,116.00 20,318.76

Additions during 2023-24 164.68 — — — 164.68

Deletions during 2023-24 — — — — —

As at 31st March, 2024 961.93 491.50 4,914.01 14,116.00 20,483.44

Accumulated Amortisation ` Lakhs

As at 1st April, 2022 706.21 510.82 2,293.20 6,587.49 10,097.72

Amortisation for the year 2022-23 152.17 — 327.60 941.07 1,420.84

Withdrawn during the year 2022-23 209.94 19.32 — — 229.26

As at 31st March, 2023 648.44 491.50 2,620.80 7,528.56 11,289.30

Amortisation for the year 2023-24 84.76 — 327.60 941.07 1,353.43

Withdrawn during 2023-24 — — — — —

As at 31st March, 2024 733.20 491.50 2,948.40 8,469.63 12,642.73

Net Carrying Value ` Lakhs

As at 31st March, 2023 148.81 — 2,293.21 6,587.44 9,029.46

As at 31st March, 2024 228.73 — 1,965.61 5,646.37 7,840.71
 Corporate Overview
Statutory Reports
Financial Statements 208

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

8. INTANGIBLE ASSETS UNDER DEVELOPMENT

` Lakhs

As at As at
Particulars
31st March 2024 31st March 2023

As at the beginning of the year 62.49 —

As at the closing of the year 38.15 62.49

Intangible Assets Under Development ageing as at 31-3-2024 ` Lakhs

Amount in Intangible Assets Under Development for a period of

Particulars Less than 2-3 More than Total

1-2 years
1 year years 3 years

Projects in progress 38.15 — — — 38.15

Projects temporarily suspended — — — — —

Intangible Assets Under Development ageing as at 31-3-2023 ` Lakhs

Amount in Intangible Assets Under Development for a period of

Particulars Less than 2-3 More than Total

1-2 years
1 year years 3 years

Projects in progress 62.49 — — — 62.49

Projects temporarily suspended — — — — —

Intangible Assets Under Development projects which have exceeded their original budgeted cost and / or
planned time of completion - Nil (Previous year - Nil).

31-3-2024 31-3-2023
` Lakhs ` Lakhs
9. INVESTMENTS
In Others (At Fair Value through OCI)
In Equity Shares, unquoted
a) 96,900 Equity Shares of ` 100/- each fully paid-up in 120.00 120.00
Shri Dhanalakshmi Spinntex Private Limited
(Previous year - 96,900 Equity Shares of ` 100/- each)
(Extent of holding - 5.38%)
120.00 120.00

Aggregate amount of Quoted and Unquoted investments

Investments in Equity Instruments

Aggregate amount of quoted investments — —

Aggregate market value of quoted investments — —

Aggregate amount of unquoted investments 120.00 120.00

Aggregate amount of impairment in value of investments — —

The investments in Level 3 hierarchy has been valued at cost approach to arrive at the fair value measurements
and cost represents the estimate of fair value within that range considering the purpose and restriction on the
transferability of instruments (Refer Note. 52).
 Pricol Limited
209 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

10. OTHER FINANCIAL ASSETS

Unsecured Considered Good
Security Deposits 591.30 632.52
Earmarked Balances
In Margin Money account 100.00 100.00
Unsecured Considered Doubtful
Security Deposits 76.96 76.96
Less : Allowance for doubtful deposits 76.96 76.96
— —
691.30 732.52
Note : -
Margin Money with banks is towards issue of Bank Guarantee.

11. DEFERRED TAX ASSETS (NET)

In respect of subsidiary in different tax jurisdiction
(Refer Note. 57 (c)) 29.61 34.62

12. OTHER NON-CURRENT ASSETS

Capital Advances 730.57 360.08
Less : Allowance for doubtful advances 3.00 12.33
727.57 347.75

Advance Tax, Net off Provision 463.67 1,632.10

Deposits with Government Authorities 348.97 427.98

Less : Allowance for doubtful deposits 102.16 86.43
246.81 341.55
1,438.05 2,321.40
 Corporate Overview
Statutory Reports
Financial Statements 210

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

13. INVENTORIES
Raw Materials & Components 17,578.33 16,537.32
Goods in Transit - Raw Materials & Components 4,149.73 3,055.35
Work-in-progress 1,183.77 1,181.54
Finished Goods 8,057.43 5,651.72
Stores & Spares 573.34 449.16
Traded Goods 483.90 292.83
32,026.50 27,167.92

Mode of valuation of inventories is stated in Note No. 1 (B) (vii) of Material accounting policies.
Inventories have been given as security for the borrowings availed by the Holding Company Refer Note. 29.

Inventories as stated above is net off Provision for / (Reversal) of Non / Slow Moving Inventory of ` 255.47 Lakhs-
Previous year - ` (172.41) Lakhs.
Amount of write down of inventories recognised as an expenses - ` 33.21 Lakhs (Previous year - ` 24.40 Lakhs).
Amount of reversal of any write down - Nil (Previous year - Nil).

Cost of Inventory recognised as an expense ` Lakhs

Particulars 2023-24 2022-23

Cost of Materials Consumed 1,48,564.45 1,31,230.57

Cost of Traded Goods Sold 6,957.53 6,098.44
Stores and Spares 309.79 283.34

14. INVESTMENTS
` Lakhs

[Link]. Particulars 31-3-2024 31-3-2023

Investments in Mutual Funds (at Fair Value through P&L)

Quoted - Non Trade

1. Aditya Birla Sun Life Business Cycle Fund - Regular - Growth 65.05 49.70

2. ICICI Prudential Business Cycle Fund - Growth 68.23 44.32

3. AXIS Multicap Fund - Regular - Growth 42.96 28.38

4. HDFC Multicap Fund - Regular - Growth 65.71 44.06

5. SBI Multicap Fund - Regular Plan - Growth 68.14 50.25

6. ICICI Prudential Transportation & Logistics Fund 78.47 48.01

7. HDFC Business Cycle Fund - Regular - Growth 65.50 48.53

8. Aditya Birla Sun Life Multi Asset Allocation Fund - Regular - Growth 62.79 50.67

Total 516.85 363.92

Aggregate amount of Quoted Investments 516.85 363.92

Aggregate Market Value of Quoted Investments 516.85 363.92

 Pricol Limited
211 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

15. TRADE RECEIVABLES

Trade Receivables considered good - unsecured 29,103.00 27,197.71
Trade Receivables - which have significant increase in credit risk 109.67 76.62
Trade Receivables - Credit Impaired — —
Unbilled Revenue — —
Less : Allowance for Expected Credit Loss 508.60 376.42
28,704.07 26,897.91

Trade Receivables have been given as security for the borrowings availed by the Group. Refer Note. 29.

Trade Receivables are non interest bearing and generally on credit terms in the range of 30 - 120 days.

The carrying amount of trade receivables does not include receivables of ` 6,089.68 Lakhs (Previous
year - ` 6,128.66 Lakhs) which are subject to factoring arrangement. Under this arrangement, the Group
has transferred the relevant receivables in exchange for cash on non recourse basis. The Group
therefore, has de-recognised the receivables under the said arrangement.

The Group's exposure to credit and currency risk and loss allowances related to Trade Receivables are
disclosed in Note. 53.

Movement in the allowance for Doubtful Trade Receivables

Balance at the beginning of the period 376.42 398.97
Expected Credit Loss Provided / (Reversal) 132.18 (22.55)
Balance at the end of the period 508.60 376.42

The Group has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience
and adjusted for forward looking experience. The Expected Credit Loss is based on the ageing of the receivables
that are due and at the rates used in the provision matrix.
 Corporate Overview
Statutory Reports
Financial Statements 212

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

TRADE RECEIVABLES (contd.,)

Ageing as on 31-3-2024 ` Lakhs

Outstanding for following periods from due date of payment

Particulars 6 months 1-2 2-3 More than
Less than
Not Due -1 year years years Total
6 months 3 years

(i) Undisputed Trade receivables –

considered good 24,570.56 4,531.85 0.59 — — — 29,103.00
(ii) Undisputed Trade Receivables –
which have significant
increase in credit risk — — — 22.53 67.88 19.26 109.67
(iii) Undisputed Trade Receivables –
credit impaired — — — — — — —
(iv) Disputed Trade Receivables –
considered good — — — — — — —
(v) Disputed Trade Receivables –
which have significant
increase in credit risk — — — — — — —
(vi) Disputed Trade Receivables –
credit impaired — — — — — — —
(vii) Unbilled Revenue — — — — — — —
Total 24,570.56 4,531.85 0.59 22.53 67.88 19.26 29,212.67
Less : Allowance for Expected Credit Loss 508.60
Total (Net) 28,704.07

Ageing as on 31-3-2023 ` Lakhs

Outstanding for following periods from due date of payment

Particulars 6 months 1-2 2-3 More than
Less than
Not Due -1 year years years Total
6 months 3 years

