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Notes to Accounts of Amtek Auto Ltd.

Mar 31, 2018

Notes to the Standalone Financial Statements

1. Company Information

M/S Amtek Auto Limited (hereinafter referred to as AAL) established on October 3, 1985, as A.M. Metal Cast Limited in year 1985 and subsequently the name was changed to Amtek Auto Limited w.e.f. November 12, 1987. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

AAL is one of the leading players in the auto components sector with proven capabilities in forging, high pressure die casting, machining and sub-assembly.

The Product portfolio includes auto components and assemblies namely engine, transmission and suspension components. The Company is original equipment manufacturer supplier for passenger cars, light and heavy commercial vehicles, two/ three wheelers and diesel engines. The Company also manufacture components for non-auto sectors viz. Agriculture, Refrigeration and Railways.

Major customers of the Company include Maruti Udyog, New Holland Tractors, Hyundai Motors, ITL, Eicher Motor, Hero, Honda, Tata Motors, General Motors, SML-Isuzu, Ashok Leyland, Ford, Briggs and Stratton, Cummins, CNH Global, Escorts, International Tractors, Tallent Engineering, John Deere and White good Manufacturers viz. LG Electronics.

Company has its Registered Office at Plot No.-16, Industrial Area, Roz-ka-Meo, P.O. Sohna, Mewat Haryana and Corporate Office at 3, Local Shopping Centre, Pamposh Enclave, Greater Kailash -1, New Delhi.

That pursuant thereto, on July 27, 2017, Honâble NCLT appointed Mr. Dinkar T. Venkatasubramanian as Interim Resolution Professional (IRP) in terms of IBC, who was subsequently confirmed as Resolution Professional (RP) by Committee of Creditors (CoC), constituted under IBC. Mr. Dinkar T. Venkatasubramanian, in his capacity as RP, has taken control and custody of the management and operations of the Company with effect from July 27, 2017.

The âResolution Planâ wherein Liberty House Group Pte. Limited would acquire the control in the Company in accordance with the applicable laws and as defined in the resolution plan. The resolution plan was voted upon (between April 4, 2018 and April 5, 2018) and duly approved by the CoC and has further been approved by NCLT vide Order dated July 25, 2018.

As per NCLT Order (read with the implementation provisions of the Resolution Plan), the Resolution Applicant and Resolution Professional shall jointly supervise the implementation of the Resolution Plan until closing date. The Resolution Professional shall act as Insolvency Professional and will be a member on the Monitoring committee till such closing date.

Basis of preparation of financial statements and Statement of Compliance

These standalone financial statements are prepared in accordance with Indian Accounting Standards (IND AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values; the provisions of the Companies Act, 2013 (âActâ) (to the extent notified and applicable). The IND AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued Indian accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Since the powers of the Board of Directors stand suspended after commencement of CIRP, the standalone financial statements have been endorsed by Chief Financial Officer, confirming the standalone financial statements do not contain any material misstatements and thereafter provided to the Insolvency Professional for his signing on 12th November, 2018.

(iii) The Company held investment in Amtek Global Technologies Pte Limited (AGT) which is classified as subsidiary . Receivers were appointed on 30th April, 2017 by US Bank Trustee limited , acting in its capacity as Security Agent (âthe Security Agentâ) on behalf of the lenders under a facilities agreement dated 10th November, 2014 between, among others, the Security Agent and AGT.Pursuant to this, the Company lost control â over AGT and its investment has henceforth been classified as FVTPL at Fair value of Rs. 64,707.59 Lakhs.

(iv) The Company held investment in Metalyst Forgings Limited (MFL) which was classified as Subsidiary till December 15, 2017. The Company ârecognised impairment loss on such investment during the year aggregating to Rs.20,957.53 Lakhs which has been disclosed under âexceptional âitemsâ in statement of profit or loss. A corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code 2016 âwas initiated against MFL vide order of National Company Law Tribunal (NCLT) dated December 20, 2017. Pursuant to this, the Company lost âcontrol over MFL and its investment has henceforth been classified as FVTPL at an initial date fair value of Rs. Nil.

(v) The Company held investment in Castex Technologies Limited (CTL) and ARGL Limited which was classified as associates till December 20, 2017 and March 16,2018 respectively. The Company recognised impairment loss on such investments during the year aggregating to Rs.49,056.64 Lakhs and Rs. 12,803.20 Lakhs respectively which has been disclosed under âexceptional âitemsâ in statement of profit or loss. A corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code 2016 was initiated â against CTL and ARGL Ltd vide order of National Company Law Tribunal (NCLT) dated December 21, 2017 and March 15,2018 respectively. âPursuant to this, the Company lost significant influence over CTL and ARGL Limited and its investment has henceforth been classified âas FVTPL at an initial date fair value of Rs. Nil.

(vi) The Company held investment in ACIL Limited which is classified as an associate. The Company recognised impairment loss on such investments during the year aggregating Rs.13,224.49 Lakhs which has been disclosed under âexceptional itemsâ in statement of profit or loss. A corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code 2016 was initiated against ACIL vide order of National Company Law Tribunal (NCLT) dated August 8,2018. Pursuant to this, the Company lost significant influence over ACIL Limited.

Note: The Company has de-recognised deferred tax and MAT Credit of Rs. 38,854.61 Lakhs and Rs.14,108.16 Lakhs respectively since the probability of sufficient taxable profits for the future period against which such tax credits would be utilized, is not available with the Company.

Note No: 2.1.1 Rights, preferences and restrictions attached to Shares

Equity Shares : The Company has issued only one class of shares referred to as equity shares having a par value of Rs 2/- per share.

Each holder of equity shares is entitled to one vote per share. The rights of the shareholders have been suspended from July 24, 2017, as per the provisions of Insolvency & Bankruptcy Code, 2016 when corporate insolvency resolution proceedings (âCIRPâ) were initiated against the Company. The Company declares and pays dividend in Indian rupees. 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 share holders.

(A) Capital reserve Account : Capital reserves account is created on account of buyback of Foreign Currency Convertible Bonds and forfeiture of warrant money.

