DIRECTORS' REPORT & MANAGEMENT ANALYSIS
Dear Members,
Your Directors with immense pleasure present the 14th (Fourteenth) Annual Report of
Pricol Limited (Rs. 'Company) on the business and operations together with the
audited financial statements (Standalone & Consolidated) for the financial year ended
31st March, 2025 and Auditor's Report thereon.
FINANCIAL RESULTS
Rs. Lakhs
The summarised financial results are: |
Standalone |
Consolidated |
|
2024-25 |
2023-24 |
2024-25 |
2023-24 |
Net Sales & Services |
|
|
|
|
- Domestic |
2,32,066.43 |
2,04,950.54 |
2,46,768.91 |
2,05,921.83 |
- Export |
13,731.79 |
14,224.80 |
15,322.29 |
14,895.06 |
Revenue from Operations |
2,45,798.22 |
2,19,175.34 |
2,62,091.20 |
2,20,816.89 |
Other Operating Revenue |
7,101.04 |
6,361.34 |
7,101.04 |
6,361.34 |
Other Income |
1,338.61 |
1,047.35 |
1,663.80 |
1,315.83 |
Total Income |
2,54,237.87 |
2,26,584.03 |
2,70,856.04 |
2,28,494.06 |
Profit from Operations before Finance Cost, |
29,218.44 |
27,171.53 |
32,953.22 |
28,621.52 |
Depreciation and Amortisation Expense & Tax |
|
|
|
|
Less : Finance Costs |
1,135.21 |
1,820.71 |
1,316.50 |
1,825.00 |
: Depreciation and Amortisation Expense |
8,375.18 |
8,029.82 |
8,975.24 |
8,206.06 |
Profit Before Tax |
19,708.05 |
17,321.00 |
22,661.48 |
18,590.46 |
Less : Tax Expense |
|
|
|
|
Current Tax |
6,129.53 |
4,750.53 |
6,511.74 |
5,045.19 |
Deferred Tax |
(659.75) |
(451.07) |
(545.94) |
(425.48) |
Earlier years (Net) |
(7.31) |
(69.95) |
(7.31) |
(90.40) |
Profit for the year (A) |
14,245.58 |
13,091.49 |
16,702.99 |
14,061.15 |
Other Comprehensive Income for the year before tax |
345.03 |
(682.25) |
457.69 |
(757.36) |
Income tax relating to these items |
(86.84) |
171.71 |
(85.05) |
167.17 |
Other Comprehensive Income for the year after tax (B) |
258.19 |
(510.54) |
372.64 |
(590.19) |
Total Comprehensive Income for the year (C) = (A) + (B) |
14,503.77 |
12,580.95 |
17,075.63 |
13,470.96 |
Cash Profit |
22,878.95 |
20,610.77 |
26,050.87 |
21,677.02 |
Earnings per share (EPS) Basic & Diluted (in Rs.) |
11.69 |
10.74 |
13.70 |
11.54 |
DIVIDEND & RESERVES
Your Directors have not recommended any dividend and not transferred any amount to
reserves for the year 2024-25.
AUTO INDUSTRY
During the year, the Auto Industry's domestic sales grew by 7% and exports by 19%. The
overall Auto Industry's production grew by 9.12% as against 9.04% in the previous
financial year.
Segment |
Vehicle Production* |
|
2024-25 |
2023-24 |
Growth % |
2 Wheeler / 3 Wheeler |
2,49,33,877 |
2,24,64,686 |
10.99% |
Commercial Vehicle |
10,32,645 |
10,67,504 |
-3.27% |
Tractors |
9,54,000 |
8,74,500 |
9.09% |
4 Wheeler |
50,61,164 |
49,01,844 |
3.25% |
Total |
3,19,81,686 |
2,93,08,534 |
9.12% |
*As per Society of Indian Automobile Manufacturers (SIAM)
COMPANY'S PERFORMANCE OPERATIONS
In domestic market, the Company primarily caters to 2 wheelers, Commercial Vehicles,
Tractors, 4 wheelers and Off-road vehicles.
STANDALONE
The Company's Domestic Sales was up by 13.23% and overall Company's Sales by 12.15%
compared to the previous year. The profit from operations before Finance cost,
Depreciation & Amortisation expense and Tax is Rs.29,218.44 Lakhs compared to
Rs.27,171.53 Lakhs during the previous year. Profit before Tax has increased from
Rs.17,321.00 Lakhs to Rs.19,708.05 Lakhs, due to increase in sales volume and better
control on costs.
CONSOLIDATED
The profit from operations before Finance cost, Depreciation & Amortisation expense
and Tax has increased from Rs.28,621.52 Lakhs to Rs.32,953.22 Lakhs. The operational
performance has improved due to increase in sales volume and better control on costs.
Profit before Tax is Rs.22,661.48 Lakhs compared to Rs.18,590.46 Lakhs.
SHARE CAPITAL
Authorised, Issued, Subscribed and Paid-up Capital
As on 31st March 2025,
a) Authorised Share Capital of the Company is Rs.79,45,00,000 comprising of
79,45,00,000 equity shares of Rs.1 each.
b) Issued, Subscribed and Paid-up Equity Share capital of the Company is
Rs.12,18,81,498 comprising of 12,18,81,498 Equity Shares of Rs.1 each.
There was no change in Authorised, Issued, Subscribed and Paid-up capital during the
financial year 2024-25.
SUBSIDIARY COMPANIES Pricol Asia Pte Limited, Singapore
This purchasing arm of our Company mainly assists in global procurement of raw
materials and components to our Company and associate companies.