(i) Undisputed Trade receivables –

considered good 23,098.87 4,098.84 — — — — 27,197.71
(ii) Undisputed Trade Receivables –
which have significant
increase in credit risk — — — 59.00 17.62 — 76.62
(iii) Undisputed Trade Receivables –
credit impaired — — — — — — —
(iv) Disputed Trade Receivables –
considered good — — — — — — —
(v) Disputed Trade Receivables –
which have significant
increase in credit risk — — — — — — —
(vi) Disputed Trade Receivables –
credit impaired — — — — — — —
(vii) Unbilled Revenue — — — — — — —

Total 23,098.87 4,098.84 — 59.00 17.62 — 27,274.33

Less : Allowance for Expected Credit Loss 376.42

Total (Net) 26,897.91

 Pricol Limited
213 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

16. CASH AND CASH EQUIVALENTS

Balances with Banks
In Cash Credit Account 47.64 1,356.15
In Current Account 5,554.03 4,164.29
In Deposit Account 5,641.04 71.58
(with original maturity of 3 months or less)
Cash on hand 11.52 7.66
11,254.23 5,599.68

17. BANK BALANCES OTHER THAN ABOVE

Earmarked Balances
In Unpaid Dividend Account 34.25 54.30
Others
In Fixed Deposit (with original maturity period of more 75.09 2,739.89
than 12 months)
109.34 2,794.19

18. OTHER FINANCIAL ASSETS

Unsecured, Considered Good
Accrued Income
Export Incentives 90.66 19.80
Interest from Banks / Others 57.14 10.16
147.80 29.96
19. OTHER CURRENT ASSETS
GST Input Credits 689.75 588.56
Customs Duty Receivable 23.39 64.83
Others
Advances to Suppliers 163.90 386.24
Less : Allowance for doubtful advances 4.75 4.57
159.15 381.67
Advances for Expenses 202.06 174.05
Prepayments 461.94 350.42
1,536.29 1,559.53

20. NON-CURRENT ASSETS HELD FOR SALE

Land — 942.59
Building — 1,014.32
— 1,956.91
 Corporate Overview
Statutory Reports
Financial Statements 214

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

21. EQUITY SHARE CAPITAL

Authorised
79,45,00,000 Equity Shares of ` 1/- each 7,945.00 7,945.00
(As at 31st March 2023 - 79,45,00,000 Equity Shares of ` 1/- each )
Issued, Subscribed and Paid-up
12,18,81,498 Equity Shares of ` 1/- each 1,218.81 1,218.81
(As at 31st March 2023 - 12,18,81,498 Equity Shares of ` 1/- each)

Reconciliation of the Shares Outstanding at the beginning and at the end of the reporting year :

31-3-2024 31-3-2023

Equity Shares [Link] Shares ` [Link] Shares `

( in Lakhs) Lakhs (in Lakhs) Lakhs
At the beginning / Closing of the year 1,218.81 1,218.81 1,218.81 1,218.81

a) Terms / rights attached to equity shares :

The Company has only one class of equity shares having a par value of ` 1/- per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees.
The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of the equity
shares will be entitled to receive remaining assets of the company, after distribution of all preferential
amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Details of Shareholders holding more than 5% shares in the Company :

31-3-2024 31-3-2023

No. of Shares % held No. of Shares % held

- Pricol Holdings Private Limited 1,10,01,762 9.03% 1,10,01,762 9.03%

- Vijay Mohan 1,04,65,364 8.59% 96,15,636 7.89%

- Vikram Mohan 76,25,506 6.26% 76,25,506 6.26%

- Viren Mohan 66,58,409 5.46% 66,58,409 5.46%

- PHI Capital Solutions LLP 5,40,503 0.44% 69,84,428 5.73%

- Minda Corporation Limited &

SMC Investments and Advisors Limited — — 1,91,40,342 15.70%

c) Details of Shares held by Holding Company :

There are no Shares held by Holding Company / Subsidiaries of ultimate Holding Company as on 31st March
2024.

d) There are no shares allotted by way of Bonus Shares and there have been no shares bought back in the
immediately preceding five years.
 Pricol Limited
215 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

EQUITY SHARE CAPITAL (Contd.,)

e) Promoter and Promoter Group Shareholding :

FOR THE YEAR 2023-24

No. of Shares % of Total No. of Shares % of Total % Change

Sl. as on 31-3-2024 Shares as on 31-3-2023 Shares during the
Name
No. (A) (B) year (A-B) / (B)

1. Vijay Mohan 1,04,65,364 8.59% 96,15,636 7.89% 8.84%

2. Vijay Mohan (BHUF) — — 8,49,728 0.70% -100.00%

3. Vikram Mohan 76,25,506 6.26% 76,25,506 6.26% —

4. Vanitha Mohan 57,31,468 4.70% 57,31,468 4.70% —

5. Viren Mohan 66,58,409 5.46% 66,58,409 5.46% —

6. Manasa Mohan 1,92,857 0.16% 1,92,857 0.16% —

7. Madhura Mohan 2,33,453 0.19% 2,33,453 0.19% —

8. Pricol Holdings Private Limited 1,10,01,762 9.03% 1,10,01,762 9.03% —

9. Sagittarius Investments Private Limited 23,65,360 1.94% 23,65,360 1.94% —

10. Shrimay Enterprises Private Limited 2,44,800 0.20% 2,44,800 0.20% —

11. Pricol Engineering Industries Private Limited 17,33,854 1.42% — — NA

12. Pricol Logistics Private Limited 6,82,000 0.56% — — NA

FOR THE YEAR 2022-23

No. of Shares % of Total No. of Shares % of Total % Change

Sl. as on 31-3-2023 Shares as on 31-3-2022 Shares during the
Name
No. (A) (B) year (A-B) / (B)

1. Vijay Mohan 96,15,636 7.89% 96,15,636 7.89% —

2. Vijay Mohan (BHUF) 8,49,728 0.70% 8,49,728 0.70% —

3. Vikram Mohan 76,25,506 6.26% 76,25,506 6.26% —

4. Vanitha Mohan 57,31,468 4.70% 57,31,468 4.70% —

5. Viren Mohan 66,58,409 5.46% 66,58,409 5.46% —

6. Manasa Mohan 1,92,857 0.16% 1,92,857 0.16% —

7. Madhura Mohan 2,33,453 0.19% 2,33,453 0.19% —

8. Pricol Holdings Limited 1,10,01,762 9.03% 1,10,01,762 9.03% —

9. Sagittarius Investments Private Limited 23,65,360 1.94% 23,65,360 1.94% —

10. Shrimay Enterprises Private Limited 2,44,800 0.20% 2,44,800 0.20% —

Note : The percentage change has been computed with respect to the number of shares held by
promoter and promoter group at the beginning of the year.
 Corporate Overview
Statutory Reports
Financial Statements 216

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

22. OTHER EQUITY

Securities Premium 88,642.77 88,642.77
Capital Reserve 827.33 827.33
Surplus / (Deficit) in the Statement of Profit & Loss
Opening Balance (21,225.65) (33,694.18)
Add : Profit / (Loss) for the year 14,061.15 12,468.53
Add : Other Adjustments 641.74 —
(6,522.76) (21,225.65)

Other Comprehensive Income

i) Foreign Exchange Translation Reserve
Gain / (Loss)
Opening Balance 867.10 330.72
Add : Addition / Adjustments during the year (Net) (109.51) 536.38
757.59 867.10

ii) Remeasurement of post employment

benefit obligations
Opening Balance 97.91 292.79
Add : Addition / Adjustments during the year (494.44) (194.88)
(396.53) 97.91

83,308.40 69,209.46

23. BORROWINGS
Non-Current portion Current Maturities
31-3-2024 31-3-2023 31-3-2024 31-3-2023
` Lakhs ` Lakhs ` Lakhs ` Lakhs
Secured Loans :
Rupee Term Loan From Banks — 2,675.81 — 1,189.25
— 2,675.81 — 1,189.25

` Lakhs
Description
As at As at
31-3-2024 31-3-2023
ICICI Bank Limited - ECLGS — 2,109.25
IndusInd Bank Limited - ECLGS — 1,755.81
Total — 3,865.06

For Current Maturities of Long Term Debt (Refer Note. 29).

 Pricol Limited
217 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

24. LEASE LIABILITIES

Lease Liabilities - Non - Current (Refer Note. 59) 802.69 1,357.95

25. OTHER FINANCIAL LIABILITIES

Rental Advance Received 14.52 20.59
Security Deposits from Customers 73.75 60.38
88.27 80.97
26. PROVISIONS
For Employee Benefits :
- Gratuity (Refer Note. 54) 774.31 436.79
For Central Excise, Sales Tax / GST and Customs
Demands (Refer Note. 55) 599.16 470.08
For Potential Statutory Liabilities (Refer Note. 55) 528.14 579.61
1,901.61 1,486.48
27. DEFERRED TAX LIABILITIES (NET)
Deferred Tax Liability
On Property, Plant & Equipment and Others 3,917.62 4,279.36
On Other temporary differences 334.47 269.68
A 4,252.09 4,549.04
Deferred Tax Asset
On Disallowance under the Income Tax Act 707.69 410.50
On Other temporary differences 60.43 31.79
B 768.12 442.29

Deferred Tax Liabilities (Net) (Refer Note. 57 (c) ) A-B 3,483.97 4,106.75

28. OTHER NON-CURRENT LIABILITIES

Deferred Income from Government Grants 199.24 127.89

a) Nature and extent of grant recognised in

financial statement :
Customs duty saved on Purchase of PPE through EPCG Licence.

