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Notes to Accounts of Machino Plastics Ltd.

Mar 31, 2017

1. General Information of the company:-

Machino Plastic Limited is a public limited company incorporated as on 02nd April, 1986 under the erstwhile Companies Act, 1956 in India, having its registered office at Plot No 3, Maruti Joint Venture Complex, Gurgaon, Haryana - 122015. The company is a joint venture of Maruti Suzuki India Ltd and Suzuki Motor Corporation, Japan for the manufacture of injection moulded automotive parts as original equipment and for spare parts market primarily for Maruti Suzuki India Limited. The company also manufactures various automotive components for others manufacturers.

2. Significant Accounting Policies

a) Basis of preparation:-

The Company has adopted accounting policies that comply with Indian Accounting standards (INDAS or Ind AS) notified by Ministry of Corporate Affairs vide notification dated 16 February 2015 under section 133 of the Companies Act 2013. Accounting policies have been applied consistently to all periods presented in these financial statements. The financial statements referred hereinafter have been prepared in accordance with the requirements and instructions of Schedule III to the Companies Act 2013, amended from time to time applicable to companies to whom Ind AS applies read with the Ind AS.

The opening financial statements have been prepared in accordance with “Indian Accounting Standard 101 (First time Adoption of Indian Accounting Standards). The opening financial statements comprise Balance Sheet, Statement of Change in equity and its related notes.

The adopted accounting policies comply with each Ind-AS effective at the end of its first Ind-AS reporting period i.e.31st March 2017 except as specified in paragraphs 13-19 and Appendices B-D of Ind AS 101. In the opening financial statements:

(i) All assets and liabilities have been recognised as required by Ind AS.

(ii) All assets and liabilities have been derecognized which are not permitted by Ind AS.

(iii) All assets, liabilities or components of equity have been reclassified in accordance with Ind AS.

(iv) All assets and liabilities have been measured in accordance with Ind AS.

The accounting policies used by the Company in its opening financial statement may differ from those previously used in accordance with Indian Generally Accepted Accounting Principles (GAAP) or the previous GAAP The resulting adjustments, which arose for events and transactions before the date of transition to Ind AS, have been directly recognized in retained earnings at the date of transition to Ind-AS i.e. April 1,2015 (or, if appropriate, another category of equity) at the date of transition to Ind ASs.

The company estimates in accordance with Ind ASs at the date of transition to Ind ASs are 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.

The company has explained how the transition from previous GAAP to Ind ASs has affected its reported Balance sheet and Statement of Profit & loss. Accordingly, The Company’s first Ind AS financial statements includes:

(a) Reconciliations of its equity reported in accordance with previous GAAP to its equity in accordance with Ind ASs for both of the following dates:

(i) the date of transition to Ind ASs; and

(ii) the end of the latest period presented in the company’s most recent annual financial statements in accordance with previous GAAP

(b) Reconciliation to its total comprehensive income in accordance with Ind ASs for the latest period in the Company’s most recent annual financial statements. The starting point for that reconciliation being the profit or loss under previous GAAP

The Company’s first Ind AS financial statements includes three Balance Sheet’s, two Statements of profit and loss, and two Statements of changes in equity and two cash flow and related notes.

The Company’s first financial statements have been prepared in accordance with the Ind AS prescribed. The preparation of the Company’s first financial statements in conformity with Ind AS requires the Company to exercise its judgement in the process of applying the accounting policies. It also requires the use of accounting estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements. These estimates and assumptions are assessed on an ongoing basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances and presented under the historical cost convention on accrual basis of accounting.

b) Use of Estimates:-

The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of asset and liabilities on the date of the financial statements and the reported amount of the revenue and the expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3.1 Rights, preference and restrictions attached to equity shares

The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company

In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.

3.2 Aggregate number of bonus shares issued and shares bought back during the period of five years immediately preceding the reporting date:

A) Equity shares of Rs. 10 each allotted as fully paid bonus shares by capitalisation out of capital redemption reserves.