In the financial year 2024-25, Pricol Asia Pte Limited achieved sales of USD 586.55
Lakhs (Rs. 49,532.92 Lakhs) as against the previous year sales of USD 649.46 Lakhs (Rs.
53,743.09 Lakhs). The company made a profit of USD 13,73,100 (Rs. 1,159.56 Lakhs) during
the year 2024-25 as against USD 14,99,287 (Rs. 1,240.68 Lakhs) in 2023-24.
PT Pricol Surya Indonesia
The company is supplying Instrument Clusters to the 2 Wheeler manufacturers in
Indonesia & Thailand.
In the financial year 2024-25, PT Pricol Surya Indonesia has achieved a sales of IDR
4,63,990 Lakhs (Rs. 2,415.07 Lakhs) as against the previous year sales of IDR 3,71,635
Lakhs (Rs. 1,993.82 Lakhs) an increase of 24.85% in IDR & 21.13% in INR terms. The
Company had a profit before tax of IDR 1,22,646.02 Lakhs (Rs. 638.37 Lakhs) as against the
profit before tax of IDR 73,488 Lakhs (Rs. 394.26 Lakhs) of previous year.
Pricol Asia Exim DMCC, Dubai
The company, a Wholly Owned Subsidiary of Pricol Asia Pte Limited, Singapore, a
purchasing arm of our Company mainly assists in global procurement of raw materials and
components to our Company and associate companies .
During the financial year 2024-25, the Company achieved sales of USD 288.37 Lakhs (Rs.
24,351.89 Lakhs) as against the previous year sales of USD 47.61 Lakhs (Rs. 3,939.49
Lakhs). The company made a profit of USD 7,46,577 (Rs. 630.47 Lakhs) during the year
2024-25 as against the profit of USD 75,699 (Rs. 62.64 Lakhs) during the previous year.
Pricol Precision Products Private Limited, India
The company with the name Pricol Electronics Private Limited was incorporated on 11th
April 2023, as a Wholly Owned Subsidiary of Pricol Asia Pte Limited, Singapore. On 9th
October 2024, Pricol Limited acquired entire 15,00,000 Equity Shares of '1 from Pricol
Asia Pte Limited at a value of '15 lakhs, for operational convenience. With effect from
9th October 2024, the company became Wholly Owned Subsidiary of Pricol Limited.
The name of company was changed to Pricol Precision Products Private Limited with
effect from 28th November 2024.
During the year, Pricol Limited infused Rs.120.15 Crores towards equity share capital
of the company and gave a Corporate guarantee for Rs.230 Crores for the banking facilities
of the company.
Pricol Precision Products Private Limited has acquired the Injection Moulded Plastic
Component Solutions Division of Sundaram Auto Components Limited (WOS of TVS Motors
Limited) on slump sale basis on 31st January 2025 for a value of Rs.19,749.70 Lakhs. With
effect from 1st February 2025, the company commenced the operations of Injection Moulded
Plastic Component Solutions Business.
In the fiscal year 2024-25, the company's turnover was Rs.13,925.57 Lakhs, which is
from the business operations for the months of February & March 2025. The Profit for
year was Rs.124.79 lakhs.
OUTLOOK, OPPORTUNITIES, CHALLENGES, RISKS & CONCERNS Global Economy Outlook:
The global economy has shown resilience in the face of evolving challenges, supported
by strong macroeconomic fundamentals in both advanced and emerging markets, along with
steady consumer and government spending. The United States has surpassed recessionary
expectations, with economic momentum gaining traction due to a robust labour market and
increased investment. In contrast, China is facing significant obstacles, including high
tariffs, weak domestic demand, and structural issues. Recent forecasts reflect this
disparity, as some analysts have downgraded China's growth outlook.
Across the globe, inflation is still above the targets set by central banks but is
trending downward. The International Monetary Fund (IMF) projects that global headline
inflation will decrease to 4.2% in FY2025 and further to 3.5% in FY2026. This decline is
attributed to easing supply-side constraints and ongoing monetary tightening. In Asia,
inflation has increased more moderately compared to Western economies and is now
decreasing more rapidly, leading to more measured adjustments in interest rates.
In FY2025, trade tensions rose due to a growing tariff war, mainly between the U.S. and
China, affecting various sectors. These protectionist measures disrupted global supply
chains and reduced cross-border investment. Simultaneously, the Red Sea crisis interrupted
key maritime routes, raising shipping costs and delaying cargo movement, particularly
impacting Asia, Europe, and Africa, which contributed to supply-side inflation.
Despite these disruptions, the IMF forecasts global economic growth at 3.3% in both
FY2025 and FY2026, which is slightly below the historical average of 3.7%. The resilience
of key economies and ongoing adaptation to changes in the supply chain provide some degree
of stability. However, persistent structural challenges, high interest rates, and
geopolitical tensions will continue to impact the economic outlook. These factors will
necessitate coordinated policy responses and strategic planning to effectively navigate
the uncertainties ahead.
Indian Economy Outlook:
India's economy demonstrated resilience in FY 2024-25, navigating global headwinds and
domestic policy shifts with steady momentum. While external challenges such as evolving
global trade dynamics and geopolitical tensions have posed uncertainties, strong domestic
demand and proactive fiscal and monetary policy interventions have continued to support
economic growth.
India's real Gross Domestic Product (GDP) is projected to grow by 6.5% in FY 2025-26,
according to the Reserve Bank of India (RBI) and the International Monetary Fund (IMF).
Key growth drivers include household consumption, expanding manufacturing through
Production Linked Incentive (PLI) schemes, increased infrastructure investments, and a
digitizing services sector. The government's focus on capital expenditure, rural
development, and support for MSMEs also supports economic momentum.