Opening Balance 127.89 —

Add : Customs duty saved during the year 103.34 134.26
Less : Amortised during the year 31.99 6.37
Closing Balance 199.24 127.89
b) Unfulfilled condition and other condition attached to the grant :
The export obligation shall be 6 times of the duty saved on import of capital goods on FOB basis within a
period of 6 years, to be achieved on following basis:
Block years - 1st to 4th year (1st Block) - 50% and 5th to 6th year (2nd Block) - 50%.
 Corporate Overview
Statutory Reports
Financial Statements 218

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

29. BORROWINGS
Secured Loans
Working Capital Facilities from Banks
- In Rupee 2,186.89 2,500.00
- In Foreign Currency 2,475.48 2,555.19
Current Maturities of Long Term Debt (Refer Note. 23) — 1,189.25
4,662.37 6,244.44

In respect of Holding Company:

Working Capital Facilities from ICICI Bank Limited and IndusInd Bank Limited are secured by pari-passu first charge
on the current assets of the company. Working Capital Facilities are further secured by pari-passu second charge
on the specific immovable properties situated at Plant I - Perianaickenpalayam, Coimbatore District, Tamilnadu.
Working Capital Facilities from Banks are repayable on demand and carries interest rates varying from 6.22% to
8.80 % p.a.
The quarterly returns and statements comprising stock, creditors and book debt filed by the Company with such
banks are having differences with the unaudited books of account of the Company, of the respective quarters
for which reconciliation has been made. The differences are on account of provisions and cut-off procedures in
respect of each of the quarters. The Company has not overdrawn its eligible working Capital borrowing limit
against such inventory and trade receivable for each of the quarters.
30. LEASE LIABILITIES
Lease Liabilities - Current (Refer Note. 59) 623.27 754.61

31. TRADE PAYABLES

- Total Outstanding Dues of Micro Enterprises 2,281.36 1,916.89
and Small Enterprises
- Total Outstanding Dues of creditors other than Micro 30,299.82 26,346.14
Enterprises and Small Enterprises
32,581.18 28,263.03
The Group's exposure to currency risk related to Trade Payables are disclosed in Note. 53.

Ageing as on 31-3-2024 ` Lakhs

Outstanding for following periods from due date of payment
Particulars Less than 1-2 2-3
Not Due More than As on
1 year years years 3 years 31-3-2024

(i) MSME
(a) Micro and Small 2,126.64 85.08 69.64 — — 2,281.36
(b) Medium 1,268.44 5.90 — — — 1,274.34
(ii) Others 22,172.14 6,816.18 5.32 6.22 18.73 29,018.59
(iii) Disputed dues – Micro and Small — — — — — —
(iv) Disputed dues – Medium — — — — — —
(v) Disputed dues – Others — — — — 6.89 6.89
Total 25,567.22 6,907.16 74.96 6.22 25.62 32,581.18
 Pricol Limited
219 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

TRADE PAYABLES (Contd.,)

Ageing as on 31-3-2023 ` Lakhs

Outstanding for following periods from due date of payment
Particulars Less than 1-2 2-3
Not Due More than As on
1 year years years 3 years 31-3-2023

(i) MSME
(a) Micro and Small 1,791.73 120.32 4.84 — — 1,916.89
(b) Medium 2,022.15 48.60 — — — 2,070.75
(ii) Others 17,432.37 6,835.41 0.72 — — 24,268.50
(iii) Disputed dues – Micro and Small — — — — — —
(iv) Disputed dues – Medium — — — — — —
(v) Disputed dues – Others — — — 1.55 5.34 6.89
Total 21,246.25 7,004.33 5.56 1.55 5.34 28,263.03

31-3-2024 31-3-2023
` Lakhs ` Lakhs

32. OTHER FINANCIAL LIABILITIES

Interest accrued and not due on borrowings 3.14 1.52
Unpaid Dividend 34.25 54.30
Employee Benefits Payable 3,158.34 2,537.65
Retention Money Payable 270.88 198.47
Payable for Expenses 2,737.98 2,774.89
Creditors for Capital Goods 309.87 434.06
Acceptances 2,469.03 4,591.05
8,983.49 10,591.94
Acceptances represent bills discounted with recourse in respect of Trade Receivables with Banks.

33. OTHER CURRENT LIABILITIES

Statutory Dues Payable 2,073.51 2,051.08
Contract Liabilities / Advance from Customers 681.74 535.30
2,755.25 2,586.38

34. PROVISIONS
For Gratuity (Refer Note. 54) 412.29 275.02
For Labour Settlement (Refer Note. 55) 261.72 261.72
For Warranty Related Claims (Refer Note. 55) 2,018.81 574.53
2,692.82 1,111.27

35. CURRENT TAX LIABILITIES (NET)

For Taxation 262.44 262.70

36. LIABILITIES IN RELATION TO NON-CURRENT ASSETS HELD FOR SALE

Advance received against disposal of asset held for sale — 672.00
 Corporate Overview
Statutory Reports
Financial Statements 220

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

37. REVENUE FROM OPERATIONS

Sale of Products and Services
Domestic 2,02,833.64 1,71,991.51
Export 14,895.06 15,509.10
Traded Goods 2,983.28 2,511.64
Service Income 104.91 270.87

2,20,816.89 1,90,283.12

Disaggregation of Revenue :-
1. Within India 2,04,950.55 1,73,440.69
2. Outside India 15,866.34 16,842.43
2,20,816.89 1,90,283.12

Reconciliation of Revenue recognised in Statement of Profit and Loss Account with contracted price:
Revenue from contract with customers as per contract Price 2,21,713.52 1,90,708.62
Less : Trade discounts, Volume Rebates, Refunds etc., 896.63 425.50
Revenue from contract with customers as per
Statement of Profit and Loss 2,20,816.89 1,90,283.12
Contract Balances:
Trade Receivables 28,704.07 26,897.91
Contract Assets - Unbilled Revenue — —
Contract Liabilities - Advance from Customers 681.74 535.30
Contract Assets are revenue earned by the Company but remaining unbilled at the close of the year end.
Contract Liabilities are amount received from Customers for which performance obligation are yet to be satisfied.

38. OTHER OPERATING REVENUE

Export Incentives 367.50 385.28
Sale of Traded Goods - Others 5,993.84 5,187.67
6,361.34 5,572.95
39. OTHER INCOME
Interest Income
From Banks 200.56 67.04
From Others 47.78 29.81
On Income Tax Refund 32.85 18.74
Gain on Fair Valuation of investments at Fair Value through P&L 152.93 0.91
Lease Rental Receipts 112.05 108.40
Profit on Sale of Property, Plant and Equipment 548.35 40.17
Insurance Claim Received — 0.98
Gain on Disposal of Subsidiary (Refer Note. 63(vi)) 41.48 —
Deferred Income from Government Grant (Refer Note. 28) 31.99 6.37
Write back of provision for loss allowances 38.92 —
Miscellaneous Income 108.92 186.11
1,315.83 458.53
40. COST OF MATERIALS CONSUMED
Materials Consumed 1,50,972.39 1,32,411.44
 Pricol Limited
221 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

41. CHANGES IN INVENTORIES OF FINISHED GOODS,

STOCK-IN-TRADE AND WORK-IN-PROGRESS
Opening Stock
Work-in-progress 1,181.54 857.86
Finished Goods 5,651.72 4,794.53
Traded Goods 292.83 418.95
7,126.09 6,071.34

Less : Closing Stock

Work-in-progress 1,183.77 1,181.54
Finished Goods 8,057.43 5,651.72
Traded Goods 483.90 292.83
9,725.10 7,126.09
(2,599.01) (1,054.75)

42. EMPLOYEE BENEFITS EXPENSE

Salaries and Wages 23,342.88 20,336.59
Contribution to Provident and other funds 1,377.22 1,118.74
Staff Welfare Expenses 1,543.94 1,294.00
26,264.04 22,749.33

43. FINANCE COSTS

Interest on Borrowings (Net) 581.31 752.18
Interest on Bill Discounting and Others 1,052.41 799.21
Interest on Lease Obligations (Refer Note. 59) 178.78 236.32
De-recognition of unamortised portion of — 25.54
finance charges
Other Borrowing Costs 12.50 15.00
1,825.00 1,828.25
Interest expense is net off interest income on derivatives of ` Nil (Previous year - ` 90.63 Lakhs).
Other Borrowing Costs represent processing fee in respect of working capital borrowings.