B) Equity shares of Rs. 10 each buy back

Notes

Secured term loans from banks & others

a. Term loans are secured by way of pari passu first charge on company’s fixed assets excluding tools & dies, both present & future and second charge on current assets

b. The term loan taken from Yes Bank is Rs 170,833,333 (Previous year Nil) which carries interest of 9.85% per annum

c. The term loan taken from Yes Bank is Rs 170,000,000 (Previous year Nil) which carries interest of 9.65% per annum

d. The term loan taken from Kotak Mahindra Bank Limited is Rs 109,949,821 (Previous year Nil) which carries interest of 9.85% per annum

e. The term loan taken from HDFC Bank Limited is Rs 100,000,000 (Previous year Nil) which carries interest of 9.85% per annum

f. The term loan taken from TATA Capital Financial Services Limited is Rs. 100,000,000 (Previous year Nil) which carries interest of 10.25% per annum

g. The term loan taken from TATA Capital Financial Services Limited is Rs. 39,678,797 (Previous year Rs. 122,222,000) which carries interest of 11.75% per annum

h. Repayment schedule

Notes

Nature of securities

The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company including stocks of raw material, goods in transit and book debts along with a pari passu charge on entire fixed assets of the Company

* Cash credit facilities outstanding from Allahabad Bank is Rs. 7,379,485 (Previous year Rs. 112,780,191) carry interest of 12.20% computed on the daily basis on the actual amount utilized, and are repayable on demand.

* Cash credit facilities outstanding from Axis Bank Limited is Rs. 268,092,956 (Previous year Rs. 103,015,954) carry interest of 9.20% computed on the daily basis on the actual amount utilized, and are repayable on demand.

* Cash credit facilities outstanding from Kotak Mahindra Bank Limited is Rs. 10,882,541 (Previous year Nil) carry interest of 10.30% computed on the daily basis on the actual amount utilized, and are repayable on demand.

* Cash credit facilities outstanding from Yes Bank Limited is Rs. 140,066,457 (Previous year Nil) carry interest of 9.25% computed on the daily basis on the actual amount utilized, and are repayable on demand.

* Cash credit facilities outstanding from HDFC Bank Limited is Rs. 70,822 (Previous year Nil) carry interest of 9.75% computed on the daily basis on the actual amount utilized, and are repayable on demand.

4. Contingent liabilities and commitments (to the extent not provided for):

(i) Contingent liabilities not provided for

a) Demand under the Central Excise Act of Rs. 111,535,494 (Previous year Rs. 111,535,494)

b) Demand under the Income Tax Act of Rs. 1,646,625 (Previous year Rs. 2,182,598)*

c) Demand under the Sales Tax Act of Rs. 621,691 (Previous year Rs. 621,691).

d) Bill discounted of Rs.7,152,049 (Previous year Rs. 14,942,719)

* The Ld CIT (A) vide order dated 27 April 2017 quashed the penalty demand order passed by Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961

(ii) Guarantees

In respect of bank guarantees: Rs.5,434,322 (Previous year Rs.5,434,322)

(iii) Commitments

Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 9,424,527 (Previous year Rs. 4,636,800).

5. (i) Contribution to defined benefit plan

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with “Life Insurance corporation” in the form of a qualifying insurance policy.

6. Other income includes interest income Rs. 216,369 (Previous year Rs. 468,592), tax deducted thereon is Rs. 7,795 (Previous year Rs. 44,529), Profit on sale of fixed assets Rs. 1,922,125 (Previous year Rs. 142,974), Sundry creditors written off Rs. 6,054 (Previous year Rs. 99,563), Duty draw back received Rs 177,706 (Previous year Rs. 106,199), Exchange fluctuation gain Rs 754,275 (Previous year loss Rs 1,590,878).

7. Investment in equity share are measured at fair value through other comprehensive income as per ind AS 109.

The company had made Investment of Face Value of Rs.12,500,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Hon’ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon’ble Delhi High Court which dismissing company’s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon’ble High Court of Delhi before the Hon’ble Supreme Court of India by both the parties. The Hon’ble Supreme Court of India vide its order dated 29th March 2016 dismissed both SLPs. However, it states that the order of dismissal is subject to the result of such case(s) as may be pending between the paties in respect of cancellation of the shares held by the petitioner. The matter is still sub-judice.

In the current circumstances, the company is unable to ascertain the fair value of investment in equity share in Caparo Maruti Limited as it is not practicably feasible to do so. Consequently, no fair value adjustment has been made in the books of accounts and these equity instruments have been carry forward at cost as at Balance sheet date

8. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Ind AS-108 “Operating Segments”. The geographical segmentation is not relevant, as there is insignificant export.

