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Notes to Accounts of Automotive Stampings and Assemblies Ltd.

Mar 31, 2017

Significant Judgments

1 Revenue Recognition - Sale of Tools (Refer Note 2.2)

The tooling contracts entered by the Company with customers requires management’s judgments in determining whether these contracts should be considered as sale of goods under Ind -AS 18 or as construction contracts under Ind AS 11. The revenue for sale of goods is recognized when substantially all the risks and rewards are transferred to the customer and other criteria for revenue recognition for sale of goods as specified in the accounting policies are met. Revenue for construction contracts is recognized on a percentage of completion method. The Management has regarded these tooling contracts as a contract to build a specific asset that meets the definition of construction contract in Ind AS 11. These tooling contracts are the fixed price contracts and measured and recognized as per the principles laid down under Ind AS 11. These principles require the recognition of revenue and expenses under “Percentage of Completion Method”. Considering the Company’s process of manufacturing these tooling contracts, the management has assessed that the contract costs to complete the contract and the stage of contract completion cannot be measured reliably except at the stage of completion of the tool. Owing to this, the revenue recognition in respect of these contracts is deferred till contract completion. “

2 Contingent liabilities

The Company has received various orders and notices from tax and other judicial authorities in respect of direct taxes, indirect taxes and labour matters. The outcome of these matters may have a material effect on the financial position, results of operations or cash flows. The filing of a suit or formal assertion of a claim against the Company or the disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate. Management regularly analyzes current information about these matters and makes provisions for probable losses including the estimate of legal expense to resolve the matters. In their assessments management considers the degree of probability of an unfavorable outcome and the ability to make a sufficiently reliable estimate of the amount of loss.

3 Classification of Leasehold Land

The company has entered into lease agreement for land at two of its facilities. The lease period is of around 79-95 years in respect of these premises and the agreements have renewal options. These lands are situated in industrial estates, where the land is generally transferred through lease contracts and the upfront lease payment amounts are significantly equal to the fair value of land. Accordingly, significant risk and rewards associated with the land are considered to be transferred to the lessee. Based on these considerations and overall evaluation of the agreements with the less or, the management believes that these lease contracts meet the conditions of finance lease.

4 Determination of cash generating unit (CGU) for Impairment analysis

As part of its impairment assessment for non-financial assets (i.e. property, plant and equipment), the management needs to identify Cash Generating Units i.e. lowest group of assets that generate cash flows which are independent of those from other assets. Considering the nature of its assets, operations and administrative structure, the management has defined all assets put together as a single Cash Generating Unit.

5 Going Concern assumptions

The Company has incurred significant losses (before exceptional item) of Rs, 1,639 lakhs for the financial year ended 31 March 2017 and the Company’s current liabilities exceeds its current assets by Rs, 4,221 lakhs as at 31 March 2017.

The Company’s management has carried out an assessment of the Company’s financial performance and expects the Company to achieve significant improvements in its financial performance with effect from financial year ending 31 March 2018 to enable it to continue its operations and to meet its liabilities as and when they fall due. On the basis of the above assessment and considering the financial and other support from holding company, the Directors of the Company are of the opinion that the preparation of the financial statements of the Company on a going concern basis is appropriate.

6 Segment Reporting

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources. Operating segments are defined as ‘Business Units’ of the Company about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance.

The Company operates in the automotive segment. The automotive segment includes all activities relating to development, design, manufacture, assembly and sale of auto component parts from which the Company derives its revenues. The management considers that these business units have similar economic characteristics like the nature of the products and services, the nature of the production processes and nature of the regulatory environment etc. Based on the management analysis, the Company has only one operating segment, so no separate segment report is given. The principal geographical areas in which the Company operates are India and other countries.

Significant estimates and assumptions

7 Impairment of Property, plant and equipment : Key assumptions used

The management has assessed current and forecasted financial performance of the Company and the current market value of the assets to determine whether carrying value of property, plant and equipment has suffered any impairment. Impairment assessment is based on estimates of future financial performance or opinions that may represent reasonable expectations at a particular point of time . Such information, estimates or opinions are not offered as predictions or as assurances that a particular level of income or profit will be achieved, that events will occur, or that a particular price will be offered or accepted. Actual results achieved during the period covered by the prospective financial analysis will vary and the variations may be material.

8 Claims payables & receivable to customers

Price increase or decrease due to change in major raw material cost, pending acknowledgement from major customers, is accrued on estimated basis. Also the Company has made accruals in respect of unsettled prices for some of its other material purchase contracts, finished goods and scrap sales contracts. These accruals are made considering the past settlement arrangements with the vendors and customers respectively and the applicable metal prices from published sources. Actual results of these considerations may vary and the variations may be material.

