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Notes to Accounts of Jay Ushin Ltd.

Mar 31, 2015

(a) Rights, preferences and restriction attached to equity shares

- The Company has only one class of equity shares with 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 the case of interim dividend. The Company declares and pays dividends in Indian rupees. 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.

- During the year ended March 31, 2015, the amount of per share dividend recognized for distributions to equity shareholders is Rs. 2.00 (previous year Rs. 2.50).

* 450,446 shares (11.66%) out of an aggregate of 724,671 shares (18.75%) have been transferred/sold to JPM Farms Private Limited (3.30%), Consortium Vapor Ltd. (5.50%), Rajesh Kumar Seth (1.94%) and Ishwar Lai Agarwal (0.92%) by these shareholders but share transfer deed in relation to the same has not been yet registered and accordingly the register of shareholders has not been updated by the Company yet. Further, these does not include the shares held by relatives or other companies in which these shareholders have substantial interest as individually these are less than 5 %.

(b) No shares have been, allotted as fully paid up, pursuant to any contract(s), without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years.

*No default as on the balance sheet date in terms of repayment of loans and interest.

a) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and carries interest linked to Bank base rate 3.25%. The loan is repayable in 18 equal quarterly installments with a moratorium of 2 quarters. The loan is secured by first pari-passu charge on all existing and future movable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Second pari-passu charge on all existing and future current assets of the company in sharing with other lenders. Exclusive charge on property located at Plot No. 4, Sector -3 Manesar, Gurgaon, Haryana and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda and Mr. Ashwani Minda.

Term loan and Foreign Currency Term Loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 and is repayable in 60 monthly installments. The Term loan carries interest based on Bank base rate 2% and FCTL carries interest Libor 400 bps . The loan is secured by way of Equitable Mortgage on Immovable Property situated at Plot No. 150 admeasuring 2135 Sq. Mire., Sector 44, Gurgaon, Haryana and exclusive hypothecation charge on all existing and future movable assets of the Company finance/to be financed out of the facility of Term Loan sanctioned by the bank and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Term loan from Standard Chartered Bank carries interest rate 13.00% p.a.. The loan is repayable in 18 quarterly installment starting from August, 2009 with a moratorium of 6 month. Secured by way of First pari passu charge on all existing & future movable fixed assets & second pari passu charge on all existing and future current assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with Kotak Mahindra Bank Ltd. and Yes Bank Limited a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOTs Industrial Park at Sriperumbudur. the same has been repaid during the year and is also secured byway of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda and Mr. Ashwani Minda.

Term Loan from Tata Capital Financial services Limited carries interest rate 13.00% p.a.The loan is repayable in 54 quarterly installments with a moratorium of 6 months. The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69 & 70(part) Narasapura Industrial area, Kolar District and personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

b) External Commercial Borrowings (ECB) taken from Standard Chartered Bank carries fixed rate of interest 6 months Libor 300 bps p.a.. The Loan was repayable half yearly in 8 equivalent installments with a moratorium of 18 months from the first draw down date i.e. August 31, 2010 and October 13, 2010. The loan was secured by way of first charge over movable & immovable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) and second pari passu charge over current assets and further additionally secured by equitable mortgage over company immovable property at Plot No. 150, Urban Estate, Sector-44, Gurgaon, Haryana and the same has been repaid during the year. The loan was secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda, Mr. Ashwani Minda & Mrs. Vandana Minda.

c) Vehicle loans are secured by hypothecation of vehicles financed.

*No default as on the balance sheet date in terms of repayment of loans and interest.

Short term borrowings have been facilitated by followings banks which are secured as mentioned below:

Bank Security

ICICI Bank Limited (overall limit Rs. First pari-passu charge on the current assets of the Company. 60,000,000) Second pari-passu charge over all present and future moveable

1 Purchase Order/Sales Invoice assets of the company sharing with other bankers except

2 Cash Credit/ Overdraft Karnataka movable fixed assets and further secured by second 3' Foreign Currency Buyers Credit parri-passu charge over the property at Plot No.4, Sector -3, IMT-

Manesar. The borrowings are further secured by the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Kotak Mahindra Bank Limited First pari-passu charge on the current assets of the Company.

