patels airtemp (india) ltd. · section 217(2a) of the companies act, 1956 read with companies...
TRANSCRIPT
Patels Airtemp (India) Ltd
1
NOTICENOTICE is hereby given that the 22nd Annual General Meeting of the Members of PATELS AIRTEMP(INDIA) LTD will be held on Saturday the 30th August 2014 at 1000 am at the Registered Office ofthe Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad ndash380 009 to transact the following business ORDINARY BUSINESS1 To approve and adopt the Audited Balance Sheet as on 31st March 2014 and Statement of Profit
amp Loss for the year ended on that date and the Reports of the Directors and Auditors thereon2 To declare dividend3 To appoint a director in place of Shri Prakashbhai N Patel (DIN No00249210) who retires by
rotation and being eligible offers himself for re-appointment4 To appoint a director in place of Shri Narendrabhai G Patel (DIN No00023205) who retires by
rotation and being eligible offers himself for re-appointment5 To appoint Ms Parikh amp Majmudar Chartered Accountants Ahmedabad having Registration No
107525W as Statutory Auditors of the Company and to fix their RemunerationTo consider and if thought fit to pass with or without modification(s) the following resolutions as anOrdinary Resolution6 Appointment of Shri Harishkumar I Shah as an Independent Director of the Company
ldquoRESOLVED that pursuant to the provisions of sections 149 152 and other applicable provisionsif any of the Companies Act 2013 (Act) and the Rules framed thereunder read with Schedule IVto the Act as amended from time to time Shri Harishkumar I Shah (DIN 00216585) a non-executive Director of the Company who has submitted a declaration that he meets the criteria forindependence as provided in section 149(6) of the Act and who is eligible for appointment be andis hereby appointed as an Independent Director of the Company with effect from August 30 2014up to August 29 2019rdquo
7 Appointment of Shri Vinodkumar C Desai as an Independent Director of the CompanyldquoRESOLVED that pursuant to the provisions of sections 149 152 and other applicable provisionsif any of the Companies Act 2013 (Act) and the Rules framed thereunder read with Schedule IVto the Act as amended from time to time Shri Vinodkumar C Desai (DIN 02813402) a non-executive Director of the Company who has submitted a declaration that he meets the criteria forindependence as provided in section 149(6) of the Act and who is eligible for appointment be andis hereby appointed as an Independent Director of the Company with effect from August 30 2014up to August 29 2019rdquo
8 Appointment of Shri Naimeshbhai B Patel as an Independent Director of the CompanyldquoRESOLVED that pursuant to the provisions of sections 149 152 and other applicable provisionsif any of the Companies Act 2013 (Act) and the Rules framed thereunder read with Schedule IVto the Act as amended from time to time Shri Naimeshbhai B Patel (DIN 002813295) a non-executive Director of the Company who has submitted a declaration that he meets the criteria forindependence as provided in section 149(6) of the Act and who is eligible for appointment be andis hereby appointed as an Independent Director of the Company with effect from August 30 2014up to August 29 2019rdquo
9 Appointment of Shri Girishbhai N Desai as an Independent Director of the CompanyldquoRESOLVED that pursuant to the provisions of sections 149 152 and other applicable provisionsif any of the Companies Act 2013 (Act) and the Rules framed thereunder read with Schedule IVto the Act as amended from time to time Shri Girishbhai N Desai (DIN 002824731) a non-executive Director of the Company who has submitted a declaration that he meets the criteria forindependence as provided in section 149(6) of the Act and who is eligible for appointment be andis hereby appointed as an Independent Director of the Company with effect from August 30 2014up to August 29 2019rdquo
2
22nd Annual Report 2013-2014
10 Appointment of Shri Ramanbhai R Patel as an Independent Director of the CompanyldquoRESOLVED that pursuant to the provisions of sections 149 152 and other applicable provisionsif any of the Companies Act 2013 (Act) and the Rules framed thereunder read with Schedule IVto the Act as amended from time to time Shri Ramanbhai R Patel (DIN 05224867) a non-executive Director of the Company who has submitted a declaration that he meets the criteria forindependence as provided in section 149(6) of the Act and who is eligible for appointment be andis hereby appointed as an Independent Director of the Company with effect from August 30 2014up to August 29 2019rdquo
By Order of the Board of Directors
Place Rakanpur NARAYANBHAI G PATELDate 27th May 2014 CHAIRMAN amp MANAGING DIRECTOR
NOTES1 A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A
PROXY AND VOTE ON A POLL INSTEAD OF HIMSELF AND THE PROXY SO APPOINTEDNEED NOT BE A MEMBER OF THE COMPANY THE INSTRUMENT APPOINTING PROXYSHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOTLESS THAN FORTY EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING
2 The relevant Explanatory Statements pursuant to Section 173(2) of the Companies Act 1956 inrespect of the Special Business items set out in the notice is annexed hereto
3 As required in terms of paragraph IV(G)(i) of Clause 49 of the Listing Agreement the details of thedirectors seeking appointmentreappointment at the Meeting are given in detail is annexed hereto
4 The Register of Members and Share Transfer Books of the Company will remain closed fromSaturday the 23rd August 2014 to Saturday the 30th August 2014 (both days inclusive)
5 Members are requested to (i) notify promptly the change in their registered address if any to the Registrar and Share
Transfer Agent Ms Bigshare Services Pvt Ltd quoting folio number if the shares are heldin physical form and to their Depository Participant if the shares are held in demat form
(ii) notify promptly their E-mail address for speedier and faster means of communication withthe company by sending communication either to our Registrar and Share Transfer AgentMsBigshare Services Pvt Ltd by quoting their Ledger Folio No if the shares are held inphysical mode and to their Depository Participants if the shares are held in demat modequoting their DP ID and Client ID
(iii) Bring their copy of the Annual Report and the attendance slips duly filled in with themfor attending the meeting Demat holders are requested to bring their Client ID andDP ID No for easier identification of attendance at the meeting
(iv) Approach the Registrar amp Share Transfer Agent for consolidation of folios if physicalshareholdings are under multiple folios
(v) Address their questionsqueries in writing to the Company desirous of obtaining anyinformation concerning the accounts and operation of the company so as to reach at leastseven days before the date of the meeting
(vi) In view of the circular issued by SEBI the Electronic Clearing Services (ECSNECS) facilityshould mandatorily be used by the companies for the distribution of dividend to its membersIn order to avail the facility of ECSNECS members holding shares in physical form arerequested to provide bank account details to the Company or its Registrar and ShareTransfer Agents
6 Those shareholders who have not encashed their dividend warrants for the financial year 2006-07 Interim and Final Dividend for the year 2007-08 Dividend for the year 2008-09 dividend forthe financial year 2009-10 Dividend for the Financial Year 2010-11 Dividend for the Financial
Patels Airtemp (India) Ltd
3
Year 2011-12 amp Dividend for Financial Year 2012-13 are advised to submit their claim to theRegistrar Company immediately quoting their folio number The Unpaid Unclaimed Dividendfor the year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 amp 2012-13 (includingInterim Dividend) will become due for transfer to Investor Education amp Protection Fund Accountin October November 2014 amp then after Once the unclaimed dividend is transferred to thefund no claim shall lie against the fund or the Company in respect of the individual amountswhich were unclaimed or unpaidPlease note that any dividend amount for 2006-07 remaining unclaimed unpaid along withshares held in these folios as on 27092014 shall be transferred to the Investor Educationand Protection Fund account
7 The Securities and Exchange of Board of India (SEBI) has mandated the submission of PermanentAccount Number (PAN) by every participant in securities market Members holding shares inelectronic form are therefore requested to submit PAN to their Depository Participants with whomthey are maintaining their demat account Members holding shares in physical form can submit theirPAN details to the Company Registrars and Transfer Agents Ms Bigshare Services Pvt Ltd
8 All documents referred to in the accompanying notice and Explanatory Statements are open forinspection at the Registered Office of the Company on all working days except Saturday andSunday between 1100 am to 300 pm up to the date of Annual General Meeting of the company
9 The Companyrsquos Shares have been activated for dematerialization both with National SecuritiesDepository Ltd and Central Depository Services (India) Ltd Those shareholders who wish to holdshares in electronic form may approach their Depository Participants The existing ISIN No of theEquity Shares of the company is INE082C01024
STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013
Item No 6Shri Hareshkumar I Shah (DIN 0216585) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2005Shri Hareshkumar I Shah aged 68 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria and Shri Hareshkumar I Shah is servingsince last 9 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Hareshkumar I Shah as an Independent DirectorItem No 7Shri Vinodkumar C Desai (DIN 02813402) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Vinodkumar C Desai aged 55 years is a Production Engineer by profession holding a degree ofBE Production He is having vast experience in manufacturing amp production line Shri Vinodkumar CDesai is serving since last 4 years in our Company as an Independent Director He does not hold anydirectorships in other companies nor is member or chairman of committees in other public CompanyHe does not hold any shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Vinodkumar C Desai as an Independent DirectorItem No 8Shri Naimeshbhai B Patel (DIN 002813295 ) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Naimeshbhai B Patel aged 57 years is a Mechanical Engineer by profession holding a degreeof BE Mechanical He is having vast experience in his core aria Shri Naimeshbhai B Patel is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships in
4
22nd Annual Report 2013-2014
other companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Naimeshbhai B Patel as an Independent DirectorItem No 9Shri Girishbhai N Desai (DIN 002824731) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Girishbhai N Desai aged 66 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria Shri Girishbhai N Desai is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Girishbhai N Desai as an Independent DirectorItem No 10Shri Ramanbhai R Patel (DIN 05224867) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in February 2012Shri Ramanbhai R Patel aged 71 years holding a degree of MSC(Chemistry) He worked as chemistryprofessor in various engineering colleges Shri Ramanbhai R Patel is serving since last 2 years in ourCompany as an Independent Director He does not hold any directorships in other companies nor ismember or chairman of committees in other public Company He does not hold any shares in theCompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Ramanbhai R Patel as an Independent Director
Details of Directors seeking appointment re-appointment at the forthcoming Annual General Meeting(Pursuant to Clause 49 of the Listing Agreement)
Name of Director Date of Date of Experience Qualifications Directorship Member Birth Appointment in specific held in other Chairman
functional Public Limited of Committeesareas Companies in other
Public LimitedCompanies
Shri Prakashbhai N Patel 23071966 27052004 Engineering BE(Mechanical) Nil Nil(DIN No00249210) IndustryShri Narendrabhai G Patel 13021958 21061994 Engineering BE(Mechanical) Nil Nil(DIN No00023205) Industry DBMShri Girishbhai N Desai 15011948 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02824731) IndustryShri Hareshkumar I Shah 18-10-1946 29-10-2005 Businessman BE(Mechanical) Nil Nil(DIN No00216585)Shri Naimeshbhai B Patel 22021957 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02813295) IndustryShri Vinodkumar C Desai 16021959 30102009 Engineering BE (Production) Nil Nil(DIN No02813402) IndustryShri Ramanbhai R Patel 07081943 11022012 Education MSC (Chemistry) Nil Nil(Din No05224867)
Patels Airtemp (India) Ltd
5
DIRECTORSrsquo REPORTDear MembersPatels Airtemp (India) LtdYour Directors have pleasure in presenting this 22nd Annual Report together with the Audited Statementsof Accounts for the year ended on 31st March 2014
FINANCIAL RESULTS(` in Lacs)
Particulars 2013-14 2012-13
Sales and Other Income (Including Excise Duties) 758652 991923Profit before Interest and Finance Charges 101453 116067Depreciation and Taxes amp prior period AdjustmentLess Interest amp Finance Charges 11922 27197Depreciation 17169 15271Profit before Taxation 72362 73599Provision for Taxation - Current 21900 23000
- Deferred 3239 1193- Wealth Tax 101 080- Short (Excess) Provision of earlier year WO 360 058- Short (Excess) Provision of Wealth Tax (004) (020)
Profit after Tax 46766 49288Less Prior Period Adjustment 121 (176)
Net Profit 46645 49464Balance brought forward from previous year 350843 322164Less Corporate Dividend Tax 1645 1645Less Proposed Dividend 10141 10141Less Transfer to General Reserve 9000 9000
Surplus carried forward to Balance Sheet 376702 350843Earning Per Share 920 976
DIVIDEND
Your Directors are pleased to recommend payment of dividend for the year ended March 31 2014Rs2- per Equity Share of the face value of Rs10- (ie 20) on 5070240 paid up Equity Sharessubject to approval of shareholders at the Annual General Meeting The Corporate Dividend Tax worksout to Rs1645 lacs
PERFORMANCE
The slowing down in the economy has impacted the sales during the fiscal year 2013-14 During theyear under consideration your Companyrsquos Net sales including export sales of Rs707522 againstRs905795 Profit Before Tax is Rs72362 lacs as compared to the previous year of Rs73599 lacsThe net Profit after tax at Rs 46645 lacs as compared to the previous year of Rs49464 lacs
FUTURE PROSPECTS
As per the present policy of the Government of India amp current scenario there is a thrust on developmentof various infrastructure sectors and accordingly Government is continuously spending and developingrefineries fertilizer projects amp thermal power plant There is wide scope for the Company to supply theCapital goods equipments to the Companies under this segment As you are aware your Company isfocusing on the business of manufacturing a range of shell and tube Heat exchangers Air cooled HeatExchangers Refrigeration and Air Conditioning equipments pressure vessels etc which broadly fallunder the category of capital goods They have multifarious applications in several industries
6
22nd Annual Report 2013-2014
Your Company has started focusing not only on the domestic market but also on the internationalmarket and your directors are pleased to inform the members that in the current fiscal year FY 2013-14your company has continued long term supply arrangements with a leading global manufacturer ofheat exchangers whereby your company has started manufacturing and supplying heat exchangers toentered into after an exhaustive audit of your Companyrsquos facilities and capabilities and this augurs verywell for your company and it is a testimony that your companyrsquos facilities and capabilities are capableto meet very strict international standardsAs you aware that the Company is in engineering industry and is engaged in manufacturingfabricatingtailor made machines and therefore the order book position of such type of company can play pivotalrole in the growth of the Company Your directors are pleased to state that continuing the past trend theCompany is having confirmed orders of about Rs13637 Crore on hand as on 27th May2014 Thus yourdirectors are quite bullish on repeating similar performance in future Your directors are cautious andmaking untiring efforts so as not to compromise on growth quality and profitability of the Company
DEPOSITSThe Company has not invited accepted any deposits from the public under the provisions of Section58A of the Companies Act 1956 and rules made there under
DIRECTORSShri Prakashbhai N Patel and Shri Narendrabhai G Patel retire by rotation and being eligible offerthemselves for the reappointment
Pursuant to Section 149 of the Companies Act 2013 the Board at its meeting held on 27 May 2014recommended appointment of Shri Harishkumar I Shah (DIN 00216585) Shri Vinodkumar C Desai(DIN 02813402) Shri Naimeshbhai B Patel (DIN 002813295) Shri Girishbhai N Desai (DIN002824731) and Shri Ramanbhai R Patel (DIN 05224867) as an Independent Directors of the Companynot liable to retire by rotation for a period of five years from the date of its 22nd Annual General Meetingsubject to approval of the Members of the CompanyThe Company has received declarations from all the Independent Directors of the Company confirmingthat they meet with the criteria of independence as prescribed both under sub-section (6) of Section149 of the Companies Act 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges
The particulars of the directors retiring by rotation are given in the notice explanatory statementportion of the accompanying noticeCORPORATE GOVERNANCE
The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement formspart of the Annual ReportThe requisite certificate from the Auditors of the Company confirming compliance with the conditions ofcorporate governance as stipulated under the aforesaid Clause 49 is attached to the Report oncorporate governanceLISTING OF SECURITIES
Your companyrsquos Equity shares are listed on Bombay Stock Exchange Ltd (BSE) The Company haspaid Annual Listing Fees for the year 2014-15 to the Stock ExchangeDIRECTORSrsquo RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 with respect toDirectorsrsquo Responsibility Statement it is hereby confirmed that(i) in preparation of the annual accounts all the applicable accounting standards have been followed
along with proper explanation relating to material departures
(ii) the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and of the profit and loss accountof the Company for the year under review