44. DEPRECIATION AND AMORTISATION EXPENSE

Depreciation on PPE (Refer Note. 2) 5,061.27 4,590.17
Right of Use Asset (Refer Note. 3) 771.60 734.59
Depreciation on Investment Property (Refer Note. 5) 26.36 51.78
Amortisation of Intangibles (Refer Note. 6 & 7) 2,346.83 2,414.24
8,206.06 7,790.78
 Corporate Overview
Statutory Reports
Financial Statements 222

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

45. OTHER EXPENSES

Power & Utilities 2,352.63 2,279.61
Stores & Spares Consumed 309.79 283.34
Repairs and Maintenance :
- Machinery 1,114.78 1,072.86
- Building 229.19 142.71
- IT Assets 509.97 503.12
- Others 239.49 198.17
Postage & Telephone 151.12 130.88
Rates, Taxes & Licence 74.00 134.66
Insurance 314.13 327.67
Travelling & Conveyance 1,153.98 770.96
Freight & Forwarding 2,840.52 2,515.63
Warranty Expenses 3,056.08 1,024.60
Selling Expenses 284.46 361.54
Bad Debts / Advances Written off
(Net off Loss Allowances) 8.99 117.71
Provision for Potential Statutory Expenses 117.38 52.46
Remuneration to Non-Whole Time Directors 48.15 58.05
Auditors' Remuneration (Refer Note. 49 (a)) 76.72 77.47
Professional Charges 3,296.74 2,340.14
Loss on Exchange Fluctuation (Net) 74.98 45.33
Assets Discarded / Impairment of PPE (Net off reversal) 591.72 11.18
Write off of Investments and Advances in
step down subsidiary (Refer Note. 63(vi)) 641.74 —
Donation 51.00 —
CSR Expenses 162.12 75.44
Miscellaneous Expenses 386.84 406.70
18,086.52 12,930.23
 Pricol Limited
223 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

2023-24 2022-23
` Lakhs ` Lakhs

46. EXCEPTIONAL ITEMS

Exceptional item represents settlement of claims by the seller of Erstwhile step-down subsidiary Pricol Wiping
Systems Czech s.r.o. as per the final settlement agreement dated 21st July, 2022.

47. EARNINGS PER SHARE

Profit / (Loss) After Tax 14,061.15 12,468.53
Weighted Average No. of Shares Outstanding :
- Basic & Diluted (Nos. in Lakhs) 1,218.81 1,218.81
Face Value per Equity Share ( in ` ) 1.00 1.00
Basic & Diluted Earnings per share (in `) 11.54 10.23

48. a) AMALGAMATION OF ERSTWHILE PRICOL LIMITED WITH THE COMPANY :

The Hon’ble High Court of Judicature at Madras vide its order dated 6th October, 2016 has sanctioned the Scheme
of Amalgamation of erstwhile Pricol Limited (‘Transferor Company’) with erstwhile Pricol Pune Limited (‘Transferee
Company’) with the appointed date as 1st April, 2015. Pursuant to the Scheme of Amalgamation, the Transferee
Company was renamed as "Pricol Limited" vide fresh Certificate of Incorporation granted by Ministry of Corporate
Affairs on 18th November, 2016.
The Amalgamation was accounted in financial year 2016-17 under the “Purchase Method” as per the then
prevailing Accounting Standard 14 – “Accounting for Amalgamation”, as per the Scheme of Amalgamation
approved by the High Court of Judicature at Madras, which is different from the accounting treatment prescribed
under Ind AS 103 - “Business Combinations”. The intangible assets, including Goodwill represented by Customer
relationship and Assembled work force, are being amortised over its estimated useful life of 15 years from the
appointed date.
Had the company followed the accounting treatment prescribed under Ind AS 103, the amortisation charge would
have been lower by ` 993.40 Lakhs (Previous year - ` 993.40 Lakhs).
b) BUSINESS COMBINATION - PRICOL WIPING SYSTEMS INDIA LIMITED :
The National Company Law Tribunal, Chennai Bench vide its order dt. 29th November, 2022 has approved the
Scheme of Amalgamation of Pricol Wiping Systems India Limited ("Transferor Company") with Pricol Limited
("Transferee Company"). The appointed date is 1st April, 2021. The certified copy of the said order along with the
requisite form was filed with Registrar of Companies on 21st December, 2022 (effective date).
The effect of Scheme of Amalgamation has been accounted in accordance with the Scheme and Appendix “C”
of Indian Accounting Standards 103 (“Ind AS 103”) - "Business Combinations" by applying the ‘Pooling of Interest
Method’.

2023-24 2022-23
49. PAYMENTS TO STATUTORY AUDITORS (EXCLUSIVE OF GST) ` Lakhs ` Lakhs
a) PARENT IN INDIA
For Audit 50.00 47.50
For Consolidation 4.00 4.00
For Tax Audit & Services 19.75 23.00
For Certification & Others 1.65 1.49
Reimbursement of Expenses 1.32 1.48
Total 76.72 77.47

b) SUBSIDIARIES (included in Professional Charges) 35.64 31.45

 Corporate Overview
Statutory Reports
Financial Statements 224

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

31-3-2024 31-3-2023
` Lakhs ` Lakhs

50. CONTINGENT LIABILITIES AND COMMITMENTS :

i) CONTINGENT LIABILITIES
In respect of Holding Company
a) On account of Pending Litigations :
Sales Tax Matters (excluding Interest if any) — —
Excise, GST and Customs Matters 757.32 784.92
(excluding Interest if any)
(Of which ` 90.93 Lakhs has been paid under protest -
Previous year - ` 90.95 Lakhs)
Income Tax Matters 399.41 —
1,156.73 784.92
b) Labour related Matters
As at 31st March, 2024, the company has various labour related cases pending before various legal
forums, amounting to ` 5,458 Lakhs (Previous year - ` 4,666 Lakhs).
c) Others :
Letter of Credit 548.91 1,097.94
Guarantees 328.49 230.71
Duty saved under EPCG 451.55 397.21
Other Claims not acknowledged as debts 295.64 295.64
1,624.59 2,021.50
The Company has reviewed all its pending litigations and proceedings and has adequately provided
for, where provisions are required or disclosed as contingent liability where applicable, in its financial
statements. The amount of provisions / contingent liabilities is based on management estimates and no
significant liability is expected to arise out of the same.
ii) COMMITMENTS
Estimated Value of Contracts remaining to be
executed on Capital account
- in respect of holding company 1,826.30 1,785.02

51. SEGMENT REPORTING

The Group primarily operates in the automotive segment. The automotive segment includes manufacture and
trading of automotive components. The board of directors of the Company, which has been identified as being
the chief operating decision maker (CODM), evaluates the Group’s performance, allocate resources based on
the analysis of the various performance indicator of the Group as a single unit. Therefore, there is no reportable
segment for the Group as per the requirement of Ind AS 108 - 'Operating Segments'.
Information about geographical revenue and non-current assets:
1. Revenue from Operations: Based on location of Customers
2. Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets,
and rights arising under insurance contracts: Based on Location of the Assets
a) Revenue from Operations including other operating revenue ` Lakhs
2023-24 2022-23

Within India 2,11,311.89 1,79,013.64

Outside India 15,866.34 16,842.43
2,27,178.23 1,95,856.07

31-3-2024 31-3-2023
b) Non-Current Assets ` Lakhs ` Lakhs

Within India 66,831.76 61,462.72

Outside India 1,596.06 2,030.61
68,427.82 63,493.33
 Pricol Limited
225 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

52. FAIR VALUE MEASUREMENTS

i. Financial instruments by category
The carrying value of financial instruments by categories as at 31 March 2024 are as follows :
` Lakhs

Cost / Total Total

Particulars Note. FVTPL FVTOCI Amortised Carrying Fair
cost value value
Financial assets
Investments 9 &14 516.85 120.00 — 636.85 636.85
Trade receivables 15 — — 28,704.07 28,704.07 28,704.07
Cash and cash equivalents 16 — — 11,254.23 11,254.23 11,254.23
Other bank balances 17 — — 109.34 109.34 109.34
Other Financial assets 10 & 18 — — 839.10 839.10 839.10
Financial Liabilities
Borrowings 23 & 29 — — 4,662.37 4,662.37 4,662.37
Trade Payables 31 — — 32,581.18 32,581.18 32,581.18
Lease Liabilities 24 & 30 — — 1,425.96 1,425.96 1,425.96
Other financial liabilities 25 & 32 — — 9,071.76 9,071.76 9,071.76

The carrying value of financial instruments by categories as at 31st March 2023 are as follows : ` Lakhs