Inflationary trends have been showing signs of easing in recent months, prompting the
Reserve Bank of India (RBI) to adopt a more accommodating monetary stance. In response,
the RBI lowered the policy repo rate by 25 basis points to 6% on April 9, 2025, and
shifted its monetary policy stance from "neutral" to "accommodative."
These actions indicate a supportive environment for economic growth. Market participants
expect further rate reductions throughout the remainder of 2025, depending on inflation
trends and global economic conditions.
The Union Budget for 2025 strengthened the country's growth agenda through
comprehensive structural reforms and targeted fiscal support. Key initiatives include a
simplified income tax system, which eliminates tax liability for individuals earning upto
Rs.12 lakh per annum. Additionally, there will be increased investments in infrastructure,
logistics, and innovation. A fund of Rs.20,000 crore has been announced to promote private
sector-led research, alongside improved credit support for agriculture, clean energy, and
Micro, Small, and Medium Enterprises (MSMEs). These measures are expected to boost
productivity, create jobs, and enhance resilience in rural areas and various sectors.
Looking ahead, India is well-positioned to maintain its growth trajectory, supported by
favorable demographics, increasing investor confidence, and the ongoing formalization of
the economy.
Indian Automotive Sector:
The Indian automotive industry is forecasted to grow steadily in FY2026, with domestic
sales expected to rise by 5% to 8% year-on-year, as per India Ratings & Research.
Growth will mainly come from the two-wheeler segment, supported by improved rural demand
linked to a normal monsoon and better crop yields.
The two-wheeler, passenger vehicle and commercial vehicle segments are expected to see
modest growth in FY2026. Two-wheeler sales are projected to increase by 6% to 8%
year-over-year, driven by premium products in rural and semi-urban markets. Passenger
vehicle growth is likely to moderate to 2% to 5% due to high inventories and weaker urban
demand, while premium and utility vehicles will still perform well. Commercial vehicles
may grow by 1% to 4%, supported by infrastructure recovery, though overcapacity may limit
gains, as per India Ratings & Research.
India's Electric Vehicle (EV) sector is rapidly growing, propelled by government
incentives, environmental concerns, and technological advancements. Initiatives like the
Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme aim to
boost EV adoption, transforming transportation towards sustainability. The market is
projected to reach Rs.20 lakh crore (approximately USD 240 billion) by 2030, as noted by
the Ministry of Road Transport and Highways. The 2025 Union Budget supports this growth
with customs duty exemptions on 35 essential capital goods for battery manufacturing.
However, a critical risk has emerged in the form of global rare earth magnet shortages,
following the imposition of export restrictions by China, which controls a significant
share of the global supply. These magnets are vital for electric motors, power steering
systems, and sensor- based technologies widely used in electric and smart vehicles. The
ongoing supply tightness could disrupt EV production schedules, raise input costs, and
pose a potential headwind to India's ambitions in advanced automotive manufacturing. In
response, policymakers are expected to accelerate efforts to localize sourcing, encourage
recycling of rare earth elements, and forge new supply partnerships to safeguard the
growth of India's EV ecosystem.
Notable growth is expected in electric two and three- wheelers, fueled by schemes like
PM e-Drive (Rs. 10,900 crore) and FAME II. India targets 30% EV sales for private cars,
70% for commercial vehicles, 40% for buses, and 80% for two and three-wheelers by 2030 -
aiming for 80 million EVs on the roads. The country also promotes domestic EV production
through the 'Make in India' initiative.
The integration of Industry 4.0, semiconductors, and smart mobility is transforming
India's automotive ecosystem. Key investments in automation and AI-driven production are
essential for OEMs and Tier-1 suppliers. Furthermore, government initiatives like
Rs.25,938 crore Production- Linked Incentive (PLI) scheme and Rs.18,100 crore ACC Battery
Storage Program will enhance India's status as a hub for advanced automotive and electric
vehicle technologies.
In conclusion, while FY2026 growth may normalize from past highs, but in long term
India's automotive sector remains strong. With steady domestic demand, growing electric
vehicle adoption, and an emphasis on exports and innovation, India is advancing toward
becoming a global leader in automotive and EV manufacturing.
Indian Auto Ancillary Sector :
The Indian auto ancillary sector is showing significant growth, driven by strong
domestic demand, rising exports, and government incentives focused on manufacturing
excellence and innovation. As a key part of India's industrial and economic framework, the
industry is positioned for a positive outlook in the near to medium term.
India's auto component sector is gearing up for a major leap forward. With production
expected to more than double and touch $145 billion by 2030, and exports likely to triple
to $60 billion, the country is setting its sights on becoming a key global player. This
growth could lead to a healthy trade surplus of $25 billion, while also significantly
boosting employment-adding 2 to 2.5 million new direct jobs, and taking the total to
around 3-4 million. The aim is to grow India's share in the global traded auto components
market from the current 3% to 8%.
However, in the near term, the revenue growth of the Indian auto component industry is
expected to slow down according to ICRA. After experiencing a 14% increase in FY2024, the
industry is projected to grow by 810% in FY2026. The growth in coming year will be driven
by several factors, including the premiumization of components, higher value addition, and
increased demand from domestic Original Equipment Manufacturers (OEMs).
One emerging challenge is the imposition of export controls by China, which dominates
over 80% of the global rare earth magnet supply. These restrictions have led to a 75%
year-over-year drop in magnet exports as of mid-2025. For Indian Tier-1 and Tier-2
suppliers that are increasingly integrated into EV, hybrid, and electronics- driven
vehicle platforms, this has significant implications. Key product categories affected
include powertrain components, instrument clusters, actuators, and telematics
modules?core segments within India's high- growth auto ancillary export basket. The
impact is particularly severe for companies serving OEMs with high- tech EV programs and
global sourcing mandates, where margins are tight and adherence to delivery schedules is
critical. This development has already resulted in a 15% to 25% increase in raw material
costs for magnet-based components, disrupting pricing strategies and production timelines
across the EV and smart mobility value chain.