(overall limit Rs. 370,000,000) Second pari-passu charge over all present and future moveable

1 Purchase Order/Sales Invoice assets of the company sharing with other bankers, second parri-

2 Letter of credit/Foreign Currency passu hypothecation charge on all existing and future movable Buyers Credit assets of the Company (excluding Karnataka movable fixed assets) and further secured by second pari-passu equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot's Industrial Park at Sriperumbudur. The borrowings are further secured by the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Standard Chartered Bank First pari-passu charge on the current assets of the Company.

(overall limit Rs. 130,000,000)* Second pari-passu charge over all present and future moveable

1. Purchase Order assets including land and building at Gurgaon, Manesar and

2. Cash Credit/ Overdraft Sriperumbudur. The same has been re-paid during the year.

Yes Bank Limited (overall limit Rs.First pari-passu charge on the current assets of the Company.

150,000,000) Second pari-passu charge over all present and future moveable

1 Purchase Order/Sales Invoice assets (exclusively charged to other bankers of the company

2 Cash Credit/ Overdraft sharing with other bankers. The borrowings are further secured by 3' Foreign Currency Buyers Credit the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Tangible assets, are subject to first pari passu charge to secure the company's long term borrowings referred in note 5 as secured term loans from bank.

- Land has been acquired by the company under a lease agreement from State Industries Promotion Corporation of Tamil Nadu Limited, Chennai (6.68 acres commencing from October 10, 2005), Rajasthan State Industrial Development and Investment Corporation Limited, Bhiwadi (4.70 acres commencing from September 13, 2011) and Karnataka Industrial Areas Development Board, Bangalore (7.00 acres commencing from January 12, 2012) for a lease period of 99 years, 99 years and 10 years respectively. The premium paid and other expenses incidental to the acquisition are amortize over the period of the lease.

™ The estimated useful lives of certain fixed assets have been revised in accordance with Schedule II to the Companies Act 2013, with effect from April 1, 2014. Pursuant to the above mentioned changes in useful lives, the depreciation expense of current year is higher by Rs. 146.88 Lacs and for the assets whose revised useful lives have expired prior to

# fnclud3es following assets which have been leased out under an operating lease agreement

Note : Additions to fixed assets includes capital expenditure & Depreciation on Research & Development amounting to Rs.10.63 Lacs and Rs. 28.30 Lacs respectively (Previous year Rs. 15.73 Lacs and Rs. 12.37 Lacs) (refer note 48)

* There is no amount due and outstanding to be credited to Investor Education and Protection Fund.

'Represents Central Excise/Service tax demands pending in appeal/show cause notice. The Company has deposited Rs. 10.00 Lacs under protest against such demands/show cause notices. Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demand raised, the managements of the opinion that the ultimate outcome of these proceeding will not have a material adverse effect on the company's financial position and results of operations.

1. Borrowing cost capitalized during the year

As per Accounting Standard 16 - Accounting, "Borrowing Cost", the Company has capitalized Rs. Nil (Previous year Rs. NIL) to various fixed assets including capital work in progress in the year ended March 31,2015.

2. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 "Employee Benefits" calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

* Included in Contribution to Provident and other funds under Employee benefit expenses (note 25)

# Included in Salaries, wages, bonus and allowances under Employee benefit expenses (note 25)

B. Defined benefits plans

Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits

Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company's policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

3. Earnings per share

The calculation of Earnings per share has been made in accordance with Accounting Standard (AS) - 20. Statement on calculation of Basic and Diluted EPS is as under:

Unallowable assets and liabilities represent the assets and liabilities that relates to the Company as a whole and not allocable to any segment.

4. Segment reporting

The Company has identified one reportable business segment as primary segment, namely manufacturing and sale of automobile components. The segment has been identified and reported taking into account the nature of products, the deferring risks and returns, the organization structure and the internal financial reporting systems.

5. Leases

A. As lessee

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognized during the year amounts to Rs.352.55 Lacs (previous year Rs. 327.73 Lacs).

B. As Less or

The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating lease Rs.1055.07 Lacs (previous year Rs. 963.14 Lacs).