(B) Securities premium : Securities premium account is used to record premium received on issue of shares. The account is utilised in accordance with the provisions of the Companies Act, 2013 (the âCompanies Actâ).

(C) Debenture Redemption Reserve : The Companies Act, 2013 requires that where a Company issues debentures, it shall create a debenture redemption reserve out of profits of the Company available for payment of dividend. The Company is required to maintain a Debenture Redemption Reserve of 25% of the value of debentures issued, either by a public issue or on a private placement basis. The amounts credited to the debenture redemption reserve cannot be utilised by the Company except to redeem debentures.

(D) Investment Allowance Reserve : Investment Allowance was created on account of allowance as per Income Tax Act,1961 for setting up the industry in backward area.

(E) Capital subsidy Reserve: Capital subsidy was received from Haryana State Industrial Development Corporation as DG set subsidy for setting up of industry in backward area.

(F) General Reserve : Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

(G) Retained earnings - Retained earnings are created from the profit/ loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.

Note:

(i) Particulars of Securities:-

(a) Debentures are secured by way of first Pari passu charge on Companyâs present and future movable and immovable assets except current Assets and Working Capital.

(b) Term Debts from Financial Institutions/Banks are secured by way of mortgage of Companyâs all Immovable Properties ranking pari passu inter-se and hypothecation of whole of the Companyâs Movable Properties including Plant & Machinery, Machinery spares, tools and accessories, present and future, and personal guarantee of one of the directors of the Company.

(ii) The Company defaulted in repayment of loans and borrowings to the banks and financial institutions during the year and the Company has also defaulted in repayment of dues to debenture-holders during the year. Pursuant to the continuing defaults of the Company, a corporate insolvency resolution process (âCIRPâ) under the Insolvency and Bankruptcy Code, 2016 was initiated against the Company vide an order of the Principal Bench of the National Company Law Tribunal (âNCLTâ) dated 24 July, 2017. Owing to the initiation of CIRP, the borrowings are considered currently payable and therefore, classified under other financial liabilities as âcurrent maturities of long term borrowingsâ. In the absence of a resolution to CIRP upto year end, the original repayment schedule is not applicable.

Note No. 2.2 EMPLOYEE BENEFITS (AS-19)

A. Defined Contribution Plans

The Company makes contributions, determined as specified percentage of Employeeâs salary towards Provident Fund, Labour Welfare Fund and Employee State Insurance Scheme which are collectively defined as defined contribution plans. The Company has no obligation other than to make the specified contributions. The Contributions are charged to the Statement of Profit and loss as they occurred.

B. Defined Benefit Plans

The following data are based on the report of the actuary.

The principal assumptions used in the actuarial valuations of Gratuity and Leave Encashment are as below:-

GRATUITY

The Employees Gratuity Fund scheme is unfunded except Mandideep Plant which is managed with Life Insurance Corporation of India (LIC). The Present value of Obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional units of Employee Benefit Entitlement and measures each unit separately to build up the final obligation.

LEAVE ENCASHMENT (UNFUNDED)

The Employees Leave Encashment scheme is unfunded and entitles employees to encash accumulated balance on retirement/ termination of Employment. The Present value of Obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional units of Employee Benefit Entitlement and measures each unit separately to build up the final obligation.

Note No. 2.3 Segment Information

The business activity of the Company falls within one operating segment viz. âAuto Componentsâ and substantially sale of the product is within the country. Hence the disclosure requirement of Indian Accounting Standard 108 âOperating Segmentsâ is not considered applicable.

(i) Details of revenue from operations based on geographical location of customer is as below:

Note No.2.4 Leases

The Company has taken certain land, buildings, plant and machinery under operating and/or finance leases.

A Operating Leases:

Significant leasing arrangements include lease of land for periods ranging between 35 to 90 years, renewable on mutual consent, under long term arrangements.

During the year ended March 31, 2018, total operating lease rental expense recognised in the statement of profit and loss was Rs. 7.07 Lakhs (Previous Year Rs. 5.87 Lakhs).

* Investment value excludes investment in subsidiaries of Rs.14,313.36 Lakhs (Previous Year Rs. 53470.88 Lakhs); investment in joint ventures of Rs.2,099.56 Lakhs (Previous Year Rs. 10,915.24 Lakhs) and investment in associates of Rs.Nil (Previous Year Rs.1,03,013.11 Lakhs)

2.4.1 Fair value hierarchy

The following table provides an analysis of financial instruments that are measured at fair value and have been grouped into Level 1, Level 2 and Level 3 below:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The following table presents the changes in level 3 items for the year ended March 31, 2018 and March 31, 2017 :

2.4.2 Financial risk management

The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

The financial risk management of the Company is carried out under the policies approved by the Board of Directors. Within these policies, the Board provides written principles for overall risk management including policies covering specific areas, such as foreign exchange risk management, commodity risk management and investment of funds.

(A) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations. To manage trade receivable, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables.

Financial instruments that are subject to such risk, principally consist of investments, trade receivables and loans and advances.

(B) Liquidity risk

Liquidity risk refers to the risk that the Company can not meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

(i) Financing arrangements

Undrawn borrowing facilities at the end of the reporting year to which the Company had access is Rs. Nil (Previous Year Rs. Nil)

(ii) Maturities of financial liabilities

The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(i) Foreign currency risk

The Company has exposure to foreign currency risk on account of its payables and receivables in foreign currency which are mitigated through the guidelines under the foreign currency risk management policy approved by the Board of Directors.

Foreign currency risk exposure

The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting periods expressed in INR, are as follows:

Foreign currency sensitivity analysis

The Company is mainly exposed to USD, EURO, GBP and CAD

The following table details the Companyâs sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans. A positive number below indicates an increase in profit or equity and vice-versa

(ii) Interest rate risk Liabilities

The Companyâs policy is to minimise interest rate cash flow risk exposures on external financing. At 31 March, 2018 and 31 March, 2017, the Company is exposed to changes in interest rates through bank borrowings carrying variable interest rates. The Companyâs investments in fixed deposits carry fixed interest rates.