9. Information as required by ind AS 24 “Related Parties Disclosures” as follows:

List of related parties:

a. Associate companies

Maruti Suzuki India Limited Suzuki Motor Corporation, Japan

b. Enterprises under common control

Suzuki Motor Gujarat Private Limited

Suzuki Motorcycle India Private Limited

c. Enterprises over which key management personnel

And their close members are able to exercise significant influence

Machino Motor Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited

d. Key management personnel & their close members

Mr M.D. Jindal - Chairman Emeritus

Mr Sanjiivv Jindall - Managing Director cum Chairman & Son of Chairman Emeritus

Ms Kamla Jindal - Spouse of Chairman Emeritus

Ms Sarita Jindal - Spouse of Managing Director cum Chairman

Mr Aditya Jindal - Executive Director & Son of Managing Director cum Chairman

Mr Suryakant Agrawal - General Manager cum Company Secretary

10. Capital Management

The Company manages its capital to ensure that the company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 19 offset by cash and bank balances) and total equity of the company. The company is not subject to any externally imposed capital requirements.

The Company’s risk management committee reviews the capital structure of the Company on a semiannual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity plus debt.

11. Financial risk management:-

The Company’s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Corporate Treasury function reports quarterly to the company’s risk management committee, an Independent body that monitors risks and policies implemented to mitigate risk exposures.

Market Risk

The company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

a) Foreign currency risk management

The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters

The carrying amounts of the company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

b) Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk because company borrows funds at floating interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

(i) The exposure of group borrowings to interest rate changes at the end of reporting period are as follows:

(ii) As at the end of reporting period, the company had the following variable rate borrowings:

(iii) Sensitivity

Profit/loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.

c) credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the company uses other publicly available financial information and its own trading records to rate its major customers. The company’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.

d) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company’s short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.

The contractual maturity is based on the earliest date on which the company may be required to pay.

12. Fair value of measurement

Fair value of the company’s financial assets and financial liabilities that are measured at fair value on a recurring basis.

a) The fair values of current debtors, bank balances, current creditors and current borrowings are assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities are as follows.

13. current Tax

The income tax expense for the year can be reconciled to the accounting profit as follows:

The tax rate used for the 2016-17 and 2015-16 reconciliations above is the corporate tax rate of 21.314% & 34.608% respectively.

14. Specified bank notes (SB’Ns):-

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 08 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below

15. The group offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the recognized amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

The following table provides quantitative information about offsetting of financial assets and financial liabilities:


Mar 31, 2016

Note

1. Other income includes interest received Rs. 468,592 (Previous year Rs. 187,238), tax deducted thereon is Rs. 44,529 (Previous year Rs. 13,924), Profit on sale of fixed assets Rs. 142,974 (Previous year Nil), Sundry creditors written off Rs. 99,563 (Previous year 3,359,738), Duty draw back received Rs 106,199 (Previous year Rs. 77,009).

2. The company had made Investment of Face Value of Rs.12,500,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Hon''ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon''ble Delhi High Court which dismissing company''s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon''ble High Court of Delhi before the Hon''ble Supreme Court of India by both the parties. The Hon''ble Supreme Court of India vide its order dated 29th March 2016 dismissed both SLPs. However, it states that the order of dismissal is subject to the result of such case(s) as may be pending between the patties in respect of cancellation of the shares held by the petitioner. The matter is still sub-judice.

3. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 “Segmental Reporting”. The geographical segmentation is not relevant, as there is insignificant export.

4. Information as required by Accounting Standard - (AS) - 18 “Related Parties Disclosures” as follows:

List of related parties:

a) Associate companies Maruti Suzuki India Limited Suzuki Motor Corporation, Japan

b) Enterprises over which key management personnel And their relatives are able to exercise significant influence Machino Motors Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited

c) Key management personnel & relatives

Mr M.D.Jindal - Chairman

Mr Sanjiivv Jindall - Managing Director cum Vice Chariman & Son of Chairman

Mrs Kamla Jindal - Spouse of Chairman

Mrs Sarita Jindal - Spouse of Managing Director

Mr Aditya Jindal - Executive Director & Son of Managing Director

Ms Simta Jindal - Daughter of Managing Director

5. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to conform to the classification in the current year.