The government's Production Linked Incentive (PLI) scheme continued to bolster the
sector, encouraging investments in advanced technologies and EV components. The scheme is
promoting the manufacturing of Advanced Automotive Technology (AAT) products and is
significantly boosting the EV segment.
In summary, the Indian auto ancillary sector remains on a growth path, driven by
increasing localization, technological advancements, and supportive government policies.
While challenges such as global economic uncertainties and evolving emission norms
persist, the industry's focus on innovation and sustainability positions it well for
continued expansion.
Growth Drivers :
1) Ongoing improvements in transport, logistics, and urban mobility are driving demand
for advanced vehicles. Smart infrastructure and warehouses are enabling faster deliveries
and efficient supply chains.
2) Industry 4.0 - automation, smart factories, and IoT is boosting productivity and
quality. Auto firms are using digital tools for cost reduction and real-time process
optimization.
3) Global supply chain disruptions are driving reshoring and diversification
strategies. This shift offers Indian auto component firms greater global market
opportunities.
4) Indian auto component makers have a strong global presence and rising export
volumes. Quality, cost competitiveness, and trade partnerships support this global
expansion.
5) Environmental norms and consumer trends are encouraging cleaner production methods.
Companies are adopting renewables, waste reduction, and circular economy practices.
6) The Production Linked Incentive (PLI) scheme for the automotive sector has been
allocated Rs.2,819 crore for FY 2026, as per the Union Budget. This allocation is part of
a larger Rs.25,938 crore scheme aimed at boosting domestic manufacturing of advanced
automotive technologies.
7) The PM E-Drive Scheme (2024) allocates Rs.10,900 crore to promote electric vehicles
(EVs) in India. It offers subsidies for EVs, including two-wheelers, three-wheelers, and
commercial vehicles, while boosting EV infrastructure. This initiative supports EV
adoption, local manufacturing, and growth in the auto ancillary sector, particularly in
batteries and charging solutions.
Risks :
1) With OEMs facing cyclical demand and potential market slowdowns, they may experience
reduced order volumes, which can strain their production capacity and revenue projections.
2) Persistent disruptions (exacerbated by geopolitical tensions or residual effects of
global pandemic) could delay the procurement of critical raw materials and components,
leading to production bottlenecks and increased operational costs.
3) Global rare earth magnet shortages, driven by export restrictions and concentrated
supply chains (notably in China), are disrupting production schedules and increasing input
costs, especially in EVs and electronics-heavy assemblies.
4) Rising prices of key raw materials and energy could increase the working capital
required to maintain inventory and lead to thinner margins if cost passthrough is limited.
5) Intensified global competition reducing pricing power and market share.
6) Geopolitical instability may cause uncertainties in export markets.
7) Currency fluctuations may raise import costs for essential components
RISK MANAGEMENT
Risk Management Committee of the Board was constituted in accordance with Regulation 21
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Risk
Management Committee is responsible to frame, implement and monitor the risk management
plan for the Company. The Committee is responsible for development and implementation of a
Risk management Policy for the Company including identification therein elements of risk,
if any, which in the opinion of the Board may threaten the existence of the Company and is
responsible for reviewing the risk management plan and its effectiveness. During the year,
Risk Management Committee met 2 (two) times to discuss on the identification, monitoring,
evaluating and manage the risks of the Company.
Company's Risk Management Policy has been adopted for identifying and managing risk, at
the strategic, operational and tactical level. Our risk management practices are designed
to be responsive to the ever changing Industry dynamics. The Company has also laid down
the procedures to inform Board members about risk assessment and minimisation procedures.
The Risk Management policy has been placed on the website of the Company and the web
link there to is https://pricol.com/wp-content/uploads/2023/01/Risk-
Management-Policy-2021.pdf
Risk management is an ongoing activity considering the continuous changing business
environment in which Company operates. The risks identified by the businesses and
functions are addressed systematically through mitigating actions on a continuing basis.
The Company has initiated a process to obtain ISO 31000 certification - ISO 31000 is an
international standard that provides guidelines on managing any type of risk in any
business activity. The standard provides guidelines on principles, risk management
framework, and application of the risk management process.
At present the Company has not identified any element of risk which may threaten the
existence of the Company.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has internal control systems commensurate with the nature of its business,
the size, and complexity of its operations and such internal financial controls with
reference to the Financial Statements are adequate.
The Company also adopted policies and procedures for the governance of the orderly and
efficient conduct of its business including adherence to Company's policies, safeguarding
of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records and the timely preparation of reliable financial
information and its disclosures. The Company has well documented policies and SOPs
covering all financial and operating functions.
The Company's internal control systems have been strengthened taking into account the
nature of business and size of operations to provide for:
Reliability and integrity of financial and operational information;
Effectiveness and efficiency of operations and assets;
Compliance with applicable statutes, policies, listing requirements and
management policies and procedures.
To further strengthen the internal control system, the Company has a well established
own Corporate internal audit team. Internal Audit team periodically reviews compliance of
operations, at all locations and all functions, inline with the documented policies and
procedures and assess the effectiveness & efficacy of the same in terms of effective
internal controls. Internal audit team also monitors the status of management actions on
the previous internal audit finding. The significant audit findings are reviewed on a
quarterly basis in the meetings of the Audit Committee. The Audit Committee at its
meetings regularly reviews the financial, operating, internal audit & compliance
reports to improve performance. The heads of various monitoring / operating departments
are present for the Audit Committee meetings to answer queries from the Audit Committee.