Assets

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

(iii) Security Price Risk

The Companyâs exposure to price risk arises from investments held and classified in the balance sheet as fair value through Profit and loss Equity price Sensitivity Analysis

The sensitivity analysis below have been determined based on exposure to Equity price risk at the end of the reporting year. If the equity price had been 5 % higher/lower, profit and loss for the year ended 31st March,2018 would increase/ decrease by Rs. 3,235.38 Lakhs (Previous year Rs. 358.04 lakhs) as a result of change in Fair value of equity Investments measured at FVTPL

2.4.3 Capital management

The Companyâs objectives when managing capital are to:

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

- maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The following table provides detail of the debt and equity at the end of the reporting period :

Note No. 2.5 Significant accounting judgments, estimates and assumptions Use of estimates and critical accounting judgments

In the preparation of standalone financial statements, the Company makes judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected. Key source of estimation of uncertainty at the date of standalone financial statements, which may cause material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment, useful lives of property, plant and equipment, valuation of deferred tax assets, provisions, contingent liabilities and fair value measurements of financial instruments as discussed below. Key source of estimation of uncertainty in respect of revenue recognition and employee benefits have been discussed in the respective policies.

Significant management judgments

(a) Evaluation of indicators for impairment of non-financial asset

The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

(b) Provisions & contingent liabilities

A provision is recognised when the Company has a present obligation as result of a past event and it is probable that the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

(c) Valuation of deferred tax assets

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

(d) Classification of leases

The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lesseeâs option to purchase and estimated certainty of exercise of such option, proportion of lease term to the assetâs economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

Significant management estimates

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

(a) Allowance for expected credit losses

The allowance for expected credit losses reflects managementâs estimate of losses inherent in its credit portfolio. This allowance is based on Companyâs estimate of the losses to be incurred, which derives from past experience with similar receivables, current and historical past due amounts, dealer termination rates, write-offs and collections, the careful monitoring of portfolio credit quality and current and projected economic and market conditions. Should the present economic and financial situation persist or even worsen, there could be a further deterioration in the financial situation of the Companyâs debtors compared to that already taken into consideration in calculating the allowances recognized in the financial statements.â

(b) Allowance for obsolete and slow-moving inventory

The allowance for obsolete and slow-moving inventory reflects managementâs estimate of the expected loss in value, and has been determined on the basis of past experience and historical and expected future trends in the used vehicle market. A worsening of the economic and financial situation could cause a further deterioration in conditions in the used vehicle market compared to that taken into consideration in calculating the allowances recognized in the financial statements.

(c) Useful lives of property, plant and equipment and intangible assets

Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain software, IT equipment and other plant and equipment.

(d) Defined benefit obligations (DBO)

Managementâs estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

(e) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. There is significant estimation uncertainty in determining recoverable value. Recoverable value is taken as higher of value in use and fair value less costs to sell.

Note No.2.6

Related Party Disclosures & Transactions

In accordance with the requirements of Indian Accounting Standard (Ind AS-24) the names of the related parties where control exists and /or with whom transactions have taken place during the period and description of relationships as identified and certified by the management are as hereunder:

Notes:

(a) The Company held investment in Amtek Global Technologies Pte Limited (AGT) which is classified as subsidiary. Receivers were appointed on 30th April, 2017 by US Bank Trustee limited , acting in its capacity as Security Agent (âthe Security Agentâ) on behalf of the lenders under a facilities agreement dated 10th November, 2014 between, among others, the Security Agent and AGT. Pursuant to this, the Company lost control over AGT and its investment has henceforth been classified as FVTPL at Fair value of Rs. 60,657.26 Lakhs.

(b) The Company held investment in Metalyst Forgings Limited (MFL) which was classified as Subsidiary till December 15, 2017. The Company recognised impairment loss on such investment during the year aggregating to Rs.20,957.53 Lakhs which has been disclosed under âexceptional âitemsâ in statement of profit or loss. A corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code 2016 was initiated against MFL vide order of National Company Law Tribunal (NCLT) dated December 15, 2017. Pursuant to this, the Company lost control over MFL and its investment has henceforth been classified as FVTPL at an initial date fair value of Rs. Nil.

(c) The Company held investment in Castex Technologies Limited (CTL) and ARGL Limited which was classified as associates till December 20, 2017 and March 16,2018 respectively. The Company recognised impairment loss on such investments during the year aggregating to Rs.49,056.64 Lakhs and Rs. 12,803.20 Lakhs respectively which has been disclosed under âexceptional âitemsâ in statement of profit or loss. A corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code 2016 was initiated against CTL and ARGL Ltd vide order of National Company Law Tribunal (NCLT) dated December 20, 2017 and March 15,2018 respectively. Pursuant to this, the Company lost significant influence over CTL and ARGL Limited and its investment has henceforth been classified as FVTPL at an initial date fair value of Rs. Nil.

(d) The Company held investment in ACIL Limited which is classified as an associate . The Company recognised impairment loss on such investments during the year aggregating Rs.13,224.49 Lakhs which has been disclosed under âexceptional itemsâ in statement of profit or loss. A corporate insolvency resolution proceedings (CIRP) under the Insolvency Bankruptcy Code 2016 was initiated against ACIL vide order of National Company Law Tribunal (NCLT) dated August 8,2018. Pursuant to this, the Company lost significant influence over ACIL Limited.

Note No.2.7

In compliance of Regulation 34 of the Securities and Exchange Board of India (Listing and Disclosure Requirements) Regulations, 2015 the required information is given as under:

Note:- Loans and advances to Related Parties has been impaired (refer Note No. 3.12)

Note No. 2.8

The âCorporate Insolvency Resolution ProcessRs. (CIRP) was initiated, on a petition filed by Corporation Bank, against the Company, which was admitted vide an Order of the National Company Law Tribunal (NCLT), Chandigarh dated July 24, 2017 under the provision of the Insolvency and Bankruptcy Code 2016(âCode / IBCâ).That pursuant thereto, on July 27, 2017, Honâble NCLT appointed Mr. Dinkar T. Venkatasubramanian as Interim Resolution Professional (IRP) in terms of IBC, who was subsequently confirmed as Resolution Professional (RP) by Committee of Creditors (CoC), constituted under IBC. Mr. Dinkar T. Venkatasubramanian, in his capacity as RP, has taken control and custody of the management and operations of the Company with effect from July 27, 2017. Under the CIRP, a resolution plan needs to be submitted by resolution applicant, which is to be approved by the CoC, and would further be approved by NCLT. As per the Code, the RP has to receive, collate and admit all the claims submitted by the creditors of the Company. Such claims can be submitted to the RP during the CIRP, till the approval of a resolution plan by the CoC. The âResolution Planâ wherein Liberty House Group Pte. Limited would acquire the control in the Company in accordance with the applicable laws and as defined in the resolution plan. The resolution plan was voted upon (between April 4, 2018 and April 5, 2018) &duly approved by the CoC and has further been approved by NCLT vide Order dated July 25, 2018.