Further, the management has assessed and believes that the timing of cash outflow pertaining to this accruals are uncertain and hence considered the same as payable on demand and classified under current liabilities.

9 Defined benefit plan

The cost of the defined benefit gratuity plan, other retirement benefits, the present value of the gratuity obligation and other retirement benefit obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on Indian Assured Lives Mortality (2006-08) Ultimate. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 45.

10 Fair valuation of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

11 Impairment of financial assets

The impairment provisions for financial assets disclosed under Note 32 are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

The carrying amounts of the trade receivables include receivables which are subject to a factoring / discounting arrangement. Under these arrangements, the Company has transferred the relevant receivables to the bank in exchange for cash and is prevented from selling or pledging the receivables. However, the Company has retained late payment and credit risk. The Company therefore continues to recognize the transferred assets in their entirety in its balance sheet. The amount repayable under these agreement is presented as secured borrowing.

(e) Terms and rights attached to equity shares:

The equity shares have a par value of '' 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the share held. Every holder of equity shares present at the meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Nature and purpose of other reserves

Capital redemption reserve

The Capital redemption has been created out of the profit of earlier years at the time of redemption of the preference shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013. Securities premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General reserve

The general reserves are the retained earnings of a company which are kept aside out of company’s profits to meet future (known or unknown) obligations. The general reserve is a free reserves which can be utilized for any purpose after fulfilling certain conditions.

(a) Term Loan of Rs, NIL (March 31, 2016 Rs, NIL and April 1, 2015 Rs, 70 Lakhs) from State Bank of India was secured by way of exclusive hypothecation charge on two specific Presses of Pantnagar Plant of the Company and first charge on fixed assets of Halol Plant of the Company. It was repaid in FY 15-16 on due date.

(b) Term loan of Rs, 1,634 Lakhs (March 31, 2016 Rs, 1,874 Lakhs and April 1, 2015 Rs, 2,000 Lakhs) from Tata Capital Financial Services Limited is secured by first and exclusive hypothecation of plant and machinery (except for specific presses) of Pantnagar plant of the Company.

(c) Buyer’s Credit of Rs, NIL Lakhs (March 31,2016 Rs, NIL and April 1, 2015 Rs, 872.23 Lakhs) of HDFC Bank was secured by way of first and exclusive charge on the specific press machinery procured at Halol plant under the said facility. It was repaid in FY 15-16 on due date.

(d) Term Loan of Rs, 875 Lakhs (March 31, 2016 Rs, 1,000 Lakhs and April 1, 2015 Rs, NIL) from State Bank of India is secured by exclusive first charge by way of hypothecation of specific press machinery at Halol Plant.

(e) Term Loan of Rs, 1,222 Lakhs (March 31, 2016 Rs, NIL and April 1, 2015 Rs, NIL) from State Bank of India which is secured by first charge on plant and machinery at Chakan and Halol plant (except machinery already hypothecated to SBI for Term loan of Rs, 1,000 Lakhs) and first charge on plant and machinery to be acquired at Chakan plant out of term loan.

12. Interest rates on the above loans range between 10.15% p.a. to 11.25% p.a.

Note:-

1. Loans from Banks repayable on demand are secured by hypothecation of current assets and second charge on the immovable properties of Chakan Plant of the Company.

2. Tata AutoComp Systems Limited, the holding company has issued a Letter of Comfort to the State Bank of India of Rs, 500 Lakhs for credit facilities taken by the Company.

3. Repayment against Sales Invoice Financing has a maximum usance of 55 days.

4. Interest rates on the above loans range between 9.60% p.a. to 11.30% p.a.

5. Factored receivables are secured by first charge on trade receivables subjected to factoring arrangement.

Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level are as follows:

Level 13 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 14 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 15 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017:

The carrying amount of trade receivables, cash and cash equivalent , Bank balances other than cash and cash equivalent , other current financial assets, short term borrowings, trade payables and other financial liabilities are considered to be same as their fair values, due to their short term nature.

The Company has availed long term borrowings from banks, financial institutions and holding company carrying interest in the range of 10.15% to 11.25%. The Company has determined the fair value of these loans based on discounted cash flows using a current borrowing rate. The carrying values approximates their respective fair values. Similarly the fair value of non-current financial assets also approximates its carrying value.