Based on the framework of internal financial controls and compliance system established
and maintained by the Company, work performed by the internal, statutory, cost, and
secretarial auditors and external agencies including audit of internal financial controls
over financial reporting by the statutory auditors and the reviews performed by Management
and the relevant Board Committees, including the Audit Committee, the Board is of the
opinion that the Company's internal financial controls were adequate and effective during
FY 2024-25.
The Company has adopted accounting policies which are in line with the Indian
Accounting Standards notified under Section 133 of the Act read with the Companies (Indian
Accounting Standard) Rules, 2015. The Company gets its Standalone and Consolidated
Financial Results reviewed / Audited every quarter / financial year by its Statutory
Auditors.
CODE OF CONDUCT
1) Code of fair disclosure of UPSI
The Company has adopted a Code of Conduct to regulate, monitor and report trading by
Designated Persons. This Code of Conduct is intended to prevent misuse of Unpublished
Price Sensitive Information ("UPSI) by designated persons and their immediate
relatives. The said Code lays down guidelines, which advise Designated Persons on the
procedures to be followed and disclosures to be made while dealing with the shares of the
Company and cautions them on consequences of non-compliances. The Company has Code of
practices and procedures for fair disclosures of unpublished price sensitive information
by including a policy for determination of legitimate purposes. Further, the Company has
put in place adequate & effective system of internal controls and standard processes
to ensure compliance with the requirements given under these regulations to prevent
insider trading. The same is available on the website of the Company at
https://pricol.com/wp-content/uploads/2023/ 01/Code-of-Fair-Disclosure.pdf.
2) Code of conduct for directors and senior management of the company
The Company has adopted the Code of Conduct for Directors and Senior Management of the
Company. The same is available on the website of the Company at https://pricol.com/wp-
content/uploads/2023/04/Code-of-Conduct- Board-of-Directors-Senior-Management-
Personnel.pdf
FINANCE
During the year the Company has not accepted / renewed any deposit from public. The
total deposits remained unpaid or unclaimed as at 31 st March, 2025 is Nil. There is no
default in repayment of deposits or payment of interest thereon during the year. The
Company undertook several steps to keep a control over borrowings and cost of borrowings.
CREDIT RATING
Consequent to the good financial performance, your Company was able to improve its
credit rating as follows.
Credit Agency |
Facility |
Present Ratings |
Previous Ratings |
CRISIL |
Long Term - INR 14,500 Lakhs |
CRISIL A+ / Stable (Upgraded) |
CRISIL A / Stable |
India Ratings and Research |
Fund-Based and Non Fund-Based Working Capital Limits - INR 8,000 Lakhs |
IND A+/ Stable / IND A1 + (Upgraded) |
IND A / Stable / IND A1 |
|
Long Term Loans - INR 2,772 Lakhs |
Withdrawn |
IND A / Stable |
|
Fund-based/ and non-fund based working capital limit - INR 2,500 Lakhs |
IND A+ / Stable / IND A1 + (Assigned) |
Not applicable |
RELATED PARTY TRANSACTIONS
The Company has formulated a Policy on Related Party Transactions, in line with the
requirements of the Act and the SEBI Listing Regulations. During the financial year under
review, all related party transactions that were entered by the Company were approved by
the Audit Committee and were on arm's length basis and in the ordinary course of the
business. Prior omnibus approval of the Audit Committee was obtained for the transactions,
which were of a foreseen and repetitive nature.
All related party transactions that were approved by the Audit Committee were
periodically reported to Audit Committee. None of the Contracts, Arrangements and
transactions with related parties required approval of the Board / Shareholders under
Section 188(1) of the Act and 23(4) of SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015.
During the year, there were no materially significant related party transactions made
by the Company with Promoters, Key Managerial Personnel or other designated persons which
may have potential conflict with the interest of the Company.
Details of related party transactions entered into by the Company, in terms of Ind
AS-24 have been disclosed in the notes to the standalone/consolidated financial statements
forming part of this Report & Annual Accounts 2024-25.
The Company has also adopted the Policy on Related Party Transactions and the same is
available on the website of the Company at https://pricol.com/wp-
content/uploads/2023/04/Policy-on-Related-Party- Transactions.pdf
DIRECTORS Independent Director
As per the provisions of Section 149 of the Companies Act, 2013, Regulation 25 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Members
appointed Independent Directors as mentioned below:
Name of Independent Director |
Period of Appointment |
Mr. Navin Paul |
Upto 21st October 2025 (First term of 5 years) |
Mr. S.K.Sundararaman |
Upto 29 th May 2028 (Second term of 5 years) |
Mr. Vijayraghunath |
Upto 31st January 2029 (First term of 5 years) |
Mr. K.Ilango |
Upto 14th June 2029 (Second term of 5 years) |
Mrs. T. M. Malavika |
Upto 30th September 2029 (First term of 5 years) |
Mrs.Sriya Chari, due to her personal commitments resigned her Independent Directorship
with effect from 4th July 2024. Board placed its appreciation for the valuable
contributions made by Mrs.Sriya Chari, to the Board & the Company during her tenure as
an Independent Director.
Shareholders, on 25th September 2024, through postal ballot by way of special
resolution, had approved the following
a) Appointment of Mrs.T.M.Malavika as an Independent Director for the first term of 5
(five) consecutive years commencing from 1st October 2024 to 30th September 2029 (both
days inclusive).