Note No.2.9

(a) Under the CIRP, the Resolution Professional (now designated as Insolvency Professional) and the lenders obtained valuation(s) of its entire assets from approved valuers. Based on such valuations obtained, the Company assessed the need to carry out an impairment / diminution in the carrying value of all of its assets (i.e. Property, Plant and Equipment, Capital work-in-progress, Investments, Inventories, Trade Receivables, and Other Financial Assets). During the year ended March 31, 2018, the Company has recorded the consequential impairment / diminution in its books of account.

(b) The provision for impairment has currently been worked out on the basis of valuations referred to into valuation reports without any reference to determination of âvalue-in-useâ. The Company is in the process of determining the âvalue-in-useâ.

(c) The fair value of companyâs investment in its subsidiaries, joint-ventures, associates and other entities (foreign as well as domestic entities) and Loans and Advances to those entities has been worked out on the basis of Company estimates which have been derived from (i) value from approved valuers and/or (ii) value assigned in the Resolution Plan, as pass-through to the existing financial creditors of the Company, with no guarantee.

Note No. 2.10

The companyâs investment in its subsidiary âAmtek Global Technologies Pte. Ltd. (AGT)â has been carried at cost in accordance with the choice adopted by the company in accordance with âInd AS 101 - First-time Adoption of Indian Accounting Standardsâ in the earlier years to value the same at âcostâ. The companyâs investments also include other foreign subsidiaries, which are being operationally managed by AGT. The company has further provided loans to AGT aggregating to Rs. 4050.33 Lakhs and to companies that are operationally managed by AGT aggregating to Rs. 37,539.77 Lakhs. AGT has gone into receivership during the current year and Receiver has been appointed on 30th April, 2017 by US Bank Trustee Limited, acting in its capacity as Security Agent (âthe Security Agentâ) on behalf of the lenders under a facilities agreement dated 10th November, 2014 between, among others, the Security Agent and AGT. The company has thereby assessed that there is a âloss of controlâ in the AGT, pursuant to which, the following adjustments have been effected by the company in respect of investments and loans given:

Note No.2.11 Creditorsâ Claims

a. As a part of CIRP, creditors of the Company were called to submit their claims to the Resolution Professional*. The summary position of the same is reproduced hereunder:

* now designated as Insolvency Professional

In light of the approval of resolution plan by CoC & NCLT, no provision is considered necessary for the differential claims.

The party-wise reconciliation of liability appearing in books of account vis-a-vis their claims admitted is pending.

b. The company has not provided liability towards interest and penal interest charges for its financial creditors post July 24, 2017, since as a part of CIRP, the claims for interest and penal interest charges are claimable till the date of initiation of CIRP i.e. July 24, 2017 and accordingly, no provision is considered necessary for the same.

Note No.2.12 (a) Going Concern

Under the CIRP, a resolution plan needs to be submitted by resolution applicant, which is to be approved by the CoC, and would further be approved by NCLT. As per the Code, the RP has to receive, collate and admit all the claims submitted by the creditors of the Company. Such claims can be submitted to the RP during the CIRP, till the approval of a resolution plan by the CoC. The âResolution Planâ wherein Liberty House Group Pte. Limited would acquire the control in the Company in accordance with the applicable laws and as defined in the resolution plan. The resolution plan was voted upon (between April 4, 2018 and April 5, 2018) & duly approved by the CoC and has further been approved by NCLT vide Order dated July 25, 2018. Accordingly, as also covered in the âresolution planâ read with the NCLT Order dated July 25,2018 the standalone financial statements for the year ended March 31, 2018 have been continued to be prepared on a going concern basis.

(b) The Vice Chairman and Managing Director of the Company was reappointed by the Shareholders in the extra ordinary meeting held on 25th March, 2017 for a period of two years effective from 14th August, 2016. The Company based upon the legal opinion is of the view that for the purpose of the calculation of the minimium remuneration effective capital of the Company prescribed as per provesions of Schedule V of the Companies Act 2013 would be based on the latest vailable audited financial statements at the date of meeting which was 31st March, 2016 and same would the applicable for calculation of the minimum remuneration as per provisions of Schedule V of the Companies Act, 2013 for the year ended 31st March, 2018. The Company has accordingly calculated excess remuneration of Vice Chairman and Managing Director of the Company during the period from 01st April, 2017 to 23rd June, 2017 as Rs. 3.31 lakhs. The Vice Chairman and Managing Director of the Company has resigned during the year and therefore the excess remuneration paid/charged to the statement of profit and loss account for the above mentioned period cannot be recovered from him, the Company will accordingly seek approval of writing off the same from the Ministry of Corporate Affairs with consequentral penalty, if any and compounding fees as per provisions of Companies Act, 2013. In view of the above facts. In the absence of exact quantum of penality and compounding fees, no adjustments for excess remuneration paid and provision for penalty and compounding fees have been made in these financials which shall be accounted in the year when the same is determined by the Ministry of Corporate Affairs.

Note No.2.13

During the year, the Company has changed its Accounting Policy regarding valuation of investment in equity instruments of its subsidiaries, associates and joint ventures at âcostâ instead of being earlier valued at Fair Value Through Other Comprehensive Income [FVTOCI] for the investments purchased after transition date i.e. 01.10.2015]. The change has been effected for compliance with the requirements of âInd AS 27 - Separate Financial Statementsâ & âInd AS 28 - Investments in Associates & Joint-venturesâ referred to in section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015. The impact on account of change in the accounting policy on the financial statements for the year ended 31st March, 2016 and 31st March, 2017 is NIL and the impact of the change for the year ended 31st March, 2018 would have been Rs. 6800 Lakhs (loss) being fair value loss on related investments.