Valuation technique used to determine fair value

Specific valuation technique used to value financial instruments include Fair value of cross currency Interest rate swaps is calculated with reference to fair value of another financial instrument that is essentially and substantially same.

Fair value of forward foreign exchange contracts is determined using forward exchange rates as at the balance sheet date

Fair value of the remaining financial instruments is determined using discounted cash flow analysis.

Valuation processes

External valuation experts are appointed for valuation of cross currency interest rate swap. For valuation of financial assets and liabilities other than cross currency interest rate swaps, the finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes and results are held between the CFO and the valuation team on regular basis.

Note 32 : Financial risk management

In the course of its business, the Company is exposed primarily to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, the Company has a risk management policy which covers risks associated with the financial assets and liabilities such as credit risks, liquidity risk etc. The risk management policy is approved by the board of directors. The risk management framework aims to achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

(A) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company’s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet this.

Maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

- all non-derivative financial liabilities, and

- net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

(B) Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the, foreign currency exchange rates, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

(a) Interest rate risk

The company has fixed rate borrowing and variable rate borrowings. The fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

In case of long term foreign currency loans with floating rate, the company manages its cash flow interest rate risk using floating to fixed interest rate swaps. Under this swaps, the company agrees with other parties to exchange the difference between fixed contract rate and floating interest amounts calculated by reference to agree notional principal amounts.

Notes forming part of financial statements

The percentage of total loans shows the proportion of loans that are currently at variable rates in relation to the total amount of borrowings.

Sensitivity

Loss is sensitive to change in interest expenses from borrowings as a result of change in interest rates

(b) Foreign currency risk

The Company imports material and capital goods from outside India. As a result of this the company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The company’s risk management policy is to hedge around 50% to 70% of forecasted foreign currency transactions for the subsequent 6 months. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

Sensitivity

The sensitivity for above net exposure to foreign currency for all liabilities does not have a material impact to P&L

(C) Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness. For the Company , credit risk arises from cash and cash equivalents, other balances and deposits with bank and financial institutions and trade receivables

Credit risk management

For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as

at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the counterparty ability to meet its obligations

- actual or expected significant changes in the operating results of the counterparty

- significant increase in credit risk on other financial instruments of the same counterparty

- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments within 365 days of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure.

None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications as at March 31, 2017, that defaults in payment obligations will occur.

The Company follows 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date) model for recognition of impairment loss on financial assets measured at amortized cost other than trade receivables. The Company follows lifetime expected credit loss model (simplified approach) for recognition of impairment loss on trade receivables.

The ageing of trade receivable as on balance sheet date is given below. The age analysis has been considered from the due date.

(a) Risk management

The company’s objectives when managing capital are to:-

- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

The Company determines the amount of capital required on the basis of annual operating plans, long-term product and maintaining other strategic investment plans. The funding requirements are met through equity, long term borrowings and short-term borrowings. The Company’s policy is aimed at maintaining optimum combination of short-term and long-term borrowings. The Company manages its capital structure and make adjustments considering the economic environment, the maturity profile of the overall debt of the company and the requirement of the financial covenants.

Loan Covenants

With respect to borrowing availed by the Company from Tata Capital Financial Services Limited, the Company is required to comply with following financial covenant:

- Total outside liabilities as a percentage of total net worth should not exceed 10.40 times.

- Total long term debt as a percentage of total tangible net worth should not exceed 3 times.

The Company has met the above requirement as at 31 March 2017. However, as of 31 March 2016, the Company had breached the above covenant which was waived by the said financial institution.

Note 34 : Segment Information

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosure about products and services, geographic areas and major customer. The Company is engaged mainly in the business of manufacturing and trading of automobile components, design and engineering services. Based on the “management approach” as defined in Ind AS 108, the ''Chief Operating Decision Maker’ (CODM) considers entire business as single operating segment. The Company’s operating divisions are managed from India. The principal geographical areas in which the Company operates are India.

Notes forming part of financial statements

Rs, 28,430.29 Lakhs of the Company’s revenue is attributable to 4 of its major customers (March 31, 2016 revenue of '' 25,205.91 Lakhs was attributable to 3 of its major customer)

Note 35 : Related Party Transactions

(a) Related parties and their relationship

Ultimate Holding Company

i) Tata Sons Ltd.

Holding Company

i) Tata AutoComp Systems Ltd.