6. Related party disclosure

The disclosures as required by the Accounting Standard-18 (Related Party Disclosure) are given below : a. Names of related parties

(i) Joint Venture Company U-shin Ltd., Japan

(ii) Key Management Personnel ("KMP") and Mr. Jaideo Prasad Minda their relatives Mr. Anil Minda

Mr. Ashwani Minda

Mrs. Vandana Minda (Director and Relative)

(iii) Enterprise over which Key Managerial Jay FE Cylinders Limited

Personnel and their relatives are able to JNS Instruments Limited exercise significant influence Modern Engineering Works

Jushin Enterprises Jay Auto components Limited JPM Tools Limited JPM Automobiles Limited Brillaint Jewels Private Limited JNJ Electronics Limited

7. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the net decrease in deferred tax liability of Rs. 4.01 Lacs (Previous year Rs.25.24 Lacs) has been recognized as benefit in the Statement of Profit and Loss. The effect of significant timing difference as at March 31, 2015 that reverse in one or more subsequent years give rise to the following net deferred tax liability:

8. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46A of the Accounting Standard-11 "The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortized w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs. 10.67 Lacs (previous year Rs. 1.91 Lacs) during the year ended March 31, 2015 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs. 0.33 Lacs (Previous year Rs. 0.06 Lacs) to capital work in progress.

9. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

10. Previous year figures have been rearrange/regrouped wherever necessary.


Mar 31, 2014

1. BACKGROUND

Jay Ushin Limited (CIN No.L52110DL1986PLC025118) was established in 1986. The Company started commercial production in 1989 in Joint Venture and technical collaboration with U-shin Limited, Japan. The Company is primarily in the business of manufacturing and sale of automotive components of Automobiles for two wheeler and four wheeler. The Company is listed on Bombay stock exchange.

The financial statements reflects the results of the activities undertaken by the Company during the year April 1, 2013 to March 31,2014.

(a) Terms/ rights attached to equity shares

* The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case where interim dividend is distributed.

* During the year ended March 31,2014, the amount of per share dividend recognised for distributions to equity shareholders is Rs. 2.50 (previous year Rs. 2.00).

* In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* 450,446 shares (11.66%) out of an aggregate of 724,671 shares (18.75%) have been transferred/sold to JPM Farms Private Limited (3.30%), Consortium Vyapaar Ltd. (5.50%), Rajesh Kumar Seth (1.94%) and Ishwar Lal Agarwal (0.92%) by these shareholders but share transfer deed in relation to the same has not been yet registered and accordingly the register of shareholders has not been updated by the Company yet. Further, these does not include the shares held by relatives or other companies in which these shareholders have substantial interest as individually these are less than 5 %.

(b) No shares have been, alloted as fully paid up, pursuant to any contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back.

*No default as on the balance sheet date in terms of repayment of loans and interest.

c) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and carries interest linked to Bank base rate 3.25%. The loan is repayable in 18 equal quarterly instalments with a moratorium of 2 quarters. The loan is secured by first pari-passu charge on all existing and future movable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Second pari-passu charge on all existing and future current assets of the company in sharing with other lenders. Exclusive charge on property located at Plot No. 4, Sector -3 Manesar, Gurgaon, Haryana.

Term loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2007-08 and is repayable in 60 monthly instalments with a moratorium of 6 months. The loan carries interest based on 12 months Benchmark Prime Lending Rate (PLR) of KMBL less 4.75% p.a.. The loan is secured by way of First pari passu charge on all existing & future movable fixed assets & second pari passu charge on all existing and future current assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with Standard Chartered Bank (SCB) and Yes Bank Limited (YBL) ( a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOT''s Industrial Park at Sriperumbudur).Term loan from Standard Chartered Bank carries interest rate 13.00% p.a.. The loan is repayable in 18 quarterly instalment starting from August, 2009 with a moratorium of 6 month. Secured by way of First pari passu charge on all existing & future movable fixed assets & second pari passu charge on all existing and future current assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with Kotak Mahindra Bank Ltd. and Yes Bank Limited a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOT''s Industrial Park at Sriperumbudur.

(All above loans are secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda & Mr. Ashwani Minda).