Mar 31, 2015

Note 1.1 Rights, preference and restrictions attached to equity shares

The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.

Notes

Nature of securities

The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company including stocks of raw material, goods in transit and book debts along with a pari passu charge on entire fixed assets of the Company

* Cash credit facilities outstanding from The Bank of Tokyo-Mitsubishi UFJ, Ltd is Nil (Previous year Rs. 49,196,450/-) carry interest of 14.50% computed on the daily basis on the actual amount utilized, and are repayable on demand.

* Cash credit facilities outstanding from Allahabad Bank is Rs. 174,061,617/- (Previous year Rs. 166,093,515/-) carry interest of 12.70% computed on the daily basis on the actual amount utilized, and are repayable on demand.

* Cash credit facilities outstanding from Axis Bank Limited is Rs. 5,258,937/- (Previous year Rs. 59,035,560/-) carry interest of 12.50% computed on the daily basis on the actual amount utilized, and are repayable on demand.

2. Contingent liabilities and commitments (to the extent not provided for):

(i) Contingent liabilities not provided for

a) Demand under the Central Excise Act of Rs. 111,535,494/- (Previous year Rs. 111,535,494/-).

b) Demand under the Income Tax Act of Rs. 2,182,598/- (Previous year Rs. 1,646,625/-).

c) Demand under the Sales Tax Act of Rs. 621,691/- (Previous year Rs. 621,691/-).

(ii) Guarantees

In respect of bank guarantees: Rs.1,558,000/- (Previous year Rs. 1,558,000/-)

(iii) Commitments

a) Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs.30,306,871/- (Previous year Rs. 3,581,597/-).

b) The Hon''ble High Court of Punjab and Haryana has awarded enhanced compensation to land looser in respect of land acquired by HSIIDC, A Government Agency, from whom the company has purchased on 16th March 2005, four acres of land for its factory at Manesar. In turn HSIIDC has demanded a sum of Rs.42,320,250/- in respect of land allotted to the company. The company has paid Rs 39,360,951/- lacs (inclusive of all interest due to delay payment) and the said enhancement have formed the cost of free hold land at Manesar. The company has received an additional notice from HSIIDC dated 29th August 2014 demanding additional cost / charges in respect of Plot No 128 & 129, Sector 8, IMT Manesar amounting to Rs 23,184,000/-. The company has paid Rs 4,753,038/- lacs (inclusive of all interest due to delay payment) in respect of additional demand.

3. During the year ended 31st March 2009 company has revalued its land (free hold) by Rs. 149,621,982/- substituting its historical cost of Rs 47,253,018/- by revalued amount of Rs. 196,875,000/-. The said revaluation was done by an external valuer using comparable method.

4. (i) Contribution to defined benefit plan

The company has a defined benefit gratuity plan, Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with "Life Insurance Corporation" in the form of a qualifying insurance policy.

5. Other income includes interest received Rs. 187,238/- (Previous year Rs. 1,137,545/-), tax deducted thereon is Rs. 13,924/- (Previous year Rs. 74,251/-), Profit on sale of fixed assets Nil (Previous year 1,177,946/- ), Sundry creditors written off Rs. 3,359,738/- (Previous year Nil), Duty draw back received Rs 77,009/- (Previous year Nil).

6. The company had made Investment of Face Value of Rs.12,500,000/- in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Hon''ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon''ble Delhi High Court which dismissing company''s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon''ble High Court of Delhi before the Hon''ble Supreme Court of India by both the parties. The matter is still sub-judice.

7. During the year the company has determined the estimated useful life of its fixed assets based on the technical evaluation as permitted under the provision of Schedule II of Companies Act, 2013 and has provided depreciation accordingly w.e.f. 01st April 2014. This has resulted into depreciation for the year ended 31st March 2015 being higher by Rs 6,096,217/-.

8. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 "Segmental Reporting". The geographical segmentation is not relevant, as there is insignificant export.

