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Notes to Accounts of JBM Auto Ltd.

Mar 31, 2017

a) The company has one class of equity shares having par value of Rs, 5/- per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the board of directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

b) In F.Y. 2009-10, the Company issued 50,00,000 (Fifty Lacs) Non Cumulative Redeemable Preference Share of Rs, 10/- (Rupees Ten only) each at a premium of Rs, 50/- (Rupees Fifty only) per share. Preference Share carry non cumulative dividend @ 8% p.a and does not have voting rights. Such preference shares are redeemable after six years from the date of allotment i.e. 26th December, 2009 the same has been rolled over during the F.Y 2015-16 for a period of 6 years. During the F.Y. 2013-14, the Company has issued 50,00,000 (Fifty Lacs) Non Cumulative Redeemable Preference Share of Rs, 10/- (Rupees Ten only) each at a premium of Rs, 50/- (Rupees Fifty only) per share. Preference Share carry non cumulative dividend @ 8% p.a and does not have any voting rights. These preference shares are redeemable after six years from the date of allotment i.e. 14th February, 2014. In the event of liquidation of the Company, the holders of preference shares will have priority over equity shares in payment of dividend and repayment of capital.

iii) Details of Shareholders holding more than 5% equity shares in the company. (Refer Note no .18)

iv) Aggregate number of shares issued as bonus share during 5 year immediately preceding March ,2017

The company has alloted 2,03,97,682 fully paid up equity shares of face value Rs,5 each during the year ended 31.03.2015 pursuant to a Bonus issue approved by the shareholders through a postal ballot.

* Term Loan of Rs,NIL (PY Rs,185.94 lacs) is Secured by First Pari Passu charge on the current assets of the Company (Excluding those from Sanand, Gujrat unit) and by Second Pari Passu charge on the movable and Immovable fixed assets of the Greater Noida, Uttar Pradesh and Faridabad, Haryana unit of the Company.

** Term Loan of Rs,NIL (PY Rs, 180.00 lacs) is secured by First Pari Passu charge on the entire movable fixed assets including plant & machinery situated at Sanand, Gujrat unit of the company and by First Pari Passu charge by way of equitable mortgage on the immovable property situated at Nashik, Maharastra unit of the company . The Term Loan of Rs, NIL (PY Rs, 865.53 lacs) is secured by First Pari Passu charge by way of Equitable Mortgage of leasehold land situated at Sanand, Gujrat subleased by Tata Motors Limited & on the movable fixed assets including plant & machinery situated at Sanand, Gujarat unit of the Company. Term loan of Rs, 1,251.67 lacs (PY Rs, 1,387.50 lacs) is secured by First Pari Passu charge(shared by DBS) on the movable and immovable fixed assets of Indore, Greater Noida & Faridabad and Second Pari Passu charge of the on all the current assets of the company both present and future situated at Faridabad, Indore & Greater Noida.

Term loan of Rs, 1,406.25 lacs (PY Rs, 2,031.25 lacs) is secured by First Pari Passu charge on the entire movable and immovable assets of Indore unit located at plot no 157 E sec-3, Pitampura Industrial area ,Dhar - 454775 ,Indore , Madhya Pradesh, both present and future and also the entire movable and immovable assets situated at Greater Noida and Faridabad, both present and future. Second Pari Passu charge on the entire current assets of the company both present and future situated at Faridabad, Indore and Greater Noida Units.

Term loan of Rs, 2,949.91 lacs (PY Rs, 4,171.34 lacs) is secured by First Pari Passu charge on both movable and immovable fixed assets of the Company at Indore, Greater Noida and Faridabad plant (both present & future) Second Pari Passu charge on the current assets of Indore,Greater Noida and Faridabad Plants (both present & future)

*** Vehicle loan of Rs, NIL (PY 1.14 lacs) is secured by hypothecation of specific vehicles.

**** Term loan of Rs, 2,500 lacs has exclusive charge on plant & machinery of the Company with a minimum asset cover of Rs, 1.50X (as per WDV) as acceptable by TCFSL. Second Pari pasu charge on all current assets of Sanand unit, both present and Future.

* Secured by hypothecation on pari passu interse between banks by way of first charge on current assets of the company (excluding current assets of Sanand, Gujarat unit and Indore, Madhya Pradesh unit) and by way of second charge on entire movable assets of the company (excluding movable assets of Sanand, Gujarat unit) both present and future. Facility utilised of Rs, 522.66 Lacs (PY Rs, 400.00 lacs) is secured by exclusive first charge on the entire current assets of Sanand, Gujrat unit of the Company and second charge on movable fixed assets including plant and machinery at Sanand, Gujrat unit of the Company, both present and future, further secured by second pari passu by way of equitable mortgage on immovable property situated at Nashik, Maharashtra unit of the Company.