Cost / Total Total

Particulars Note. FVTPL FVTOCI Amortised Carrying Fair
cost value value

Financial assets
Investments 9 &14 363.92 120.00 — 483.92 483.92
Trade receivables 15 — — 26,897.91 26,897.91 26,897.91
Cash and cash equivalents 16 — — 5,599.68 5,599.68 5,599.68
Other bank balances 17 — — 2,794.19 2,794.19 2,794.19
Other Financial assets 10 & 18 — — 762.48 762.48 762.48
Financial Liabilities
Borrowings 23 & 29 — — 8,920.25 8,920.25 8,920.25
Trade Payables 31 — — 28,263.03 28,263.03 28,263.03
Lease Liabilities 24 & 30 — — 2,112.56 2,112.56 2,112.56
Other financial liabilities 25 & 32 — — 10,672.91 10,672.91 10,672.91

ii. The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other
financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-
term maturity of these instruments. The fair value of the financial assets and liabilities is included at the amount at
which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale.
iii. Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into
three levels of a fair value hierarchy.
The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1 : Quoted prices (unadjusted) in active markets for financial instruments.
Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3 : Unobservable inputs for the asset or liability.
 Corporate Overview
Statutory Reports
Financial Statements 226

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

FAIR VALUE MEASUREMENTS (Contd.,)

Given below are the fair values based on their hierarchy ` Lakhs

Carrying As at 31-3-2024 Carrying As at 31-3-2023

Amount Amount
Particulars
as on as on
31-3-2024 Level 1 Level 2 Level 3 31-3-2023 Level 1 Level 2 Level 3

Financial Assets measured

at Fair value through
Profit and Loss

Investments in Mutual Funds 516.85 516.85 — — 363.92 363.92 — —

Financial Assets measured

at Fair value through OCI

Investments in Equity Shares 120.00 — — 120.00 120.00 — — 120.00

Financial Assets not

measured at Fair value*

Trade receivables 28,704.07 — — — 26,897.91 — — —

Cash and cash equivalents 11,254.23 — — — 5,599.68 — — —

Other bank balances 109.34 — — — 2,794.19 — — —

Other Financial assets 839.10 — — — 762.48 — — —

Financial Liabilities not

measured at fair value*

Borrowings

- Current 4,662.37 — — — 6,244.44 — — —

- Non-Current — — — — 2,675.81 — — —

Trade Payables 32,581.18 — — — 28,263.03 — — —

Lease Liabilities 1,425.96 — — — 2,112.56 — — —

Other financial liabilities 9,071.76 — — — 10,672.91 — — —

* The Group has not disclosed the fair values for short term / current financial instruments (such as short term
trade receivables, short term trade payables, Current Loans and Short term borrowings etc.), because their
carrying amounts are a reasonable approximation of Fair value.
The investments in Level 3 hierarchy has been valued at cost approach to arrive at the fair value
measurements and cost represents the estimate of fair value within that range considering the purpose and
restriction on the transferability of instruments.
 Pricol Limited
227 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

53. FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to market risk, liquidity risk and credit risk. The Group’s Board of Directors has overall
responsibility for the establishment and monitoring of the Group’s risk management framework. This note explains
the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in
the financial statements.

Risk Exposure arising from Measurement

Cash and cash equivalents, trade

Credit risk Ageing analysis, Credit ratings
receivables, other financial assets.

Liquidity risk Borrowings and other liabilities. Rolling cash flow forecasts
Market risk – Cash flow forecasting, Sensitivity
Long-term borrowings at variable rates.
Interest rate risk analysis

Market risk – Adverse movements in the exchange rate

Internal Foreign Curreny Exposure
Financial Currency Risk between the Rupee and any relevant
and risk management policy
foreign currency.

a. Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial
loss to the Group. Credit risk encompasses both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration risks. The Group has adopted a policy of only dealing with
creditworthy counter parties and obtaining sufficient collateral, where appropriate, as a means of mitigating
the risk of financial loss from defaults.
Credit risk management
Credit risk rating
The Group assesses and manages credit risk of financial assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of financial assets.
A: Low credit risk B: Moderate credit risk C: High credit risk

Assets Group Description of category Provision for expected credit loss*

Assets where the counter-party has strong 12 month expected credit loss / life
Low credit risk capacity to meet the obligations and time expected credit loss
where the risk of default is negligible or nil.
Assets where the probability of default is 12 month expected credit loss / life
considered moderate, counter-party time expected credit loss
Moderate credit risk
where the capacity to meet the
obligations is not strong.
Assets where there is a high probability of 12 month expected credit loss / life
High credit risk default. time expected credit loss / fully
provided for

* Life time expected credit loss (if required) is provided for trade receivables and for those financial assets
where the credit risk has increased significantly, since the initial recognition.
Based on business environment in which the Group operates, a default on a financial asset is considered
when the counterparty fails to make payments within the agreed time period as per contract. Loss rates
reflecting defaults are based on actual credit loss experience and considering differences between current
and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or litigation decided against the Group. The Group continues to engage with parties whose
balances are written off and attempts to enforce repayment. Any subsequent recoveries made are
recognised in statement of profit and loss.
 Corporate Overview
Statutory Reports
Financial Statements 228

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

FINANCIAL RISK MANAGEMENT (Contd.,)

Classification of Financial assets among risk categories: ` Lakhs

Credit rating Particulars 31-3-2024 31-3-2023

Low credit risk Cash and cash equivalents, other bank balances,
current investments, trade receivables and other
financial assets 41,423.59 36,418.18
Moderate credit risk Nil — —

High credit risk Nil — —

b. Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when
due. Due to the nature of the business, the Group maintains flexibility in funding by maintaining availability under
committed facilities. Management monitors rolling forecasts of the Group’s liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Group takes into account the liquidity of the market in
which the entity operates. In addition, the Group’s liquidity management policy involves projecting cash flows
and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities: ` Lakhs

On Less than More than

31-3-2024 1-5 years Total
Demand 1 year 5 years

Borrowings 186.89 4,475.48 — — 4,662.37

Trade Payables — 32,581.18 — — 32,581.18

Lease Liabilities — 623.27 768.34 34.35 1,425.96

Other financial liabilities — 9,071.76 — — 9,071.76

Total 186.89 46,751.69 768.34 34.35 47,741.27

` Lakhs

On Less than More than

31-3-2023 1-5 years Total
Demand 1 year 5 years

Borrowings — 6,244.44 2,675.81 — 8,920.25

Trade Payables — 28,263.03 — — 28,263.03
Lease Liabilities — 754.61 1,303.90 54.05 2,112.56
Other financial liabilities — 10,672.91 — — 10,672.91

Total — 45,934.99 3,979.71 54.05 49,968.75

c. Interest rate risk

The Group’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest
rate risk as defined in Ind AS 107 - ‘Financial Instruments - Disclosures’, since neither the carrying amount nor
the future cash flows will fluctuate because of a change in market interest rates. However, the Group’s
variable rate borrowings are subject to interest rate risk.
 Pricol Limited
229 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

FINANCIAL RISK MANAGEMENT (Contd.,)

Below is the overall exposure of the borrowings:

Interest rate risk exposure ` Lakhs

Particulars 31-3-2024 31-3-2023

Fixed rate borrowing — —

Variable rate borrowing 4,662.37 8,920.25

Total 4,662.37 8,920.25

Sensitivity
The following table demonstrates the sensitivity to a reasonably possible change (100 basis points) in interest rates
on that portion of loans and borrowings affected. With all other variables held constant, the Group’s profit before
tax is affected through the impact on variable rate borrowings, as follows:

Interest sensitivity ` Lakhs

Particulars 2023-24 2022-23

Interest rates – Increase / Decrease by 100 basis points 51.55 82.62

d. Financial Currency Risk

The Group’s functional currency is Indian Rupees (`). The Group undertakes transactions denominated in
foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates
affects the Group’s revenue from export markets and the costs of imports.
Adverse movements in the exchange rate between the Rupee and any relevant foreign currency results in
increase in the Group’s overall debt position in Rupee terms without the Group having incurred additional
debt and favourable movements in the exchange rates will conversely result in reduction in the Group’s
receivables in foreign currency. In order to hedge exchange rate risk, the Group has a policy to hedge cash
flows (either using natural hedge or an artificial hedge) upto a specific tenure using forward exchange
contracts and hedges based on their Internal Foreign Curreny Exposure and risk management policy as
approved by the management and in accordance with the applicable regulations where the Group
operates.

