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Notes to Accounts of Competent Automobiles Co Ltd.

Mar 31, 2023

The Disclosure in respect of MSME have been made in the financial statements based on the informtion/ confirmation received and available with the company. On the basis of confirmations obtained from supplier registered themselves under Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and on the basis of information available with the company following are the details:

(a) The principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier as at the end of accounting year.

(b) The amount of interest paid by the buyer under MSMED Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year.

(c) The amount of interest due and payable for the period (where the principal has been paid but interest under the MSMED Act, 2006 not paid)

(d) The amount of interest accrued and remaining unpaid at the end of accounting year; and

(e) The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23.

(vii) details of related party transactions, e.g., contribution to a trust/society/section 8 company, controlled by the company in relation to CSR expenditure as per Ind AS 24, Related Party Disclosures: Not applicable

(viii) Provisions made during the year: No provision made

Expenditure related to Corporate Social responsibility is as per Section 135 of The Companies Act 2013 readwith Schedule VIII thereof.

Capital employed in the Company''s business are common in nature and cannot be attributed to a specific segment i.e. showroom, service and spares. It is not practical to provide segmental distribution of the capital employed since segregation of available data could be erroneous.

The segment report of the Company as stated above has been prepared in accordance with Ind AS 108 Operating Segments.

The segment wise revenue and result''s figures related to the respective heads are directly identifiable to each of the segments. Un-allocable income includes income on common services at corporate level and relates to the Company as whole.

The definitions of the business segmentation and the activities encompassed therein are as follows:

(i) Showroom: Purchase and sales of vehicles manufactured by Maruti Suzuki India Ltd.

(ii) Service & Spares: Servicing of Maruti Vehicles and Sale of their Spare parts.

Geographical Information

The operations of the company are mainly carried out in India and therefore, geographical information is not applicable

The balances of clients as on reporting date in the nature of Trade Receivables, Loans & Advances, Security Deposits and Trade Payables classified as Current and Non-Currents are subject to confirmations, reconciliations and consequential adjustments. The management does not expect any significant impact on such reconciliations.

Leases (IND AS-116)

Company as a lessee

The Company has leases for Showrooms, Workshops and Stock Yards. With the exception of short-term lease underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability as a financial liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over showrooms, workshops and stockyard the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease.

Lease Modification

During the year there was a lease modifiaction which was adjusted by decreasing related ROU asset to reflect the modification of lease. The modification of lease results in gain of Rs. 150.56 lakhs on right-of-use asset and corrosponding lease liability as on date of modification which has been transferred to Statement of Profit & Loss (Refer to Note -25).

(iv) As per the notification issued by the Ministry of Corporate Affairs (MCA) dated 24th July 2020, IND AS 116 was amended in respect of rent concessions arising due to Covid-19 pandemic. The Company has recognised concessional rent amounting to Rs. 10.00 lacs (previous year Rs. 138.11 lacs) during the financial year from various landlords till 30th June 2022 in pusuance of MCA notification dated 18th June 2021

The carrying amount of the Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their fair values due to their short term nature.

The carrying amount of the financial assets and liabilities carried at amortised cost is considered as reasonable approximation of fair value for which we have followed Level III heirarchy.

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market. This category consists of quoted equity shares and debt based open ended mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of debt based close ended mutual fund investments and over the counter (OTC) derivative contracts.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. The main item in this category are unquoted equity instruments.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values: Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments.

Financial risk management

The Company''s activities expose it to credit risk, liquidity risk and market risk. The financial risk management of the Company is carried out under the procedures approved by the Managements . Within these policies, the management provides written principles for overall risk management including procedures covering specific areas, such as interest rate, market challenges and financial budgets to ascertain the adequate liquidity in the company.

A. Credit Risk

The credit risk is the risk that counter party will not meet its obligations under the financial instrument or customer contract, relating to a financial loss

The credit risk of the company is very much on the lower side. The trade receivables of the company at large are secured in nature. The trade receivable primarily includes receivables from various Banks, finance companies and insurance companies against delivery of vehicles to customers who have availed bank/private finance for which disbursal is due and accidental claims for repairs of vehicles, respectively. The obligation dues on them are secured against the documents issued against the credit. To manage trade receivable, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends. None of the financial instruments of the Company result in material concentrations of credit risks.