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
2
22nd Annual Report 2013-2014
10 Appointment of Shri Ramanbhai R Patel as an Independent Director of the CompanyldquoRESOLVED that pursuant to the provisions of sections 149 152 and other applicable provisionsif any of the Companies Act 2013 (Act) and the Rules framed thereunder read with Schedule IVto the Act as amended from time to time Shri Ramanbhai R Patel (DIN 05224867) a non-executive Director of the Company who has submitted a declaration that he meets the criteria forindependence as provided in section 149(6) of the Act and who is eligible for appointment be andis hereby appointed as an Independent Director of the Company with effect from August 30 2014up to August 29 2019rdquo
By Order of the Board of Directors
Place Rakanpur NARAYANBHAI G PATELDate 27th May 2014 CHAIRMAN amp MANAGING DIRECTOR
NOTES1 A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A
PROXY AND VOTE ON A POLL INSTEAD OF HIMSELF AND THE PROXY SO APPOINTEDNEED NOT BE A MEMBER OF THE COMPANY THE INSTRUMENT APPOINTING PROXYSHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOTLESS THAN FORTY EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING
2 The relevant Explanatory Statements pursuant to Section 173(2) of the Companies Act 1956 inrespect of the Special Business items set out in the notice is annexed hereto
3 As required in terms of paragraph IV(G)(i) of Clause 49 of the Listing Agreement the details of thedirectors seeking appointmentreappointment at the Meeting are given in detail is annexed hereto
4 The Register of Members and Share Transfer Books of the Company will remain closed fromSaturday the 23rd August 2014 to Saturday the 30th August 2014 (both days inclusive)
5 Members are requested to (i) notify promptly the change in their registered address if any to the Registrar and Share
Transfer Agent Ms Bigshare Services Pvt Ltd quoting folio number if the shares are heldin physical form and to their Depository Participant if the shares are held in demat form
(ii) notify promptly their E-mail address for speedier and faster means of communication withthe company by sending communication either to our Registrar and Share Transfer AgentMsBigshare Services Pvt Ltd by quoting their Ledger Folio No if the shares are held inphysical mode and to their Depository Participants if the shares are held in demat modequoting their DP ID and Client ID
(iii) Bring their copy of the Annual Report and the attendance slips duly filled in with themfor attending the meeting Demat holders are requested to bring their Client ID andDP ID No for easier identification of attendance at the meeting
(iv) Approach the Registrar amp Share Transfer Agent for consolidation of folios if physicalshareholdings are under multiple folios
(v) Address their questionsqueries in writing to the Company desirous of obtaining anyinformation concerning the accounts and operation of the company so as to reach at leastseven days before the date of the meeting
(vi) In view of the circular issued by SEBI the Electronic Clearing Services (ECSNECS) facilityshould mandatorily be used by the companies for the distribution of dividend to its membersIn order to avail the facility of ECSNECS members holding shares in physical form arerequested to provide bank account details to the Company or its Registrar and ShareTransfer Agents
6 Those shareholders who have not encashed their dividend warrants for the financial year 2006-07 Interim and Final Dividend for the year 2007-08 Dividend for the year 2008-09 dividend forthe financial year 2009-10 Dividend for the Financial Year 2010-11 Dividend for the Financial
Patels Airtemp (India) Ltd
3
Year 2011-12 amp Dividend for Financial Year 2012-13 are advised to submit their claim to theRegistrar Company immediately quoting their folio number The Unpaid Unclaimed Dividendfor the year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 amp 2012-13 (includingInterim Dividend) will become due for transfer to Investor Education amp Protection Fund Accountin October November 2014 amp then after Once the unclaimed dividend is transferred to thefund no claim shall lie against the fund or the Company in respect of the individual amountswhich were unclaimed or unpaidPlease note that any dividend amount for 2006-07 remaining unclaimed unpaid along withshares held in these folios as on 27092014 shall be transferred to the Investor Educationand Protection Fund account
7 The Securities and Exchange of Board of India (SEBI) has mandated the submission of PermanentAccount Number (PAN) by every participant in securities market Members holding shares inelectronic form are therefore requested to submit PAN to their Depository Participants with whomthey are maintaining their demat account Members holding shares in physical form can submit theirPAN details to the Company Registrars and Transfer Agents Ms Bigshare Services Pvt Ltd
8 All documents referred to in the accompanying notice and Explanatory Statements are open forinspection at the Registered Office of the Company on all working days except Saturday andSunday between 1100 am to 300 pm up to the date of Annual General Meeting of the company
9 The Companyrsquos Shares have been activated for dematerialization both with National SecuritiesDepository Ltd and Central Depository Services (India) Ltd Those shareholders who wish to holdshares in electronic form may approach their Depository Participants The existing ISIN No of theEquity Shares of the company is INE082C01024
STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013
Item No 6Shri Hareshkumar I Shah (DIN 0216585) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2005Shri Hareshkumar I Shah aged 68 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria and Shri Hareshkumar I Shah is servingsince last 9 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Hareshkumar I Shah as an Independent DirectorItem No 7Shri Vinodkumar C Desai (DIN 02813402) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Vinodkumar C Desai aged 55 years is a Production Engineer by profession holding a degree ofBE Production He is having vast experience in manufacturing amp production line Shri Vinodkumar CDesai is serving since last 4 years in our Company as an Independent Director He does not hold anydirectorships in other companies nor is member or chairman of committees in other public CompanyHe does not hold any shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Vinodkumar C Desai as an Independent DirectorItem No 8Shri Naimeshbhai B Patel (DIN 002813295 ) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Naimeshbhai B Patel aged 57 years is a Mechanical Engineer by profession holding a degreeof BE Mechanical He is having vast experience in his core aria Shri Naimeshbhai B Patel is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships in
4
22nd Annual Report 2013-2014
other companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Naimeshbhai B Patel as an Independent DirectorItem No 9Shri Girishbhai N Desai (DIN 002824731) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Girishbhai N Desai aged 66 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria Shri Girishbhai N Desai is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Girishbhai N Desai as an Independent DirectorItem No 10Shri Ramanbhai R Patel (DIN 05224867) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in February 2012Shri Ramanbhai R Patel aged 71 years holding a degree of MSC(Chemistry) He worked as chemistryprofessor in various engineering colleges Shri Ramanbhai R Patel is serving since last 2 years in ourCompany as an Independent Director He does not hold any directorships in other companies nor ismember or chairman of committees in other public Company He does not hold any shares in theCompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Ramanbhai R Patel as an Independent Director
Details of Directors seeking appointment re-appointment at the forthcoming Annual General Meeting(Pursuant to Clause 49 of the Listing Agreement)
Name of Director Date of Date of Experience Qualifications Directorship Member Birth Appointment in specific held in other Chairman
functional Public Limited of Committeesareas Companies in other
Public LimitedCompanies
Shri Prakashbhai N Patel 23071966 27052004 Engineering BE(Mechanical) Nil Nil(DIN No00249210) IndustryShri Narendrabhai G Patel 13021958 21061994 Engineering BE(Mechanical) Nil Nil(DIN No00023205) Industry DBMShri Girishbhai N Desai 15011948 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02824731) IndustryShri Hareshkumar I Shah 18-10-1946 29-10-2005 Businessman BE(Mechanical) Nil Nil(DIN No00216585)Shri Naimeshbhai B Patel 22021957 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02813295) IndustryShri Vinodkumar C Desai 16021959 30102009 Engineering BE (Production) Nil Nil(DIN No02813402) IndustryShri Ramanbhai R Patel 07081943 11022012 Education MSC (Chemistry) Nil Nil(Din No05224867)
Patels Airtemp (India) Ltd
5
DIRECTORSrsquo REPORTDear MembersPatels Airtemp (India) LtdYour Directors have pleasure in presenting this 22nd Annual Report together with the Audited Statementsof Accounts for the year ended on 31st March 2014
FINANCIAL RESULTS(` in Lacs)
Particulars 2013-14 2012-13
Sales and Other Income (Including Excise Duties) 758652 991923Profit before Interest and Finance Charges 101453 116067Depreciation and Taxes amp prior period AdjustmentLess Interest amp Finance Charges 11922 27197Depreciation 17169 15271Profit before Taxation 72362 73599Provision for Taxation - Current 21900 23000
- Deferred 3239 1193- Wealth Tax 101 080- Short (Excess) Provision of earlier year WO 360 058- Short (Excess) Provision of Wealth Tax (004) (020)
Profit after Tax 46766 49288Less Prior Period Adjustment 121 (176)
Net Profit 46645 49464Balance brought forward from previous year 350843 322164Less Corporate Dividend Tax 1645 1645Less Proposed Dividend 10141 10141Less Transfer to General Reserve 9000 9000
Surplus carried forward to Balance Sheet 376702 350843Earning Per Share 920 976
DIVIDEND
Your Directors are pleased to recommend payment of dividend for the year ended March 31 2014Rs2- per Equity Share of the face value of Rs10- (ie 20) on 5070240 paid up Equity Sharessubject to approval of shareholders at the Annual General Meeting The Corporate Dividend Tax worksout to Rs1645 lacs
PERFORMANCE
The slowing down in the economy has impacted the sales during the fiscal year 2013-14 During theyear under consideration your Companyrsquos Net sales including export sales of Rs707522 againstRs905795 Profit Before Tax is Rs72362 lacs as compared to the previous year of Rs73599 lacsThe net Profit after tax at Rs 46645 lacs as compared to the previous year of Rs49464 lacs
FUTURE PROSPECTS
As per the present policy of the Government of India amp current scenario there is a thrust on developmentof various infrastructure sectors and accordingly Government is continuously spending and developingrefineries fertilizer projects amp thermal power plant There is wide scope for the Company to supply theCapital goods equipments to the Companies under this segment As you are aware your Company isfocusing on the business of manufacturing a range of shell and tube Heat exchangers Air cooled HeatExchangers Refrigeration and Air Conditioning equipments pressure vessels etc which broadly fallunder the category of capital goods They have multifarious applications in several industries
6
22nd Annual Report 2013-2014
Your Company has started focusing not only on the domestic market but also on the internationalmarket and your directors are pleased to inform the members that in the current fiscal year FY 2013-14your company has continued long term supply arrangements with a leading global manufacturer ofheat exchangers whereby your company has started manufacturing and supplying heat exchangers toentered into after an exhaustive audit of your Companyrsquos facilities and capabilities and this augurs verywell for your company and it is a testimony that your companyrsquos facilities and capabilities are capableto meet very strict international standardsAs you aware that the Company is in engineering industry and is engaged in manufacturingfabricatingtailor made machines and therefore the order book position of such type of company can play pivotalrole in the growth of the Company Your directors are pleased to state that continuing the past trend theCompany is having confirmed orders of about Rs13637 Crore on hand as on 27th May2014 Thus yourdirectors are quite bullish on repeating similar performance in future Your directors are cautious andmaking untiring efforts so as not to compromise on growth quality and profitability of the Company
DEPOSITSThe Company has not invited accepted any deposits from the public under the provisions of Section58A of the Companies Act 1956 and rules made there under
DIRECTORSShri Prakashbhai N Patel and Shri Narendrabhai G Patel retire by rotation and being eligible offerthemselves for the reappointment
Pursuant to Section 149 of the Companies Act 2013 the Board at its meeting held on 27 May 2014recommended appointment of Shri Harishkumar I Shah (DIN 00216585) Shri Vinodkumar C Desai(DIN 02813402) Shri Naimeshbhai B Patel (DIN 002813295) Shri Girishbhai N Desai (DIN002824731) and Shri Ramanbhai R Patel (DIN 05224867) as an Independent Directors of the Companynot liable to retire by rotation for a period of five years from the date of its 22nd Annual General Meetingsubject to approval of the Members of the CompanyThe Company has received declarations from all the Independent Directors of the Company confirmingthat they meet with the criteria of independence as prescribed both under sub-section (6) of Section149 of the Companies Act 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges
The particulars of the directors retiring by rotation are given in the notice explanatory statementportion of the accompanying noticeCORPORATE GOVERNANCE
The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement formspart of the Annual ReportThe requisite certificate from the Auditors of the Company confirming compliance with the conditions ofcorporate governance as stipulated under the aforesaid Clause 49 is attached to the Report oncorporate governanceLISTING OF SECURITIES
Your companyrsquos Equity shares are listed on Bombay Stock Exchange Ltd (BSE) The Company haspaid Annual Listing Fees for the year 2014-15 to the Stock ExchangeDIRECTORSrsquo RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 with respect toDirectorsrsquo Responsibility Statement it is hereby confirmed that(i) in preparation of the annual accounts all the applicable accounting standards have been followed
along with proper explanation relating to material departures
(ii) the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and of the profit and loss accountof the Company for the year under review
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
3
Year 2011-12 amp Dividend for Financial Year 2012-13 are advised to submit their claim to theRegistrar Company immediately quoting their folio number The Unpaid Unclaimed Dividendfor the year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 amp 2012-13 (includingInterim Dividend) will become due for transfer to Investor Education amp Protection Fund Accountin October November 2014 amp then after Once the unclaimed dividend is transferred to thefund no claim shall lie against the fund or the Company in respect of the individual amountswhich were unclaimed or unpaidPlease note that any dividend amount for 2006-07 remaining unclaimed unpaid along withshares held in these folios as on 27092014 shall be transferred to the Investor Educationand Protection Fund account
7 The Securities and Exchange of Board of India (SEBI) has mandated the submission of PermanentAccount Number (PAN) by every participant in securities market Members holding shares inelectronic form are therefore requested to submit PAN to their Depository Participants with whomthey are maintaining their demat account Members holding shares in physical form can submit theirPAN details to the Company Registrars and Transfer Agents Ms Bigshare Services Pvt Ltd
8 All documents referred to in the accompanying notice and Explanatory Statements are open forinspection at the Registered Office of the Company on all working days except Saturday andSunday between 1100 am to 300 pm up to the date of Annual General Meeting of the company
9 The Companyrsquos Shares have been activated for dematerialization both with National SecuritiesDepository Ltd and Central Depository Services (India) Ltd Those shareholders who wish to holdshares in electronic form may approach their Depository Participants The existing ISIN No of theEquity Shares of the company is INE082C01024
STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013
Item No 6Shri Hareshkumar I Shah (DIN 0216585) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2005Shri Hareshkumar I Shah aged 68 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria and Shri Hareshkumar I Shah is servingsince last 9 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Hareshkumar I Shah as an Independent DirectorItem No 7Shri Vinodkumar C Desai (DIN 02813402) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Vinodkumar C Desai aged 55 years is a Production Engineer by profession holding a degree ofBE Production He is having vast experience in manufacturing amp production line Shri Vinodkumar CDesai is serving since last 4 years in our Company as an Independent Director He does not hold anydirectorships in other companies nor is member or chairman of committees in other public CompanyHe does not hold any shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Vinodkumar C Desai as an Independent DirectorItem No 8Shri Naimeshbhai B Patel (DIN 002813295 ) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Naimeshbhai B Patel aged 57 years is a Mechanical Engineer by profession holding a degreeof BE Mechanical He is having vast experience in his core aria Shri Naimeshbhai B Patel is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships in
4
22nd Annual Report 2013-2014
other companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Naimeshbhai B Patel as an Independent DirectorItem No 9Shri Girishbhai N Desai (DIN 002824731) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Girishbhai N Desai aged 66 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria Shri Girishbhai N Desai is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Girishbhai N Desai as an Independent DirectorItem No 10Shri Ramanbhai R Patel (DIN 05224867) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in February 2012Shri Ramanbhai R Patel aged 71 years holding a degree of MSC(Chemistry) He worked as chemistryprofessor in various engineering colleges Shri Ramanbhai R Patel is serving since last 2 years in ourCompany as an Independent Director He does not hold any directorships in other companies nor ismember or chairman of committees in other public Company He does not hold any shares in theCompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Ramanbhai R Patel as an Independent Director