* In terms of Section 22 of Micro, Small & Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to get registered under the Act. On communicating with them no enterprise has filed any registration certification with the Company. Hence, the disclosure of required information is not applicable.

*Represents actual outflow during the year

Note: Figures in brackets represents previous year amounts

c) Related party Transaction in relation to Corporate Social Responsibility : NIL

d) Provision movement during the year 2016-17: NIL

NOTE: 1In terms of revised Accounting Standard (AS-4) "Contingencies and events occurring after the Balance sheet date” as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016 dated 30th March 2016, the company has not accounted for proposed dividend including corporate dividend tax (CDT) amounting to Rs, 1078.29 lacs as liability as at 31st March 2017. However, the proposed dividend including CDT amounting to Rs, 834.03 lacs was accounted for as a liability as at 31st March 2016 in accordance with the then existing Accounting Standard.

NOTE: 2 Consumption of Raw materials and Components has been computed by adding purchase to the opening stock and deducting closing stock verified physically by the management

NOTE: 3 The Company has filed a writ petition with the HonRs,ble High Court of Kolkatta,West Bengal for injunction restraining the Govt. of West Bengal for acting in terms of Singur Land rehabilitation and Development Act, 2011. The Division Bench of the Kolkata High Court had held that the Singur Act was unconstitutional and had therefore struck down the Act. The State Government has challenged the said judgment of the Kolkata High Court before the Hon''ble Supreme Court and the same is still pending. Meanwhile the Division Bench had granted a stay on the said order dated 21st June, 2012 which has also been extended by Supreme Court. By virtue of the order of stay, the State Government is still retaining the possession of the Singur land.

Pending finalization of the case, the company has not made any provision against advance given for the same.

Note: Figures in brackets represents previous year''s amounts

NOTE: 4 The Company has, during the year, enter into a joint venture agreement on 14th July 2016 with Solaris Bus & Coach S.A., Poland to establish a company for manufacturing of Electric and Hybrid Buses. The Company along with its associate will be holding 80% paid up equity share capital into the joint venture company.

NOTE: 5 Exceptional Income represents Rs, 1,105.00 lacs receivable from one of the customer against the claim made for Compensation, on account of loss for underutilization of resources due to less volume purchased by the customer.

NOTE: 6 Additional information pursuant to the general instructions for preparation of Statement of Profit and Loss of Schedule III of the Companies Act, 2013 are as under:

*Includes Components produced on Job Work for Rs, 178.42 lacs (P.Y. Rs, 450.80 lacs) ** Includes Tools produced on Job Work for Rs, 33.67 lacs (P.Y. Rs, . 202.81 lacs)

Note: Figures in brackets represents previous year''s amounts

NOTE: 7 Previous year''s figures have been regrouped and/or rearranged wherever considered necessary with current year classification/ disclosures


Mar 31, 2016

I) Terms/rights attached to equity shares and preference share

a) The company has one class of equity shares having par value ofRs, 5/- per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the board of Director is subject to the approval of shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding

b) In F.Y. 2009-10, the Company issued 50,00,000 (Fifty Lacs) Non Cumulative Redeemable Preference Share ofRs, 10/- (Ru- pees Ten only) each at a premium ofRs, 50/- (Rupees Fifty only) per share. Preference Share carry non cumulative dividend @ 8% p.a and does not have voting rights. Such preference shares are redeemable after six years from the date of allotment i.e. 26th December, 2009 the same has been rolled over during the year for a period of 6 years. During the F.Y. 201 3-14, the Company has issued 50,00,000 (Fifty Lacs) Non Cumulative Redeemable Preference Share ofRs, 10/- (Rupees Ten only) each at a premium of Rs, 50/- (Rupees Fifty only) per share. Preference Share carry non cumulative dividend @ 8% p.a and does not have voting rights. These preference shares are redeemable after six years from the date of allotment i.e. 14th February, 2014. In the event of liquidation of the Company, the holders of preference shares will have priority over equity shares in payment of dividend and repayment of capital.

ii) Share holding Pattern (Refer Note no .18)

iii) Aggregate number of shares issued as bonus share during 5 year immediately preceding March ,2016

The company has allotted 2,03,97,682 fully paid up equity shares of face value Rs, 5 each during the year ended 31.03.2015 * The board of Director has recommended a final dividend of Rs, 1.75 per share(P.Y Rs, 2.5 per share) having face value of Rs, 5 each which is subject to the approval of the shareholders in the ensuing Annual General meeting. ** The company had during the year 2015-16 received dividend from subsidiaries company amounting to Rs, 451.95 Lacs on which corporate dividend tax was paid by the subsidiaries company under the provision of section 115(0) of Income Tax Act 1961. Dividend tax on proposed dividend has been provided accordingly.