Fellow subsidiaries (with whom transactions have taken place during the financial year)

i) Tata Toyo Radiator Limited

ii) Tata Capital Financial Services Limited

iii) Tata AIG General Insurance Company Limited

iv) TC Travel and Services Limited

v) Tata International Limited

vi) Bachi Shoes Limited

Other Related parties

i) Tata Motors Limited

ii) Fiat India Automobiles Private Limited

iii) TAL Manufacturing Solutions Limited

iv) Tata Technologies Limited

v) Tata Steel Limited

vi) Tata Steel Processing and Distribution Limited

vii) Tata Teleservices (Maharashtra) Limited

viii) Tata Teleservices Limited

ix) Tata Communications Limited

x) Tata Ficosa Automotive Systems Private Limited

Key management personnel

i) Mr. Anil Khandekar (Till January 14, 2017)

ii) Mr. Prashant Mahindrakar (With effect from January 15, 2017)

Directors

i) Mr. Pradeep Mallick

ii) Mr. Pradeep Bhargava

iii) Mr. Ramnath Mukhija (With effect from March 10, 2017)

iv) Ms. Rati Forbes

v) Mr. Ajay Tandon

vi) Mr. Deepak Rastogi

vii) Mr. Harish Pathak (With effect from March 10, 2017)

viii) Mr. Bharatkumar Parekh (With effect from March 10, 2017)

ix) Mr. Arvind Goel (Till March 10, 2017)

Terms and Conditions

a) The closing balances above are net of advances.

b) All outstanding balances are unsecured and are repayable in cash.

c) For borrowing terms and conditions refer note 17

* In addition to the above related party transactions Tata AutoComp Systems Limited (Holding Company) has provided a Letter of Comfort of Rs, 500 Lakhs (March 31, 2016 Rs, 500 Lakhs and April 1, 2015 Rs, 500 Lakhs) to State Bank of India with respect to credit facilities availed by the company.

Estimated amount of other contracts remaining to be executed and not provided for Rs, Nil (Previous years:- Rs, Nil).

(b) Operating lease

The Company has entered into an agreement with Tata Capital Financial Services Limited for certain plant and machinery. The same has been classified as operating lease. These arrangements range for the period of 48 months, which includes both cancellable and non cancellable period.

Specified bank note (SBNs) means the bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees as defined under the notification of the Government of India, in the ministry of finance, Department of Economic affairs no. S.O. 3407(E), dated November 08, 2016.

Note 16 : Corporate social responsibility

The Company does not meet the criteria specified in sub section (1) of section 135 of the Companies Act, 2013, read with Companies [Corporate Social Responsibility (CSR)] Rules, 2014. Therefore it is not required to incur any expenditure on account of CSR activities during the year.

Note 17 : Income Tax

The company does not have taxable income in current and previous year and hence no tax expenses have been recognized. Further since it is not probable that future taxable amounts will be available to utilize the deferred tax assets in respect of following unused tax losses and unabsorbed depreciation, no deferred tax assets have been recognised.

Unused tax losses with respect to unabosorbed depreciation do not have an expiry date. Unused tax losses with respect to Business losses have following expiry dates

Note 18 : Exceptional Items

During the year ended March 2017 , the company has received a onetime compensation of Rs, 1,284 Lakhs towards settlement of its claims.

Note 19 : Employee Benefits

(A) Defined benefit plans a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

* The Company maintains gratuity fund, which is being administered by LIC. Fund value confirmed by LIC as at March 31, 2017 is considered to be the fair value.

Contribution expected to be paid to the plan during the next financial year Rs, 4.34 Lakhs (Previous year Rs, 2.46 Lakhs).

Notes forming part of financial statements

c) The following payments are expected contributions to defined benefit plan in future years

The weighted average duration of the defined benefit obligation is 5 years

(B) Defined Contribution Plans

The Company has recognised the following amounts in the Statement of Profit and Loss

(C) Risk exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below :

20. Interest rate risk:

The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

21. Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

22. Demographic risk:

For example,as the plan is open to new entrants, an increase in Membership will increase the defined benefit obligation. Also,the plan only provides benefits upon completion of a vesting criteria. Therefore, if turnover rates increase then the liability will tend to fall as fewer employees reach vesting period.

Note 46 : First-time adoption of Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 01, 2015 (the date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the group’s financial position and financial performance is set out in the following tables and notes.

A. Exemptions availed on first time adoption of Ind-AS 101

Set out below are the applicable Ind AS 101 optional exemptions applied in the transition from previous GAAP to Ind AS.

i) Deemed cost property, plant and equipment and intangible asset - Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

B. Exception

23. Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP: Impairment of financial assets based on expected credit loss model.