Mr.Navin Paul (DIN: 00424944) Independent Director, whose term of office expires on
21st October 2025, has given his consent for his re-appointment as Independent Director,
for the second term, of 5 (five) consecutive years commencing from 22nd October 2025 to
21st October 2030. The Board recommends the re-appointment of Mr.Navin Paul as an
Independent Director of the Company to hold office for the second term.
Details of Mr.Navin Paul being recommended for reappointment is included in the notice
of the ensuing Annual General Meeting. In the opinion of the Board, Mr.Navin Paul have the
integrity, expertise and experience (including the proficiency) to act as independent
director of the Company.
EXECUTIVE DIRECTOR / NON INDEPENDENT DIRECTOR
Members appointed Executive Director / Non Independent Director as mentioned below:
Name of Director |
Period of Appointment |
Mr. Vikram Mohan |
Upto 31st March 2028 |
Mrs. Vanitha Mohan |
Upto 31st March 2027 |
Mr. P.M.Ganesh |
Upto 31st March 2027 |
Mr.Vikram Mohan, a Non-Independent Director retires by rotation at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment. Details of Mr.Vikram
Mohan being recommended for re-appointment is included in the notice of the ensuing Annual
General Meeting.
EVALUATION BY THE BOARD, COMMITTEE & INDEPENDENT DIRECTOR
In accordance with applicable provisions of the Companies Act, 2013 (Rs. Act') and SEBI
Listing regulations, the Board has made a formal annual evaluation of its own performance,
Committees of the Board, Independent Directors and Individual Directors of the Company.
The Board's performance was evaluated based on the criteria like Structure, Governance,
Dynamics & Functioning, Approval & Review of Operations, Financials, Internal
Controls etc.
The performance of the Independent Directors as well as Individual Directors including
the Chairman of the Board were evaluated based on the evaluation criteria laid down under
the Nomination and Remuneration Policy and the Code of Conduct as laid down by the Board.
The Committees of the Board were evaluated individually based on the terms of reference
specified by the Board to the said Committee. The Board of Directors were satisfied with
the evaluation process which ensured that the performance of the Board, its Committees, I
n de pe n dent Directors and Individual Directors adhered to their applicable criteria.
On 28th January 2025, Independent Directors had a separate meeting in which they
evaluated the performance of the Non-Independent Directors, the Board as a whole and
Chairman of the Company, based on the criteria laid down under Nomination and Remuneration
policy, Code of Conduct & SEBI's guidance note and was satisfied with their
performance. The Nomination and Remuneration at its meeting held on 28th January 2025
evaluated the performance of the individual directors and the Board as a whole and was
satisfied with their performance.
KEY MANAGERIAL PERSONNEL
In terms of Section 203 of the Companies Act, 2013, the whole-time Key Managerial
Personnel of the Company are Mr. Vikram Mohan, Managing Director, Mr.Priyadarsi Bastia,
Chief Financial Officer & Mr. T. G. Thamizhanban, Company Secretary.
STATUTORY AUDITORS
M/s. VKS Aiyer & Co., Chartered Accountants, Coimbatore (ICAI Firm Registration No:
000066S), the Statutory Auditors of the Company were re-appointed as Statutory Auditors of
the Company, at the AGM held on August 9, 2023, for the second term of five (5) years,
from the conclusion of 12th Annual General Meeting until the conclusion of the 17th Annual
General Meeting of the Company to be held in the calendar year 2028.
M/s. VKS Aiyer & Co., Chartered Accountants have furnished a certificate to the
Board confirming that they are not disqualified from continuing as Auditors of the
Company.
The report of the Statutory Auditor forms part of this Report and Annual Accounts
2024-25. The said report does not contain any qualification, reservation, adverse remark
or disclaimer. During the year under review, the Auditors did not report any matter under
Section 143(12) of the Act, therefore no detail is required to be disclosed under Section
134(3)(ca) of the Act.
COST AUDITOR
In terms of Section 148 of the Act, the Company is required to maintain cost records
and have the audit of its cost records conducted by a Cost Accountant. Cost records are
prepared and maintained by the Company as required under Section 148(1) of the Act.
The Board of Directors at their meeting held on 15th May 2025, on the recommendation of
the Audit Committee, appointed Mr.G.Sivagurunathan, Cost Accountant, (ICWAI Membership No:
23127), as the Cost Auditor for conducting the Cost Audit for the financial year 2025-26,
on the remuneration of Rs.3 Lakhs in addition to reimbursement of travel and out-of pocket
expense, Mr.G.Sivagurunathan have vast experience in the field of cost audit and have been
conducting the audit of the cost records of the Company for the past several years.
A resolution seeking members' ratification of the remuneration payable to Cost Auditor
is included in the AGM notice. The Cost Audit Report will be filed within the stipulated
period.
SECRETARIAL AUDITOR
The Board of Directors and the Audit Committee at their meeting held on 15th May 2025,
has recommended the appointment of M r. P . Es w a ra m o o r t h y of M/s.P.Eswaramoorthy
and Company, Company Secretaries (FCS No.: 6510, CP No.: 7069) as Secretarial Auditor for
a term of five financial years from 2025-26 till 2029-30. The remuneration for his tenure
as Secretarial Auditor shall be mutually agreed between the Board of Directors and the
Secretarial Auditor. Mr.P.Eswaramoorthy of M/s.P.Eswaramoorthy and Company, Company
Secretaries has confirmed his eligibility for appointment as Secretarial Auditor of the
Company. The above proposal forms part of the Notice of the AGM for your approval.
SECRETARIAL AUDITOR REPORT
The Secretarial Audit Report for the financial year 2024-2025 received from
Mr.P.Eswaramoorthy of M/s.P.Eswaramoorthy and Company, (FCS No.: 6510, CP No.: 7069)
Practicing Company Secretaries, as per Section 204 of the Companies Act and Regulation 24A
of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed
herewith as ''Annexure A". There are no qualifications, observations, adverse
remarks or disclaimer in the said report.