The carrying amounts of the Group’s monetary assets and monetary liabilities at the end of the reporting year are
as follows:

As at 31st March 2024 ` Lakhs

OTHER
Particulars Euro GBP USD CHF JPY SGD CURRENCIES

Financial Assets 1,759.73 60.15 4,393.04 34.04 378.33 225.53 16.70

Financial Liabilities 135.60 0.66 10,866.44 56.17 667.13 — 2.15

As at 31st March 2023 ` Lakhs

OTHER
Particulars Euro GBP USD CHF JPY SGD CURRENCIES

Financial Assets 1,234.95 52.22 5,540.18 1.55 523.63 191.62 2.16

Financial Liabilities 163.36 0.94 11,315.48 1.54 600.14 90.32 —
 Corporate Overview
Statutory Reports
Financial Statements 230

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

FINANCIAL RISK MANAGEMENT (Contd.,)

The following table details the Group’s sensitivity to a 1% increase and decrease in the INR against the relevant
foreign currencies net of hedge accounting impact. The sensitivity analysis includes only outstanding foreign
currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign
currency rates, with all other variables held constant. A positive number below indicates an increase in profit or
equity where INR strengthens 1% against the relevant currency. For a 1% weakening of INR against the relevant
currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Impact on Profit / (Loss) for the year for a 1% change:

` Lakhs
Particulars 2023-24 2022-23
Increase / Decrease by 1% 48.61 46.25

54. EMPLOYEE BENEFITS

In respect of Holding Company
Defined contribution plan
The Company’s contribution to provident fund, superannuation fund and national pension scheme are
considered as defined contribution plans and are charged as an expense based on the amount of contribution
required to be made and when services are rendered by the employees.
` Lakhs

Particulars 2023-24 2022-23

Employer’s Contribution to Provident Fund 802.46 710.39

Employer’s Contribution to Superannuation Fund 47.92 35.99
Employer’s Contribution to National Pension Scheme 43.35 26.68

Particulars 2023-24 2022-23

Defined contribution plan contribution towards Key Managerial Personnel 56.06 44.29

Defined Benefit Plan

The Company has an obligation towards gratuity, a defined benefit obligation. The benefits are governed by the
Payment of Gratuity Act, 1972. The Company makes lumpsum payment to vested employees an amount based
on 15 days last drawn basic salary including dearness allowance (if any) for each completed year of service or
part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date.
The present value of the defined benefit obligations and the related current service cost and past service cost
were measured using the Projected Unit Credit Method.
 Pricol Limited
231 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,)

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee
benefit obligation as at balance sheet date:
` Lakhs
Gratuity (Funded)
Particulars
2023-24 2022-23

(i) Reconciliation of opening and closing balances of Defined Benefit Obligation

Defined Benefit Obligation at beginning of the year 3,538.07 3,122.18
Current Service Cost 290.23 219.81
Interest Cost 256.64 222.64
Remeasurements :
Effect of changes in demographic assumptions — —

Effect of changes in financial assumptions 769.28 (15.30)

Effect of experience adjustments (114.70) 288.01
Benefits Paid (286.81) (299.27)
Defined Benefit Obligation at year end 4,452.71 3,538.07
- Non-Current 4,087.93 3,279.15
- Current 364.78 258.92

(ii) Reconciliation of opening and closing balances of fair value of Plan Assets
Fair value of Plan Assets at beginning of year 3,009.96 2,956.24
Interest Income 236.48 216.56
Remeasurements :
Return on plan assets (excluding interest income) (27.66) (37.87)
Transfer from Erstwhile Subsidiary — 4.82
Employer Contribution 522.98 169.48
Benefits Paid (286.81) (299.27)
Fair value of Plan Assets at year end 3,454.95 3,009.96

(iii) Reconciliation of fair value of Assets and Obligations

Fair value of Plan Assets 3,454.95 3,009.96
Present value of Obligation 4,452.71 3,538.07
Amount recognised in Balance Sheet (Surplus/(Deficit)) (997.76) (528.11)
- Non-Current (585.47) (253.09)
- Current (412.29) (275.02)
 Corporate Overview
Statutory Reports
Financial Statements 232

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,)

` Lakhs
Gratuity (Funded)

Particulars 2023-24 2022-23

(iv) Expenses recognised during the year

In Income Statement
Current Service Cost 290.23 219.81
Interest Cost 256.64 222.64
Return on Plan Assets (236.48) (216.56)
Net (Income) / Expense for the period recognised in
Statement of Profit and Loss 310.39 225.89
In Other Comprehensive Income
Remeasurement of net defined benefit liability
Effect of changes in demographic assumptions — —

Effect of changes in financial assumptions 769.29 (15.30)

Effect of experience adjustments (114.70) 288.00
(Return) on plan assets (excluding interest income) 27.66 37.87
Changes in asset ceiling (excluding interest income) — —

Net (Income) / Expense for the period recognised in OCI 682.25 310.57

(v) Actuarial assumptions

Gratuity (Funded)
Particulars
2023-24 2022-23

Discount Rate (per annum) 7.23% 7.56%

Rate of escalation in Salary (per annum) Uniform 10.00% Uniform 8.00%
Attrition Rate Uniform 4.00% Uniform 4.00%
Retirement Age 58 58
Pre-retirement mortality Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2012-14) (2012-14)
Ultimate Ultimate
Disability 5% of Mortality rate 5% of Mortality rate
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market.
The above information is certified by the actuary.
(vi) The expected future contribution and estimated future benefit payments from the fund are as follows:
Amount
Particulars
` Lakhs

a) Expected contribution to the fund during the year ending March 31, 2025 412.29
b) Estimated benefit payments from the fund for the year ending March 31:
Year 1 400.77
Year 2 364.06
Year 3 444.86
Year 4 384.50
Year 5 223.56
Beyond 5 years 2,634.96
 Pricol Limited
233 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,)

(vii) Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate,
expected salary increase and employee turnover. The sensitivity analysis below, have been determined
based on reasonably possible changes of the assumptions occurring at end of the reporting period , while
holding all other assumptions constant. The result of Sensitivity analysis is given below:
` Lakhs
As at As at
Particulars
31 March 2024 31 March 2023

Discount rate +100 basis points (299.94) (218.44)

Discount rate -100 basis points 342.27 246.20
Salary Increase Rate +100 basis points 328.17 240.95
Salary Increase Rate -100 basis points (293.66) (217.72)
Attrition Rate +100 basis points (71.06) (22.64)
Attrition Rate - 100 basis points 80.50 24.99

(viii ) These plans typically expose the Group to actuarial risks such as: investment risk, interest risk, longevity risk
and salary risk.
Name of the Risk and its Description
Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on
government bonds.
Interest risk - A decrease in the bond interest rate will increase the plan liability; however, this will be
partially offset by an increase in the return on the plan debt investments.
Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the
best estimate of the mortality of plan participants both during and after their
employment. An increase in the life expectancy of the plan participants will increase
the plan’s liability.
Salary risk - The present value of the defined plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants
will increase the plan’s liability.
Disclosure relating to KMPs:

Defined benefit obligation attributable towards KMPs cannot be determined since it is valued on actuarial
basis for the Company as a whole.
 Corporate Overview
Statutory Reports
Financial Statements 234

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

EMPLOYEE BENEFITS (Contd.,)

In respect of Subsidiary :
PT Pricol Surya, Indonesia ` Lakhs

Particulars 2023-24 2022-23

Funded Status :
Present Value of Net Obligation 188.84 183.70
Movement in the liability recognised in the statement of profit and Loss :
Obligation at beginning period 183.70 190.44
Expense recognised during the year 33.76 35.56
Actual benefit payment — (1.14)
Amount recognised in Other Comprehensive Income ('OCI') (20.63) (48.11)
On account of translation differences (7.99) 6.95
188.84 183.70
Details of Post Employment benefit expenses recognised in the
Statement of comprehensive income :
Current Service Cost 20.27 21.44
Interest Cost 12.76 14.78
Past Service Cost and (Gain) or Loss on Settlements — —
33.03 36.22
Actuarial Assumptions :
Discount Rate 7.00% 7.25%
Annual Salary increase Rate 7.00% 8.00%
Retirement age (year) 56 56
Disability Rate 10.00% 10.00%

Sensitivity Analysis
` Lakhs

Particulars 31-3-2024 31-3-2023

Discount rate +100 basis points (10.48) (10.73)

Discount rate -100 basis points 11.96 12.29
Salary Increase Rate +100 basis points 11.75 11.99
Salary Increase Rate -100 basis points (10.49) (10.67)
 Pricol Limited
235 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

55. PROVISIONS AS ON THE CLOSING DATE : ` Lakhs

Non-Current Provisions Current Provisions
Excise,
Particulars Sales Tax Potential Total
Labour Warranty Provisions
/ GST & Statutory Total Total
Settlement related claims
Customs Liabilities
Demands
Balance as on 1-4-2022 476.61 568.38 1,044.99 261.72 617.95 879.67 1,924.66
Add : Addition 127.73 13.59 141.32 — 1,024.60 1,024.60 1,165.92
Less : Utilised / Reversed 134.26 2.36 136.62 — 1,068.02 1,068.02 1,204.64
Balance as on 31-3-2023 470.08 579.61 1,049.69 261.72 574.53 836.25 1,885.94
Add : Addition 392.10 323.55 715.65 — 3,056.08 3,056.08 3,771.73
Less : Utilised / Reversed 263.02 375.02 638.04 — 1,611.80 1,611.80 2,249.84
Balance as on 31-3-2024 599.16 528.14 1,127.30 261.72 2,018.81 2,280.53 3,407.83

56. In respect of Holding Company :

Income Tax Assessments are provisionally completed upto Assessment year 2021-22.
a) The Company has filed revised returns / made additional claims in respect of certain deductions,
exemptions and losses which are under litigation. Necessary adjustments, would be made as and when the
matters are finally adjudicated.
b) As professionally advised, the Company has claimed the loss on disposal of investment in subsidiary (Pricol
Espana S.L. Spain) amounting to ` 40,798.58 Lakhs as business loss in the return filed for the assessment year
2021-22. The Company has accounted for current taxes in accordance with - Ind AS 12, Appendix - C
"Uncertain tax position".