24. De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

24. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Reconciliations:

The following reconciliations provides the effect of transition to Ind AS from previous GAAP in accordance with Ind AS 101

26. Equity as at April 01, 2015 and March 31, 2016

27. Net profit for the year ended March 31, 2016

Explanations for reconciliation of equity and statement of profit and loss as previously reported under

previous GAAP to IND AS

(a) As per Ind AS 101, derecognition requirements in Ind AS 109 should apply prospectively to the transactions occurring on or after the date of transition. AS per Ind AS 109, financial assets are derecognized only when the company has transferred the rights to receive cash flows or retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients. The company has bill discounting facility in respect of trade receivables from few of its customers. The company has bills of Rs, 2,181.28 Lakhs discounted as at March 31, 2016. Since the company has retained substantial risk and rewards in respect of these receivables, the company recognized trade receivable relating to bill discounting arrangement with customer and recognized corresponding financial liability as on March 31, 2016 Rs, 2,181.21 Lakhs.

(b) Under previous GAAP the forward exchange contracts and other derivative instruments were accounted in accordance with Accounting Standard 11 - “The effects of changes in Foreign Exchange Rates” and the Announcement of Institute of Chartered Accountants of India on “Accounting for Derivatives” issued in March 2008. Under Ind-AS, fair value of forward foreign exchange contracts and other derivative instruments has been recognized and the corresponding adjustments has been made in the retained earnings as on the date of transition. (Net loss recognized as on April 1, 2015: Rs, 21.30 Lakhs: Net gain recognized as on March 31, 2016: Rs, 21.30 Lakhs).

(c) Under previous GAAP, capital subsidy received was credited to capital reserve as part of promoters contribution. Under Ind AS, capital subsidy has been considered as capital grant that will be recognized in profit & Loss over the life of assets. As a result of this change, the profit for the year ended March 31, 2016 increased by Rs, Nil while there reserves and surplus balance reduced by Rs, 30 Lakhs.

(d) Under the previous GAAP, revenue from sale of product was presented exclusive of excise duty. Under Ind AS revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss account as a part of expense. The change has resulted in increase in the total revenue and the total expenses for the year ended March 31, 2016: Rs, 2,578.17 Lakhs. There is no impact on the total equity and profit.

(e) Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized under other comprehensive income instead of profit and loss account. Under the previous GAAP, these measurements were forming part of profit and loss for the year. As a result of this change, the profit for the year ended March 31, 2016 increase by Rs, 32.23 Lakhs. There is no impact on total equity as at March 31, 2016.

(f) Under Ind AS, the Company has capitalized items of stores and spares meeting the definition of property, plant and equipment as per Ind AS 16. The Company has accounted for the depreciation on these items upto the date of transition. The change has resulted in decrease in the total inventory and the retained earnings as on April 1, 2015: Rs, 66.56 Lakhs.


Mar 31, 2016

1. INVENTORIES

Inventories are stated at lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of finished goods and work in progress comprises design costs, raw materials, direct labour, other direct costs and related production overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Scrap is valued at net realizable value.

2. REVENUE RECOGNITION Sale of goods:

Sales are recognized when the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract and are recognized net of trade discounts, rebates, sales taxes and excise duties.

Price increase or decrease due to change in major raw material cost, pending acknowledgement from major customers, is accrued on estimated basis.

Sale of Services:

In contracts involving the rendering of services, revenue is measured using the proportionate completion method and are recognized net of service tax.

Other Income:

Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

3. FOREIGN CURRENCY TRANSACTIONS Initial Recognition

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Subsequent Recognition

As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

All monetary assets and liabilities in foreign currency are restated at the end of accounting period.

Exchange differences on restatement of all other monetary items are recognized in the Statement of Profit and Loss.

Forward Exchange Contracts

The premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing asset/liability, is amortized as expense or income over the life of the contract. Exchange differences on such a contract are recognized in the Statement of Profit and Loss in the reporting period in which the exchange rates change. Any profit or losses arising on cancellation or renewal of such a forward exchange contract are recognized as income or as expense for the period.

Forward exchange contracts outstanding as at the year end on account of firm commitment / highly probable forecast transactions are marked to market and the losses, if any, are recognized in the Statement of Profit and Loss and gains are ignored in accordance with the Announcement of Institute of Chartered Accountants of India on ''Accounting for Derivatives'' issued in March 2008.

4. BORROWING COSTS

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred.

5. EMPLOYEE BENEFITS

Provident Fund and Superannuation Fund:

Contribution towards provident fund for certain employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis. The Company has Defined Contribution Plans for post employment benefits in the form of Superannuation Fund which is recognized by the Income-tax authorities and administered through trustees and the Life Insurance Corporation of India (LIC).