Details of Directors seeking appointment re-appointment at the forthcoming Annual General Meeting(Pursuant to Clause 49 of the Listing Agreement)
Name of Director Date of Date of Experience Qualifications Directorship Member Birth Appointment in specific held in other Chairman
functional Public Limited of Committeesareas Companies in other
Public LimitedCompanies
Shri Prakashbhai N Patel 23071966 27052004 Engineering BE(Mechanical) Nil Nil(DIN No00249210) IndustryShri Narendrabhai G Patel 13021958 21061994 Engineering BE(Mechanical) Nil Nil(DIN No00023205) Industry DBMShri Girishbhai N Desai 15011948 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02824731) IndustryShri Hareshkumar I Shah 18-10-1946 29-10-2005 Businessman BE(Mechanical) Nil Nil(DIN No00216585)Shri Naimeshbhai B Patel 22021957 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02813295) IndustryShri Vinodkumar C Desai 16021959 30102009 Engineering BE (Production) Nil Nil(DIN No02813402) IndustryShri Ramanbhai R Patel 07081943 11022012 Education MSC (Chemistry) Nil Nil(Din No05224867)
Patels Airtemp (India) Ltd
5
DIRECTORSrsquo REPORTDear MembersPatels Airtemp (India) LtdYour Directors have pleasure in presenting this 22nd Annual Report together with the Audited Statementsof Accounts for the year ended on 31st March 2014
FINANCIAL RESULTS(` in Lacs)
Particulars 2013-14 2012-13
Sales and Other Income (Including Excise Duties) 758652 991923Profit before Interest and Finance Charges 101453 116067Depreciation and Taxes amp prior period AdjustmentLess Interest amp Finance Charges 11922 27197Depreciation 17169 15271Profit before Taxation 72362 73599Provision for Taxation - Current 21900 23000
- Deferred 3239 1193- Wealth Tax 101 080- Short (Excess) Provision of earlier year WO 360 058- Short (Excess) Provision of Wealth Tax (004) (020)
Profit after Tax 46766 49288Less Prior Period Adjustment 121 (176)
Net Profit 46645 49464Balance brought forward from previous year 350843 322164Less Corporate Dividend Tax 1645 1645Less Proposed Dividend 10141 10141Less Transfer to General Reserve 9000 9000
Surplus carried forward to Balance Sheet 376702 350843Earning Per Share 920 976
DIVIDEND
Your Directors are pleased to recommend payment of dividend for the year ended March 31 2014Rs2- per Equity Share of the face value of Rs10- (ie 20) on 5070240 paid up Equity Sharessubject to approval of shareholders at the Annual General Meeting The Corporate Dividend Tax worksout to Rs1645 lacs
PERFORMANCE
The slowing down in the economy has impacted the sales during the fiscal year 2013-14 During theyear under consideration your Companyrsquos Net sales including export sales of Rs707522 againstRs905795 Profit Before Tax is Rs72362 lacs as compared to the previous year of Rs73599 lacsThe net Profit after tax at Rs 46645 lacs as compared to the previous year of Rs49464 lacs
FUTURE PROSPECTS
As per the present policy of the Government of India amp current scenario there is a thrust on developmentof various infrastructure sectors and accordingly Government is continuously spending and developingrefineries fertilizer projects amp thermal power plant There is wide scope for the Company to supply theCapital goods equipments to the Companies under this segment As you are aware your Company isfocusing on the business of manufacturing a range of shell and tube Heat exchangers Air cooled HeatExchangers Refrigeration and Air Conditioning equipments pressure vessels etc which broadly fallunder the category of capital goods They have multifarious applications in several industries
6
22nd Annual Report 2013-2014
Your Company has started focusing not only on the domestic market but also on the internationalmarket and your directors are pleased to inform the members that in the current fiscal year FY 2013-14your company has continued long term supply arrangements with a leading global manufacturer ofheat exchangers whereby your company has started manufacturing and supplying heat exchangers toentered into after an exhaustive audit of your Companyrsquos facilities and capabilities and this augurs verywell for your company and it is a testimony that your companyrsquos facilities and capabilities are capableto meet very strict international standardsAs you aware that the Company is in engineering industry and is engaged in manufacturingfabricatingtailor made machines and therefore the order book position of such type of company can play pivotalrole in the growth of the Company Your directors are pleased to state that continuing the past trend theCompany is having confirmed orders of about Rs13637 Crore on hand as on 27th May2014 Thus yourdirectors are quite bullish on repeating similar performance in future Your directors are cautious andmaking untiring efforts so as not to compromise on growth quality and profitability of the Company
DEPOSITSThe Company has not invited accepted any deposits from the public under the provisions of Section58A of the Companies Act 1956 and rules made there under
DIRECTORSShri Prakashbhai N Patel and Shri Narendrabhai G Patel retire by rotation and being eligible offerthemselves for the reappointment
Pursuant to Section 149 of the Companies Act 2013 the Board at its meeting held on 27 May 2014recommended appointment of Shri Harishkumar I Shah (DIN 00216585) Shri Vinodkumar C Desai(DIN 02813402) Shri Naimeshbhai B Patel (DIN 002813295) Shri Girishbhai N Desai (DIN002824731) and Shri Ramanbhai R Patel (DIN 05224867) as an Independent Directors of the Companynot liable to retire by rotation for a period of five years from the date of its 22nd Annual General Meetingsubject to approval of the Members of the CompanyThe Company has received declarations from all the Independent Directors of the Company confirmingthat they meet with the criteria of independence as prescribed both under sub-section (6) of Section149 of the Companies Act 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges
The particulars of the directors retiring by rotation are given in the notice explanatory statementportion of the accompanying noticeCORPORATE GOVERNANCE
The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement formspart of the Annual ReportThe requisite certificate from the Auditors of the Company confirming compliance with the conditions ofcorporate governance as stipulated under the aforesaid Clause 49 is attached to the Report oncorporate governanceLISTING OF SECURITIES
Your companyrsquos Equity shares are listed on Bombay Stock Exchange Ltd (BSE) The Company haspaid Annual Listing Fees for the year 2014-15 to the Stock ExchangeDIRECTORSrsquo RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 with respect toDirectorsrsquo Responsibility Statement it is hereby confirmed that(i) in preparation of the annual accounts all the applicable accounting standards have been followed
along with proper explanation relating to material departures
(ii) the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and of the profit and loss accountof the Company for the year under review
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
4
22nd Annual Report 2013-2014
other companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Naimeshbhai B Patel as an Independent DirectorItem No 9Shri Girishbhai N Desai (DIN 002824731) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in September 2009Shri Girishbhai N Desai aged 66 years is a Mechanical Engineer by profession holding a degree ofBE Mechanical He is having vast experience in his core aria Shri Girishbhai N Desai is servingsince last 4 years in our Company as an Independent Director He does not hold any directorships inother companies nor is member or chairman of committees in other public Company He does not holdany shares in the CompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Girishbhai N Desai as an Independent DirectorItem No 10Shri Ramanbhai R Patel (DIN 05224867) is a Non-Executive Independent Director of the CompanyHe joined the Board of Directors of the Company in February 2012Shri Ramanbhai R Patel aged 71 years holding a degree of MSC(Chemistry) He worked as chemistryprofessor in various engineering colleges Shri Ramanbhai R Patel is serving since last 2 years in ourCompany as an Independent Director He does not hold any directorships in other companies nor ismember or chairman of committees in other public Company He does not hold any shares in theCompanyThe Board considers that his continued association would be of immense benefit to the Company andit is desirable to continue to avail services of Shri Ramanbhai R Patel as an Independent Director
Details of Directors seeking appointment re-appointment at the forthcoming Annual General Meeting(Pursuant to Clause 49 of the Listing Agreement)
Name of Director Date of Date of Experience Qualifications Directorship Member Birth Appointment in specific held in other Chairman
functional Public Limited of Committeesareas Companies in other
Public LimitedCompanies
Shri Prakashbhai N Patel 23071966 27052004 Engineering BE(Mechanical) Nil Nil(DIN No00249210) IndustryShri Narendrabhai G Patel 13021958 21061994 Engineering BE(Mechanical) Nil Nil(DIN No00023205) Industry DBMShri Girishbhai N Desai 15011948 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02824731) IndustryShri Hareshkumar I Shah 18-10-1946 29-10-2005 Businessman BE(Mechanical) Nil Nil(DIN No00216585)Shri Naimeshbhai B Patel 22021957 30102009 Engineering BE(Mechanical) Nil Nil(DIN No02813295) IndustryShri Vinodkumar C Desai 16021959 30102009 Engineering BE (Production) Nil Nil(DIN No02813402) IndustryShri Ramanbhai R Patel 07081943 11022012 Education MSC (Chemistry) Nil Nil(Din No05224867)
Patels Airtemp (India) Ltd
5
DIRECTORSrsquo REPORTDear MembersPatels Airtemp (India) LtdYour Directors have pleasure in presenting this 22nd Annual Report together with the Audited Statementsof Accounts for the year ended on 31st March 2014
FINANCIAL RESULTS(` in Lacs)
Particulars 2013-14 2012-13
Sales and Other Income (Including Excise Duties) 758652 991923Profit before Interest and Finance Charges 101453 116067Depreciation and Taxes amp prior period AdjustmentLess Interest amp Finance Charges 11922 27197Depreciation 17169 15271Profit before Taxation 72362 73599Provision for Taxation - Current 21900 23000
- Deferred 3239 1193- Wealth Tax 101 080- Short (Excess) Provision of earlier year WO 360 058- Short (Excess) Provision of Wealth Tax (004) (020)
Profit after Tax 46766 49288Less Prior Period Adjustment 121 (176)
Net Profit 46645 49464Balance brought forward from previous year 350843 322164Less Corporate Dividend Tax 1645 1645Less Proposed Dividend 10141 10141Less Transfer to General Reserve 9000 9000
Surplus carried forward to Balance Sheet 376702 350843Earning Per Share 920 976
DIVIDEND
Your Directors are pleased to recommend payment of dividend for the year ended March 31 2014Rs2- per Equity Share of the face value of Rs10- (ie 20) on 5070240 paid up Equity Sharessubject to approval of shareholders at the Annual General Meeting The Corporate Dividend Tax worksout to Rs1645 lacs
PERFORMANCE
The slowing down in the economy has impacted the sales during the fiscal year 2013-14 During theyear under consideration your Companyrsquos Net sales including export sales of Rs707522 againstRs905795 Profit Before Tax is Rs72362 lacs as compared to the previous year of Rs73599 lacsThe net Profit after tax at Rs 46645 lacs as compared to the previous year of Rs49464 lacs
FUTURE PROSPECTS
As per the present policy of the Government of India amp current scenario there is a thrust on developmentof various infrastructure sectors and accordingly Government is continuously spending and developingrefineries fertilizer projects amp thermal power plant There is wide scope for the Company to supply theCapital goods equipments to the Companies under this segment As you are aware your Company isfocusing on the business of manufacturing a range of shell and tube Heat exchangers Air cooled HeatExchangers Refrigeration and Air Conditioning equipments pressure vessels etc which broadly fallunder the category of capital goods They have multifarious applications in several industries
6
22nd Annual Report 2013-2014
Your Company has started focusing not only on the domestic market but also on the internationalmarket and your directors are pleased to inform the members that in the current fiscal year FY 2013-14your company has continued long term supply arrangements with a leading global manufacturer ofheat exchangers whereby your company has started manufacturing and supplying heat exchangers toentered into after an exhaustive audit of your Companyrsquos facilities and capabilities and this augurs verywell for your company and it is a testimony that your companyrsquos facilities and capabilities are capableto meet very strict international standardsAs you aware that the Company is in engineering industry and is engaged in manufacturingfabricatingtailor made machines and therefore the order book position of such type of company can play pivotalrole in the growth of the Company Your directors are pleased to state that continuing the past trend theCompany is having confirmed orders of about Rs13637 Crore on hand as on 27th May2014 Thus yourdirectors are quite bullish on repeating similar performance in future Your directors are cautious andmaking untiring efforts so as not to compromise on growth quality and profitability of the Company
DEPOSITSThe Company has not invited accepted any deposits from the public under the provisions of Section58A of the Companies Act 1956 and rules made there under
DIRECTORSShri Prakashbhai N Patel and Shri Narendrabhai G Patel retire by rotation and being eligible offerthemselves for the reappointment
Pursuant to Section 149 of the Companies Act 2013 the Board at its meeting held on 27 May 2014recommended appointment of Shri Harishkumar I Shah (DIN 00216585) Shri Vinodkumar C Desai(DIN 02813402) Shri Naimeshbhai B Patel (DIN 002813295) Shri Girishbhai N Desai (DIN002824731) and Shri Ramanbhai R Patel (DIN 05224867) as an Independent Directors of the Companynot liable to retire by rotation for a period of five years from the date of its 22nd Annual General Meetingsubject to approval of the Members of the CompanyThe Company has received declarations from all the Independent Directors of the Company confirmingthat they meet with the criteria of independence as prescribed both under sub-section (6) of Section149 of the Companies Act 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges
The particulars of the directors retiring by rotation are given in the notice explanatory statementportion of the accompanying noticeCORPORATE GOVERNANCE
The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement formspart of the Annual ReportThe requisite certificate from the Auditors of the Company confirming compliance with the conditions ofcorporate governance as stipulated under the aforesaid Clause 49 is attached to the Report oncorporate governanceLISTING OF SECURITIES
Your companyrsquos Equity shares are listed on Bombay Stock Exchange Ltd (BSE) The Company haspaid Annual Listing Fees for the year 2014-15 to the Stock ExchangeDIRECTORSrsquo RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 with respect toDirectorsrsquo Responsibility Statement it is hereby confirmed that(i) in preparation of the annual accounts all the applicable accounting standards have been followed
along with proper explanation relating to material departures
(ii) the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and of the profit and loss accountof the Company for the year under review
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
5
DIRECTORSrsquo REPORTDear MembersPatels Airtemp (India) LtdYour Directors have pleasure in presenting this 22nd Annual Report together with the Audited Statementsof Accounts for the year ended on 31st March 2014
FINANCIAL RESULTS(` in Lacs)
Particulars 2013-14 2012-13
Sales and Other Income (Including Excise Duties) 758652 991923Profit before Interest and Finance Charges 101453 116067Depreciation and Taxes amp prior period AdjustmentLess Interest amp Finance Charges 11922 27197Depreciation 17169 15271Profit before Taxation 72362 73599Provision for Taxation - Current 21900 23000
- Deferred 3239 1193- Wealth Tax 101 080- Short (Excess) Provision of earlier year WO 360 058- Short (Excess) Provision of Wealth Tax (004) (020)
Profit after Tax 46766 49288Less Prior Period Adjustment 121 (176)
Net Profit 46645 49464Balance brought forward from previous year 350843 322164Less Corporate Dividend Tax 1645 1645Less Proposed Dividend 10141 10141Less Transfer to General Reserve 9000 9000
Surplus carried forward to Balance Sheet 376702 350843Earning Per Share 920 976
DIVIDEND
Your Directors are pleased to recommend payment of dividend for the year ended March 31 2014Rs2- per Equity Share of the face value of Rs10- (ie 20) on 5070240 paid up Equity Sharessubject to approval of shareholders at the Annual General Meeting The Corporate Dividend Tax worksout to Rs1645 lacs
PERFORMANCE
The slowing down in the economy has impacted the sales during the fiscal year 2013-14 During theyear under consideration your Companyrsquos Net sales including export sales of Rs707522 againstRs905795 Profit Before Tax is Rs72362 lacs as compared to the previous year of Rs73599 lacsThe net Profit after tax at Rs 46645 lacs as compared to the previous year of Rs49464 lacs
FUTURE PROSPECTS
As per the present policy of the Government of India amp current scenario there is a thrust on developmentof various infrastructure sectors and accordingly Government is continuously spending and developingrefineries fertilizer projects amp thermal power plant There is wide scope for the Company to supply theCapital goods equipments to the Companies under this segment As you are aware your Company isfocusing on the business of manufacturing a range of shell and tube Heat exchangers Air cooled HeatExchangers Refrigeration and Air Conditioning equipments pressure vessels etc which broadly fallunder the category of capital goods They have multifarious applications in several industries
6
22nd Annual Report 2013-2014