Note No.2.14 GDR Listing with London Stock Exchange:

3. As per the communication received by the Company from the London Stock Exchange (âLSEâ) in respect of GDR Listing matter, certain compliances are yet to be made by the Company for which it is collecting the requisite information from associated agents / registrar / advisors / authorities and also have initiated delisting process of its GDR with LSE.

Note No.2.17

The Previous year figures have been regrouped / reclassified, wherever considered necessary to conform to the current year presentation

Mar 31, 2016

Note No: 1. Rights, preferences and restrictions attached to Shares

Equity Shares: The Company currently has Issued equity shares having a par value of Rs 2/- per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are eligible to receive the 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.

NOTE NO : 2. NOTES TO ACCOUNTS

The Previous year figures have been regrouped / reclassified, wherever considered necessary to conform to the current period presentation.

Particulars of Securities:-

Term Debts from Financial Institutions/Banks are secured by way of mortgage of company''s all Immovable Properties ranking pari passu intersex and hypothecation of whole of the Company''s Movable Properties including Plant & Machinery, Machinery spares, tools and accessories and personal guarantee of one of the directors of the company.

Note No: 3.

Previous year figures being for 12 months are not comparable with the figures of current period.

Note No. 4. Related party Disclosure

In accordance with the requirements of Accounting Standard (AS-18) the names of the related parties where control exists and /or with whom transactions have taken place during the period and description of relationships as identified and certified by the management are as hereunder:

A) Names of Related Parties & Description of Relationship

1) Subsidiaries Companies

1) Amtek Deutshland GmbH

2) Amtek Investment UK Ltd.

3) Amtek Germany Holding GP GmBH

4) Amtek Germany Holding GmBH & Co. KG

5) Amtek Holding BV

6) Amtek Global Technologies Pte. Ltd.

7) Amtek Transportation Systems Ltd.

8) Alliance Hydro Power Ltd.

9) JMT Auto Limited

10) Amtek Precision Engineering Pte. Ltd.

11) Amtek Integrated Solutions Pte. Ltd.

12) Amtek Engineering Solutions Pte Ltd

2) Subsidiaries of Subsidiarie 1) Amtek Tekfor Holding GmbH

2) Neumayer Tekfor GmbH

3) Tekfor Services GmbH

4) Neumayer Tekfor Rotenburg GmbH

5) Neumayer Tekfor Schmolln GmbH

6) Neumayer Tekfor Engineering GmbH

7) GfsV

8) Neumayer Tekfor Japan Co. Ltd.

9) Tekfor Inc.

10) Tekfor Maxico SA de CV

11) Neumayer Tekfor Automotive Brasil Ltda.

12) Neumayer Tekfor SpA

13) Tekfor Maxico Services

14) Tekfor Services Inc.

15) August Kupper GmbH

16) H.J Kupper System- Und Modultechnik GmbH

17) H.J Kupper Metallbearbeitung GmbH

18) SKD- GieBerei GMBH

19) Kupper Hungaria Kft

20) Asahitec Metals (Thailand) Co., Ltd

21) Asahi Tec Metals Co. Ltd.

22) Techno-Metal Co., Ltd.

23) Techno Metal Amtek Japan Investments Ltd.

24) Techno Metal Amtek U.K. Investments

25) Techno Metal Amtek Thai Hold Co.

26) Amtek Universal Technologies Pte Ltd

27) AIMD GmbH; Hamburg

28) M. Droste Stahlhandel GmbH, Bochum

29) HAPU Industrie Vertretungen GmbH, Witten

30) OWZ Ostalb-Warmbehandlungszentrum GmbH, Essingen

31) SRT GmbH, Essingen

32) WTL Werkstofftechnik-Labor GmbH, Aalen

33) AIFT GmbH, Hamburg

34) BEW-Umformtechnik GmbH, Rosengarten

35) GHV Schmiedetechnik GmbH, Ennepetal

36) Amtek Machining System Pte Ltd.

37) Rege Motorenteile GmbH

38) Rege Motorenteile Verwaltungs GmbH

39) Rege Holding GmbH

40) Rege Automotive Brasov SRL

41) Rege Solutions

42) Amtek Component Sweden

3) Joint Venture 1) Amtek Powertrain Limited (formerly known as MPT Amtek

Automotive (India) Ltd.)

2) SMI Amtek Crankshafts Pvt. Ltd.

4) Associates 1) ARGL Ltd.

2) ACIL Ltd.

3) Metalyst Forgings Limited (formerly known as Ahmednagar Forgings Limited)

4) Castex Technologies Limited (formerly known as Amtek India Limited)

5) Joint Venture of Subsidiary 1) SFE GmbH

6) Joint Venture of Associate 1) Amtek Riken Casting Pvt. Ltd.

7) Associate of Subsidiaries 1) Amtek Railcar Pvt. Ltd.

8) Associates of Associate 1) Terrasoft Infosystems Pvt. Ltd.

9) Subsidiary of Associate 1) Amtek Kuepper GmbH

11) Key Management Personnel 1) Sh John Earnest Flintham, Vice Chairman & Managing

Director

2) Sh. D.S. Malik, Managing Director

3) Sh. Vinod Uppal, Chief Financial Officer

4) Sh. Rajeev Raj, Company Secretary

Sep 30, 2015

Note: During the year the Company has made preferential allotment of 44,37,500 Equity shares, In previous year 16,94,183 shares was issued by virtue of FCCB Conversion.

Note No: 1. Rights, preferences and restrictions attached to Shares

Equity Shares: The Company currently has Issued equity shares having a par value of Rs 2/- per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the Company, the equity shareholders are eligible to receive the 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.

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year's presentation.

* Transition impact on depreciation due to change in method of depreciation as per schedule II of the Companies Act, 2013 (Net of Deferred Tax)

Particulars of Securities:-

Term Debts from Financial Institutions/Banks are secured by way of mortgage of company's all Immovable Properties ranking pari passu inters and hypothecation of whole of the Company's Movable Properties including Plant & Machinery, Machinery spares, tools and accessories and personal guarantee of one of the directors of the company.