9. Information as required by Accounting Standard - (AS) - 18 "Related Parties Disclosures" as follows:

List of related parties:

a) Associate companies

Maruti Suzuki India Limited Suzuki Motor Corporation, Japan

b) Enterprises over which key management personnel

And their relatives are able to exercise significant influence

Machino Motors Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited

c) Key management personnel & relatives

Mr M.D.Jindal - Chairman

Mr Sanjiivv Jindall - Managing Director cum Vice Chariman & Son of Chairman

Mrs Kamla Jindal - Spouse of Chairman

Mrs Sarita Jindal - Spouse of Managing Director

Mr Aditya Jindal - Executive Director & Son of Managing Director

Ms Simta Jindal - Daughter of Managing Director

10. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to conform to the classification in the current year.


Mar 31, 2014

Note 1.1 Rights, preference and restrictions attached to equity shares

The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company

In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.

2. Contingent liabilities and commitments (to the extent not provided for):

(i) Contingent liabilities not provided for

a) Demand under the Central Excise Act of Rs. 111,535,494/- (Previous year Rs. 111,535,494/-).

b) Demand under the Income Tax Act of Rs. 1,646,435/- (Previous year Rs. 13,079,410/-).

c) Demand under the Sales Tax Act of Rs.621,691/- (Previous year Nil).

(ii) Guarantees

In respect of bank guarantees: Rs.1,558,000/- (Previous year Rs. 1,500,000/-)

(iii) Commitments

Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs.3,581,597/- (Previous year Rs. 17,975,216/-).

3. During the year ended 31st March 2009 company has revalued its land (free hold) by rupees Rs. 149,621,982/-) substituting its historical cost of Rs 47,253,018/- by revalued amount of Rs. 196,875,000/-. The said revaluation was done by an external valuer using comparable method.

4. (i) Contribution to defined benefit plan

The company has a defined benefit gratuity plan, Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with "Life Insurance Corporation" in the form of a qualifying insurance policy.

5. Other income includes interest received Rs. 1,137,545/- (previous year Rs. 976,405/-), tax deducted thereon is Rs. 74,251/- (previous year Rs. 97,652/-), Profit on sale of fixed assets Rs.1,177,946/- (Previous year 44,199/-), Gain from Foreign Fluctuation Rs. 35,871/- (Previous year Nil), Discount received Rs. Nil (Previous year Rs.6,596,161/-).

6. The company had made Investment of Face Value of Rs.12,500,000/- in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Hon''ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon''ble Delhi High Court which dismissing company''s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon''ble High Court of Delhi before the Hon''ble Supreme Court of India by both the parties. The matter is still sub-judice.

7. The Hon''ble High Court of Punjab and Haryana has awarded enhanced compensation to land looser in respect of land acquired by HSIIDC, A Government Agency, from whom the company has purchased on 16th March 2005, four acres of land for its factory at Manesar. In turn HSIIDC has demanded a sum of Rs.42,320,250/- in respect of land allotted to the company. IMT Manesar Association has filed petition in the Hon''ble High Court of Punjab and Haryana challenging the demand of behalf of industries at Manesar. The Hon''ble High Court has directed allottees, to deposit 60% of demanded amount, pending final judgement. The company has paid Rs. 29,838,112/- including interest and the said enhancement has formed the cost of free hold land at Manesar.

8. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 "Segmental Reporting". The geographical segmentation is not relevant, as there is insignificant export.

9. Information as required by Accounting Standard - (AS) - 18 "Related Parties Disclosures" as follows:

List of related parties:

a. Associate companies

Maruti Suzuki India Limited Suzuki Motor Corporation, Japan

b) Enterprises over which key management personnel

And their relatives are able to exercise significant influence

Machino Motors Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited

c. Key management personnel & relatives

Mr M.D.Jindal - Chairman

Mr Sanjiivv Jindall - Managing Director cum Vice Chairman & Son of Chairman

Mrs Kamla Jindal - Spouse of Chairman

Mrs Sarita Jindal - Spouse of Managing Director

Mr Aditya Jindal - Executive Director & Son of Managing Director

Ms Simta Jindal - Daughter of Managing Director

10. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to confirm to the classification in the current year.


Mar 31, 2013

1. Contingent liabilities and commitments (to the extent not provided for): (i) Contingent liabilities not provided for

a) Demand under the central excise act of Rs. 111,535,494/- (Previous year Rs. 139,256,442/-).

b) Demand under the income tax act of Rs. 13,079,410/- (Previous year Rs. Nil). (ii) Guarantees

a) In respect of bank guarantees : Rs.1,500,000/- (Previous year Rs. 1,000,000/-)

(iii) Commitments

a) Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 17,975,216/- (Previous year Rs. Nil).