Your Company has started focusing not only on the domestic market but also on the internationalmarket and your directors are pleased to inform the members that in the current fiscal year FY 2013-14your company has continued long term supply arrangements with a leading global manufacturer ofheat exchangers whereby your company has started manufacturing and supplying heat exchangers toentered into after an exhaustive audit of your Companyrsquos facilities and capabilities and this augurs verywell for your company and it is a testimony that your companyrsquos facilities and capabilities are capableto meet very strict international standardsAs you aware that the Company is in engineering industry and is engaged in manufacturingfabricatingtailor made machines and therefore the order book position of such type of company can play pivotalrole in the growth of the Company Your directors are pleased to state that continuing the past trend theCompany is having confirmed orders of about Rs13637 Crore on hand as on 27th May2014 Thus yourdirectors are quite bullish on repeating similar performance in future Your directors are cautious andmaking untiring efforts so as not to compromise on growth quality and profitability of the Company
DEPOSITSThe Company has not invited accepted any deposits from the public under the provisions of Section58A of the Companies Act 1956 and rules made there under
DIRECTORSShri Prakashbhai N Patel and Shri Narendrabhai G Patel retire by rotation and being eligible offerthemselves for the reappointment
Pursuant to Section 149 of the Companies Act 2013 the Board at its meeting held on 27 May 2014recommended appointment of Shri Harishkumar I Shah (DIN 00216585) Shri Vinodkumar C Desai(DIN 02813402) Shri Naimeshbhai B Patel (DIN 002813295) Shri Girishbhai N Desai (DIN002824731) and Shri Ramanbhai R Patel (DIN 05224867) as an Independent Directors of the Companynot liable to retire by rotation for a period of five years from the date of its 22nd Annual General Meetingsubject to approval of the Members of the CompanyThe Company has received declarations from all the Independent Directors of the Company confirmingthat they meet with the criteria of independence as prescribed both under sub-section (6) of Section149 of the Companies Act 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges
The particulars of the directors retiring by rotation are given in the notice explanatory statementportion of the accompanying noticeCORPORATE GOVERNANCE
The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement formspart of the Annual ReportThe requisite certificate from the Auditors of the Company confirming compliance with the conditions ofcorporate governance as stipulated under the aforesaid Clause 49 is attached to the Report oncorporate governanceLISTING OF SECURITIES
Your companyrsquos Equity shares are listed on Bombay Stock Exchange Ltd (BSE) The Company haspaid Annual Listing Fees for the year 2014-15 to the Stock ExchangeDIRECTORSrsquo RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 with respect toDirectorsrsquo Responsibility Statement it is hereby confirmed that(i) in preparation of the annual accounts all the applicable accounting standards have been followed
along with proper explanation relating to material departures
(ii) the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and of the profit and loss accountof the Company for the year under review
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
6
22nd Annual Report 2013-2014
Your Company has started focusing not only on the domestic market but also on the internationalmarket and your directors are pleased to inform the members that in the current fiscal year FY 2013-14your company has continued long term supply arrangements with a leading global manufacturer ofheat exchangers whereby your company has started manufacturing and supplying heat exchangers toentered into after an exhaustive audit of your Companyrsquos facilities and capabilities and this augurs verywell for your company and it is a testimony that your companyrsquos facilities and capabilities are capableto meet very strict international standardsAs you aware that the Company is in engineering industry and is engaged in manufacturingfabricatingtailor made machines and therefore the order book position of such type of company can play pivotalrole in the growth of the Company Your directors are pleased to state that continuing the past trend theCompany is having confirmed orders of about Rs13637 Crore on hand as on 27th May2014 Thus yourdirectors are quite bullish on repeating similar performance in future Your directors are cautious andmaking untiring efforts so as not to compromise on growth quality and profitability of the Company
DEPOSITSThe Company has not invited accepted any deposits from the public under the provisions of Section58A of the Companies Act 1956 and rules made there under
DIRECTORSShri Prakashbhai N Patel and Shri Narendrabhai G Patel retire by rotation and being eligible offerthemselves for the reappointment
Pursuant to Section 149 of the Companies Act 2013 the Board at its meeting held on 27 May 2014recommended appointment of Shri Harishkumar I Shah (DIN 00216585) Shri Vinodkumar C Desai(DIN 02813402) Shri Naimeshbhai B Patel (DIN 002813295) Shri Girishbhai N Desai (DIN002824731) and Shri Ramanbhai R Patel (DIN 05224867) as an Independent Directors of the Companynot liable to retire by rotation for a period of five years from the date of its 22nd Annual General Meetingsubject to approval of the Members of the CompanyThe Company has received declarations from all the Independent Directors of the Company confirmingthat they meet with the criteria of independence as prescribed both under sub-section (6) of Section149 of the Companies Act 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges
The particulars of the directors retiring by rotation are given in the notice explanatory statementportion of the accompanying noticeCORPORATE GOVERNANCE
The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement formspart of the Annual ReportThe requisite certificate from the Auditors of the Company confirming compliance with the conditions ofcorporate governance as stipulated under the aforesaid Clause 49 is attached to the Report oncorporate governanceLISTING OF SECURITIES
Your companyrsquos Equity shares are listed on Bombay Stock Exchange Ltd (BSE) The Company haspaid Annual Listing Fees for the year 2014-15 to the Stock ExchangeDIRECTORSrsquo RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies Act 1956 with respect toDirectorsrsquo Responsibility Statement it is hereby confirmed that(i) in preparation of the annual accounts all the applicable accounting standards have been followed
along with proper explanation relating to material departures
(ii) the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that were reasonable and prudent so as to give a true and fair view ofthe state of affairs of the company at the end of the financial year and of the profit and loss accountof the Company for the year under review
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
7
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 1956 for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities
(iv) the Directors have prepared the Annual Accounts for the financial year ended 31st March 2014on a lsquogoing concernrsquo basis
STATUTORY AUDITORS
Ms Parikh amp Majmudar Chartered Accountants (Reg No 107525W) Ahmedabad Auditors of theCompany hold office until the conclusion of the ensuing Annual General Meeting The Company hasreceived a letter to the effect that their appointment would be within the prescribed limits under Section141(3)(g) of the companies Act 2013 The Board hereby requests the members to reappoint MsParikh amp Majmudar Chartered Accountants Ahmedabad as the Auditors of the Company from theconclusion of this Annual General Meeting till the conclusion of next Annual General Meeting
Your Directors request you to appoint Auditors as proposed and as set out in the accompanying noticeof the Annual General Meeting
COST AUDITORS
In terms of Circular No 5226CAB-2010 dated 24th January 2012 received from the Cost Audit Branchof the Ministry of Corporate Affairs and pursuant to the provisions of section 224(1B) read with section233B of the Companies Act 1956 Rajendra Patel amp Associates Cost Accountant Ahmedabad wereappointed as the cost auditors of the Company for the year ending 31st March 2014
Further the Compliance Report in respect of the FY 2012-13 was filed by the Cost Auditor in the XBRLmode in Form-A within the due date to the Central Government
PERSONNEL
There is no employee drawing remuneration for which information is required to be submitted underSection 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules1975 as amended hence not given
VIGIL MECHANISM
In pursuant to the provisions of section 177(9) amp (10) of the Companies Act 2013 a vigil mechanism fordirectors and employees to report genuine concerns has been established
CONSERVATION OF ENERGY
The main source of energy is power However power is not a major input in the manufacturing processand therefore no substantial conservation of energy is possible Again the Company is not required togive the particulars in the prescribed Form A under Rule 2 of the Companies (Disclosure of Particularsin the Report of the Board of Directors) Rules 1988
RESEARCH amp DEVELOPMENT AND TECHNOLOGY ABSORPTION
The particulars as required under Section 217(1) (e) of the Companies Act 1956 read with theCompanies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 with respectto Research amp Development and Technology Absorption are given in Annexure to this report
CORPORATE SOCIAL RESPONSIBILITY
In pursuant to the provisions of section 135 and schedule VII of the Companies Act 2013 CSRCommittee of the Board of Directors was formed to recommend (a) the policy on Corporate SocialResponsibility (CSR) and (b) implementation of the CSR Projects or Programs to be undertaken by theCompany as per CSR Policy for consideration and approval by the Board of Directors
8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
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8
22nd Annual Report 2013-2014
APPRECIATIONYour Directors wish to place on record their deep appreciation of the continued support and guidanceprovided by the Central and State Governments and all Regulatory bodiesYour Directors also take opportunity to thanks the esteemed shareholders customers businessassociates and Companyrsquos Banks for the faith reposed by them in your Company and its managementYour Directors place on record their deep appreciation of the dedication and commitment of yourCompanyrsquos employees at all levels and look forward to their support in the future as well
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
ANNEXURE TO THE DIRECTORSrsquo REPORT
Disclosure of Particulars with respect to Technology Absorption and Research amp Development asrequired under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules1988
Form ndash B
Technology Absorption
(1) Research amp Development (R amp D)
The Company has established a well equipped testing amp NDE laboratory with the number ofsophisticated instruments for testing and non destructive examination related to the productbeing manufactured To upgrade the technology and technical qualifications your Companyhas renewed ASME ldquoUrdquo and ldquoNBrdquolsquoRrsquo Stamp of National Board of USA and added ASME rdquoU2ldquoSrdquo Stamp authorization for improving the system and quality Your Company is ISO 9001-2008certified Various technical softwares like PVElite Auto Desk Mechanical Microprotol PaulinResearch Group etc were updated for design amp development of various products
(2) Technology Absorption Adaptation amp Innovation
The company has invested about Rs 340 Crore for Plant amp Machineries to upgrade HI-techequipments The Company has HTRI Membership agreement for Catagory - II and Licenceagreement for EHT (for enhanced heat transfer) and Honeywell Uni Sim UHX (for feed waterheater) for latest technology in Heat Transfer from USA For Air cooled Heat Exchangersanother finning machine is added for fast delivery period In-house systems and operationsare being innovated for better quality and to perform up to customersrsquo requirement
For and on behalf of the Board of Directors
Place RakanpurDate 27th May 2014 NARAYANBHAI G PATEL
CHAIRMAN amp MANAGING DIRECTOR
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
9
CORPORATE GOVERANANCE REPORT(Pursuant to Clause 49 of the Listing Agreement)
The detailed report on Corporate Governance as per the format prescribed by SEBI and incorporated in Clause 49of the Listing Agreement is set out below1 CORPORATE GOVERANANCE PHILOSOPHY
The Companyrsquos philosophy on Corporate Governance envisages the attainment of high level transparencyand accountability in the functioning of the Company and the conduct of its business internally and externallyincluding its interaction with employees shareholders creditors consumers and institutional and other lendersand places due emphasis on regulatory complianceTraditional views of governance as a regulatory and compliance requirement have given a way for adoptionof governance as an integral part of the Company Several initiatives have been taken for maintaining thehighest standards which include efficient shareholdersrsquo communications observance of Secretarial Standardsissued by the Institute of Company Secretaries of India Best Governance PracticesThe Company in pursuance of Code of Corporate Governance strongly believe that it must organize itsaffairs to the utmost satisfaction of all the concerned The Company believes that the governance normsoriginating in the stock market institutions as an integral part of its Corporate Governance Philosophy shouldbe respected both in letter and spirit The Company endeavor to ensure transparency control and accountabilityin all areas of its operationsThe Company will continue its journey in raising the standards in Corporate Governance and will also reviewits systems and procedures constantly to keep pace with the changing economic environment
2 BOARD OF DIRECTORSThe Board of Directors of the company comprises of the combination of Executive and Non-ExecutiveDirectors Out of total strength of ten Directors five Directors are Promoter Executive Directors and fiveDirectors are Non-executive and Independent Directors Committees like Audit Committee RemunerationCommittee and Investorsrsquo Grievance and Share Transfer Committee comprise majority of IndependenceDirectors being their Chairman and membersThe names and category of Directors on the Board as on 31st March 2014 and as on the date of this report thenumber of Directorship and Committee Membership held by them in other Public Companies their attendanceat the Board Meetings held during the financial year 2013-14 and also at the last AGM held is given below
Nos of Directorship and CommitteeName of Directors Attendance Particulars Membership Chairmanship held in
other Public CompaniesSr Promoter Executive Board Board Last Other Committee CommitteeNo Directors Meeting Meeting Annual Directorship Membership Chairman
Held Attended GeneralMeeting
1 Shri Narayanbhai G Patel-MD 4 4 Present - - -2 Shri Devidas C Narumalani 4 4 Present - - -
Executive Directors3 Shri Narendrabhai G Patel 4 4 Present - - -4 Shri Prakashbhai N Patel 4 4 Present - - -5 Shri Sanjivkumar N Patel 4 4 Present - - -
Non Executive Independent Directors6 Shri Girishbhai N Desai 4 4 Absent - - -7 Shri Hareshkumar I Shah 4 4 Absent - - -8 Shri Naimeshbhai B Patel 4 1 Absent - - -9 Shri Vinodkumar C Desai 4 4 Absent - - -10 Shri Ramanbhai R Patel 4 4 Absent - - -
WTD ndash Whole Time Director MD ndash Managing Director
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
10
22nd Annual Report 2013-2014
During the financial year 2013-14 Four (4) Board Meetings were held Viz on 29th May 2013 10th
August 2013 13th November 2013 and 9th February 2014As required by Clause 49 VI A of the Listing Agreement the particulars of Directors seeking re-appointment are given in the accompanied notice portion
3 AUDIT COMMITTEEThe audit committee was constituted on 30 th March 2003 which currently comprises threeindependent Non ndash executive Directors viz Shri Hareshkumar I Shah as Chairman Shri GirishbhaiN Desai Shri Ramanbhai R Patel and one Executive Director Shri Narayanbhai G Patel asmembers The terms of reference of Audit Committee are to cover the matters specified underClause 49 of the Listing Agreement and in Section 292A of the Companies Act 1956 and thefunctions of the Committee that inter alia include the overview of the Companyrsquos financial reportingprocesses review of the quarterly half yearly and yearly financial statements review of adequacyof internal control system review of the financial and risk management policies and review ofsignificant findings and adequacy of internal audit function cover
4 REMUNERATION COMMITTEEThe Board of the Company has constituted Remuneration Committee as per Clause 49 of the ListingAgreement on 30th March 2003 which currently comprises of three independent and non ndash executiveDirectors Viz Shri Hareshkumar I Shah as Chairman and Shri Ramanbhai R Patel and ShriVinodkumar C Desai as member and one executive Director Shri Narayanbhai G Patel as amember of the CommitteeThe Remuneration Committee has been constituted to recommend review the remuneration package of the Managing and Whole Time Directors based on performanceand detailed criteria and also empowered to decide on Employeesrsquo Stock Option Scheme No stockoptions have been granted to executive Directors and Non- executive Directors The Non-ExecutiveDirectors do not draw any remuneration from the Company other than sitting feesDETAILS OF REMUNERATION PAID TO MANAGING DIRECTORS WHOLE TIME DIRECTORSDURING THE FINANCIAL YEAR 2013-14 IS GIVEN BELOW
(in `)
NAME OF DIRECTOR REMUNERATION SITTING FEES TOTALShri Narayanbhai G Patel 2419200- NIL 2419200-Shri Devidas C Narumalani 2419200- NIL 2419200-Shri Narendrabhai G Patel 2419200- NIL 2419200-Shri Prakashbhai N Patel 2419200- NIL 2419200-
Shri Sanjivkumar N Patel 2419200- NIL 2419200-
5 INVESTORS GRIEVANCE COMMITTEEIn compliance with the Corporate Governance Code the Company has constituted the InvestorsrsquoGrievance Committee on 30th Mach 2003 by constituting the Share Transfer Committee as theldquoShare Transfer ndash cum ndash Investorsrsquo Grievance Committee The scope of the committee wasextended to include overview of all matters connected with Investors Grievance and RedressalMechanism of members such as dematerialization transfer transmission of shares non- receiptof Annual Report dividends etc beside the function of the share transfer approval etc Theminutes of the Committee Meetings were placed at the Board Meeting from time to time TheCommittee oversee the performance of Ms Bigshare Services Pvt Ltd ndashRegistrar and ShareTransfer Agent of the Company and recommends measure to improve the level of investor relatedservices Though the powers to approve share transfer transmission have been delegated to theRegistrar amp Share Transfer Agent and also to Shri Narayanbhai G Patel Chairman amp ManagingDirector of the Company for quick actionThe Committee comprises of three independent Directors Shri Hareshkumar I Shah as ChairmanShri Ramanbhai R Patel and Shri Vinodkumar Desai and one Executive Director Shri NarayanbhaiG Patel as member of the Committee Shri Karansingh I Karki appointed as Company Secretarycum compliance officer for managing and resolving the Investors Grievances The Committee meetsregularly at reasonable interval to approve transfer and also to consider shareholders complaints