SECRETARIAL STANDARDS
The Company has in place proper systems to ensure compliance with the provisions of the
applicable secretarial standards issued by The Institute of Company Secretaries of India
and such systems are adequate and operating effectively. The Company had complied with the
applicable Secretarial Standards.
INTERNAL AUDITORS
In compliance with the provisions of Section 138 of the Act, read with the Companies
(Accounts) Rules, 2014, Mr.K.Venkatesh, Internal Auditor carried out the internal audit
across all plants of the Company.
CSR INITIATIVES
Pricol's Corporate Social Responsibility (CSR) activities reflect its philosophy of
enhancing value to the society and the environment around us. Company is committed to
operate & grow in a socially sustainable manner and continue to give back to the
society. CSR activities of the company are focused in Environment, Health & Education
of needy sections, which are carried out through implementing agencies in addition to the
CSR activities directly undertaken by the Company.
The CSR policy is available on the website of the Company at
https://pricol.com/wp-content/uploads /2023/01/CSR-Policy_21.pdf. The Annual Report on CSR
activities is annexed herewith as "Annexure B".
DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS
With a commitment to continuous talent enhancement, the Company prioritized strategic
HR initiatives to strengthen organizational capability and futurereadiness. Efforts were
focused on addressing critical skill gaps through targeted training, reskilling, and
competency-building programs aligned with evolving business needs. Industrial Relations
remained positive with zero man-hour loss, reflecting successful employee engagement and
trust-based collaboration. Additionally, productivity improvement practices like Kaizen,
Poka Yoke, and employee suggestion schemes fostered a culture of continuous improvement.
As of 31st March 2025, the total workforce stood at 5,963, reflecting a diverse and agile
team aligned with the Company's growth strategy.
Employee Engagement
Employee engagement thrives through a wide range of enriching initiatives, from health
camps and special day celebrations to marathons, wellness sessions, and outbound training.
Our 'Weekly Kaizen Drives' and recognition awards for Kaizen, QCC, and CFT highlight our
dedication to continuous improvement and excellence. The recreational clubs further
enhance work-life balance, offering employees opportunities to explore hobbies, build
relationships, and stay active through activities like trekking and sports. These efforts
create a dynamic, vibrant culture that values both personal well-being and collective
growth. In FY 2024-25, we successfully conducted 1,327 training programs and 392
engagement activities, strengthening our commitment to a motivated, high-performing
workforce.
DIRECTORS RESPONSIBILITY STATEMENT In accordance with the provisions of Section
134(3) (c) & (ca) of the Companies Act, 2013, the Directors would like to state that:
a) in the preparation of annual accounts, the applicable accounting standards have been
followed and that there were no material departures;
b) they had selected such accounting policies and applied them consistently and made
judgements and estimates that were reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial year and of the
profit and loss of the Company for the year under review;
c) they had taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 2013 for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
d) they had prepared the annual accounts on a going concern basis;
e) they had laid down internal financial controls to be followed by the Company and
such internal financial controls are adequate and are operating effectively; and
f) they had devised proper systems to ensure compliance with the provisions of all
applicable laws and such systems were adequate and operating effectively.
DISCLOSURES:
1. Independent Directors have given declarations that they meet the criteria of
independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16
(1) (b) and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. Further, in terms of Regulation 25(8) of the Listing Regulations, the
Independent Directors have confirmed that they are not aware of any circumstance or
situation, which exist or may be reasonably anticipated, that could impair or impact their
ability to discharge their duties.
2. Salient features of the Nomination and Remuneration Policy is disclosed in the
Report on Corporate Governance.
3. Qualification, reservation or adverse remark or disclaimer made by Statutory
Auditor & Secretarial Auditor in their report: NIL
4. The particulars of Loans, Guarantees and Investments made by the Company under
Section 186 of the Companies Act, 2013 are given in Note.60 to the Standalone Financial
Statements.
5. Disclosure as required under Schedule V (A) (2)of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 is given in Note.61 to the Standalone Financial
Statements.
6. There are no significant and material orders passed by the Regulators / Courts /
Tribunals which would impact the going concern status and the Company's operations in
future.
7. There is no change in nature of business of your company during the year.
8. Material changes and commitments, affecting the financial position of the Company
which have occurred between the end of the financial year of the Company to which the
financial statements relate and the date of the report: NIL.
9. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and
Outgo:
The information on conservation of energy, technology absorption and foreign exchange
earnings and outgo stipulated under Section 134(3) (m) of the Companies Act, 2013 read
with Rule 8 (3) of the Companies (Accounts) Rules, 2014 is annexed herewith as "Annexure
C".
10. Annual Return:
Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12 (1) of Companies
(Management and Administration) Rules, 2014, Annual Return in Form MGT-7 is available at
the Company's website at https://pricol.com/wp-content/uploads/2025/07/
MGT-7-Before-AGM.pdf
11. Particulars of Remuneration to Directors and Employees:
The information required pursuant to Section 197 read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as ''Annexure
D".
12. Disclosures of transactions of the listed entity with any person or entity
belonging to the promoter / promoter group which hold(s) 10% or more shareholding in the
listed entity:
Details are given in Note. 59 to the Standalone Financial Statements.
13. Number of other board of directors or committees in which a director is a member
or Chairperson, including separately the names of the listed entities where the person is
a director and the category of directorship:
Disclosed in the Report on Corporate Governance "Annexure E", point
no: 2.