2. During the year ended 31st March 2009 company has revalued its land (free hold) by (Rs. 149,621,982/-) substituting its historical cost of Rs 47,253,018/- by revalued amount of Rs. 196,875,000/-. The said revaluation was done by an external valuer using comparable method.

3. (i) Contribution to defned beneft plan

The company has a defned beneft gratuity plan, every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with "Life Insurance Corporation" in the form of a qualifying insurance policy.

4. Other income includes interest received Rs. 976,405/- (Previous year Rs. 4,668,248/-), tax deducted thereon is Rs. 97,652/- (previous year Rs. 1,73,008/-), Proft on sale of fxed assets Rs.44,199/- (Previous year 13,143,416/-), Gain from Foreign Fluctuation Rs. Nil (Previous year Rs. 2,881/-), Discount received Rs.6,596,161/- (Previous year Rs.4,233,395/-).

5. The company had made Investment of Face Value of Rs.12,500,000/- in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has fled a petition to Hon''ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company fled an appeal in the Hon''ble Delhi High Court which dismissing company''s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon''ble High Court of Delhi before the Hon''ble Supreme Court of India by both the parties. The matter is still sub-judice.

6. The Hon''ble High Court of Punjab and Haryana has awarded enhanced compensation to land looser in respect of land acquired by HSIIDC, A Government Agency, from whom the company has purchased on 16th March 2005, four acres of land for its factory at Manesar. In turn HSIIDC has demanded a sum of Rs.42,320,250/- in respect of land allotted to the company. IMT Manesar Association has fled petition in the Hon''ble High Court of Punjab and Haryana challenging the demand on behalf of industries at Manesar. The Hon''ble High Court has directed allottees, in the hearing dated 30th April 2013, to deposit 40% of demanded amount, pending fnal judgement. The company has not yet paid any amount. However in case, the said enhancement is paid the same will form of cost of free hold land at Manesar.

7. An accident occurred in Manesar Plant of the company on 21st January 2012 causing damage to fxed assets Gross Valued at Rs. 33,202,884/- and WDV at Rs. 23,872,957/- and stock value of Rs. 2,606,334/- at cost. Company has in force an all industrial risk insurance policy at the time of accident which has arrangement for replacement / re-instatement of assets. Management is of the view that fnal adjustment for impact on carrying value of assets shall be carried out after settlement of insurance claims, since it is unascertainable at this stage.

8. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 "Segmental Reporting". The geographical segmentation is not relevant, as there is insignifcant export.

9. Information as required by Accounting Standard – (AS) - 18 "Related Parties Disclosures" as follows: List of related parties:

a. Associate companies

Maruti Suzuki India Limited Suzuki Motor Corporation, Japan

b. Enterprises over which key management personnel and their relatives are able to exercise signifcant infuence

Machino Motors Pvt. Limited Grandmaastters Mold Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Autocomp Pvt Ltd Machino Polymers Limited

c. Key management personnel & relatives

Mr. M.D.Jindal - Chairman

Dr. Sanjiivv Jindall - Managing Director & Son of Chairman

Mrs. Kamla Jindal - Spouse of Chairman

Mrs. Sarita Jindal - Spouse of Managing Director

Mr. Aditya Jindal - Son of Managing Director

Miss Simta Jindal - Daughter of Managing Director

10. The fgures are adjusted to the nearest rupee and fgures for previous year have been regrouped / rearranged to conform to the classifcation in the current year.


Mar 31, 2012

1. Contingent liabilities not provided for:

- Demand under the central excise act of Rs. 13,92,56,442/-(Previous year Rs. 13,92,56,442)

2. Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. NIL (Previous year Rs. 26,90,693/-)

3. During the year ended 31st March 2009 company has revalued its land ( free hold) by rupees Rs. 14,96,21,982/-) substituting its historical cost of Rs 4,72,53,018/- by revalued amount of Rs. 19,68,75,000/-. The said revaluation was done by an external valuer using comparable method.

4. (i) Contribution to defined benefit plan

The company has a defined benefit gratuity plan, Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with "Life Insurance Corporation" in the form of a qualifying insurance policy.

* The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, per motion and other relevant factors including supply and demand in the employment market.