Gratuity:

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/ gains are recognized in the Statement of Profit and Loss in the year in which they arise.

Compensated Absences:

Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/ gains are recognized in the Statement of Profit and Loss in the year in which they arise.

Termination Benefits:

Termination benefits in the nature of voluntary retirement benefits are recognized in the Statement of Profit and Loss as and when incurred.

7. TAXATION

Current and deferred tax:

Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period.

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognized for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets in case of unabsorbed depreciation and carry forward business losses, as applicable, are recognized only to the extent there is virtual certainty that these will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Management reassesses unrecognized deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

In respect of Section 80IC unit of the Company situated at Pantnagar which is enjoying income-tax benefits, deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the differences between the taxable income and accounting income that originates in the tax holiday period and are capable of reversal after the tax holiday period.

Minimum Alternative Tax

Minimum Alternative Tax credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

8 Provisions and Contingent Liabilities

Provisions: Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.

Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

9. Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.

10. Earnings Per Share

A basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

11. Rights, preferences and restrictions attached to the shares

Equity Shares: The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

NOTE 12- SEGMENT INFORMATION

The Company has considered business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, geographical segment has been considered as secondary segment.

Primary Business Segment: The Company is engaged in the business of manufacturing sheet metal stampings, welded assemblies and modules for the automotive industry, which is considered as the only reportable primary business segment

NOTE 25 - RELATED PARTY DISCLOSURES:

a) Related Parties and their Relationship

Holding company

TataAutoComp Systems Ltd.

Ultimate holding company

Tata Sons Ltd.

Fellow Subsidiaries

Tata Toyo Radiator Ltd.

(With Whom there have been transactions during

Tata Capital Financial Services Limited

the year)

Tata AIG General Insurance Company Limited

Tata International Limited

TC Travel and Services Limited

Bachi Shoes Limited

Key Management Personnel

Mr. Anil Khandekar, Chief Executive Officer

(i) Operating Lease

During the year, the Company has entered into a sale and lease back transaction with Tata Capital Financial Services Limited for certain plant and machinery. The lease has been classified as operating lease and profit of Rs. 82 Lakhs on sale of these assets has been recognized.

These arrangements range for the period of 48 months, which includes both cancellable and non cancellable period.

The Company does not meet the criteria specified in sub section (1) of Section 135 of the Companies Act, 2013, read with Companies [Corporate Social Responsibility (CSR)] Rules, 2014. Therefore it is not required to incur any expenditure on account of CSR activities during the year.

NOTE 13 -

Previous year''s figures have been reclassified to conform to this year''s classification.


Mar 31, 2015

1. Rights, preferences and restrictions attached to the shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2 (a) Term Loan of Rs. 70 Lakhs (Previous year Rs. 490 Lakhs) from State Bank of India is secured by way of exclusive hypothecation charge on two specific Presses of Pantnagar Plant of the Company and first charge on fixed assets of Halol Plant of the Company.

(b) Tata Autocomp Systems Limited, the holding company has also issued a Letter of Comfort to State Bank of India for the term loan and credit facilities taken by the Automotive Stampings and Assemblies Limited.

(c) Term loan of Rs. 2,000 lakhs from Tata Capital Financial Services Limited is secured by first and exclusive hypothecation on plant and machinery (except for specific presses hypothecated against loan from State Bank of India) of Pantnagar plant of the Company.

(d) Buyer''s Credit of Rs. 917.96 Lakhs (Previous year Rs. 917.96 Lakhs) of HDFC Bank is secured by way of first and exclusive charge on the machinery procured under the said facility.

The Company has considered business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as secondary segment.

Primary Business Segment: The Company is engaged in the business of manufacturing sheet metal stampings, welded assemblies and modules for the automotive industry, which is considered as the only reportable primary business segment.

3 Contingent liabilities:

(Rs. in Lakhs) Particulars As at As at

March 31,2015 March 31,2014

Bills discounted not matured 3,562.37 4,716.17

Claims against the Company not acknowledged as debts 261.75 301.64

Labour matter 161.00 -

TOTAL 3,985.12 5,017.81

4 a) In addition to the above there are certain pending cases in respect of labour matters, the impact of which is not quantifiable and is not expected to be material.

b) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 11.75 Lakhs (Previous year: Rs.39.02 Lakhs).

b) Estimated amount of other contracts remaining to be executed and not provided for Rs. Nil (Previous year:-Rs.Nil).