B. Liquidity risk

Liquidity risk is the risk that company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The Companyâs main objective is to maintain the optimum level of liquidity to meet its cash and collateral requirement. The Company operates with a low Debt Equity ratio. The companyâs main sources of liquidity are cash and cash equivalents and cash flow generated from operations. However to maintain the liquidity flow of cash and cash equivalents, the company has obtained the cash credit and inventory funding facilities from banks to meet its working capital requirements. The position of the same is as under:

Market risk is the risk that fair value of future cash flows of the financial instruments will fluctuate because of changes in market prices. The market risk at large are categorised as 1) Foreign Currency Risk ; 2) Interest Rate Risk ; 3) Price Risk.

The companyâs exposure to the market risk is very minimal.

Foreign Risk : The company do not have any exposure to Foreign Currency risk.

Interest Rate and Price Risk :- The Company do not have any investment in Govt securities, quoted shares and any other bond etc.

Capital management

The Companyâs objectives when managing capital are to:

â¢ 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

â¢ Maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. 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 Company has not granted any loan or advance during the year to Promoters, Director, KMP and the related parties either severally or jointly with any other person.

During the year, there is no proceedings have been initiated or are pending against the Company for holding any Benami Property under the Benami Transactions (Prohibitions) Act, 1988 (45of 1988) and Rule made thereunder.

The Company is regular in submitting the quarterly statements to Banks and the same is in agreement with books of accounts.

During the financial year, the Company has not been declared as wilful defaulter by any Banks or Financial Institutions.

The Company has not entered into any transactions during the financial year with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

The Company has neither advanced, loaned or invested funds nor received any funds to/from any person or entity for lending or investing or providing gurantee to/on behalf of the Ultimate Beneficiary during the reporting period.

During the financial year, there is no charge or satisfaction with Registrar of Companies which is yet to file/register beyond statutory period.

During the financial year, there is no undisclosed income which is not recorded in the books of accounts of the Company.

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

Events after Balance Sheet date:

i) The Board of Directors have recommended final dividend of Rs. 1 per share i.e. 10% of the face value of Rs. 10 per share subject to approval of shareholders in the ensuing Annual General Meeting.

The Previous Year Figures have been restated, regrouped and rearranged wherever necessary to make them Comparable with current year.

Mar 31, 2018

A. General Information

Competent Automobiles Company Limited (âThe Companyâ) is a public limited company incorporated and domiciled in India and it is listed on the Bombay Stock Exchange (BSE). The address of its registered office is F-14, Competent House, Connaught Place New Delhi - 110001. The Company is Authorized Dealer of Maruti Suzuki India Limited for Delhi, Haryana and Himachal Pradesh area.

B. (i) Statement of Compliance

The Financial Statements have been prepared as going concern in accordance with Indian Accounting Standard (Ind AS) notified under the Section 133 of the Companies Act, 2013 (âthe Actâ) read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The Company has prepared the Financial Statements up to 31st March, 2017 in accordance with the requirements of previous GAAP, which includes standards notified under the Companies (Accounting Standards) Rules 2006 and other relevant provisions of the Act. These are the Companyâs first Ind AS financial statements. The date of transition to the Ind AS is 1st April 2016.

(ii) Basis of preparation and presentation

The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial instruments which are measured at fair market value at the end of each reporting period as explained in the accounting policies.

All assets and liabilities have been classified as current or non-current according to the Companyâs operating cycle and other criteria set out in the Act.

Cash and Cash equivalent includes cash in hand bank balances and deposits whereas for the purpose of cash flow statement bank overdraft is considered as component of Cash and cash equivalent.