(ii) Contribution to defined contribution plan

As of 31-03-2012 31-03-2011

Provident Fund 36,65,500 40,42,679

5. Other income includes interest received Rs.46,68,248/- (previous year Rs. 47,98,305/-). tax deducted thereon is Rs. 1,73,008/- (previous year Rs. 4,04,105/-), Profit on sale of equity shares Rs.NIL (Previous year 9,46,98,800/-), Profit on sale of fixed assets Rs.1,31,43,416/- (Previous year 74,19,689/-), Gain from Foreign Fluctuation Rs.2,881/- (Previous year NIL), Discount received Rs.42,33,395/- (Previous year NIL).

6. The company had made Investment of Face Value of Rs.1,25,00,000/- in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to honble company law board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon'ble Delhi High Court which dismissing company's appeal upheld company law board order thereafter SLPs were preferred against the orders of the Hon'ble High Court of Delhi before the Hon'ble Supreme court of India by both the parties. The matter is still sub-judice.

7. The sales / revenue have been accounted on the basis of purchase orders issued by customers. However in respect of a customer the discussion is going on for adjustment of prices, the agreed amount of which is not ascertainable. The same will be accounted on crystallization of amount.

8. An accident occurred in Manesar Plant of the company on 21st January 2012 causing damage to fixed assets Gross Valued at Rs. 3,32,02,884/- and WDV at Rs. 2,38,72,957/- and stock value of Rs. 26,06,334/- at cost. Company has in force an all industrial risk insurance policy at the time of accident which has arrangement for replacement / re-instatement of assets. Thus in the opinion of the management there is no likely hood of loss to the company, Management is of the view that adjustment for impact on carrying value of these assets shall be carried out in the amount after settlement of insurance claims, since it is uncertain able at this stage.

9. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 "Segmental Reporting". The geographical segmentation is not relevant, as there is insignificant export.

10. Information as required by Accounting Standard - (AS) - 18 "Related Parties Disclosures" as follows: List of related parties:

a. Associate companies

Maruti Suzuki India Limited

Suzuki Motor Corporation, Japan

b. Enterprises over which key management personnel and their relatives are able to exercise significant influence

Machino Motors Pvt. Limited

Grandmaastters Mold Limited

Machino Techno Sales Limited

Machino Transport Private Limited

Machino Finance Private Limited

Machino Autocomp Pvt Ltd

Machino Polymers Limited

c. Key management personnel & relatives

Mr. M.D.Jindal - Chairman

Dr. Sanjiivv Jindall - Managing Director & Son of Chairman

Mrs. Kamla Jindal - Spouse of Chairman

Mrs. Sarita Jindal - Spouse of Managing Director

Mr. Aditya Jindal - Son of Managing Director

Miss Simta Jindal - Daughter of Managing Director

11. In compliance with the Accounting Standard (AS) 22 "Accounting for Taxes on Income" deferred tax liability arising during the year on account of timing differences amounting Rs. 53,10,542/- has been recognised in the profit and loss account.

12. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to conform to the classification in the current year.


Mar 31, 2011

1. Contingent liabilities not provided for:

- Demand under the central excise act of Rs. 13,92,56,442/-(Previous year Rs. 12,36,55,534)

2. Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 26,90,693/- (Previous year Rs. 1,79,71,630/-)

3. During the year ended 31st March 2009 company has revalued its land ( free hold) by rupees Rs. 14,96,21,982/-) substituting its historical cost of Rs 4,72,53,018/- by revalued amount of Rs. 19,68,75,000/-. The said revaluation was done by an external valuer using comparable method.

4. (i) Contribution to defined benefit plan

The company has a defined benefit gratuity plan, Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with "Life Insurance Corporation" in the form of a qualifying insurance policy.

5. Other income includes interest received Rs. 47,98,305 (previous year Rs. 52,89,725). tax deducted thereon is Rs. 4,04,105 (previous year Rs. 6,64,282); Profit on sale of equity shares Rs.9,46,98,800 (Previous year 6,98,98,000); Income from Job work Nil (previous year Rs. 1,60,956.50); Profit on sale of fixed assets Rs.74,19,689 (Previous year 37,55,137).

6. The company had made Investment of Face Value of Rs 1,25,00,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to honble company law board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Honble Delhi High Court which dismissing companys appeal upheld company law board order thereafter SLPs were preferred against the orders of the Honble High Court of Delhi before the Honble Supreme court of India by both the parties. The matter is still sub-judice.