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
11
Name and designation of Compliance OfficerMr Karansingh I Karki Company SecretaryNo of shareholdersrsquo complaints received during the year 1 Complaint(s)No of complaints not resolved to the satisfaction of shareholders NilNo of pending share transfers NilAll valid transfer received during the financial year 2013-14 have been acted upon by the Companyand there is no pending share transfers
6 GENERAL BODY MEETINGSDate time and venue where Annual General Meetings Extra Ordinary General Meetings wereheld in last three years
Financial Date and Time Venue No of SpecialYear Resolution Passed
2010-11 30th September 2011 5th Floor Kalpana Complex 119th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2011-12 28th September 2012 5th Floor Kalpana Complex No20th AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
2012-13 28th September 2013 5th Floor Kalpana Complex No21st AGM at 1000 AM Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
No Extra Ordinary General Meeting was held during last three years The Company has notpassed any resolutions through Postal Ballot
7 DISCLOSURES(a) There are no material transactions with its promoters directors or the management their
subsidiaries or relatives except as given in Notes on Accounts which may have potentialconflict with the interest of the Company at large
(b) No penalties have been imposed on the Company by the Stock Exchanges or SEBI or anystatutory authority on the matter related to capital market during the last three years
8 MEANS OF COMMUNICATIONOur Companys quarterly half yearly and yearly financial results were taken on record by theBoard of Directors and submitted to the Stock Exchange in terms of the requirements of Clause 41of the Listing Agreement These were published in the newspaper as per the prescribed guidelinesThe Management Discussion amp Analysis Report forms a part of this Annual Report In pursuanceof Clause 54 of the Listing Agreement the company is maintaining its websitewwwpatelsairtempcom containing basic information about the company eg details of its businessfinancial information shareholding pattern compliance with corporate governance The companyalso agrees to ensure that the contents of the said website are updated at any given point of time
8A SEBI COMPLAINTS REDRESS SYSTEM (SCORES)The investor complaints are processed in a centralized web based complaints redress systemThe salient features of this system are Centralised database of all complaints online upload ofAction Taken Reports (ATRs) by the concerned companies and online viewing by investors ofactions taken on the complaint and its current status
9 USAGE OF ELECTRONIC PAYMENT MODES FOR MAKING PAYMENTS TO INVESTORSIn view of the SEBI vide its circular No CIRMRDDP102013 dated 21st March 2013 theElectronic Clearing Services (ECSNECS) facility should mandatorily be used by the companiesfor the distribution of dividend to its members In order to avail the facility of ECSNECS membersholding shares in physical form are requested to provide bank account details such as Bank amp BranchName MICR IFSC codes etc to the Company or its Registrar and Share Transfer Agents (RampT)The Format of NECS Form have been given last page of this Annual Report 2013-14
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
12
22nd Annual Report 2013-2014
10 GREEN INITIATIVE IN CORPORATE GOVERNANCE GO PAPERLESSAs part of the green initiative process the company has taken an initiative of sending documentslike notice calling annual general meeting Corporate Governance Report Directors Reportaudited Financial statements auditors report dividend intimations etc by email Physical copiesare sent only to those shareholders whose email addresses are not registered with the companyand for the bounced-mail cases Shareholders are requested to register their email id with BigshareServices Pvt Ltd Registrar and transfer agent concerned depository to enable the company tosend the documents in electronic form or inform the company in case they wish to receive theabove documents in paper mode
10 GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting
Date Saturday 30th August 2014Time 1000 a mVenue Registered Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad 380 009b) Financial Calendar The Company follows April to March as its financial year The results for
every quarter beginning from April is declared in the month following the quarter howeverthe result for the fourth quarter are clubbed with the declaration of audited accounts within 60days of the year whenever possible
c) Book Closure Date(s) Saturday the 23rd August 2014 to Saturday the 30th August 2014(both days inclusive) Entitlement for payment of dividend for the year 2013-14 would be onthe close of the day of 22nd August 2014 for both physical and demat shareholders
d) Listing on Stock Exchange The equity shares of the company are listed on the BombayStock Exchange Ltd (BSE) Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001The Company has paid the listing fees for the year 2013-14 to the Bombay Stock ExchangeLtd Mumbai
e) Stock Code Name BSE 517417 Script Name PATELSAIThe ISIN Number of the Company on both the depositories NSDL and CDSL is INE082C01024
f) Corporate Identity Number (lsquoCINrsquo)Our Corporate Identity Number as allotted by Ministry of Corporate Affairs isL29190GJ1992PLC017801 and our Company is registered in the state of Gujarat
g) Stock Market Price Data The details of monthly high low price of the Companys Sharestraded on the Mumbai Stock Exchange during the financial year 2013-14 is furnished below
Months High Price (`) Low Price (`)13-April 4380 322513-May 4190 336013-June 4190 3535
13-July 4800 385013-August 4850 3550
13-September 4800 375513-October 5040 3900
13-November 4775 405513-December 5300 4025
14-January 6435 450014-February 5150 4320
14-March 5000 4290
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
13
h) Registrar amp Share Transfer Agents In terms of SEBI Circulars dated 27122002 amp dated12022003 on appointment of common agency for share registry works the Company hasappointed the below mentioned agency as Registrar amp Share Transfer Agent for both physicaland demat segment of equity shares of the company which provides all shareholders relatedservices Bigshare Services Pvt LtdRegd Office E-23 Ansa Industrial EstateSakivihar Saki Naka Andheri(E)Mumbai - 400 072 Tele No (022) 40430200 28470652 Fax No (022) 28475207E-mail Address wwwbigshareonlinecom
i) Share Transfer System The transfer of shares in physical form is processed and completedby MsBigshare Services Pvt Ltd within a period of 30 days from the date of receipt thereofIn case of shares in electronic form the transfer is processed by NSDLCDSL through therespective Depository Participants Demat requests are normally confirmed within an averageperiod of 15 days from the date of receipt
(a) Distribution of Shareholding as on 31st March 2014
Shareholding of Number of of Share ofNominal Share Shareholders Total Total
1 to 500 6007 8875 744737 1469
501 to 1000 383 566 307774 607
1001 to 2000 173 256 259025 511
2001 to 3000 60 089 148750 293
3001 to 4000 40 059 145849 288
4001 to 5000 29 043 135757 268
5001 to 10000 41 060 290013 572
10001 to 9999999999 35 052 3038335 5992
6768 10000 5070240 10000
(b) Category of Equity Shareholders as on 31st March 2014
Sr Category No of to ShareNo Shares Capital
A PROMOTERS SHAREHOLDING
1 Promoters Promoters Group Directors ampTheir Relatives 2281746 4500
B PUBLIC SHAREHOLDING
2 Mutual Funds UTI 0 000
3 Banks Financial Institutions 0 000
4 Foreign Institutional Investors 0 000
5 Bodies Corporate 140854 278
6 NRIs 96041 189
7 Clearing Members 9708 019
8 Trust 0 000
9 Indian Public 2541891 5013
TOTAL 5070240 10000
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
14
22nd Annual Report 2013-2014
j) Dematerialisation of Shares The Companyrsquos shares are under demat mode The ISIN Noof the Company is INE082C01024 Members who are desirous of holding their shares indemat form are requested to apply to their Depository Participants in prescribed dematrequisition form along with original share certificate About 9682 of the total Equity capitalof the Company is held in demat form as on 31st March 2014
k) Plant Location(s) The Companyrsquos plants offices are located at
Plant
Plot 805 806807 810 Rakanpur Via Sola-Bhadaj VillageTa Kalol Dist Gandhinagar Gujarat
AC Division Office
5th Floor Kalpana Complex Nr Memnagar Fire StationNavrangpura Ahmedabad ndash 380 009
Mumbai Office
310 Oberoi Chambers-II New Link RoadOshiwara Andheri (W) Mumbai 400 053
l) Address for Correspondence For both physical amp Electronic form
MS Bigshare Services Private Limited
E-23 Ansa Industrial Estate
Sakivihar Road Saki Naka Andheri (E) Mumbai-400 072
Tel 022-28470652 Fax No 022-2875207
Email investorbigshareonlinecom
Website wwwbigshareonlinecom
m) For any assistance regarding dematerialization of shares share transfers change of addressnon-receipt of dividend or any other query relating to shares
Patels Airtemp (India) Ltd
Regd Office 5th Floor Kalpana Complex
Nr Memnagar Fire Station Navrangpura Ahmedabad ndash 380 009
Ph No (079) 2791369456 Fax No (079) 27913693
Website wwwpatelsairtempcom
n) As required by Clause 49 of the Listing Agreement with the stock exchange the AuditorsrsquoCertificate on Corporate Governance is given as Annexure to this report
Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
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- Patel_AR_2014_T2pdf
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- Page 1
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Patels Airtemp (India) Ltd
15
Corporate Governance Compliance Certificate
ToThe MembersPatels Airtemp (India) Ltd
In accordance with Clause 49 of the Listing Agreement entered into by Patels Airtemp (I) Ltd with theBombay Stock Exchange Limited Mumbai We have examined all relevant records of the Companyrelating to its compliance of condition of Corporate Governance as stipulated in clause 49 for thefinancial year ended 31032014
It is the responsibility of the Company to prepare and maintain the relevant necessary records underthe SEBI Guidelines Listing agreement and other applicable laws Our responsibility to carry out anexamination on the basis of our professional judgment so as to award a responsible assurance of thecorrectness and completeness of the records for the purpose of this certificate
We have obtained all the information and explanation which to the best of our knowledge and beliefwhere necessary for the purpose of the certificates and have been provided with such recordsdocuments certificates etc as had been required by us
The company is yet to lay down a Risk Management Policy and Procedures thereof and therefore weare unable comment on the same
We certified that from the records produced and explanation given to us by the company for thepurposes of this certificate and to the best of our information the company has generally complied withthe mandatory requirements of the said clause 49 of the Listing Agreement except stated as above
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
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- Patel_AR_2014_T1pdf
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- Page 1
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16
22nd Annual Report 2013-2014
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in the manufacture and sale of extensive range of Heat Exchangers such asShell amp Tube type Finned tube type and Air cooled Heat Exchangers Pressure Vessels Air-conditioningand Refrigeration equipments and Turnkey HVAC Projects in India amp marketing of equipments evenoutside India All these products are supplied to leading Industrial Sections like Power ProjectsRefineries Fertilizers Cements Petrochemicals Pharmaceuticals Textile and Chemical Industries
With the highly innovative environment the Company could sustain its sales even in highly cut-thoughtcompetition and the prevailing market conditions
PRODUCT ndash WISE PERFORMANCE
The Company is operating in one segment ie engineering fabrication having different products suchas Heat Exchangers Air Cooled Heat Exchangers Pressure Vessels Air-conditioning amp RefrigerationEquipments Turnkey HVAC projects and other Misc products the turnover of which are given in Noteson Accounts portion of the Annual Report Your company has decided to stick to high value addedengineering products These products are regularly procured by the Industrial Process Plants UnitsThese products has ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp authorization it is expected to improve profitability ofthe company in the future For updating Heat Transfer Technology Company has become member ofHTRI (Heat Transfer Research Inc USA)
FUTURE OUTLOOK
The long-term fundamentals of the Indian economy which is expected to remain strong Keyfundamentals generally include demographics rising income and purchasing power of populationand large investment in pipeline The growth of the economy is being driven primarily by domesticinvestment and consumption with limited dependence on exports or the demand situation in othereconomies At the same time there are some concerns particularly with regard to inflation Inflationarypressures emerging from commodity and food prices have shown signs of becoming more generalisedleading to the containing of inflation becoming the key priority of policy makers In addition the globaleconomic environment continues to remain uncertain with slow recovery and fiscal concerns indeveloped markets Keeping in mind the aforesaid factors your company will make all efforts to encashthe opportunities which come across
OPPORTUNITIES
Export in the developed countries like USA Canada amp Europe and other countries like Italy ChinaJapan etc is to be developed and it is expected to provide large impetus to engineering exports tothese countries after obtaining the ASME ldquoUrdquo ldquoU2rdquo ldquoSrdquo Stamp Authorisation Your company is preparingitself to meet the increased demand in the years to come through efficient production managementsystem which will enable to minimize the risk of raw materials price fluctuations
RISK FACTORS
Risk is an integral part of every business and your company always tries to deliver superior shareholdervalue by achieving an appropriate trade-off between risk and returns Our risk management strategy isbased on a clear understanding of various risks ie operational risk marketing risk involved systematicrisk assessment and taking steps to overcome risks and continuous monitoring
The industry is facing stiff competition from big players who are producing on large scale productionand have the advantage of economies in cost facing challenges from cheaper imports and the industryis also facing risks from unorganized sector particularly from the marketing in the state and nearbystates which have major thrust on Air-conditioning and Refrigerator parts However Your Companydoes not foresee any risk due to its concentration on quality commitment for better products and promptafter sales and service The Government of Indiarsquos measures to curb cheaper imports imposing antidumping duties and other restrictions will give much needed relief to the domestic industry
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
17
QUALITY CONTROL
The Company features its achievements to adherence to strict quality standards This has been achievedthrough our efforts to strike the balance between resources and technology to develop products atsame level in excellence with international standards The quality standard is taken care from the initialstage of production to ensure high end product quality
INTERNAL CONTROL SYSTEM
The Company has adequate internal control system in operation commensurate with the size andnature of its business for enduring efficiency of operation and protection of Companyrsquos assets TheAudit Committee formed by the company review on periodical basis the compliance with the Companyrsquospolicies procedures and prevailing laws
INDUSTRIAL RELATION amp HUMAN RESOURCES
To praise the sophisticated production process we have a team of experienced workers who areskilled and trained to get best out of it Regular orientation programs are being conducted by thecompany wherein workers are directly exposed to the experts which keep them with the latesttechnology and development
The Companyrsquos philosophy is to provide to its employees friendly working environment and aperformance oriented work culture The company believes that human resources are important assetfor giving Company a competitive edge in a competitive environment
The Companyrsquos relations with the employees at all levels are very cordial and peaceful The companyhas about 248 employees working with them as on 31st March 2014 on permanent as well as contractualbasis
CAUTIONARY STATEMENT
The statement given in this report describing the Companyrsquos objectives estimates and expectationsand future plans may contribute towards forward looking statement within the meaning of applicablelaws and or regulations Actual performance may differ materially from those either expressed orimplied
18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
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- Patel_AR_2014_T1pdf
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- Page 1
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- Patel_AR_2014_T2pdf
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18
22nd Annual Report 2013-2014
INDEPENDENT AUDITORASrsquo REPORTToThe Members ofPATELS AIRTEMP (INDIA) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of PATELS AIRTEMP (INDIA) LTD (lsquotheCompanyrdquo) which comprise the Balance Sheet as at March 31 2014 the Statement of Profit and Lossand the Cash flow statement for the year then ended and a summary of significant accounting policiesand other explanatory information