Land at Goa has been reclassified as : Assets classified as held for sale " at Lower of cost or Fair Market Value less cost of Sale. Land at Goa has been reclassified as " Asset held for sale" as per Ind AS -105 in financial statement and the cost incurred on such project also reclassified with land cost. The company had received an advance amounting to Rs. 3500 lacs and shown as advance for sale of land as at 1st April 2016. The sale of such land was subject to outcome of the proceedings pending before jurisdictional Court at Goa. During the current financial year, on outcome of proceeding of court in favour of company, sale transaction of land has been completed. Consequently profit amounting to Rs. 7864.97 lacs on the same has been booked in the profit and loss account after reducing from sale consideration of Rs. 10500 lacs, purchase and improvement cost of Rs. 2635.03 lacs.

* Cash Credit from HDFC Bank is secured by hypothecation of Stock in Trade, mortgage of immovable property and personal guarantees of Directors. The Cash credit is repayable on demand and carries interest at 9% PA. ( Previous Year from @ 10.50 %PA., As at 01 April 2016 @ 10.50% P A.)

# Cash Credit from SBI Bank is secured by mortgage of immovable property and personal guarantees of Directors. The Cash credit is repayable on demand and carries interest at 10.40% PA. (Previous Year from @ 11.10 % PA., As at 1 April 2016 @ 11.10% PA.)

** Inventory funding (HDFC) is repayable on demand and carries interest of 8.75%. PA. (Previous Year interest rate @ 10.25% PA., As at 1st April 2016 @ 10.25 % PA.)

** Inventory funding (SBI ) is repayable on demand and carries interest of 8.55%. PA. (Previous Year interest rate @ 10.25% PA. As at 01 April 2016 @ 10.25% PA.)

*** Bank overdraft is secured by FDR and carries interest of 1% Plus FDR interest rate (Previous Year interest 1% Plus FDR , As at 01st April 2016 - N.A.)

**** Loans from Directors is repayable on demand and carries interest rate of 8% PA. (Previous Year interest rate @ 9% PA. As at 1st April 2016 @ 10% PA.)

Advance received against sale of Goa land has been reclassified as "Liabilities directly associated with Assets classified as held for sale". The company had received an advance amounting to Rs. 3500 lacs and shown as advance against sals of land as at 1st April 2016. The sale of such land was subject to the outcome of the proceedings pending before jurisdictional Court at Goa. During the current financial year, on outcome of proceeding in favour of company, sale transaction of land has been completed. Concequently profit amounting to Rs. 7864.97 lacs on the same has been booked in the profit and loss account after reducing from sale consideration of Rs. 10,500 lacs, purchase and improvement cost of Rs.2,635.03 lacs.

1 Unclaimed /Unpaid Divided

Dividends that are not encashed or claimed, within seven years from the date of its transfer to the unpaid dividend account, will, in terms of the provisions of Section 124 of The Companies Act, 2013, will be transferred to the Investors Education and Protection Fund ( IEPF) established by the Government of India. Total amount of Rs. 7.75 lacs as on 31st March , 2018 is lying in unclaimed / unpaid dividend account as under :

The segment report of the Company as stated above has been prepared in accordance with Ind AS 108 Operating Segments.

The definitions of the business segmentation and the activities encompassed therein are as follows:

(i) Showroom:- Purchase and sales of vehicles manufactured by Maruti Suzuki India Ltd.

(ii) Service & Spares: Servicing of Maruti Vehicles and Sale of their Spare parts.

2 Some of the outstanding balances as at 31st March 2018 in respect of Sundry Debtors, Creditors, Loans and Advances are subject to confirmation.

Financial risk management

A. Credit Risk

The credit risk is the risk that counter party will not meet its obligations under the financial instrument or customer contract, relating to a financial loss

B. Liquidity Risk

Liquidity risk is the risk that company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The companyâs exposure to the market risk is very minimal.

Foreign Risk : The company do not have any exposure to Foreign Currency risk.

Interest Rate and Price Risk :- The Company do not have any investment in Govt securities, quoted shares and any other bond etc.