7. During the year company has carried out restoration & relocation of two injection molding machines at a cost of Rs. 3,56,14,919, which has been capitalized.

8. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 "Segmental Reporting". The geographical segmentation is not relevant, as there is insignificant export.

9. Information as required by Accounting Standard – (AS) - 18 "Related Parties Disclosures" as follows:

List of related parties:

a) Associate companies

Maruti Suzuki India Limited

Suzuki Motor Corporation, Japan

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence

Machino Motors Pvt. Limited

Grandmasstters Mold Limited

Machino Techno Sales Limited

Machino Transport Private Limited

Machino Finance Private Limited

Machino Autocomp Pvt Ltd

Machino Polymers Limited

c) Key management personnel & relatives

Mr. M.D.Jindal - Chairman

Dr. Sanjiivv Jindall - Managing Director & Son of Chairman

Mrs. Kamla Jindal - Spouse of Chairman

Mrs Sarita Jindal - Spouse of Managing Director

Mr Aditya Jindal - Son of Managing Director

Miss Simta Jindal - Daughter of Managing Director

10. In compliance with the Accounting Standard (AS) 22 "Accounting for Taxes on Income" deferred tax liability arising during the year on account of timing differences amounting Rs. 98,78,617/- has been recognised in the profit and loss account.

11. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to conform to the classification in the current year.


Mar 31, 2010

1. Contingent liabilities not provided for: • Demand under the Central Excise Act, 1944 of Rs. 12,36,55,537/- (Previous year Rs. 13,92,56,442)

2. Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 1,79,71,630/- (Previous year Rs. 1,37,78,758/-)

3. During the year ended 31st March, 2009 company has revalued its land (free hold) by Rs. 14,96,21,982/- substituting its historical cost of Rs 4,72,53,018/- by revalued amount of Rs. 19,68,75,000/-. The said revaluation was done by an its external valuer using comparable method.

4. Contribution to defined benefit plan

The company has a defined benefit gratuity plan, Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with "Life Insurance Corporation" in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expenses recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plan (as per Actuarial Valuation as on 31st March,2010).

5. Other income includes interest received Rs. 52,89,725 (previous year Rs.44,03,524); tax deducted thereon is Rs. 6,64,282 (previous year Rs. 9,23,878.01); Profit on sale of equity shares Rs.6,98,98,000 (Previous year 5,98,79,200); Income from Job work Rs.1,60,956.50 (previous year Rs. 19,09,207.24); discount received Rs. Nil (previous year Rs. 18,44,740).

6. The company had made investment of face value of Rs. 1,25,00,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the company. The company has filed a petition to Hon’ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The company filed an appeal in the Honble Delhi High Court which dismissing companys appeal upheld Company Law Board order thereafter SLP were preferred against the orders of the Honble Delhi High Court before the Honble Supreme Court of India by both the parties. The Honble Supreme Court of India has appointed M/s Walker Chandok & Co. for valuation of shares of Caparo Maruti Ltd. The matter is still sub-judice.

7. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS - 17) "Segmental Reporting". The geographical segmentation is not relevant, as there is insignificant export.

8. Information as required by Accounting Standard - (AS - 18) "Related Parties Disclosures" as follows:

List of related parties:

a) Associate Companies Maruti Suzuki India Limited Suzuki Motor Corporation, Japan

b) Enterprises over which key management personnel and their relatives are able to exercise significant influence

Machino Motors Pvt. Limited Grandmasstters Mold Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Autocomp Pvt Ltd Machino Polymers Limited

c) Key management personnel & relatives Mr. M.D.Jindal - Chairman

Dr. Sanjiivv Jindall - Managing Director & Son of Chairman

Mrs. Kamla Jindal - Spouse of Chairman

Mrs. Sarita Jindal - Spouse of Managing Director

Mr. Aditya Jindal - Son of Managing Director

Ms. Simta Jindal - Daughter of Managing Director

9. In compliance with the Accounting Standard (AS - 22) "Accounting for Taxes on Income" deferred tax assets arising during the year on account of timing differences amounting Rs. 1,71,59,283 has been recognised in the profit and loss account and adjusted with deferred tax liability.

10. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to conform to the classification in the current year.

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