Term Loan from Tata Capital Financial services Limited carries interest rate 13.00% p.a..The loan is repayable in 54 quarterly installments with a moratorium of 6 months.The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69 & 70(part) Narasapura Industrial area, Kolar District and personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

d) External Commercial Borrowings (ECB) taken from a bank carries fixed rate of interest 6 months Libor 300 bps p.a.. The Loan is repayable half yearly in 8 equivalent instalments with a moratorium of 18 months from the first draw down date i.e. August 31, 2010 and October 13, 2010. The loan is secured by way of first charge over movable & immovable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) and second pari passu charge over current assets and further additionally secured by equitable mortgage over company immovable property at Plot No. 150, Urban Estate, Sector-44, Gurgaon, Haryana.

The above loans are secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda & Mr. Ashwani Minda.

c) Vehicle loans are secured by hypothecation of vehicles financed.

2. Commitments and contingent liabilities

(Amount in Rs.)

Particulars March 31, 2014 March 31,2013

i. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances) 25,300,566 104,242,546



ii. Contingent liabilities

a. Claim against the Company not acknowledged as debts*

b. Guarantees issued on behalf of the Company outstanding at the end of the year 5,629,983 4,866,000



*Represents Central Excise/Service tax demands pending in appeal/show cause notice. The Company has deposited Rs.1,000,000 under protest against such demands/show cause notices. Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demand raised, the managementis of the opinion that the ultimate outcome of these proceeding will not have a material adverse effect on the company"s financial position and results of operations.

There are no other material commitments.

3. Borrowing cost capitalized during the year

As per Accounting Standard 16-"Borrowing Cost", the Company has capitalized Rs. Nil (Previous year Rs.15,853,656) to various fixed assets including capital work in progress in the year ended March 31,2014.

4. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 "Employee Benefits" calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees" state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

B. Defined benefits plans

Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits

Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company''s policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

5. Segment reporting

The Company has identified one reportable business segment as primary segment, namely manufacturing and sale of automobile components. The segment has been identified and reported taking into account the nature of products, the deferring risks and returns, the organisation structure and the internal financial reporting systems.

6. Leases

A. As lessee

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognised during the year amounts toRs.32,773,286/-(previous year Rs. 29,888,275).

B. As Lessor

The Company has given office space and plant and machinery on cancellable lease terms.Other income includes income from operating leaseRs.96,313,674/-(previous year Rs. 87,804,808).

7. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46A of the Accounting Standard-11 "The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortised w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs. 197,129 (previous year Rs. Nil) during the year ended March 31, 2014 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs. Nil (Previous year Rs.Nil) to capital work in progress.

8. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

9. Previous year figures have been reclassified/regrouped wherever necessary.


Mar 31, 2013

1. BACKGROUND

Jay Ushin Limited was established in 1986. The Company started commercial production in 1989 in Joint Venture and technical collaboration with U-shin Limited, Japan. The Company is primarily in the business of manufacturing and sale of automotive components of Automobiles for two wheeler and four wheeler. The Company is listed on Bombay stock exchange.

The financial statements reflect the results of the activities undertaken by the Company during the year April 1, 2012 to March 31, 2013.

2. Leases

A. As lessee:

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognised during the year amounts to Rs.29,888,275(previous year Rs. 10,966,284).

B. As Lessor:

The Company has given office space and plant and machineryon cancellable lease terms.Other income includes income from operating lease Rs.87,804,808(previous year Rs. 72,086,518).

3. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the net decrease in deferred tax liability of Rs.7,589,039 (Previous year Rs. 8,638,811)has been recognized as benefit in the Statement of Profit and Loss. The effect of significant timing difference as at March 31, 2013 that reverse in one or more subsequent years give rise to the following net deferred tax liability.

4. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company dopted the option given in paragraph 46A of the Accounting Standard-11 ''The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortised w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) ofRs. Nil(previous year Rs. 21,281,448) during the year ended March 31, 2013 to depreciable capital assetsand foreign exchange fluctuation loss (net) of Rs.Nil(Previous year Rs. 5,976,743 to capital work in progress.

5. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

6. The expenditure incurred by in-house R&D center located at Plot No- 282, Phase-6, Sectof-37, Gurgaon and approved by Ministry of Science & Technology (Department of Scientific and Industrial Research) vide letter No. TU-IV/RD/3558/2012 dated December 31, 2012 are as under:

7. Previous year figures have been recast/regrouped wherever necessary.


Mar 31, 2012

1. BACKGROUND

Jay Ushin Limited was established in 1986. The company started commercial production in 1989 in Joint Venture and technical collaboration with U-shin Limited, Japan. The Company is primarily in the business of manufacturing and sale of automotive components of Automobiles for two wheeler and four wheeler. The Company is listed on Bombay stock exchange.

The financial statements reflect the results of the activities undertaken by the Company during the year April 1, 2011 to March 31, 2012.

2. Commitments and contingent liabilities

(A mount in Rs.)

March 31, March 31, 2012 2011

i. Estimated amount of contracts remaining to be executed on capital account and not provided for 83,707,190 14,726,679 (net of capital advances)

ii. Contingent liabilities

a. Claim against the Company not acknowledged as debts* 19,913,199 11,560,417

b. Guarantees issues on behalf of the Company 20,000 20,000 outstanding at the end of the year

*Represents Central Excise/Service tax demands pending in appeal/show cause notice. The Company has deposited Rs. 1,000,000 under protest against such demands/show cause notices. Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demand raised, the management is of the opinion that the ultimate outcome of these proceeding will not have a material adverse effect on the company's financial position and results of operations.

There are no other material commitments.

3. Borrowing cost capitalized during the year

As per Accounting Standard 16 - Accounting, "Borrowing Cost", the Company has capitalized Rs. 11,962,744 (Previous year Rs. 4,112,443) to various fixed assets including capital work in progress in the year ended March 31, 2012.

4. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 "Employee Benefits" calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

* Included in Contribution to Provident and other funds under Employee benefit expenses (note 26)

# Included in Salaries, wages, bonus and allowances under Employee benefit expenses (note 26)

B. Defined benefits plans

Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits

Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company's policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

5. Leases

A. As lessee :

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognised during the year amounts to Rs. 10,966,284 (previous year Rs. 2,779,637).

B. As Lessor :

The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating lease Rs. 72,086,518 (previous year Rs. 62,610,79 8).

6. Related party disclosure

The disclosures as required by the Accounting Standard-18 (Related Party Disclosure) are given below:-

a. Names of related parties

Relationship Name of related party

(i) Joint Venturer Company : U-shin Limited, Japan

(ii) Key Management Personnel : Mr. Jaideo Prasad Minda (Chairman) ('KMP') and their relatives Mr. Anil Minda (Whole Time Director) Mr. Ashwani Minda (Managing Director)

Mr. Satoru Gokuda (Whole Time Director)

(iii) Enterprise over which Key Managerial : Jay FE Cylinders Limited Personnel and their relatives are able to JNS Instruments Limited exercise significant influence Modern Jushin Enterprises Engineering Works Jaycon Engineers

Kaashvi Industries

Jay Autocomponents Limited

7. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46A of the Accounting Standard-11 "The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortised w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs. 21,281,448 (previous year nil) during the year ended March 31, 2012 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs. 5,976,743 to capital work in progress.

Had the Company continued with the earlier policy of charging exchange difference on long term borrowings, the impact of the same on the current year financial statements would be as follows:

a) The foreign exchange fluctuation loss, net would have been higher by Rs. 27,258,191

b) Depreciation for the year would have been lower by Rs. 1,894,996

c) Current tax would have been lower by Rs. 3,539,544

d) Deferred tax benefit would have been higher by Rs. 970,266

e) Profit after tax would have been lower by Rs. 20,853,385

8. The financial statements for the year ended March 31, 2012 had been prepared as per the applicable, pre-revised Schedule VI to the Companies Act, 1956 ('the Act'). During the year, the revised Schedule VI notified under the Act has become applicable to the Company. Accordingly, the Company has reclassified previous year figures to conform to the current year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principle followed for preparation of financial statements. However, it has a significant impact on presentation and disclosures made in the financial statements.