3. First Time Adoption of IND AS

The company has adopted IND AS from 1^st April,2017.Whereby, the transition date is 1st April, 2016. The relevant reconciliation from transition date b/w Previous GAAP and IND AS are as under:

Note : A Under the previous GAAP interest free security deposit are recorded at their transaction Value. Under Ins AS all financial Assets are required to be recognised at fair value. Accordingly Security deposits has been fair valued under Ind AS. Difference between fair value and transaction value of security Deposit has been recognised as Prepaid Rent under Other Non current assets. consequent to this change, the amount of security Deposit decreased by Rs. 83.38 lacs as at 31st March 2017 (1st April 2016, Rs. 62.38 lacs ).ThIs Prepaid Rent Increased by Rs. 76.61lacs as at 31st March 2017 (1st April 2016, Rs. 56.61 lacs ). Equity due to this decreased by Rs. 6.76 lacs as on 31st March 2017 (1st April 2016, Rs. 4.95lacs )

Note : B Dividend Proposed by the Board of Directors after the Balance sheet date but before the approval of financial statements were considered as adjusting events. Accordingly, provision for proposed Dividend was recognised as Liability. Under Ind As such Dividend are recognised when the same is approved by the shareholders in the General Meeting. Accordingly, the Liability for proposed dividend (including Dividend distribution Tax) of Rs. 73.96 lacs as at 1st April 2016 included under the provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the effect of the same has been given to total equity.

Note : C Under Previous GAAP loss on sale of Fixed Assets of Rs. 270.73 lacs was classified under the Extraordinary item in statement of Profit and loss account for the year ended 31st March 2017. Under Ind As there is no term as extra ordinary item therefore loss of Rs. 270.73 lacs has been grouped under other Expenses to make them comparable.

Note : D The Previous Year Figures have been restated, regrouped and rearranged as per Ind AS to make then Comparable.

Mar 31, 2016

1. Unclaimed /Unpaid Divided

Dividends that are not encased or claimed, within seven years from the date of its transfer to the unpaid dividend account, will, in terms of the provisions of Section 124 of The Companies Act, 2013, will be transferred to the Investors Education and Protection Fund (IEPF) established by the Government of India. In terms of section 125 of Companies Act, 2013, no claim shall lie against the Company or IEPF after the said transfer. Total amount of Rs. 7,00,149/- as on 31st March, 2016 is lying in unclaimed / unpaid dividend account as under:

The segment report of the Company as stated above has been prepared in accordance with Accounting Standards 17 "Segment Reporting" issued by the institute of The Chartered Accountants of India.

The definitions of the business segmentation and the activities encompassed therein are as follows:

(i) Showroom:- Purchase and sales of vehicles manufactured by Maruti Suzuki India Ltd.

(ii) Service & Spares: Servicing of Maruti Vehicles and Sale of their Spare parts.

2. Advance against sale of land of Rs. 35 Crores as reflected under the head "Other Current Liabilities " is pertaining to Land Situated at Goa, for which proceedings are pending before jurisdictional court at GOA , upon outcome of the same Sale Deed shall be executed.

3. Related party Disclosure (Accounting Standard AS-18)

(a) Enterprises over which Directors/key management personnel of the Company were able to exercise significant influence during the year:

- Competent Builders Private Limited

- Competent Films Private Limited

- Competent International Tradex Company Private Limited

- Competent International Resorts and Hotels Limited

- Raj Chopra & Co. Private Limited

- Liqui Moly Products (India) Private Limited (under process of Strike off)

- Competent Infrapromoters Private Limited

- Milagro infrastructure Private Limited

- Enchanted Properties Private Limited

- Competent Construction Company

- Competent Exporters

- Competent Leasing & Finance

- Competent Film Enterprises

(b) Key Managerial Personnel

Mr. Raj Chopra - Chairman and Managing Director

Mrs. Kavita Ahuja - Whole Time Director

Mr. K K Mehta - Whole Time Director

Mr. Ravi Arora - Company Secretary

Mr. Vijay Sharma - Chief Financial Officer

Mar 31, 2015

1 Contingent Liabilities (Amount in rs ) Particulars 2014-15 2013-14

(i) Bank Guarantee obtained from Banks 2,50,00,000 250,00,000

(ii) Letter of Credit obtained from Banks 16,00,00,000 16,00,00,000

(iii) Disputed Sales Tax Demand 2,87,56,000 287,56,000

(This demand pertains to FY 1991-92 against which an appeal before Commissioner of Sales Tax (Appeals)-I has been filed and pending for disposal)

