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Notes to Accounts of Automotive Stampings and Assemblies Ltd.

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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