Managementrsquos Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fairview of the financial position and financial performance and cash flows of the Company in accordancewith the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo) read with GeneralCircular 152013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section133 of the companies Act 2013 This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due to fraud or error
Auditorrsquos Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit Weconducted our audit in accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements The procedures selected depend on the auditorrsquos judgment including theassessment of the risks of material misstatement of the financial statements whether due to fraud orerror In making those risk assessments the auditor considers internal control relevant to the Companyrsquospreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion on the effectivenessof Companies internal Control An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management as well asevaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion
Opinion
In our opinion and to the best of our information and according to the explanations given to us thefinancial statements give the information required by the Act in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India
(i) In the case of the Balance Sheet of the state of affairs of the Company as at March 31 2014
(ii) In the case of the Statement of Profit and Loss of the Profit for the year ended on that date and
(iii) In the case of the cash flow statement of the cash flows for the Year ended on that date
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditorrsquos Report) Order 2003(ldquothe Orderrdquo) as amended issuedby the Central Government of India in terms of sub-section(4A) of section 227 of the Act we givein the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
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- Patel_AR_2014_T1pdf
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- Page 1
- Page 2
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- Patel_AR_2014_T2pdf
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Patels Airtemp (India) Ltd
19
2 As required by section 227(3) of the Act we report that
a we have obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purpose of our audit
b in our opinion proper books of accounts as required by law have been kept by the Companyso far as appears from our examination of those books
c the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by thisReport are in agreement with the books of account
d in our opinion the Balance Sheet Statement of Profit and Loss and Cash Flow Statementcomply with the Accounting Standards notified under the Companies At 1956 (ldquothe Actrdquo)read with General Circular 152013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of section 133 of the companies Act 2013
e on the basis of written representations received from the directors as on March 31 2014and taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2014 from being appointed as a director in terms of clause (g) of sub-section (1)of section 274 of the Companies Act 1956
FOR PARIKH amp MAJMUDARCHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
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20
22nd Annual Report 2013-2014
ANNEXURE TO AUDITORSrsquo REPORTThe Annexure referred to in our report to the members of PATELS AIRTEMP (INDIA) LTD (lsquorsquoTheCompanyrdquo) for the year ended on 31stMarch 2014 We report that
i) a) The company has generally maintained proper records showing full particulars includingquantitative details and situation of the fixed assets
b) As explained to us a major portion of the fixed assets has been physically verified by themanagement during the year in accordance with a phased programme of verification adoptedby the Company In our opinion the frequency of verification is reasonable having regardto the size of the company amp nature of its assets As informed to us no material discrepan-cies were noticed on such physical verification
c) According to the information and explanation given to us the company has not disposed offa substantial part of its fixed assets during the year and the going concern status of thecompany is not affected
ii) a) As explained to us inventories were physically verified by the management at reasonableintervals during the yearIn our opinionthe frequency of such verification is reasonablehaving regard to the size of the company and nature of its Business
b) In our opinion amp according to the information amp explanations given to us the procedures ofphysical verification of inventories followed by the management were reasonable amp ad-equate in relation to the size of the company amp nature of its business
c) In our opinion and according to the information and explanations given to us the companyis maintaining proper records of inventory The discrepancies noticed on verification be-tween the Physical stocks and the book records were not material
iii) In respect of loans secured or unsecured granted or taken by the company tofrom companiesfirms or other parties covered in the register maintained under section 301 of the Companies Act1956a) According to the information and explanation given to us the company has not granted any
loan secured or unsecured to any company or firm or other party covered in the registermaintained under section 301 of the Companies Act 1956
b) The company has taken Unsecured Loan from two parties covered under register main-tained us 301 of the Companies Act1956 during the year [closing balance Rs 56500lacs] [Maximum balance during the year Rs 111863 lacs]
c) In our opinion and according to the information and explanation given to us the rate ofinterest amp other terms and conditions of the unsecured loan taken by the company from theparties covered under the register maintained under section 301 of the Companies Act1956 are prima facie not prejudicial to the interest of the company
d) The Loan taken by the Company is repayable on demand and therefore the question of anyover due amount thereon does not arise
iv) In our opinion amp according to the information amp explanations given to us there is adequateinternal control system commensurate with the size of the company amp nature of its business forthe purchase of inventory fixed assets amp also for the sales of goods and services During thecourse of our audit we have not observed any continuing failure to correct major weaknesses inInternal control system
v) In respect of transactions covered under section 301 of the Companies Act 1956a) In our opinion and according to the information and explanations given to us the particu-
lars of contracts or arrangements referred to in section 301 of the Act have been entered inthe register required to be maintained under section 301 of the Companies Act 1956
b) In our opinion and according to the information and explanations given to us there are nosuch transactions exceeding Rs 5 lakhs each which have been made at prices which arenot reasonable having regard to the prevailing market prices for such services at the rel-evant time
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
21
vi) In our opinion amp according to the information amp explanations given to us the company has notaccepted any deposits within the provisions of section 58A amp 58 AA and other relevant provisionsof companies Act1956 therefore the provisions of clause 4(vi) of the Companies (AuditorsReport) Order2003 are not applicable to the company
vii) The Company has appointed a firm of Chartered Accountants for Internal AuditIn our opinionthe Internal audit is commensurate with its size amp nature of its Business
viii) We have broadly reviewed the books of accounts maintained by the company pursuance to therules made by the Central Government for maintenance of Cost records under section 209(1)clause (d) of the Companies Act 1956 and we are of the opinion that prima facie the prescribedaccounts amp records have been maintained We have however not made a detailed examinationof the records
ix) a) According to the records of the company undisputed statutory dues including providentfund Employees State Insurance Income Tax Wealth Tax Service Tax Customs DutyExcise Duty Cess amp Other Statutory dues have been regularly deposited during the yearwith the appropriate authorities According to the information amp explanation given to us noun-disputed amounts were outstanding as at 31st March 2014 for a period of more than sixmonths from the date of becoming payable
b) The Company has no disputed statutory dues that have not been deposited on account ofmatters pending before appropriate authorities
x) The Company does not have accumulated losses at the end of the financial year and has notincurred cash losses in the financial year under review and in the immediately preceding financialyear
xi) According to information amp explanations given to us the company has not defaulted in repaymentof dues to Banks
xii) In our opinion and according to the information and explanation given to us no loans andadvances have been granted by the company on the basis of security by way of pledge of sharesdebenture and other securities
xiii) According to the information amp explanations given to us the company is not a chit fund or a nidhimutual benefit fundsociety Therefore the provisions of clause 4(xiii) of the Companies (AuditorsReport) Order 2003 are not applicable to the company
xiv) According to the information amp explanations given to us the company is not dealing or trading inshares Securities debentures amp other investments Therefore the provisions of clause 4(xiv) ofthe Companies (Auditors Report) Order 2003 are not applicable to the company
xv) According to information and explanations given to us the Company has not given any guaranteefor loans taken by others from banks or financial institutions
xvi) According to the Information amp explanations given to us the company has not raised any newterm loans during the year under review
xvii) On the basis of information and explanations given to us and on the basis of over all examinationof the Balance Sheet and the Cash flow Statement of the Company we report that no fundsraised on short term basis have been used during the year for long term investments
xviii) The Company has not made any Preferential allotment of shares during the year under reviewxix) The Company has not issued any debentures during the yearxx) The Company has not raised any money by public issue during the yearxxi) According to the information amp explanations given to us no fraud on or by the company has been
noticed or reported during the course of our auditFOR PARIKH amp MAJMUDAR
CHARTERED ACCOUNTANTS
Place AHMEDABAD CA Dr HITEN PARIKHDate 27th May 2014 PARTNER
M No 40230FRM No 107525W
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
22
22nd Annual Report 2013-2014
BALANCE SHEET AS AT 31ST MARCH 2014
Particulars Note No As at As at31 March 2014 31 March 2013
` `A EQUITY AND LIABILITIES1 Shareholdersrsquo funds
(a) Share capital 1 50702400 50702400(b) Reserves and surplus 2 441702516 406843148
492404916 4575455482 Non-current liabilities
(a) Long-term borrowings 3 - 53067815(b) Deferred tax liabilities (net) 4 26706425 23467458(c) Other long-term liabilities 5 2210512 4040026(d) Long-term provisions 6 1807502 1586143
30724439 821614423 Current liabilities
(a) Short-term borrowings 7 146357840 86732880(b) Trade payables 8 140091285 100994128(c) Other current liabilities 9 21404207 20381505(d) Short-term provisions 10 14726321 15680716
322579653 223789229
TOTAL 845709008 763496219B ASSETS1 Non-current assets
(a) Fixed assets 11(i) Tangible assets 218468567 193091476(ii) Intangible assets 5717977 2875668(iii) Capital work-in-progress - -
224186543 195967144(b) Non-current investments 12 20300 280000(c) Long-term loans and advances 13 8414565 11558725(d) Other non-current assets 14 54591921 36455416
63026786 482941412 Current assets
(a) Current investments(b) Inventories 15 235528066 202102391(c) Trade receivables 16 129980080 189182678(d) Cash and cash equivalents 17 165738666 122581475(e) Short-term loans and advances 18 27248867 5368390(f ) Other current assets - -
558495679 519234934
TOTAL 845709008 763496219Significant Accounting Policies ANotes on Financial Statements 1 to 41
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
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- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) Ltd
23
STATEMENT OF PROFIT amp LOSS FOR THE YEAR ENDED ON 31ST MARCH 2014
Particulars Note For the year ended For the year endedNo 31 March 2014 31 March 2013
` `
CONTINUING OPERATIONS1 Revenue from Operations (Gross) 19 753752481 989123437
Less Excise duty 46229998 83328552
Revenue from Operations (Net) 707522483 9057948852 Other income 20 4899744 2799698
3 Total revenue (1+2) 712422227 908594583
4 Expenses(a) Cost of Materials Consumed 21 312748761 458389058(b) Purchases of Stock-in-Trade 22 34394089 21176092(c) Changes in inventories of finished goods 23 28845334 65225502
work-in-progress and stock-in-trade(d) Employee benefits Expenses 24 55567482 51137305(e) Other Manufacturing Expenses 25 102391843 119051839(f) Depreciation and Amortisation Expense 11 17169424 15270719(g) Finance Cost 26 11922043 27196871(h) Other Expenses 27 76806721 77564187(i) Prior Period Adjustment 120671 (176079)
Total expenses 639966368 834835494
5 Profit before exceptional and extraordinaryitems and tax (3 - 4) 72455859 73759089
6 Exceptional items -
7 Profit before extraordinary items and tax (5 + 6) 72455859 737590898 Extraordinary items
a) Profit (Loss) on sale of Fixed Assets (214975) 16182
9 Profit (Loss) before tax (7 + 8) 72240884 73775271
10 Tax expense(a) Current tax expense for current year (incl 22001000 23080000
Wealth Tax Provision)(b) Current tax expense relating to prior years 359758 37578(c) Wealth tax expense relating to prior years (3728) -(d) Net current tax expense 22357030 23117578(e) Deferred tax 3238967 1193194
25595997 24310772
11 Profit from continuing operations (9 +10) 46644887 49464499
12 Profit for the year (11) 46644887 49464499
13 Earnings per share (of ` 10- each) Basic amp Diluted 920 976
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
24
22nd Annual Report 2013-2014
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2014
2013-2014 2012-2013` ` ` `
A CASH FLOW FROM OPERATING ACTIVITIESNet Profit before Tax and Extra Ordinary Items 72576530 73583010
Adjustments for
Depreciation 17169424 15270719
Interest expenses 11922043 27196871
Interest Income (4899744) (2799698)
Diminution in Value of Investment 259700 24451423 39667892
OPERATING PROFIT BEFORE WORKINGCAPITAL CHANGES 97027953 113250902
Adjustment for
Trade and other receivables 22329776 48650701
Inventories (33425675) 89853559
Trade Payable 37557309 (107084230) ndash
26461410 31420030
CASH GENERATED FROM OPERATIONS 123489363 144670932
Direct Taxes paid Payable (22357030) (23117578)
(22357030) (23117578)
CASH FLOW BEFORE EXTRAORDINARY ITEMS 101132333 121553354
Extraordinary items
Prior period adjustments (120671) (120671) 176079 176079
NET CASH FROM OPERATING ACTIVITIES 101011662 121729433
B CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets -46229798 (13588074)( Net of Modvat benefit )
Sale of Fixed Asset 626000 170000
Interest Received 4899744 2799698
(40704054) (10618376)
NET CASH USED IN INVESTING ACTIVITIES (40704054) (10618376)
Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
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- Patel_AR_2014_T1pdf
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- Page 1
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- Patel_AR_2014_T2pdf
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Patels Airtemp (India) Ltd
25
2013-2014 2012-2013` ` ` `
C CASH FLOW FROM FINANCING ACTIVITIES
Proceeds(Repayment) from secured Borrowings ndash ndash
Proceeds(Repayment) from Unsecured Borrowings 3432572 6967659
Proceeds from Bank borrowings for Working 3124573 (24815847)Capital Facilities
Deferred payment credits against vehicles - 832342(Net of repayment)
Corporate Dividend Paid amp Dividend Tax -11785519 (11785519)
Interest Paid (11922043) (27196871)
(17150417) (55998236)
NET CASH USED IN FINANCING ACTIVITIES (17150417) (55998236)
NET INCREASE(DECREASE) IN CASH AND CASH 43157191 55112820
CASH AND CASH EQUIVELANTS AS AT 122581475 67468655THE BEGINING OF THE YEAR
CASH AND CASH EQUIVELANTS AS AT 165738666 122581475THE CLOSING OF THE YEAR
Note Cash and Cash Equivalents Includesa) Cash on hand 736587 1130106b) Balance with Banks in Current account 82294762 68638076c) Balance with Banks in Margin Money account 65229558 51435557d) Balance in Dividend Account 1569163 1377736e) In EEFC Account 15908596 -
165738666 122581475
Note The above Cash Flow Statement has been prepared under the lsquo Indirect Methodrsquo as set out in Accounting Standard 3 on ldquoCash Flow Statement ldquo issued by The Institute of Chartered Accountants of India
As per our report of even date For and on behalf of the Board of Directors ofFor PARIKH amp MAJMUDAR PATELS AIRTEMP (INDIA) LTDCHARTERED ACCOUNTANTS
NARAYANBHAI G PATELCA Dr HITEN PARIKH CHAIRMAN amp MANAGING DIRECTORPARTNERM NO 040230 SANJIVKUMAR N PATEL KARANSINGH I KARKIFRM No 107525W DIRECTOR COMPANY SECRETARY
Place AHMEDABAD Place RAKANPURDate 27-05-2014 Date 27-05-2014
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
26
22nd Annual Report 2013-2014
SIGNIFICANT ACCOUNTING POLICIESA SIGNIFICANT ACCOUNTING POLICIES
i) METHOD OF ACCOUNTINGThe financial statements are prepared under the historical cost convention in accordancewith generally accepted Accounting Principles in India amp the Provisions of the CompaniesAct 1956 and the applicable accounting standards notified under the Companies AccountingStandards Rule 2006
ii) Use of EstimatesThe preparation of the financial statements in conformity with GAPP requires the Managementto make estimates and assumptions that affect the reported balances of assets and liabilitiesand disclosures relating to contingent liabilities as at the date of the financial statementsand reported amounts of income and expenses during the period Accounting estimatescould change from period to period Actual results could differ from those estimatesAppropriate changes in estimates are made as the Management becomes aware of changesin circumstances surrounding the estimates Changes in estimates are reflected in thefinancial statements in the period in which changes are made and if material their effectsare disclosed in the notes to the financial statements