2 Advance against sale of land of Rs. 35 Crores as reflected under the head "Other Current Liabilities " is pertaining to Land Situated at Goa, for which proceedings are pending before jurisdictional court at GOA, upon outcome of the same Sale Deed shall be executed .

3 Related party Disclosure (Accounting Standard AS-18)

(a) Enterprises over which Directors/key management personnel of the Company were able to exercise significant influence during the year :

* Competent Builders Private Limited

* Competent Films Private Limited

* Competent International Tradex Company Private Limited

* Competent International Resorts and Hotels Limited

* Raj Chopra & Co. Private Limited

* Liqui Moly Products (India) Private Limited

* Competent Infrapromoters Private Limited

* Competent Construction Company

* Competent Exporters

* Competent Fabricators

* Competent Leasing & Finance

* Competent Film Enterprises

(b) Key Managerial Personnel

Mr. Raj Chopra - Chairman and Managing Director

Mrs. Kavita Ahuja - Whole Time Director

Mr. K K Mehta - Whole Time Director

Mr. Ravi Arora - Company Secretary

Mr. Vijay Sharma - Chief Financial Officer

4 The previous year figures have been regrouped, rearranged and reclassified, whereever deemed necessary to make them comparable with current year figures.

Mar 31, 2014

(Amount in Rs.)

Particulars 2013-14 2012-13

1 Contingent Liabilities

(i) Bank Guarantee obtained from Banks 2,50,00,000 2,50,00,000

(ii) Letter of Credit obtained from Banks 16,00,00,000 16,00,00,000

(iii) Disputed Sales Tax Demand 2,87,56,000 2,87,56,000

(This demand pertains to F. Y. 1991-92 against which an appeal before Commissioner of Sales Tax (Appeals)-I has been filed and pending for disposal)

2 Unclaimed /Unpaid Dividend

Dividends that are not encashed or claimed, within seven years from the date of its transfer to the unpaid dividend account, will, in terms of the provisions of Section 205 A of The Companies Act, 1956, will be transferred to the Investors Education and Protection Fund (IEPF) established by the Government of India. In terms of the provisions of Section 205 C of The Companies Act, 1956, no claim shall lie against the Company or IEPF after the said transfer. Total amount of Rs. 6,89,189/- as on 31st March, 2014 is lying in unclaimed / unpaid dividend account.

Capital employed in the Company business are common in nature and cannot be attributed to a specific segment i.e. showroom, service and spares. It is not practical to provide segmental distribution of the capital employed since segregation of available data could be erroneous.

The segment report of the Company as stated above has been prepared in accordance with Accounting Standards 17 " Segment Reporting " issued by the institute of The Chartered Accountants of India.

The segment wise revenue and result''s figures related to the respective heads are directly identifiable to each of the segments. Un-allocable income includes income on common services at corporate level and relates to the Company as whole.

The definitions of the business segmentation and the activities encompassed therein are as follows:

(i) Showroom:- Purchase and sales of vehicles manufactured by Maruti Suzuki India Ltd. (ii) Service & Spares: Servicing of Maruti Vehicles and Sale of their Spare parts.

3 Related party Disclosure (Accounting Standard AS-18)

(a) Enterprises over which Directors/key management personnel of the Company were able to exercise significant influence during the year :

- Competent Hotels Private Limited

- Competent Builders Private Limited

- Competent leasing Private Limited

- Competent Films Private Limited

- Competent International Tradex Company Private Limited

- Competent International Resorts and Hotels Limited

- Raj Chopra & Co. Pvt .Ltd.

- Liqui Moly Products (India) Pvt Ltd .