Mar 31, 2010

1. Commitments & Contingencies March 31, 2010 March 3 1,2009

(Rs.) (Rs.)

ii. Contingent Liabilities

a) Claims made against Company not acknowledged as debts (suits 587,966 1,497,966 filed against the company).

b) Letters of credit issued by bank on behalf of the Company outstanding. 34,458,503 27,339,789 at the end of the year.

c) Guarantees issued on behalf of the Company outstanding at the end 1,233,183 - of the year.

d) Central Excise/Service tax deman pending in appeals/ show cause 9,150,715 11,670,644 notice (The Company has deposited Rs. 1,000,000 under protest against such demands/ show cause notice)

2. Securities against Loan

a) The facilities (P.O. Discounting, Overdraft, Guarantee, Term Loan, Issue of Letter of Credit) provided by Kotak Mahindra Bank Limited and Standard Chartered Bank are secured under the multiple banking arrangement by:

Bank Security

Kotak Mahindra Bank Limited (Term Loan) . Equitable mortgage by way of first pari passu charge over companys immovable property i.e. plot no. D-l/2, in the SIPCOT Industrial Park at Sriperumbudur within the village limits of Irungulam taluk of Sriperumbudur, sub Ragn.district of Chengalpattu of Kancheepuram in revenue district admeasuring 6.35 acres together with all buildings, structures and plant & machinery if any, affixed to the earth.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

Standard Chartered Bank (Term Loan) . First pari passu charge on movable fixed assets including plant & machinery both present & future and of the company.

. Second pari passu charge over all current assets of the company stored or to be stored at the companys godowns or premises or wherever else the same may be.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

Kotak Mahindra Bank Limited (Working Capital Loan/ PO Discounting/ Overdraft) . First pari passu charge over all present and future current assets ofthe company.

. Second pari passu charge over all present & future fixed assets.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.



Bank` Security

Standard Chartered Bank (Working Capital Loan) . First pari passu charge on the current assets of the Company.

. Second pari passu charge over the whole of the fixed assets of the Company Situated at Gurgaon, Manesar & Chennai, including its Movable Plant & Machinery, M/Spares, Tools & Access & other movables both Present & Future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or open or shall hereafter from time to time.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

IC1C1 Bank Ltd. Vehicle Loan

. First Charge on Vehicle under finance

Kotak Mahindra prime Limited Vehicle Loan

. First Charge on Vehicle under finance

HDFC Bank Ltd. Vehicle Loan

. First Charge on Vehicle under finance

Others

Vehicle Loan

. Hypothecation on Vehicle under finance

3. Sundry Creditors include

a) Rs. Nil/- due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME); and

b) Rs. Nil/- is payable for interest during the year to Micro, Small and Medium Enterprises.

c) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of creditors.

4. Certain balances under Sundry Debtors, Loans and advances, and Creditors are subject to confirmation/ reconciliation and consequential adjustment thereof, if any.

5. In the opinion of the Board, sundry debtors, loans and advances and other current assets are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount.

6. The Company has in accordance with the Accounting Standard 15 on Employee Benefits has calculated the various benefits provided to employees as under:

(A) Defined contribution plans

a. Provident Fund.

b. Employers Contribution to Employees State Insurance.

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner & Regional director of ESIC respectively.

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

(B) Defined Benefit Plans

a) Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the companys policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of Earned leaves at the credit of employees at the end of the year.

7. Segment Information

The disclosures as required by Accounting Standard 17 on Segment Reporting has not been provided as the Company deals in one business segment, namely manufacturing of automobile components. Currently there are no reportable Geographic segments.

8. Related Parties

In the normal course of business, the company enters into transactions with various affiliated companies. The names of related parties of the company as required to be disclosed under Accounting Standard 18 is as follows:



Joint Venturer Company : U-shin Limited, Japan

Enterprises over which key management Personnel and their relatives exercise significant influence : Anu Industries Limited

JNS Instruments Limited

JPM Tools Limited

JPM Automobiles Limited

Jay Autocomponents Limited

JNJ Electronics Limited

Janasis Infotech Limited

Jay Iron & Steels Limited

J A Builders Limited

Jay FE Cylinders Limited

Jay Nikki Industries Limited

Jay Smelter Limited

Nalhati Food Products Pvt. Limited

JPM Farms Pvt. Limited

Brilliant Jewels Pvt. Limited

Anu Auto Industries, Delhi

Moulder & Fabricators, Delhi

Modern Engg. Works, Delhi

Jushin Enterprises

Jaycon Engineers

Kaashvi Industries



Key Management Personnel Mr. J. P. Minda

Mr. Anil Minda

Mr. Ashwani Minda

Mr. Satoru Gokuda

a) Disclosure in respect of transaction which are more than 10% of the total transactions of the same type with a related party during the year.