iii) RECOGNITION OF INCOME amp EXPENDITURERevenuesIncomes and costs expenditures are generally accounted on accrual as theyare earned or incurred Sales are inclusive of excise duty but exclusive of Sales Tax VATcollected With regard to sale of product Sales are recognised net of returns and tradediscounts on transfer of significant risks and rewards of ownership to the buyer whichgenerally coincides with the delivery of goods to customers Export Incentives are accountedon Accrual Basis
iv) EXCISE DUTYExcise duty is accounted on the bases of both payment made in respect of goods clearedand also provision made for goods lying in bonded warehouses Excise duties in respect ofFinished Goods lying in stock are shown separately as an item of Other Expenses
v) FIXED ASSETS(a) Fixed assets are stated at cost (net off of Cenvat amp VAT) less accumulated depreciation
(other than land and goodwill where no depreciation is charged)
(b) Capital Work in Progress is stated at cost
(c) Intangible assets are recorded at the consideration paid for acquisition
vi) INVESTMENTSCurrent investment if any are carried at the lower of cost or quotedfair value Long TermInvestments are stated at cost of acquisition Provision for diminution in the value of longterm investment is made only if such a decline is other than temporary
vii) VALUATION OF INVENTORIESa) Raw materials are valued at lower of cost or net realizable value
b) Work in progress is valued at cost of materials and labour charges together with relevantfactory overheads
c) Finished Goods are valued at lower of cost or net realizable value
d) Goods in transit are valued at cost
viii) METHOD OF DEPRECIATION(a) Depreciation on fixed assets (other than land amp goodwill
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
27
Patels Airtemp (India) Ltd
(b) where no depreciation is provided) has been provided on straight line method inaccordance with the provisions of section 205(2)(b) of the Companies Act 1956 at therates specified in Schedule XIV to the Companies Act 1956
(c) Depreciation in respect of fixed assets put to use during the yearperiod is charged onpro-rata basis with reference to the installation of the assets
(d) Intangible assets are Amortized using straight line method over estimated useful life of5 years
(e) No depreciation has been provided on the assets where the accumulated depreciationhas exceeded 95 of its original cost
(f) No depreciation has been provided in respect of Capital Work In Progress(g) No depreciation has been provided on self generated intangible assets
ix) FOREIGN CURRENCY TRANSACTIONSTransactions in the foreign currency which are covered by forward contracts are accountedfor at the contracted rate the difference between the forward rate and the exchange rate atthe date of transaction is recognized in the Statement of profit amp loss over the life of thecontract Foreign currency denominated monetary assets and liabilities are translated intothe relevant functional currency at exchange rates in effect at the Balance Sheet date Thegains or losses resulting from such translations are included in the Statement of Profit andLoss Non-monetary assets and non-monetary liabilities denominated in a foreign currencyand measured at fair value are translated at the exchange rate prevalent at the date when thefair value was determined Non-monetary assets and non-monetary liabilities denominatedin foreign currency and measured at historical cost are translated at the exchange rateprevalent at the date of transactionRevenue expense and cash-flow items denominated inforeign currencies are translated into the relevant functional currencies using the exchangerate in effect on the date of the transaction Transaction gains or losses realized uponsettlement of foreign currency transactions are included in determining net profit for theperiod in which the transaction is settled
x) IMPAIRMENT OF ASSETSThe Management periodically assesses using external and internal sources whether thereis an indication that an asset may be impaired An impairment loss is recognized whereverthe carrying value of an asset exceeds its recoverable amount The recoverable amount ishigher of the assetrsquos net selling price and value in use which means the present value offuture cash flows expected to arise from the continuing use of the asset and its eventualdisposal An impairment loss for an asset other than goodwill is reversed if and only if thereversal can be related objectively to an event occurring after the impairment loss recognizedThe carrying amount of an asset other than goodwill is increased to its revised recoverableamount that would have been determined (net of any accumulated amortization ordepreciation) had no impairment losses been recognized for the asset in prior years
xi) TAXATION- Income-tax expense comprise of current tax wealth tax and deferred tax charge or
credit- Provision for current tax is made on the basis of the assessable income at the tax rate
applicable for the relevant assessment year- The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax
laws that have been enacted or substantively enacted by the balance sheet date Deferredtax assets arising mainly on account of brought forward losses and unabsorbeddepreciation under tax laws are recognized only if there is a virtual certainty of itsrealization supported by convincing evidence Deferred tax assets on account of othertiming differences are recognized only to the extent there is a reasonable certainty of itsrealization At each balance sheet date the carrying amounts of deferred tax assets arereviewed to reassure realization
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
28
22nd Annual Report 2013-2014
xii) RETIREMENT BENEFITSa) Short Term
Short term employee benefits are recognized as an expense at the undiscounted amountexpected to be paid over the period of services rendered by the employees to thecompany
b) Long TermThe company has both defined contribution and defined benefit plans of which somehave assets in approved funds These plans are financed by the Company in the caseof defined contribution plans
c) Defined Contribution PlansThese are the plans in which the Company pays pre-defined amounts to separatefunds and does not have any legal or informal obligation to pay additional sums Thesecomprise of contribution to Employees Provident Fund The Companyrsquos payments tothe defined contribution plans are reported as expenses during the period under whichan employee perform the services that the payment covers
d) Defined Benefit PlansExpenses for defined benefit gratuity payment plans are calculated as at the balancesheet date by independent actuaries in the manner that distributes expenses over theemployees working life These commitments are valued at the present value of theexpected future payments with consideration for calculated future salary increase usinga discounted rate corresponding to the interest rate estimated by the actuary havingregard to the interest rate on Government Bonds with a remaining terms ie almostequivalent to the average balance working period of employees
e) Leave EncashmentThe company is providing for Leave Encashment on the basis of unavailed leave by theemployees
xiii) CONTINGENT LIABILITES CONTINGENT ASSETSa) Contingent liabilities are disclosed by way of note in the Balance Sheet
b) Contingent Assets are neither recognized nor disclosed in the Financial Statements
xiv) Cash Flow StatementCash flows are reported using the indirect method whereby profit before tax is adjusted forthe effects of transactions of a non-cash nature any deferrals or accruals of past or futureoperating cash receipts or payments and item of income or expenses associated withinvesting or financing cash flows The Cash flows from operating investing and financingactivities of the Group are segregated
Cash and Cash equivalents presented in the Cash Flow Statement consist of cash on handand demand deposits with banks
xv) Earning per Share
Basic earning per share is calculated by dividing the net profit after tax for the year attributableto Equity Shareholders of the Company by the weighted average number of Equity Shares inissue during the year Diluted earning per Share is calculated by dividing net profit attributableto equity Shareholders (after adjustment for diluted earnings) by average number of weightedequity shares outstanding during the year
xvi) PROPOSED DIVIDEND amp CORPORATE DIVIDEND TAXDividend proposed by the Board of Directors along with corporate dividend tax if any isprovided in the books of accounts Approval in the General Meeting is pending for the same
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
29
Patels Airtemp (India) Ltd
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note 1 Share capital
PARTICULARS As at 31 March 2014 As at 31 March 2013
Number of ` Number of `Shares Shares
(a) Authorised7000000 (P Y 7000000)Equity shares of 7000000 70000000 7000000 70000000Rs 10- each
(b) Issued 5070240 (P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
(c) Subscribed and fully paid up(P Y 5070240)Equity shares of 5070240 50702400 5070240 50702400Rs 10- each
Total 5070240 50702400 5070240 50702400
Note 1 Share capital (contd)
Notes (i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting
period
PARTICULARS As at 31 March 2014 As at 31 March 2013
No of Shares Amt ` No of Shares Amt `
Equity shares withEqual voting rightsOp Balance 5070240 50702400 5070240 50702400Fresh Issue - - - -Bonus Share - - - -
Cl Balance 5070240 50702400 5070240 50702400
Note The Company has only one class of Shares having Par Value of Rs 10 per Share Each Share holder is eligiblefor one vote per share
Note 1 Share capital (contd)Details of shares held by each shareholder holding more than 5 shares
As at As atClass of shares 31 March 2014 31 March 2013Name of shareholder Number of holding in Number of holding in
shares held that class of shares held that class ofshares shares
Equity shares with voting rightsTherm Flow Engineers Pvt Ltd 1068625 2108 815154 1608Devidas C Narumalani 290145 572 290145 572Prakashbhai N Patel 280000 552 280000 552Narendrabhai G Patel 268500 530 268500 530
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
30
22nd Annual Report 2013-2014
Note 2 Reserves and surplus(a) General reserve
Opening balance 54500000 45500000
Add Transferred from surplus in Statement of Profit and Loss 9000000 9000000
Less Utilised transferred during the year
Closing balance 63500000 54500000(b) Other reserves-CAPITAL INVESTMENT SUBSIDY
Opening balance 1500000 1500000
Add Additions transfers during the year - -
Less Utilisations transfers during the year - -
Closing balance 1500000 1500000(c) Surplus (Deficit) in Statement of Profit and Loss
Opening balance 350843148 322164168
Add Profit (Loss) for the year 46644887 49464499
Less Final dividend
Dividends proposed to be distributed to equity shareholders
[(Rs 2- per share)(PY 31st March 2013 Rs 2- per Share)] 10140480 10140480
Tax on dividend 1645039 1645039
Transferred to
General reserve 9000000 9000000
Closing balance 376702516 350843148
Total 441702516 406843148
Note 3 Long-term borrowings(a) Loans and advances from related parties
Inter Corporate Deposits Unsecured - 53067815
[Includes dues to Company in which directors are interested]
Total - 53067815
Note No 4 - Notes forming part of the financial statementsDeferred tax (liability) asset (Refer note 34)Deferred tax liability
On Depreciation Difference 27733140 24388202
Deferred tax asset
Disallowances under Section 43B of the Income Tax Act 1961 1026715 920744
Net deferred tax (liability) asset 26706425 23467458
Note 5 Other long-term liabilities(a) Trade Payables
(i) Creditors 1057518 2887032
(b) Others
(i) Others Long term payables 1152994 1152994
Total 2210512 4040026
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
31
Patels Airtemp (India) Ltd
Note 6 Long-term provisions(a) Provision for employee benefits
(i) Provision for Leave encashment 1807502 1586143
Total 1807502 1586143
Note 7 Short-term borrowings(a) Loans repayable on demand
From Bank of Baroda (Refer Note 1 below)Secured 89857453 86732880Unsecured
(b) Inter Corporate Deposit 56500387 -(Includes dues to company in whichdirectors are interested)
Total 146357840 86732880
Notes Working Capital facilities from Bank of Baroda is secured by way of hypothecation of raw-materials storesand spares work-in-progress of finished goods and book debts of the company both present and future and firstcharge on companyrsquos plant amp machinery other movable assets of the comapany as well as secured by mortgage ofcompanies factory land and building situated at Plot no 805 806 807 and 810 at Rakanpur Tal Kalol DistGandhinagar and also equitable mortgage on plot no 811 of the company situated at village Rakanpur Taluka KalolDist Gandhinagar as collateral security and is also personally guaranteed by the Promoters of the company
Note 8 Trade payablesTrade payablesFor Goods 124141610 78400449For Expenses 15949675 22593679Refer Note No 36
Total 140091285 100994128
Note 9 Other current liabilities(a) Current maturities of long-term debt - 3717380(b) Unpaid dividends 1569163 1377736(c ) Statutory Liabilities 519595 2557968(d) Payables on purchase of fixed assets 784937 348204(e) Advance from customers 18530512 12380217
Total 21404207 20381505
Note 10 Short-term provisions(a) Provision for employee benefits
(i) For bonus 1356977 1251718(b) Provision - Others
(i) Provision for tax (net of Advance Tax and TDS) 1482825 2563479(ii) Provision for proposed equity dividend 10140480 10140480(iii) Provision for tax on proposed dividend 1645039 1645039(iv) Provision - others ( Wealth tax) 101000 80000
13369344 14428998
Total 14726321 15680716
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
32
22nd Annual Report 2013-2014
Note 11 Fixed assets (in `)A Tangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Land
- Freehold 2642034 - - 2642034 -(b) Buildings 60450727 983665 - 61434392 18415446(c) Plant and Equipment 198612805 36167814 - 234780619 74523682(d) Furniture and Fixtures 15308457 1042142 16350599 7517028(e) Vehicles 23002524 3321221 2665303 23658442 6468915
Total 300016547 41514842 2665303 338866086 106925071Previous year 287226980 13588074 798507 300016547 93284900
A Tangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Land
- Freehold - - - 2642034 2642034(b) Buildings 1802552 - 20217998 41216394 42035281(c) Plant and Equipment 10224824 - 84748506 150032113 124089123(d) Furniture and Fixtures 1092984 - 8610012 7740587 7791429(e) Vehicles 2176417 1824328 6821004 16837438 16533609
Total 15296776 1824328 120397519 218468567 193091476Previous year 14284860 644689 106925071 193091476 193942080
Note 11 Fixed assets (contd)B Intangible assets Gross block
Balance Additions Disposals Balance Balanceas at as at as at
1 April 2013 31 March 2014 31 March 2013(a) Goodwill 37040 - - 37040 -(b) Technical Knowhow() - 4364500 - 4364500 -(c) Computer software 4929295 350456 - 5279751 2090667Total 4966335 471495600 - 9681291 2090667Previous year 4966335 - - 4966335 1104808
B Intangible assets Accumulated depreciation and impairment Net BlockDepreciation Eliminated Balance Balance Balanceamortisation on disposal as at as at as atexpense for of assets 31 March2014 31 March 2014 31 March 2013
the year(a) Goodwill - - - 37040 37040(b) Technical Knowhow() 872900 - 872900 3491600 -(c) Computer software 999747 - 3090414 2189337 2838628Total 1872647 - 3963314 5717977 2875668Previous year 985859 - 2090667 2875668 3861527
Note 12 Non-current investmentsQuoted Unquoted Total Quoted Unquoted Total
B Other investmentsInvestment in equity instruments(i) 14000 Equity Shares of Ms GujaratState Financial Corporation of Rs10- 280000 - 280000 280000 - 280000each purchased 20- per share 280000 - 280000 280000 - 280000Total - Other investments (B) 280000 - 280000 280000 - 280000Total 280000 - 280000 280000 - 280000Less 280000 280000 - 280000Provision for diminution in value of investment 259700Aggregate amount of quoted investments 20300 280000Market Value 20300 Not
Availble
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
33
Patels Airtemp (India) Ltd
Note 13 Long-term loans and advances(a) Deposits 2210418 2538665(b) Advance income tax 4215695 4215695(c) Balance with Govt authorities 439865 439865(d) Advance for Capital Expenditure 1548587 -(e) Advance for Technical Know-how - 4364500
Total 8414565 11558725
Note 14 Other non-current assets(Secured considered good)(a) Long-term trade receivables 47718498 32009845(b) Accruals
(i) Interest accrued on deposits 6873423 4445571
Total 54591921 36455416
Note 15 Inventories(As taken valued and certified by a director)Raw Materials (Including goods in transit Rs 25388099(PY Rs 329394) 122657719 60386710Work In Progress 106571806 140267015Finished Goods 2064882 504423Stock in trade (acquired for trading) 4233659 944243
Total 235528066 202102391
Note 16 Trade receivables(Unsecured Considered Good)(Secured considered good)(i) Trade receivables outstanding for a period exceeding six months 14972688 39356703(ii) Other Trade receivables 115007392 149825975
Total 129980080 189182678
Note 17 Cash and cash equivalents(a) Cash on hand 736587 1130106(b) Balances with banks
(i) In current accounts 82294762 68638076(ii) In deposit accounts Margin Money Ac 65229558 51435557
(Includes Rs 25229557 [PY Rs 10146825]maturing after 12 Months from Reporting date)
(iii) In earmarked accounts- Unpaid dividend accounts 1569163 1377736
(iv) In EEFC Account 15908596 -
Total 165738666 122581475
Note 18 Short-term loans and advances(a) Prepaid expenses 2038180 1514421(b) Balances with government authorities 18707907 2649427(c) Advance to Suppliers 6502780 1204542
Total 27248867 5368390
As at As atPARTICULARS 31-3-2014 31-3-2013
` `
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
34
22nd Annual Report 2013-2014
Note 19 Revenue from operations(a) Sale of products (Refer Note (i) below)
- Domestic 479879719 840242278- Export 250291865 122513796
730171584 962756074
(b) Sale of services (Refer Note (ii) below) 5497719 5017414(c) Other operating revenues (Refer Note (iii) below) 18083178 21349949
753752481 989123437Less
(d) Excise duty 46229998 83328552
Total 707522483 905794885
(i) Sale of products comprises (Net)Manufactured goods1 Heat Exchanger amp Accessories 276133732 5550244892 Steam Coil Heaters 20596221 251363053 Air Conditioning amp Refrigeration 34465713 578149234 Air Cooled Heat Exchanger amp Accessories 264255374 544878725 Presure Vessels amp Accessories 40658120 1383800636 Finned Tubes Fine Tube Bundles Elements 4597025 84048947 Industrial Fan amp Accessories - 10828448 Other Plants Equipments amp Accessories 8123003 39650409 Humidification Ventilation and Air Cooling Plant Equipment - 12802011Trading Goods1 Window amp Split AC with Acessories 35112398 22329081
Total - Sale of manufactured goods 683941586 879427522
(ii) Sale of services comprisesProcessing Charges (TDS Rs 105148 PY RS 274356 ) 5497719 5017414
Total - Sale of services 5497719 5017414