- Servensure Solutions (India) Limited

- Competent Infrapromoters Private Limited

- Competent Construction Company

- Competent Exporters

- Competent Fabricators

- Competent Leasing & Finance

- Competent Film Enterprises

(b) Key Managerial Personnel

Mr. Raj Chopra - Chairman and Managing Director

Mrs. Kavita Ahuja - Whole Time Director

Mr. K K Mehta - Whole Time Director

(c) For related party transactions - Please refer note No 32 & 34.

4 The previous year figures have been regrouped, rearranged and reclassified, whereever deemed necessary to make them comparable with current year figures.

Mar 31, 2013

1 Unclaimed /Unpaid Divided

Dividends that are not encashed or claimed, within seven years from the date of its transfer to the unpaid dividend account, will, in terms of the provisions of Section 205 A of The Companies Act, 1956, will be transferred to the Investors Education and Protection Fund (IEPF) established by the Government of India. In terms of the provisions of Section 205 C of The Companies Act, 1956, no claim shall lie against the Company or IEPF after the said transfer. Total amount of Rs. 7,05,694/- as on 31st March, 2013 is lying in unclaimed / unpaid dividend account.

2 Related party Disclosure (Accounting Standard AS-18)

(a) Enterprises over which Directors/key management personnel of the Company were able to exercise significant influence during the year:

- Competent Hotels Private Limited

- Competent Builders Private Limited

- Competent Leasing Private Limited

- Competent Films Private Limited

- Competent International Tradex Company Private Limited

- Competent International Resorts and Hotels Limited

- Competent Film Enterprises

- Competent Construction Company

- Competent Exporters

- Competent Fabricators

- Servensure Solutions (India) Limited

- Competent Infrapromoters Private Limited

(b) Key Managerial Personnel

Mr. Raj Chopra - Chairman and Managing Director

Mrs. Kavita Ahuja - Whole Time Director

Mr. K K Mehta - Whole Time Director

(c) For related party transactions - Please refer note No 31 & 33

3 The previous year figures have been regrouped, rearranged and reclassified, where-ever deemed necessary to make them comparable with current year figures.

Mar 31, 2012

(Amount in Rs.)

2011-12 2010-11

1 Contingent Liabilities

Particulars

(i) Bank Guarantee obtained from Banks 2,50,00,000 2,00,00,000

(ii) Letter of Credit obtained from Banks 16,00,00,000 16,00,00,000

(iii) Disputed Sales Tax Demand 2,87,56,000 2,87,56,000 (This demand pertains to FY. 1991-92 against which an appeal before Commissioner of Sales Tax (Appeals)-I has been filed and pending for disposal)

2 Unclaimed /Unpaid Divided

Dividends that are not encashed or claimed, within seven years from the date of its transfer to the unpaid dividend account, will, in terms of the provisions of Section 205 A of The Companies Act, 1956, will be transferred to the Investors Education and Protection Fund (IEPF) established by the Government of India. In terms of the provisions of Section 205 C of The Companies Act, 1956, no claim shall lie against the Company or IEPF after the said transfer. Total amount of Rs. 7,50,063/- as on 31st March, 2012 is lying in unclaimed / unpaid dividend account.

Capital employed in the Company business are common in nature and cannot be attributed to a specific segment i.e. showroom, service and spares. It is not practical to provide segmental distribution of the capital employed since segregation of available data could be erroneous.

The segment report of the Company as stated above has been prepared in accordance with Accounting Standards 17 " Segment Reporting " issued by the institute of The Chartered Accountants of India.

The segment wise revenue and result's figures related to the respective heads are directly identifiable to each of the segments. Un-allocable income includes income on common services at corporate level and relates to the Company as whole.

The definitions of the business segmentation and the activities encompassed therein are as follows:

(i) Showroom:- Purchase and sales of vehicles manufactured by Maruti Suzuki India Ltd.

(ii) Service & Spares: Servicing of Maruti Vehicles and Sale of their Spare parts.