Pursuant to the provisions of the Companies Act, 2013 and requirements of notification G.S.R. 627 (E) dated August 29, 2014, based on technical advice, the Company has, during the year ended March 31, 2015, reviewed and revised the estimated useful lives of its fixed assets, primarily plant and machinery, effective April 1, 2014. The useful lives of certain machines have been re-assessed at 20 years (earlier 10 years) and other plant and machinery at 10-18 years (earlier 10-21 years). Consequently, the depreciation charge for the year ended March 31, 2015 is lower by Rs. 375 lakhs. Depreciation of Rs 27 Lakhs has been debited to the Reserves in accordance with the transitional provision to Schedule II of the Companies Act, 2013.

5 Previous year''s figures have been reclassified to conform to this year''s classification.


Mar 31, 2014

COMPANY OVERVIEW

General Information:

Automotive Stampings and Assemblies Limited (''The Company'') is engaged in the business of manufacturing sheet metal stampings, welded assemblies and modules for the automotive industry. The Company has four plants in India and sells primarily in India. The Company is a public limited company and listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

1. Rights, preferences and restrictions attached to the shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. Of the above, 11,898,296 (Previous year: 11,898,296) Equity shares are held by Tata AutoComp Systems Limited, the Holding Company.

3. Term Loan of Rs. 490 Lakhs (Previous year Rs. 850 Lakhs) from State Bank of India is secured by way of exclusive hypothecation charge on two specific Presses of Pantnagar Plant of the Company and first charge on fixed assets of Halol Plant of the Company.

Buyer''s Credit of Rs. 917.96 Lakhs (Previous year Rs. 917.96 Lakhs) of HDFC Bank is secured by way of first and exclusive charge on the machinery procured under the said facility.

4. Interest rates on the above term loans range between 9.86% to 12.5% p.a.

NOTE 5 - SEGMENT INFORMATION

The Company has considered business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as secondary segment.

Primary Business Segment: The Company is engaged in the business of manufacturing sheet metal stampings, welded assemblies and modules for the automotive industry, which is considered as the only reportable primary business segment.

Secondary Segment: Geographical Segment

NOTE 6 - CONTINGENT LIABILITIES AND COMMITMENTS:

a) Contingent liabilities:



(Rs. in Lakhs)

As at As at Particulars March 31, 2014 March 31, 2013

Bills discounted not matured 4,716.17 5,165.41

Claims against the Company not acknowledged 301.64 324.81 as debts

5,017.81 5,490.22

b) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 39.02 Lakhs (Previous year: Rs.282.86 Lakhs).

b) Estimated amount of other contracts remaining to be executed and not provided for Rs. Nil (Previous year:-Rs. Nil).

NOTE 7

Previous year''s figures have been reclassified to conform to this year''s classification.


Mar 31, 2013

COMPANY OVERVIEW

General Information

Automotive Stampings and Assemblies Limited (''The Company'') is engaged in the business of manufacturing sheet metal stampings, welded assemblies and modules for the automotive industry. The Company has four plants in India and sells primarily in India. The Company is a public limited company and listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Notes:

1. Rights, preferences and restrictions attached to the shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. Dividend proposed to be distributed to Equity Shareholders Rs. Nil per share (Previous year: Rs. 1.50 per share).

Dividend of Rs. 1.20 per share was paid to Preference Shareholders for the period from April 01, 2011 to August 16, 2011 at the time of redemption of Preference shares on August 17, 2011.

3. There were no Bonus shares issued during the last five years.

NOTE 4 - CONTINGENT LIABILITIES AND COMMITMENTS:

a) Contingent liabilities:

(Rs. in Lakhs)

As at As at

Particulars 31st March, 2013 31st March, 2012

Bills discounted not matured 5,165.41 7,161.13

Claims against the Company not acknowledged 324.81 285.30 as debts

5,490.22 7,446.43

b) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 282.86 Lakhs (Previous year: Rs.104.93 Lakhs).

b) Estimated amount of other contracts remaining to be executed and not provided for Rs. Nil (Previous year:-Rs.Nil).

NOTE 5 -

An incidence of theft of certain (a) repair parts; and (b) material received from the customer for use in assembly to be despatched to the customer effected by a contract employee along with the other two Security Agency employees was detected at Bhosari plant of the Company during the year. An FIR was filed with the local police station. The total value of the parts stolen is Rs. 58.56 lakhs. The amount was charged to revenue. The Management has taken adequate steps to further strengthen the internal control procedures to prevent such instances in future and has terminated the relevant contracts. The Company has also filed a Summary Suit against the Agencies for indemnification of the loss caused.