Maturity Profile:

A) Non Convertible Debentures are within the interest ranging between 10% to 11.50% and are repayable in next 5 years up to the financial year 2019-2020.

B) Term Loans from Banks and financial Institutions are within the interest band of 1% to 3.50 % over and above the base rate and are repayable in quarterly installments up to the financial year 2024-2025.

C) Foreign Currency LoanExternal Commercial Borrowings carry interest between 3% to 4.25 % over and above LIBOR and are repayable in next 5 years up to the financial year 2019-2020.

*Other liabilities includes capital goods creditors & other short terms liabilities.

*Trade payable includes amount of Rs. 325.59 Lacs payable (Previous period 246.99) to small & medium enterprises.

Particulars of Security

Working Capital facilities are secured by hypothecation of raw material, semi-finished goods, stock-in-process, consumable stores and book debts of the company.

Corporate Loan of Rs. 2500 Lacs is secured by way of subservient charge on entire fixed assets of the company and pledge of Shares of one of the Associate Company viz. Castex Technologies Limited Company held as an Investment.

* Pursuant to the enactment of Companies Act,2013 (The Act), the Company has reworked Depreciation with reference to the estimated useful lives of the fixed assets. prescribed under Schedule II to the Act or useful life of fixed asset as per the management estimate and history of usage, the Company has retained useful life of certain categories of Plant and Machinery, which is higher than the useful life as indicated in schedule II owing to aforementioned change in estimate. (Except for certain categories of Plant and Machinery where the earlier useful life is retained.) Further based on the transitional provision in note 7(b) of schedule II, an amount of Rs. 429.46 Lacs (Net of deferred tax) has been adjusted against the retained earnings.

Note No. 2. Related party Disclosure

In accordance with the requirements of Accounting Standard (AS-18) the names of the related parties where control exists and /or with whom transactions have taken place during the year and description of relationships as identified and certified by the management are as hereunder:

A) Names of Related Parties & Description of Relationship

(i) Subsidiary Companies /Associates/Joint Ventures

Subsidiary Companies

1 Metalyst Forgings Ltd. (Formerly Known as Ahmednagar Forging Ltd.) (Became Associate Company Since March 2015)

2 Amtek Deutshland GmbH

3 Amtek Investment UK Ltd.

4 Amtek Germany Holding GP GmBH

5 Amtek Germany Holding GmBH & Co. KG

6 Amtek Holding BV

7 Amtek Global Technologies Pte. Ltd.

8 Amtek Transportation Systems Ltd.

9 Alliance Hydro Power Ltd.

10 Castex Technologies Ltd. (Formerly Known as Amtek India Ltd.) (Became Associate Company Since March 2015)

11 Amtek Defence Technologies Ltd. (Ceased to exist as subsidiary Since June 2015)

12 JMT Auto Limited

13 Amtek Precision Engineering Pte. Ltd.

14 Amtek Integrated Solutions Pte. Ltd.

15 Amtek Engineering Solutions Pte Ltd

Subsidiaries of Subsidiary Companies

1 Amtek Tekfor Holding GmbH

2 Neumayer Tekfor GmbH

3 Tekfor Services GmbH

4 Neumayer Tekfor Rotenburg GmbH

5 Neumayer Tekfor Schmolln GmbH

6 Neumayer Tekfor Engineering GmbH

7 GfsV

8 Neumayer Tekfor Japan Co. Ltd.

9 Tekfor Inc.

10 Tekfor Maxico SA de CV

11 Neumayer Tekfor Automotive Brasil Ltda.

12 Neumayer Tekfor SpA

13 Tekfor Maxico Services

14 Tekfor Services Inc.

15 Amtek Powertrain Components B.V. (Ceased to exist as Subsidiary of Subsidiary Since June 2015)

16 Amtek Powertrain RUS LLC (Ceased to exist as Subsidiary of Subsidiary Since June 2015)

17 Amertec Systems Pvt. Ltd. (Ceased to exist as Subsidiary of Subsidiary Since June 2015)

18 Amtek Kuepper GmbH

19 August Kupper GmbH

20 H.J Kupper System- Und Modultechnik GmbH

21 H.J Kupper Metallbearbeitung GmbH

22 SKD- GieBerei GMBH

23 Kupper Hungaria Kft

24 Asahitec Metals (Thailand) Co., Ltd

25 Asahi Tec Metals Co. Ltd.

26 Techno-Metal Co., Ltd.

27 Techno Metal Amtek Japan Investments Ltd.

28 Techno Metal Amtek U.K. Investments

29 Techno Metal Amtek Thai Hold Co.

30 Amtek Universal Technologies Pte Ltd

31 AIMD GmbH; Hamburg

32 M. Droste Stahlhandel GmbH, Bochum

33 HAPU Industrie Vertretungen GmbH, Witten

34 OWZ Ostalb-Warmbehandlungszentrum GmbH, Essingen

35 SRT GmbH, Essingen

36 WTL Werkstofftechnik-Labor GmbH, Aalen

37 AIFT GmbH, Hamburg

38 BEW-Umformtechnik GmbH, Rosengarten

39 GHV Schmiedetechnik GmbH, Ennepetal

40 Amtek Machining System Pte Ltd.

41 Rege Motorenteile GmbH

42 Rege Motorenteile Verwaltungs GmbH

43 Rege Holding GmbH

44 Rege Automotive Brasov SRL

45 Rege Solutions

Joint Ventures

1 MPT Amtek Automotive (India) Ltd.

2 SMI Amtek Crankshaft Pvt Ltd.

Joint Venture of Subsidiary

1 SFE GmbH

2 Amtek Riken Casting Pvt. Ltd.

Associates

1 ARGL Ltd (Formerly Known as Amtek Ring Gears Ltd.)

2 ACIL Ltd (Formerly Known as Amtek Crankshafts India Ltd.)

3 Amtek Tekfor Automotive Ltd. (Ceased to be Associate Company Since March 2015)

Associates of Subsidiaries

1 Amtek Railcar Pvt. Ltd.

2 Terrasoft Infosystems Pvt. Ltd.

(ii) Key Management Personnel

1) Sh John Earnest Flintham, Vice Chairman & Managing Director

2) Sh. D.S.Malik, Managing Director

3) Sh. Vinod Uppal, Chief Financial Officer

4) Sh. Rajeev Raj, Company Secretary

Sep 30, 2014

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year''s presentation.