57. NOTES ON TAXATION:

a. Income tax expense for the year reconciled to the accounting profit:
` Lakhs

Particulars As at As at
31-3-2024 31-3-2023

Profit / (Loss) before Tax 18,590.46 13,687.00

Applicable income tax rate 25.168% 25.168%
Expected Income tax expense 4,678.85 3,444.74
Tax effect on adjustment to reconcile expected income tax expense
to reported income tax expense :
- Effect of concessions (Research and Development and other allowance) (289.18) (211.03)
- Impact arising on adoption of lower income tax rates on PPE — (1,509.69)
- Permanent disallowances 72.15 272.18
- Others 157.89 197.27
Tax Expense for the year (including deferred tax) 4,619.71 2,193.47

b. Income tax recognised in other comprehensive income

` Lakhs

Deferred tax
Remeasurement of defined benefit obligation - (Expense) / Income 167.17 67.58

Total income tax recognised in OCI 167.17 67.58

 Corporate Overview
Statutory Reports
Financial Statements 236

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

NOTES ON TAXATION (Contd.,)

c. Statement of Changes in Deferred tax assets / Liabilities (Refer Note. 11 & 27)
As on 31-3-2024 ` Lakhs

Recognised
As at Recognised As at
Particulars in Profit
1-4-2023 in OCI 31-3-2024
and Loss
Deferred Tax Liability
On PPE and others 4,549.04 (296.95) — 4,252.09
Other translation adjustment — 25.12 — —
4,549.04 (271.83) — 4,252.09
Deferred Tax Asset
On Disallowance under the Income Tax Act 445.12 125.01 167.17 737.30
On Other temporary differences 31.79 28.64 — 60.43
476.91 153.65 167.17 797.73
Total 4,072.13 (425.48) (167.17) 3,454.36

As on 31-3-2023 ` Lakhs

Recognised
As at Recognised As at
Particulars in Profit
1-4-2022 in OCI 31-3-2023
and Loss
Deferred Tax Liability
On PPE and others 6,552.77 (2,003.73) — 4,549.04
Other translation adjustment — 1.84 — —
6,552.77 (2,001.89) — 4,549.04

Deferred Tax Asset

On Disallowance under the Income Tax Act 819.13 (441.59) 67.58 445.12
On Other temporary differences 165.24 (133.45) — 31.79
984.37 (575.04) 67.58 476.91
Total 5,568.40 (1,426.85) (67.58) 4,072.13

` Lakhs
As at As at
Particulars
31-3-2024 31-3-2023

Tax Losses
Tax Losses carried forward (including Capital Losses) 47,106.86 48,369.67
Tax Losses for which no deferred tax asset were recognised
(including Capital Losses) 47,106.86 48,369.67
 Pricol Limited
237 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

NOTES ON TAXATION (Contd.,)

Significant Management Judgements are involved in determining provision for tax, deferred tax and recoverability of
deferred tax asset. The recoverability of Deferred Tax Asset is based on estimates of taxable income in future and the
management is fairly confident that there will be sufficient future profits to utilise the deferred tax asset.

The figures for tax losses disclosed above are based on provisional tax computation for the purpose of financial
statements and after considering Appendix - C to Ind AS 12 - "Uncertain tax position".

58. CAPITAL MANAGEMENT

For the purpose of the Group’s capital management, capital includes issued equity capital and all other equity
reserves. The Group manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. The Group monitors capital using a gearing ratio,
which is net debt divided by total equity. The Group includes within net debt, interest bearing loans and
borrowings, less cash and cash equivalents.
` Lakhs

Particulars 31-3-2024 31-3-2023

Borrowings (long-term and short-term, including current

maturities of long term borrowings) 4,662.37 8,920.25

Less : Cash and cash equivalents 11,254.23 5,599.68

Less : Other Bank Balances - Excluding Balances in Unpaid Dividend Account
(Balances with original maturity more than 3 months) 75.09 2,739.89
Less : Margin Money against Account 100.00 100.00

Net Debt (A) (6,766.95) 480.68

Equity Share Capital 1,218.81 1,218.81

Other Equity 83,308.40 69,209.46

Total Equity (B) 84,527.21 70,428.27

Net Debt to Equity Ratio (A) / (B) X 100 — 0.68%

In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended
March 31, 2024 and March 31, 2023.
 Corporate Overview
Statutory Reports
Financial Statements 238

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

59. LEASES
DISCLOSURE AS REQUIRED UNDER IND AS 116 :
Movement of Lease Liability ` Lakhs

As at As at
Particulars 31-3-2024 31-3-2023
Opening Balance 2,112.56 2,535.49
Additions / Adjustments during the year 110.36 248.57
Repayments during the year 782.64 671.50
Termination of lease during the year 14.32 —
Closing Balance 1,425.96 2,112.56
Current 623.27 754.61
Non-Current 802.69 1,357.95

Maturity Analysis of Lease Liabilities on Undiscounted basis

Within one year 736.51 928.23
1 - 5 years 880.54 1,525.83
Morethan five years 53.52 77.16

The broad range of effective Interest rate for the Lease Liabilities is 7% to 10.75%
The following are the amounts recognised in the Statement of Profit and Loss : ` Lakhs

Particulars 2023-24 2022-23

Depreciation expense of Right of Use Assets 771.60 734.59

Interest Expense on Lease Liabilities 178.78 236.32
Expense relating to Short Term Lease Liabilities 42.41 48.40
Expense relating to Lease of Low Value Assets — —
Income from Right of Use 27.11 26.83

Maturity Analysis in respect of lease contract which are not recorded as lease liability ` Lakhs

Maturity Analysis
Within one year 16.15 15.68
1 - 5 years — —
More than five years — —

60. INTEREST IN OTHER ENTITIES

The subsidiaries considered in the Consolidated Financial Statements are set out below:

Percentage of Ownership Method of

S. Country of Nature of Principal
Name of the entity As at As at Con-
No Incorporation Relationship activities
31-3-2024 31-3-2023 solidation

1 PT Pricol Surya Indonesia Indonesia 100% 100% Subsidiary Line by

Line
Manufacture
2 Pricol Asia Pte. Limited Singapore 100% 100% Subsidiary Line by and sale of
Line Automobile
Accessories
3 PT Sripri Wiring Systems Indonesia — 100% Subsidiary of Line by and Trading
of
(Closed during the year 2023-24) PT Pricol Surya Line Automobile
Indonesia Spares etc.,

4 Pricol Asia Exim DMCC, Dubai Dubai 100% 100% Subsidiary of Line by
(From 18th August, 2022) Pricol Asia Line
Pte. Limited
5 Pricol Electronics Private Limited India 100% — Subsidiary of Line by
(From 11th April, 2023) Pricol Asia Line
(Yet to commence operations) Pte. Limited
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,) 239

61. ADDITIONAL INFORMATION PURSUANT TO SCHEDULE III TO THE COMPANIES ACT, 2013 OF ENTITIES CONSOLIDATED AS SUBSIDIARIES
Pricol Limited

For the Financial year 2023-24

Annual Report 2024

Share in Other Share in Total

Net Assets Share in Profit / (Loss)
Comprehensive Income (OCI) Comprehensive Income (TCI)
S.
Name of the entity
No As a % of As a % of As a % of As a % of
Amount Amount Amount Amount
consolidated consolidated consolidated consolidated
` Lakhs ` Lakhs ` Lakhs ` Lakhs
Net Assets Profit / (Loss) OCI TCI

Parent
1 Pricol Limited 95.10 80,387.41 93.10 13,091.49 86.50 (510.54) 93.39 12,580.95
Subsidiaries - Foreign
1 PT Pricol Surya Indonesia 5.74 4,852.38 1.88 264.39 (2.72) 16.09 2.08 280.48
2 Pricol Asia Pte. Limited 7.73 6,534.77 8.82 1,240.68 — — 9.21 1,240.68
Stepdown Subsidiaries - Foreign
1 PT Sripri Wiring Systems — — — — — — — —
2 Pricol Asia Exim DMCC 0.06 48.36 0.45 62.64 — — 0.47 62.64
Stepdown Subsidiaries - India
1 Pricol Electronics Private Limited 0.02 13.65 (0.01) (1.35) — — (0.01) (1.35)
Total before intercompany
Elimination / Adjustments 108.65 91,836.57 104.24 14,657.85 83.78 (494.45) 105.14 14,163.40
Intercompany Elimination /
Adjustments (8.65) (7,309.36) (4.24) (596.70) 16.22 (95.74) (5.14) (692.44)