(iii) Other operating revenues compriseInsurance Charges Receipt 94273 -Transportation Charges 7435113 16601775Inspection Charges Receipt 311529 605372Octroi Charges Receipt 106485 -Packing Charges Receipt 316811 605837Professional Charges 40450 -Sales Commission 274094 -Service Tax Set Off 2520764 3350705Foreign Exchange Fluctuation 927963 -Duty Draw Back 6055696 186260
Total - Other operating revenues 18083178 21349949
Total Revenue From Operations 707522483 905794885
Note 20 Other income(a) Interest income (TDS of Rs 465005 (P Y 272522-) 4899744 2799698
Total 4899744 2799698
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
35
Patels Airtemp (India) Ltd
For the year For the yearended ended
Note Particulars 31 March 2014 31 March 2013` `
(i) Interest income comprisesInterest from banks ondeposits 4765356 2733247Interest on Deposit with GEB 134388 66451
Total - Interest income 4899744 2799698
Note 21 Cost of materials consumedOpening stock 60386710 85014767Add Purchases 375019770 433761001
435406480 518775768Less Closing stock 122657719 60386710
Cost of material consumed 312748761 458389058
Material consumed comprisesIron amp Steel Flanges 172408569 185341626Non Ferrous (Copper Brass Tubes) 33361084 41824899Non Ferrous (Copper Allu Brass Plates) 41371384 43732780Pipes amp Tubes 67742977 166242450Air Washer Equipments - 8721500Other Material 47517253 75987412
Less 362401267 521850667Cenvat amp VAT Setoff 49652506 63461609
Total 312748761 458389058
Note 22 Purchase of traded goodsTraded goods 34394089 21176092
Total 34394089 21176092Trading Goods comprisesWindow amp Split AC with Acessoires 34394089 21176092
Total 34394089 21176092
Note 23 Changes in inventories of finished goods work-in-progress and stock-in-tradeInventories at the end of the yearFinished goods 2064882 504423Work-in-progress 106571806 140267015Stock-in-trade 4233659 944243
112870347 141715681
Inventories at the beginning of the yearFinished goods 504423 504423Work-in-progress 140267015 205526506Stock-in-trade 944243 910254
141715681 206941183
Net (increase) decrease -28845334 -65225502
23a Details of Finished GoodsOil Cooler - 504423Air Cooled Heat Exchanger 816220 -Steam Coil Air Preheater 1167922 -Others 80740 -
2064882 504423
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
36
22nd Annual Report 2013-2014
Note 24 Employee benefits expenseSalaries and wages 48723634 45301136Contributions to provident and other funds 4454146 3869063Staff welfare expenses 2389702 1967106
Total 55567482 51137305
Note 25 Other Manufacturing ExpenseLabour Charges 47061403 56836703Factory Expenses 8864699 10147414Consumption of stores and welding Acessories 15814044 18602645Consumption of loose tools 20110618 20725686Consumption of packing materials 3557110 4664459Power and fuel 6983969 8074932
Total 102391843 119051839
Note 26 Finance costs(a) Interest expense on
(i) Borrowings 7365214 18767235(ii) Trade payables - 2545744(iii) Others
- Interest on delayed deferred payment of income tax 1370 794- Others 149119 3161
(b) Other financial charges 4406340 5029485(c) Foreign Exchange Fluctuation - 850452
Total 11922043 27196871
Note 27 Other expensesLate Delivery Charges 17630488 19379648Sitting Fees 25500 21000Repairs and maintenance - Buildings 1873473 522636Repairs and maintenance - Machinery 9626228 12483608Repairs and maintenance - Others 2240262 1400546Insurance 215539 116753Rates and taxes 353326 89762Communication and Telephone Expenses 2071440 2435586Travelling and conveyance 7270859 7471445Printing and stationery 1411120 1914158Freight and forwarding 17859115 19527351Sales Tax Expenses 109347 398271Service Tax Expenses - 107733Sales commission 797935 16850Business promotion expenses 503041 794155Donations and contributions 1000000 107501Legal and professional 1790959 5135762Payments to auditors 105433 89888Balances Written off (net) 1597506 181820Provision for diminution in value of Investment 259700 -Miscellaneous expenses 10065450 5369714
Total 76806721 77564187(i) Payments to the auditors comprises
As auditors - Statutory audit 79388 79388- Tax Audit 10500 10500- Taxation Matters - -- Management Services - -- Company Law Matters - -- Certification fees amp Other Services 15545 -- Reimbersement of Expenses - -
Total 105433 89888
For the year For the yearended ended
PARTICULARS 31 March 2014 31 March 2013` `
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
37
Patels Airtemp (India) Ltd
28 CAPITAL COMMITMENTS amp CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Contingent Liabilities (` in lacs)
As at 31032014 As at 31032013
Outstanding Bank Guarantees 167148 224525
Outstanding Foreign Bank Guarantees US$7014369 US$ 36272191
Outstanding Inland Letter of Credit 7598 4770
b) Capital CommitmentsEstimated amount of contracts remaining to be executed on capital account [net of advances]and not provided for Rs 1237 Lacs (PY RsNIL)
29 RELATED PARTY INFORMATIONThe company has transactions with following related parties
a) Associates Thermflow Engineers Pvt LtdShiv Fintrade Pvt Ltd
b) Key Management Personal 1 Narayanbhai GPatel2 Narendrabhai G Patel3 Devidas C Narumalani4 Prakashbhai N Patel5 Sanjivkumar N Patel
c) Relative of Key Managerial Person 1 Sitaben N Patel
Name of Party Nature of Nature of Transaction Transactions Balancerelationship during the at the end
year (in `) of the yearNarayanbhai G Patel Chairman amp MD Remuneration amp 2523860 Nil
Contribution to funds (2529701)Narendrabhai G Patel Director mdash do mdash 2447150 Nil
(2448788)Devidas C Narumalani Director mdash do mdash 2477480 Nil
(2487650)Prakashbhai N Patel Director mdash do mdash 2593137 Nil
(2674554)Sanjivkumar N Patel Director mdash do mdash 2419200 Nil
(2419200)Sitaben N Patel Wife of Director Sale of Airconditioner 103512 Nil
(mdash)Themflow Engineers Associate Concern Interest 5078057Pvt Ltd (5697400)
Loan taken 8000000 NIL(11900000) (53067815)
Loan Repaid 60762204(10060000)
Shiv Fintrade Pvt Ltd Associate Concern Interest 222652(mdash)
Loan taken 56300000 56500387(mdash) (mdash)
Loan Repaid Nil(mdash)
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
38
22nd Annual Report 2013-2014
30 As per the information given to us the Company has provided Rs 259700 as diminution in valueof Investment treating the same in Permanent nature
31 SEGMENT INFORMATION
Primary Segment - Business Segment
The Companys operation predominantly comprise of only one segment In view of thesameseparate segmental information is not required to be disclosed as per the requirement ofAccounting Standard 17
Secondary Segment - Geographical Segment
The analysis of geographical segment is based on the geographical location of the customersThe geographical segments considered for disclosure are as follows
Sales within India include sales to customers located within IndiaSales outside India include sales to customers located outside India
Information pertaining to Secondary SegmentGross revenue from operations as per Geographical Locations
Particulars Year ended Year ended31-03-2014 31-03-2013
Within India 479879719 840242278Canada 224345137 113602803Nigeria 8370638 3458215Indonesia 11340306 999067Thailand ndash 1930658Italy ndash 2523053Zambia 6235784 ndashTotal 730171584 962756074
32 EARNING PER SHARE
Particulars 31-03-2014 31-03-2013
- Net Profit for the year 46644887 49464499
- Number of Equity Shares 5070240 5070240
Basic amp Diluted Earning per Share (Price per share Rs 10) 920 976
33 In the opinion of the Board of Directors the current assets loans and advances are approximatelyof the value stated if realized in the ordinary course of business The provisions for depreciationand all known and ascertained liabilities are adequate and not in excess of the amounts reasonablynecessary
34 Balances of Unsecured Loan Trade Receivable and Payables amp loans and advances are subjectto confirmation from respective parties
35 EMPLOYEE BENEFIT OBLIGATION
As per Accounting Standard 15 Employee Benefits the disclosures of Employee benefits asdefined in the Accounting Standard are given below
Defined Contribution Plan
Contribution to Defined Contribution Plan recognized as expense for the year is as under
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
39
Patels Airtemp (India) Ltd
(`)
2013-14 2012-13
Employers Contribution to Provident Fund 2585529 2362958
The company has taken defined benefit plan ie Employee Group Gratuity Scheme from the LifeInsurance Corporation (LIC) of India which provides Gratuity linked to the final salaries and isfunded in a manner such that the contribution are set at a level that is expected to be sufficient topay the benefits falling due in the same period It is not practicable to determine the present valueof the Companys obligation or the related current service cost as the LIC compute its obligation onits own basis that differ materially from the basis used in the Companys financial statements iethe company recognized charged only the amount paid to the LIC as a contribution towardsGratuity Scheme The expense recognized in the statement of Profit amp Loss which is equal to thecontribution due paid for the year
36 MICRO SMALL amp MEDIUM ENTERPRISE
As per the Micro Small amp Medium Development Act 2006 and to the extent of the informationavailable amounts unpaid as at the year end together with the interest paid payable is asfollows
Particulars 2013-14 2012-13
The Principal Amount 25121981 15758122
Interest Paid under MSMED Act 2006 NIL NIL
Interest due (Other than 233 (b)) NIL NIL
Interest accrued and unpaid NIL NIL
Interest due and payable till actual payment NIL NIL
37 Value of Imported And Indigenous - Materials Stores And Spare Parts Consumed AndPercentage Thereof
[1] MANUFACTURING ACTIVITY(` in Lacs)
Raw Materials 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 9488213 303 4567483 100
b) Indigenous 303260548 9697 453821575 9900
TOTAL - 312748761 10000 458389058 10000
[2] STORES amp TOOL CONSUMED(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported 245541 068 589603 150
b) Indigenous 35679121 9932 38738728 9850
TOTAL - 35924662 10000 39328331 10000
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
40
22nd Annual Report 2013-2014
[3] TRADING GOODS(` in Lacs)
Particulars 2013-14 2012-13
Value (`) () Value (`) ()
a) Imported ndash ndash ndash ndash
b) Indigenous 34394089 10000 21176092 10000
TOTAL - 34394089 10000 21176092 10000
38 CIF VALUE OF IMPORTS
Year ended Year ended31032014 (`) 31032013 (`)
i) Capital Goods 22484334 NIL
ii) Raw Materials 40343788 7474988
iii) Consumable Tools 245541 589603
39 EXPENDITURE IN FOREIGN CURRENCY
i) Subscription and Registration Fees 1949721 1894550
ii) Repairs to Plant amp Mc 2452387 4758935
iii) Foreign Travelling Expenditure 994628 1811560
iv) Software NIL NIL
v) Books amp Periodicals NIL NIL
vi) Trainee Fees NIL NIL
vii) Inspection Fee NIL 28551
40 EARNING IN FOREIGN EXCHANGE
Earning in foreign Exchange (FOB Value of Exports) 250291865 122513796
41 Previous years figures have been re-groupedrearranged wherever necessary to make themcomparable with current years figures
Significant Accounting Policies A
- Notes on Financial Statement- 1 to 41 -
PLACE AHMEDABAD FOR PARIKH amp MAJMUDARDATE 27-05-2014 CHARTERED ACCOUNTANTS
FRN No 107525W
CA Dr HITEN PARIKHPARTNERM No 40230
PLACE RAKANPUR FOR PATELS AIRTEMP (INDIA) LTDDATE 27-05-2014
NARAYANBHAI G PATELCHAIRMAN amp MANAGING DIRECTOR
SANJIVKUMAR N PATEL KARANSINGH I KARKIDIRECTOR COMPANY SECRETARY
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
41
Patels Airtemp (India) Ltd
GREEN INITIATIVEDear Shareholder
Green Initiative in Corporate Governance Go Paperless
The Ministry of Corporate Affairs (MCA) has taken a ldquoGreen Initiative in Corporate Governancerdquo(Circular No172011 dated 21042011 and Circular No 182011 dated 29042011) allowingpaperless compliances byCompanies through electronic mode This move by the Ministry iswelcome since it will benefit the society atlarge through reduction in paper consumption andcontribution towards a Greener Environment It will alsoensure prompt receipt of communicationand avoid loss in postal transit
In the spirit of the above circulars issued by MCA Shareholders who have not registered theiremail address are requested to register their email addresseswith their concerned DepositoryParticipant (DP with whom you maintain your Demat Account) to receive communication throughelectronic mode Shareholders can also register their email address with MS Bigshare ServicesPrivate Limited R amp T or by email us at sharepatelsairtempcom quoting your Folio No Client ID-DP IDNo of Shares held
Alternatively Shareholders may also write to our R amp T at the following Address
MS Bigshare Services Private Limited(Unit Patels Airtemp India Ltd)E-23 Ansa Industrial EstateSakivihar Road Saki Naka Andheri (E) Mumbai-400 072Tel 022-28470652 Fax No 022-2875207EmailinvestorbigshareonlinecomWebsite wwwbigshareonlinecom
Please note that these documents will also be available on the Companyrsquos websitewwwpatelsairtempcom Any physical copies of the same will also be available at the RegisteredOffice in Ahmedabad for inspectionduring office hours Please also note that as a shareholder youare entitled to receive all these documents free of cost upon receiptof a requisition from you inphysical form
We are sure that as a responsible citizen you will whole-heartedly support this initiative and co-operate withthe Company to make it a success
Thanking You
Yours Faithfully
For Patels Airtemp (India) Ltd
Narayanbhai G PatelChairman and Managing Director
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
NECS MADATE FORM
PLEASE FILL UP THIS FORM AND ARRANGE TO SEND IT TO The following address if shares are held in physical Form OR To your DP if shares are held indemat Form
ToMS Bigshare Services Pvt LtdUnit Patels Airtemp (India) LtdE-23 Ansa Industrial EstateSakivihar Road Saki NakaAndheri (E)Mumbai-400 072Dear Sir
Sub Payment of Dividend through NECSIwe hereby give myour mandate to credit myour Dividend on the shares held by meus under theFolio mentioned directly to myour Bank Account through the Electronic Clearing System (ECS) toprepare myour dividend warrant with details of myour Bank Account No and Name of the Bank ampBranch
The Details of the Bank Account are given below
Name of FirstSoleShareholder(IN BLOCK LETTERS)Folio NoDP ID amp ClientID NoName of Bank in FullBranch NameAddress amp TelephoneNo of the Bank9 MICR Code No of theBank amp Branch asappearing on the Chequeissued by the BankType of Account with Code Saving Bank-10 Current-11 Cash Credit-13Ac No as Appearing onCheque Book
PANGIR NoAddress of the Shareholder
11-Digit IFSC CodeSignature of the FirstRegistered Shareholder(As per the specimensignature with theCompany DP)
The Company its Registrars and Bankers will make best endeavors to remit dividend through NECS However for non CBSbranches of the banks the IFSC Code will be utilized to remit the dividend either by National Electronic Funds Transfer(NEFT) or Real Time Gross Settlement (RTGS) The branch where you operate your bank account will assist you to providethe IFSC a 11-digit code to enable the remittance through NEFT or RTGS
IWe enclose a blank cancelled cheque
Date
Place
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________
ATTENDANCE SLIPI hereby record my presence at the Twenty Second Annual General Meeting of the Company held at theRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad-380 009at 1000 am on Saturday the 30th August 2014
FULL NAME OF MEMBER PROXY(IN BLOCK LETTERS)
MEMBERrsquoS PROXY SIGNATURE
NOTES 1 You are requested to sign and hand over this attendance slip at the entrance2 If you intend to appoint a proxy to attend the meeting instead of yourself the proxy form must be deposited at the Registered
Office of the Company at 5th Floor Kalpana Complex Nr Memnagar Fire Station Navrangpura Ahmedabad - 380 009 notless than 48 hours before the time fixed for holding the meeting
Patels Airtemp (India) LtdRegd Office 5th Floor Kalpana Complex Nr Memnagar Fire Station
Navrangpura Ahmedabad ndash 380 009
Client ID ______________
DP ID ______________
Folio No ______________
Nos of Shares held ______________PROXY FORM
IWe ______________________________________________ of _______________________________________in the district of ______________________________________ being a membermembers of the abovenamed Company hereby appoint _______________________________________________________________of ____________________________________________ in the district of _____________________________or failing him her ________________________________ of ______________________________________________in the district of __________________________________________ as my our Proxy to attend andvote for me us and on my our behalf at the Twenty Second Annual General Meeting of the Company tobe held on Saturday the 30th August 2014 at 1000 AM at the Registered Office of the Company andat any adjournment thereof
Signed this ____________________day of____________________ 2014
NOTES
1 The Proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the timefixed for holding the Meeting
Signature _______________________
AffixRevenueStamp of
` 1-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
THIS
PAGE HAS
BEEN
INTENTIO
NALLY LEFT B
LANK
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-
1 Name of the company PATELS AIRTEMP (INDIA) LIMITED
2 Annual financial statements for the year ended
31st March 2014
3 Type of Audit observation Unqualified 1 Frequ eny of observation N A 5 To be signed by
bull GEGfManaging Director Narayanbhai G Patel ----shy4cJM
bull Finance Manager KarrtieshbhaiR Shah ~V
bull Audit Committee Chairman Bareshkumar I Shah ~ )
I
bull Auditor of the company
~FOR PARIKH amp~JMUDAR ~HARTE~ Accou TANTS ~ ~ ~
~
CAD H
PARIKH PARTll
~~4~Jo7525W JhJ e 21 HI 1c YZo I Lf Place Ahmedabad
- - - - - -shy
_____________ Works ( I ~I NO l29 H lOGJ 1992Pl C017801 ~~ 805 806 807810 Rakanpur 382 721
(~ l~ ill) Pi A TELS AlRTEMP (INDIAmiddot ) TD V~a Sola B~adaj Village Ta Kalol ~2slsz 0gt ~ Jj i Dlst Gandhmagar GUJarat India ~rHEIHDUST~~lIc1middot Phone +9 1 2764286634 t 35286480181
Fax + 91 276428630 1 Email paled lbsnlinlworks11BlelslIrtampcom Website wwwpatelsairlemp com
FORMA
(Pursuant to Clause 31(a) of Listing Agreement)
Regd Office 5th Floor Kalpana Complex Nr Manmagar Fire Station Navrangpura Ahmedabad - 380 009 Gujara India
ASME Imiddot 0 I Ph +91 7927913594 95 96 Fax - 917927913693 Email projectpatelsairtempcoin NATIONAL BOARD 5 J Member Jf HTRI - USA Mumbai Office
310 Oberoi ChambersmiddotlI New Link Road Osliwara Andheri (Wl Mumbai -400 053 India Phone T91 22 26734162 163 Telefax middot +912226734162 Email patbombom2vsnlnetin
- Annual Report PAT 2013-14_Final_Websitepdf
-
- Patel_AR_2014_T1pdf
-
- Page 1
- Page 2
-
- Patel_AR_2014_T2pdf
-
- Page 1
- Page 2
-