The company has only one class of shares referred to as Equity Shares having a par value of Rs. 2/- per share. Each shareholder of equity Shares is entitled to one vote per share.

Note No : 1 There is no restriction on distribution of Dividends and repayment of Capital.

Particulars of Securities:-

Term Debts from Financial Institutions/Banks are secured by way of first mortgage of company''s all Immovable Properties ranking pari passu interse and hypothecation of whole of the Company''s Movable Properties including Plant & Machinery, Machinery spares, tools and accessories (save and except book debts) present and future, subject to prior charges created/ to be created in favour of the company''s bankers on inventories, book debts.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income tax levied by the same taxation authority.

*Trade payable includes amount of Rs. 246.99 Lacs payable (Previous period Nil) to small & medium enterprises. Note No : 2 CONTINGENT LIABILITIES (Rupees In Lacs)

Particulars For the Year For the 15 Months Ended 30.09.2014 Period Ended 30.09.2013

Letter of credit issued on behalf of company (unexpired) 2,101.71 1,265.78 Bank Guarantees Issued by bank 636.14 106.77 on company''s behalf Disputed Sales tax/Vat/entry Tax/Excise Duty/Service Tax/ income tax (including interest and penelty) 1,209.06 8,426.62 Corporate guarantee 79,151.85 139,874.62

Total 83,098.76 149,673.79

* Contingent Assets are neither recognised nor disclosed.

Note No. 3

Previous period figures being for 15 months are not comparable with the figures of current year.

Sep 30, 2013

NOTE NO : 1 NOTES TO ACCOUNTS

Note No : 1.2 Detail regarding convertible securities equity and preference share FCCB''s of US$ 6.87 million are outstanding out of US$ 165 million for conversion into 22,51,265 equity shares

Note No : 1.3 There is no restriction on distribution of Dividends and repayment of Capital.

Note:-

1. During the period under review, the company has reduced its stake in ARGL limited from 96.63% to 42.07% by selling

1,14,68,056 equity shares of Rs. 10/- each.

2. During the period under review, the company has reduced its stake in ACIL limited from 100% to 43.99% by selling 83,56,584 equity shares of Rs. 10/- each.

3. During the period under review, the company has acquired 100% equity stake in Germany based Neumayer Tekfor Group through Amtek Global Technologies Pte. Ltd., Amtek Germany Holding GP GmbH & Amtek Germany Gmbh & Co. KG.

4. Profit arising on sale of investment in ARGL Ltd & ACIL Ltd & loss arising on dimunition of investment in Amtek Investment US (1) Incorporation & Smith Jones Incorporation has been shown as exceptional item on the face of Statement of Profit & Loss.

Note No : 1.4 CONTINGENT LIABILITIES

(Rupees In Lacs)

Particulars For the 15 Months Period For the Year Ended 30.09.2013 Ended 30.06.2012

Letter of credit issued on behalf of company (unexpired) 1,265.78 1,859.67

Bank Guarantees Issued by bank on company''s behalf 106.77 563.15 Disputed Sales tax/Vat/entry Tax/Excise Duty/Service Tax/

income tax (including interest and penelty) 8,426.62 10.79

Corporate guarantee 139,874.62 -

Total 149,673.79 2,433.61

Note No. 1.5

Related Party Disclosures & Transactions

As per AS-18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below:

A) Names of related parties & description of relationship

1) Subsidiaries

1) Ahmednagar Forging Ltd.

2) Amtek Deutshland GmbH

3) Amtek Investment UK Ltd.

4) Amtek Germany Holding GP GmBH

5) Amtek Germany Holding GmBH & Co. KG

6) Amtek Holding BV

7) Amtek Global Technologies Pte. Ltd.

8) Amtek Transportation Systems Ltd.

9) Alliance Hydro Power Ltd.

10) Amtek India Ltd.

11) Amtek Defence Technologies Ltd.

12) JMT Auto Limited

2) Subsidiaries of Subsidiaries

1) Amtek Tekfor Holding GmbH

2) Neumayer Tekfor GmbH

3) Tekfor Services GmbH

4) Neumayer Tekfor Rotenburg GmbH

5) Neumayer Tekfor Schmolln GmbH

6) Neumayer Tekfor Engineering GmbH

7) GfsV

8) Neumayer Tekfor Japan Co. Ltd.

9) Tekfor Inc.

10) Tekfor Maxico SA de CV

11) Neumayer Tekfor Automotive Brasil Ltda.

12) Neumayer Tekfor SpA

13) Tekfor Maxico Services

14) Tekfor Services Inc.

15) SFE GmbH

16) Amtek Powertrain Components B.V.

17) Amtek Powertrain RUS LLC

18) Amertec Systems Pvt. Ltd.

3) Joint Venture''s

1) Amtek Tekfor Automotive Ltd.

2) MPT Amtek Automotive (India) Ltd.

3) SMI Amtek Crankshafts Pvt. Ltd.

4) Joint Venture''s of Subsidiaries

1) Amtek Railcar Pvt. Ltd.

5) Associate''s

1) ACIL Ltd. (Formerly known as Amtek Crankshafts India Ltd.)

2) ARGL Ltd. (Formerly known as Amtek Ring Gears Ltd.)

6) Key Management Personnel

1) Shri John Ernest Flintham

2) Shri D.S Malik

Jun 30, 2010

1. Schedule 1 to 12 form an integral part of the Balance Sheet and Profit & Loss Account.

2. Contingent Liabilities: (Rs.in lacs)

Sr.No. Particulars Current Year Previous Year

a. Estimated amount of contracts remaining to be execured on capital account and not provided for 2,145.65 2,925.28

b. Guarantees issued by the bank on behalf of the Company 558.76 240.63

c. Unexpired Letter of Credit 59.95 71.70

d. Disputed Liabilities:

- Sales Tax 10.62 10.62

- Cenvat 19.42 19.42

* Contingent Assets are neither recognized, nor disclosed.