14. Detailed reasons for the resignation of an independent director who resigns
before the expiry of his tenure along with a confirmation by such director that there are
no other material reasons other than those provided.
Mrs.Sriya Chari due to her personal commitments resigned her Independent Directorship
with effect from 4th July 2024. She also confirmed that there are no other material
reasons for her resignation.
15. Business Responsibility and Sustainability Reporting Business Responsibility
and Sustainability Reporting as required pursuant to Regulation 34 of SEBI (Listing
Obligations and Disclosure Requirement) Regulations, 2015 read with SEBI Circular No.
SEBI/HO/CFD/CMD-SEC-2/P/CIR/2023/122 dated 12th July 2023, is annexed herewith as "Annexure
F.
16. Details of Subsidiary Companies, Joint Venture and Associate Companies, and
their financial position: Pursuant to Section 129(3) of the Companies Act, 2013,
("Act) the Consolidated Financial Statements of the Company and its
subsidiaries prepared in accordance with the relevant Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, forms
part of this Annual Report.
The information as required under the first proviso to sub-section (3) of Section 129
in Form AOC-1 is annexed herewith as "Annexure G.
17. Names of companies which have become or ceased to be its Subsidiaries, joint
ventures or associate companies during the year;
During the year, the Company has acquired entire 15,00,000 Equity Shares of Rs.1 each
of Pricol Precision Products Private Limited (formerly known as Pricol Electronics Private
Limited) from Pricol Asia Pte Limited at a value of Rs.15 lakhs on 9th October 2024 and
therefore, Pricol Precision Products Private Limited has become Wholly Owned Subsidiary of
Pricol Limited.
18. Particulars of contracts / arrangements entered into by the Company with related
parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including
certain arm's length transactions under third proviso thereto:
All the related party transaction entered by the Company during the financial year
2024-25 are in the ordinary course of business and at arm's length. Details of material
contracts / arrangements / transactions entered at arm's length with the related parties
as required under section 134(3) (h) of the Companies Act, 2013, in Form AOC-2 is annexed
herewith as "Annexure H.
19. Details in respect of frauds reported by auditors under section 143(12) of the
Companies Act, 2013:
During the year under review, there were no frauds reported by the auditors to the
Audit Committee or the Board under Section 143(12) of the Companies Act, 2013.
20. List of credit ratings obtained by the entity along with any revisions thereto
during the relevant financial year, for all debt instruments of such entity or any fixed
deposit programme or any scheme or proposal of the listed entity involving mobilisation of
funds, whether in India or abroad:
Disclosed under the heading "Finance in this Report.
21. Key Financial Ratios (Explanations for significant change i.e. change of 25% or
more as compared to the immediately previous financial year):
Key Financial Ratios |
2024-25 |
2023-24 |
% Change |
Explanations, if any |
i) Debtors Turnover |
7.66 |
8.06 |
(4.93) |
|
ii) Inventory Turnover |
8.66 |
7.85 |
10.30 |
Not Applicable |
iii) Current Ratio |
1.14 |
1.26 |
(9.67) |
|
iv) Interest Coverage Ratio |
25.74 |
14.92 |
72.52 |
Due to reduction in borrowings |
v) Debt Equity Ratio |
0.04 |
0.06 |
(31.51) |
|
vi) Operating Profit Margin |
8.97 |
8.97 |
? |
|
vii) Net Profit Margin (%) or sector-specific equivalent ratios as
applicable. |
5.80 |
5.97 |
(2.97) |
Not Applicable |
22. Details of any change in Return on Net Worth as compared to the immediately
previous financial year along with a detailed explanation thereof.
Particulars |
2024-25 |
2023-24 |
% Change |
Explanations, if any |
Return on Net Worth |
0.16 |
0.18 |
(8.00) |
Not Applicable |
23. There is no proceeding pending under the Insolvency and Bankruptcy Code, 2016.
24. There was no instance of one-time settlement with any Bank or Financial
Institution.
25. During the year, the company's security(s) are not suspended from trading.
26. There are no agreements that subsist as on date under clause 5A to para A of part A
of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015.
CORPORATE GOVERNANCE
Your Company re-affirms its commitment to good corporate governance practices. The
Company complies with corporate governance requirements specified in regulation 17 to 27
and regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, whichever applicable.
Pursuant to Schedule V of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 the Report on Corporate Governance which forms a part of this Report,
has been annexed herewith as "Annexure E".
Chief Executive Officer and Chief Financial Officer have certified to the Board with
regard to the financial statements and other matters as required under Regulation 17 (8)
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Practicing Company Secretary's Certificate regarding compliance of conditions of
Corporate Governance, is made a part of this Directors' Report. All the Board
Members and Senior Management personnel have affirmed compliance with the code of
conduct for the year 2024-25.
CAUTIONARY STATEMENT
Management Discussion and Analysis forming part of this Report is in compliance with
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and such
statements may be "forward-looking" within the meaning of applicable securities
laws and regulations. Actual results could differ materially from those expressed or
implied, important factors that could make a difference to the Company's operations
include economic conditions affecting demand / supply and price conditions in the domestic
and overseas markets in which the Company operates, changes in the Government regulations,
tax laws and other statutes and other incidental factors.
ACKNOWLEDGEMENT
Your Directors place on record their sincere thanks and appreciation to Customers,
Distributors, Dealers, Suppliers, Shareholders, Bankers and Government authorities for
their continued support and co-operation. Your Board also wish to place on record their
appreciation to the employees at all levels for their continued co-operation and
commitment.
For and on behalf of the Board |
Vanitha Mohan |
Date : 15th May 2025 |
Chairman |
Place : Coimbatore |
(DIN : 00002168) |