35 Related party Disclosure (Accounting Standard AS-18)

(a) Enterprises over which Directors/key management personnel of the Company were able to exercise significant influence during the year:

- Competent Hotels Private Limited

- Competent Builders Private Limited

- Competent leasing Private Limited

- Competent Films Private Limited

- Competent International Tradex Company Private Limited

- Competent International Resorts and Hotels Limited

- Competent Film Enterprises

- Competent Construction Company

- Competent Exporters

- Competent Fabricators

(b) Key Managerial Personnel

Mr. Raj Chopra - Chairman and Managing Director

Mrs. Kavita Ahuja - Whole Time Director

Mr. K K Mehta - Whole Time Director

(c) For related party transactions - Please refer note No 30 & 32

3 The previous year figures have been regrouped, rearranged and reclassified, whereever deemed necessary to make them comparable with current year figures.

Mar 31, 2010

1 Contingent Liability

(Rs. In Lacs)

1. Particulars 2009-10 2008-09

(i) Bank Guarantee obtained from Banks 100.00 100.00

(ii) Disputed Sales Tax Demand 287.56 287.56

(This demand pertains to F.Y.I 991 -92, against which

1 an appeal before Comm. Of Sales Tax (Appeals) -1 has been filed and pending for disposal).

(iii) Letter of Credit obtained from Banks 1,600.00 1,600.00

2 a) The figures of term loans as reflected in Schedule -C are secured by Hypothecation of assets owned by the company.

b) The Cash Credit Accounts as reflected in Schedule - C are secured by Hypothecation of inventories of the company and personal guarantees furnished by two Directors and collateral securities of premises owned by the Company situated at Mehrauli, Gazipur and Mandi (H.R).

3. Some of the outstanding balances as at 31st March, 2010 in respect of Sundry Debtors, Creditors, Loans and Advances and Deposits are subject to confirmation and reconciliation.

4. In the opinion of the Board, all Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of the business.

5. In the opinion of the Board:

a) The Provision for all known liabilities and expenses has been made.

b) There are no contingent liabilities other than those stated in Note no. 1.

6. The previous years figures have been reworked, regrouped, rearranged and reclassified, where-ever deemed necessary, in order to make them comparable with the current years figures.

7. Proposed Dividend

Dividend proposed by the board of directors amounting to Rs. 61,46,000/- is provided in the books of accounts, will be paid, subject to the approval in the Annual General Meeting.

8. (a) In accordance with the Accounting Standard -22 relating to Accounting for Taxes on Income issued by The Institute of Chartered Accountants of India, the company has recorded the deferred tax liability of Rs.10,56,730/- for the year ended 31st March,2010. The same has been recognized in the books and financial statements accordingly.

Notes to Segment-wise business performance:

1) The segment report of the company as stated above has been prepared in accordance with Accounting Standards 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

2) The segment-wise revenue and results figures related to the respective heads are directly identifiable to each of the segments. Un-allocable income includes income on common services at corporate level and relates to the Company as whole.

3) The definitions of the business segmentation and the activities encompassed therein are as follows:

a) Showroom :- Purchase and Sales of new Maruti Suzuki India Ltd. Vehicles;

b) Services & Spares :- Servicing and spares parts sale of Maruti Suzuki India Ltd.

9. Impairment of Assets

As stipulated in AS-28, of the ICAI, the company assessed potential generation of economic benefits from its business units and is of the opinion the assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision required to be provided in the books of accounts.

10. Related Party Disclosure:

a) Enterprises over which directors of the company were able to exercise significant influence during the year: -

- Competent Hotels Private Limited.

- Competent Builders Private Limited.

- Competent Leasing Private Limited.

- Competent Films Private Limited

- Competent Uzprommashimpeks Trading Pvt. Ltd.

- Competent International Resorts & Hotels Ltd.

- Competent Film Enterprises

- Competent Construction Co.

- Competent Exporters

- Competent Fabricators

b) Key Management Personnel :-

Mr. Raj Chopra Chairman & Managing Director

Mrs. Kavita Ahuja Whole time Director

Mr. K.K. Mehta Whole time Director

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