TOTAL 100.00 84,527.21 100.00 14,061.15 100.00 (590.19) 100.00 13,470.96

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

ADDITIONAL INFORMATION PURSUANT TO SCHEDULE III TO THE COMPANIES ACT, 2013 OF ENTITIES CONSOLIDATED AS SUBSIDIARIES (Contd.,)
For the Financial year 2022-23

Share in Other Share in Total

Net Assets Share in Profit / (Loss)
Comprehensive Income (OCI) Comprehensive Income (TCI)
S.
Name of the entity
No As a % of As a % of As a % of As a % of
Amount Amount Amount Amount
consolidated consolidated consolidated consolidated
` Lakhs ` Lakhs ` Lakhs ` Lakhs
Net Assets Profit / (Loss) OCI TCI

Parent

1 Pricol Limited 96.28 67,806.46 90.29 11,257.89 (68.06) (232.41) 86.07 11,025.48

Subsidiaries - Foreign

1 PT Pricol Surya Indonesia 7.68 5,406.90 4.03 502.69 10.98 37.53 4.22 540.22

2 Pricol Asia Pte. Limited 7.40 5,210.34 6.57 819.26 — — 6.40 819.26

Stepdown Subsidiaries - Foreign

1 PT Sripri Wiring Systems (1.22) (862.02) — — — — — —

2 Pricol Asia Exim DMCC (0.02) (14.53) (0.20) (24.61) — — (0.19) (24.61)

Total before intercompany

Elimination / Adjustments 110.12 77,547.15 100.69 12,555.23 (57.08) (194.88) 96.50 12,360.35

Intercompany Elimination /
Adjustments (10.12) (7,118.88) (0.69) (86.70) 157.08 536.38 3.50 449.68
TOTAL 100.00 70,428.27 100.00 12,468.53 100.00 341.50 100.00 12,810.03
Financial Statements
Statutory Reports
Corporate Overview

240
 Pricol Limited
241 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

62. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

No adjusting or significant non-adjusting events have occurred between 31 March 2024 and the date of
authorisation of these consolidated financial statements.

63. RELATED PARTY DISCLOSURE AS PER INDIAN ACCOUNTING STANDARD 24

i) Related parties and nature of relationship with whom transaction have taken place :

(a) Key management personnel

(i) Executive Directors :

Mrs. Vanitha Mohan - Chairman,
Mr. Vikram Mohan - Managing Director,
Mr. [Link] - Chief Executive Officer & Executive Director

(ii) Non-Executive Directors - Independent Director:

Mr. R Vidhya Shankar, Mrs. Sriya Chari, Dr. S.K. Sundararaman, Mr. K. Ilango, [Link] Paul, ,
Mr. P. Shanmugasundaram, Mr. Vijayraghunath - From 1st February 2024

(iii) Others :

Mr. Priyadarsi Bastia - Chief Financial Officer - From 1st July 2022,
Mr. T.G. Thamizhanban - Company Secretary,
Mr. P. Krishnamoorthy - Chief Financial Officer - Upto 30th June 2022

(b) Entities in which the Key Managerial Personnel of the Company and their relatives are able to
exercise control / significant influence :

(i) Partnership firms : Libra Industries

(ii) Private Limited Companies :

Pricol Holdings Private Limited (From13th February, 2024),
Pricol Gourmet Private Limited, PPL Enterprises Private Limited,
Pricol Engineering Industries Private Limited, Pricol Travel Private Limited,
Pricol Logistics Private Limited, Infusion Hospitality Private Limited (Upto 14th March, 2024),
Shrimay Enterprises Private Limited, Sagittarius Investments Private Limited,
VM International Pte. Limited Singapore, VM International L.L.C - FZ, Dubai

(iii) Public Limited Companies :

Pricol Holdings Limited (Upto 12th February, 2024),
Pricol Properties Limited - (Upto 28th September, 2023)
Pricol Corporate Services Limited - (Upto 24th December, 2022),
Target Manpower Services Limited - (Upto 24th December, 2022),
Pricol Retreats Limited - (Upto 28th September, 2023),
Prinfra Limited - (Upto 28th September, 2023)

(iv) Trusts :

N D Foundation, Siruthuli, VM Foundation

 Corporate Overview
Statutory Reports
Financial Statements 242

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

RELATED PARTY DISCLOSURE AS PER INDIAN ACCOUNTING STANDARD 24 (Contd.,)

ii) Related party transactions:

` Lakhs
Key Management Personnel
Nature of Transaction Others
and their Relatives

2023-24 2022-23 2023-24 2022-23

Transactions during the year :
Purchase / Labour Charges — — 5,002.71 4,503.01
Purchase of Fixed Assets — — — —

Sale of Fixed Assets — — 516.57 —

Sales / Job Work Charges — — 330.91 224.14

Receiving of Management Services — — 625.61 360.00
Receiving of Services 22.00 6.30 5,764.98 5,410.80
Remuneration to Directors 1,191.91 980.37 — —

Remuneration to Others 111.92 94.63 — —

Rendering of Services — — 208.61 241.85

Donation / CSR Expenses — — 140.75 62.84
Loans and Advances :
Rental Deposits Received — — — —

Rental Deposits Paid / Released — — 6.00 —

iii) Amount outstanding as at the balance sheet date : ` Lakhs

Key Management Personnel

Nature of Transaction Others
and their Relatives

31-3-2024 31-3-2023 31-3-2024 31-3-2023

Trade Receivables and Other Receivables — — 85.13 66.09
Trade Payables and Other Payables 608.66 466.93 1,153.00 1,178.16

iv) The remuneration of KMP does not include the provision made for gratuity as they are determined on an
actuarial basis for the Company as a whole.
v) Debts due by directors or other officers of the Company or any of them either severally or jointly with any
other person or debts due by firms or private companies respectively in which any director is a partner or a
director or a member – Nil (Previous year - Nil).
vi) Consequent to the closure of the Step-down Subsidiary PT Sripri Wiring Systems, wholly owned subsidiary of
PT Pricol Surya Indonesia, the Company has accounted for the loss of control in its Consolidated Financial
Statements in accordance with Ind AS 110. The Gain on Disposal of Subsidiary included in Other Income is
` 41.48 Lakhs and de-recognition of Other receivables and Investments under Other Expenses is ` 641.74
Lakhs.
 Pricol Limited
243 Annual Report 2024

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

64. ADDITIONAL DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013
(i) Details of Benami property:
No proceedings have been initiated or are pending against the Group for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(ii) Utilisation of borrowed funds and share premium:
A) The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Group (Ultimate Beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B) The Group has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or
b) Provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(iii) Compliance with number of layers of Companies:

The Group has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(v) Details of crypto currency or virtual currency:

The Group has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(vi) Valuation of PP&E, intangible asset and investment property:

The Group has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

(vii) Wilful Defaulter:

The Group had not been declared a wilful defaulter by any bank or financial institution or other lender (as
defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful
defaulters issued by the Reserve Bank of India.

(viii) Compliance with approved scheme(s) of arrangements:

Refer Note.48 (a), in relation to the Scheme of Amalgamation with Erstwhile Pricol Limited. The intangible
assets, including Goodwill represented by Customer relationship and Assembled work force, are being
amortised over its estimated useful life of 15 years from the appointed date.

Refer Note. 48 (b), in relation to the Scheme of Amalgamation with Pricol Wiping Systems India Limited, the
Scheme has been accounted for in the books of accounts of the company "in accordance with the
scheme" and "in accordance with the IND Accounting Standard".

(ix) Loans to Related Parties and others:

the Group had not granted any loans or advances in the nature of loans to promoters, directors, KMP's and
the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person,
that :
 Corporate Overview
Statutory Reports
Financial Statements 244

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.,)

ADDITIONAL DISCLOSURE RELATING TO SCHEDULE III AMENDMENT OF COMPANIES ACT 2013 (Contd.,)

a) are repayable on demand or

b) without specifying any terms or period of repayment.

(x) Struck off Companies:

Details of transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560
of the Companies Act, 1956:

(xi) In respect of Holding Company:

The Company does not have Charges or Satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period.

65. Previous year's figures are reclassified / recasted wherever necessary to conform to the current year's
classification.

66. All figures are in Lakhs unless otherwise stated.

As per our report of even date attached For and on behalf of the Board
For VKS Aiyer & Co.
Vanitha Mohan Vikram Mohan
Chartered Accountants Chairman Managing Director
ICAI Firm Regn. No. : 000066S (DIN : 00002168) (DIN : 00089968)
CS Sathyanarayanan
Partner
P.M. Ganesh Priyadarsi Bastia T. G. Thamizhanban
Membership No.028328 Chief Executive Officer Chief Financial Officer Company Secretary
Coimbatore & Executive Director (ACA No. : 065996) (FCS No. : 7897)
15th May 2024 (DIN : 08571325)
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