3. The Company, during the year, has entered into a Share Purchase Agreement with the promoters of Amtek India Limited (AIL) and has acquired 3,31,10,710 equity shares of AIL. The Company in pursuance to regulation 10 & 12 and other applicable provisions of SEBI (Substantial Acquisition of Shares and Takeover) Regulations 1997 has given an open offer to the existing shareholders of AIL to acquire 2,76,77,565 equity shares representing 20% of the fully paid Equity share capital of AIL.

4. In the opinion of the Board of Directors, all current assets, loans and advances, if realized in the ordinary course of business, would be realized at least equal to the amounts at which they have been stated in the Balance Sheet. Provision for the known liabilities have been made in the books of accounts.

5. Travelling expenses, Telephone expenses.. Business Promotion and Running & Maintenance of vehicle expenses includes Rs.94.64 lacs, Rs.9.70 lacs, Rs.84.94 lacs & Rs.11.84 lacs (Previous Year Rs. 90.95 lacs, Rs 4.93 lacs, Rs.85.26 lacs, & Rs.9.29 lacs), respectively incurred by directors.

6. Maximum amount outstanding at any time during the year due from/due to directors is Rs.Nil. (Previous year Rs.Nil).

7. Other liabilities under current liabilities include Deferred Tax & short term loans.

8. Confirmation of Balances in respect of some of the Debtors/creditors as at 30th June 2010 are yet to be received as at the date of Audit report.

9. (a) Sundry Creditors include a Sum of Rs.30.20 lacs (Previous Year Rs 13.47) due to Small Scale Industries.

(b) The List of SMEs units to whom Company owes a sum exceeding Rs.l,00,000 and which is outstanding for more than 30 days is as unden- Gaugeman Industries, Dharam Packing Industries, Bhagwati Packers & Tirupati Engg Works etc.

(c) The Payments to SMEs Undertakings have been made as per stipulated terms.

(d) The above information has been compiled in respect of parties to the extent to which they could be identified as SMEs on the basis of information available with the Company.

10. During the year, the Company, out of 0% FCCB of $250 Million has settled FCCB of $128 Million (Equivalent to Rs.60,271.52 lacs) by paying an amount of $109.48 Million (Equivalent to Rs.51,537.85 lacs) and has transferred the resulting amount of Rs.8,733.67 lacs to Capital Reserve Account. Further, the Company, out of 0.5% FCCB of $150 Million has settled FCCB of $9.50 Million (Equivalent to Rs.4,394.10 lacs) by paying $10,525 million (Equivalent to Rs.4,868.20 lacs) and has also paid YTM of $2.33 million (Equivalent to Rs.10,83.09 lacs) on the balance outstanding of $7.75 Million.

11. The Company, during the year, has allotted 1,50,00,000 equity shares of Rs.2/- each at a premium of Rs.131/- towards 1,50,00,000 warrants issued to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956

12. The Company, during the year, has received application money of Rs.21,540.00 lacs against issue of 2,40,00,000 warrants (carrying option/ entitlement to subscribe to one no of equity share of Rs.2/- each at a premium of Rs.178/- per share within 18 months from the date of allotment to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

13. RETIREMENT BENEFITS

The Company has various Schemes of retirement benefits schemes such as Provident Fund, Gratuity and Earned Leaves.

Post Employment Benefit Plans:

Effective from financial year 2007-08, the Company has implemented Accounting Standard (AS)-15 (Revised -2005) dealing with Employees Benefits, issued by the Institute of Chartered Accountants of India. AS-15 (Revised-2005) deals with recognition, measurement and disclosure of short term, post employment, termination and other long term employee benefits provided by the Company.

Payments to defined contribution retirement benefit schemes is charged as an expense as they fall due.

The cost of providing defined benefits is determined using Projected Unit Credit Method and accordingly, actuarial valuation has been carried out at the Balance Sheet date. Actuarial gain & losses are recognized in full in the profit & loss account for the period in which they occur. Past service cost is recognised to the extent the benefits are already vested, and otherwise is amortised on a Straight line Method over the average period until the benefits become vested.

The retirement benefit obligations recognised in the Balance Sheet represent the present value of the defined benefit obligations as adjusted for unrecognised past service cost, and as reduced by the fair value of available refunds and reductions in future contributions to the scheme.

a) Defined Benefit plan:

Gratuity Plan & Leave Encashment Plan

The Company, in accordance with AS-15 (Revised) has made the provision for Gratuity and Leave Encashment on projected unit credit method.

14. Related party Disclosures & transactions:

As per Accounting Standard AS -18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below : -

A Names of related parties and description of relationship"

1) Subsidiaries

1) Ahmednagar Forgings Ltd.

2) Amtek Crank Shafts India Ltd.

3) Amtek Ring Gear Ltd.

4) Smith Jones Inc. USA

5) Amtek Investment (U.K) Ltd.

6) Amtek Investment US Inc.

7) Amtek Deutschland GmbH

8) Amtek Transportation Systems Ltd.

9) Alliance Hydro Power Ltd.

2) Joint Ventures

1) Amtek Tekfor Automotive Ltd.

2) MPT Amtek Automotive (India)Ltd.

3) SMI Amtek Crankshafts Pvt.Ltd.

3. Associates 1) Amtek India Ltd. & it subsidiary.

3) Key Management Personnel 1) Shri Arvind Dham

2) Shri D.S. Malik

4) Relatives of Key Management Personnel 1) Mrs.Anita Dham wife of Shri Arvind Dham

15. The Company has entered into hedge derivative transactions for cost reduction and risk diversification strategy to manage its loan portfolio. The Company is accounting for profit and / or loss in such transactions on actual receipt / payment basis.

16. Export sales include sale in transit to its overseas customers /subsidiary acknowledged in subsequent year, indirect export and deemed export.

17. Details of units manufactured, material consumed and sales include components bought and sold.

18. Previous years figures have been regrouped, rearranged and recasted, wherever considered necessary.

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