NOTE 6 -

Previous year''s figures have been reclassified to conform to this year''s classification.


Mar 31, 2012

Notes:

1. Rights, preferences and restrictions attached to the shares

Equity Shares: The Company has one class of equity shares having a par value of Rs. 10 per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

12% Cumulative Redeemable preference shares: 9,000,000, 12% Cumulative Redeemable preference shares of Rs. 10 each held by the Holding Company Tata AutoComp Systems Limited, have been redeemed at face value on August 17, 2011.

3. Of the above, 11,898,296 (Previous year: 7,648,906) Equity shares and Nil (Previous year: 9,000,000) 12% Cumulative Redeemable Preference shares are held by Tata AutoComp Systems Limited, the Holding Company.

1. Dividend proposed to be distributed to Equity Shareholders Rs. 1.50 per share (Previous year: Rs. 2 per share) and in the previous year to Preference Shareholders Rs. 1.20 per share. Further, Dividend of Rs. 1.20 per share has been paid to Preference Shareholders for the period from April 01, 2011 to August 16, 2011 at the time of redemption of Preference shares on August 17, 2011.

2. The Company has issued 5,665,856 number of Equity shares of Rs.10 each at premium of Rs. 42 per share. The shares were alloted on July 21, 2011. The proceeds of Right issue have been utilised as per the objects of the Right issue.

1. Term Loans of Rs. 900 Lakhs (Previous year Rs. 1,800 Lakhs) and of Rs. 700 Lakhs (Previous year Rs. 1,600 Lakhs) from banks are secured by way of first charge on the existing and future fixed assets of the Company's Chakan and Pantnagar plants respectively. Further, Term Loan of Rs. 900 Lakhs (Previous year Rs. Nil) from Bank is secured by way of exclusive hypothecation charge on two specific Presses of Pantnagar Plant of the Company and first charge on fixed assets of Halol Plant of the Company.

3. Interest rates on the above term loans range between 12.75% to 13.40%.

NOTE 4 - CONTINGENT LIABILITIES AND COMMITMENTS:

a) Contingent liabilities:

(Rs. in Lakhs) As at As at

Particulars 31st March, 2012 31st March, 2011

Bills discounted not matured 7,161.13 7,231.18

Claims against the Company 285.30 22.57

not acknowledged as debts

7,446.43 7,253.75

b) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 104.93 Lakhs (Previous year: Rs.1,541.32 Lakhs).

b) Estimated amount of other contracts remaining to be executed and not provided for Rs. Nil (Previous year:-Rs.Nil).

NOTE 5 -

The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

1. Contingent liabilities:

(Rs. in 000)

Sl. No. Particulars As at March 31,2011 As at March 31, 2010

1. Bills discounted not matured 723,118 1,011,229

2. Claims against the Company not 2,257 2,257 acknowledged as Debts

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 154,132 thousand (Previous year Rs. 52,401 thousand).

4. Employee Benefits:

The Company has classified various employee benefits as under: A. Defined Contribution Plans:

The Company has recognised the following amounts in the Profit and Loss Account for the year:

5. The Company enters into Forward Exchange Contracts, which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or availed at the settlement.

The Company does not have any Forward Exchange Contract outstanding as at March 31, 2011.

6. Previous years figures have been regrouped / rearranged, wherever necessary.


Mar 31, 2010

1. Contingent liabilities:

(Rs. in 000)

Sl.No. Particulars As at March 31,2010 As at March 31, 2009

1. Bills discounted not matured 1,011,229 770,527

2. Claims against the Company not acknowledged as Debts 2,257 2,286

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 52,401 thousand (Previous year Rs. 12,591 thousand).

3. Disclosure under Micro, Small & Medium Enterprises Development Act, 2006:

4. An incidence of theft of scrap, effected by an outsourced security personnel in collusion with a scrap dealer, by manipulating weighment system while loading scrap in vehicle for sale, was detected by the Management in June, 2009. An FIR was filed with the local police station. After tracing the details through backend data, an invoice for an amount of Rs. 4,911 thousand was raised on the Scrap Dealer, being ultimate beneficiary and an amount of Rs. 3,500 thousand was subsequently recovered through an out of court settlement. The balance amount was charged to revenue. The Management has taken adequate steps to further strengthen the internal control procedures to prevent such instances in future and have terminated the security agency and blacklisted the scrap dealer.

5. Previous years figures have been regrouped / rearranged, wherever necessary.

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