I. Purchase of Raw material, components, consumables & fixed assets during the year includes Rs. 616,769,554 from JPM Automobiles Limited, Rs. 390,538,106 from Jay Autocomponents Limited (Previous Year Rs. 465,071,130 from JPM Automobiles Limited, Rs. 197,679,992 from Jay Autocomponents Limited).

II. Job work during the year includes Rs.37,353,498 from JPM Automobiles Limited, Rs.30,974,148 from Modern Engg. Works and Rs. 17,713,953 from Jay Autocomponents Limited (Previous Year Rs.42,121,035 from JPM Automobiles Limited and Rs. 24,510,715 from Modern Engg. Works and Rs. 14,052,000 from Jay Autocomponents Limited).

III. Sales during the year includes Rs. 1,383,640 to U-shin Limited, Japan & Rs. 102,958,659 to Jay Autocomponents Limited (Previous Year Rs. 8,546,055 to U-shin Limited, Japan & Rs. 75,649,178 to Jay Autocomponents Limited).

IV. Sales of fixed assets, goods & others during the year include Rs. 23,029 to Jay Autocomponents Limited & Rs.43,574 to JPM Automobiles Limited (Previous Year Rs.75,649,178 to Jay Autocomponents Limited).

V. Payment of technical fees & expenses during the year includes Rs. 20,638,915 to U-shin Limited, Japan (Previous Year Rs. 16,696,986 to U-shin Limited, Japan).

VI. Payment of Royalty during the year includes Rs. 22,394,789 to U-shin Limited, Japan (Previous Year Rs. 8,050,096 to U-shin Limited, Japan).

VII. Payment of dividend during the year includes Rs. 1,506,968 to U-shin Limited, Japan, Rs. 321,039 to Mr. J.P. Minda, Rs. 319,569 to Mr. Anil Minda and Rs. 373,638 to Mr. Ashwani Minda. (Previous Year Rs. 2,009,290 to U-shin Limited, Japan Rs.428,052 to Mr. J.P. Minda, Rs.426,092 to Mr. Anil Minda and Rs. 498,184 to Mr. Ashwani Minda).

VIII. Rent received during the year includes Rs. 47,067,899 from JNS Instruments Limited. (Previous Year Rs. 30,234,822 from JNS Instruments Limited).

IX. Lease rent received during the year includes Rs. 1,029,912 from JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited (Previous Year Rs. 1,029,912 from JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited).

X. Rent paid during the year includes Rs. 300,000 to Anu Industries Limited and Rs.600,000 to J A Builders Limited (Previous Year Rs. 300,000 to Anu Industries Limited and Rs.600,000 to J A Builders Limited).

XI. Other Includes Rs.13,23,977 to JNS Instruments Limited (Previous Year Rs.599,662 to Jay Autocomponents Limited and Rs.73,621 to JPM Automobiles Limited).

9. Leases

In compliance of the Accounting Standard AS-19, during the current year the interest on lease financing and depreciation on these assets amounting to Rs. Nil (Rs. Nil) and Rs.2,389,067 (Previous Year Rs.2,389,067) respectively have been charged to Profit & Loss Account.

10. Fringe Benefit tax provision includes additional demand of Fringe Benefit tax amounting to Rs. NIL (Previous year Rs. 356,000) pertaining to earlier years.

11. In compliance with the Accounting Standard AS-28-Impairment of Assets, based on the internal and external sources of information available with the Company, there are no indicators that any of the fixed assets are impaired. The Company has considered its Fixed Assets at cost of acquisition / cost of construction, less depreciation as per policy adopted by the Company and none of the assets have been revalued.

12. The material lying with third party belonging to the Company amounting to Rs. 23,021,028 (Rs. 19,456,852).

13. Secured loan re-payable within one year amoun to Rs. 75,717,644 (Previous year Rs.68,674,396)

14. Previous years figures have been regrouped and/or re-arranged wherever necessary to conform to the current years groupings and classifications and the figures in brackets are those in respect of the previous year.

 
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