* Secured by First Pari Passu charge on the current assets of the Company (Excluding those from Sanand, Cujrat unit) and by

Second Pari Passu charge on the movable and Immovable fixed assets of the Greater Noida, Uttar Pradesh and Faridabad, Haryana unit of the Company.

** Term Loan of Rs, 180.00 Lacs is secured by First Pari Passu charge on the entire movable fixed assets including plant & machinery situated at Sanand, Cuj''rat unit of the company and by First Pari Passu charge by way of equitable mortgage on the immovable property situated at Nashik, Maharastra unit of the company . The Term Loan ofRs, 865.53 Lacs is secured by First Pari Passu charge by way of Equitable Mortgage of leasehold land situated at Sanand, Cuj''rat subleased by Tata Motors Limited & on the movable fixed assets including plant & machinery situated at Sanand, Gujarat unit of the Company. Term loan of Rs, 1387.50 Lacs is secured by First Pari-Passu chargefshared by DBS) on the movable and immovable fixed assets of Indore, Greater Noida & Faridabad and Second Pari-Passu charge of the on all the current assets of the company both present and future situated at faridabad, Indore & Greater Noida.

Term loan of Rs, 2031.25 Lacs is secured by First Pari Passu charge on the entire movable and immovable assets of Indore unit located at plot no 157 E sec-3, pitampura Industrial area, Dhar -454775 ,Indore , Madhya Pradesh, both present and future and also the entire movable and immovable assets situated at Greater Noida and Faridabad, both present and future. Second Pari Passu charge on the entire current assets of the company both present and future situated at Faridabad, Indore and Greater Noida Units.

Term loan ofRs, 4171.54 Lacs is secured by First Pari Passu charge on both movable and immovable fixed assets of the Company at Indore, Greater Noida and Faridabad plant (both present & future ) Second Pari Passu charge on the current assets lndore,Greater Noida and faridabad Plants (both present & future)

* * * Secured by hypothecation of specific vehicles.

**** Term loan of Rs, 2500 Lacs has exclusive charge on plant & machinery of the Company with a minimum asset cover of 1.50X (as per WDV) as acceptable by the lender. Second Pari pasu charge on all current assets of Sanand unit, both present and future.

* Secured by hypothecation on pari passu intersex between banks by way of first charge on current assets of the company (excluding current assets of Sanand, Gujarat unit and Indore, Madhya Pradesh unit) and by way of second charge on entire moveable assets of the company (excluding moveable assets of Sanand, Gujarat unit) both present and future. Facility utilized of Rs,400.00 Lacs is secured by exclusive first charge on the entire current assets of Sanand, Gujrat unit of the Company and second charge on movable fixed assets including plant and machinery at Sanand, Gujrat unit of the Company, both present and future, further secured by second paripassu by way of equitable mortgage on immovable property situated at Nashik, Maharashtra unit of the Company.

** Represents bills discounted with bankers

* In terms of Section 22 of Micro, Small & Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to get registered under the Act. On communicating with them no enterprise has filed any registration certification with the Company. Hence, the disclosure of required information is not applicable. NOTE: 20 SEGMENT INFORMATION i) Primary Segment Reporting

A. Primary business segments of the company are as under:

(a) Sheet Metal Components, Assemblies & Sub-assemblies: Segment manufactures components etc.

(b) Tool, Dies & Moulds: Segment manufactures Dies for Sheet Metal Segment or sells Dies.

(c) Bus Division: Segment includes activities related to Development, Design, Manufacture, Assembly and Sale of Bus as well as parts, accessories and maintenance contracts of same.

B. Inter Segment Transfer Pricing

Inter Segment Prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, within an overall optimization objective for the company.

The Company is mainly engaged in business in India and exports are not material. Hence in the context of Accounting Standard 1 7- "Segment Reporting" it is considered the only reportable segment.

NOTE: 1. The Company uses forward exchange contracts and other derivative contracts to hedge against its foreign currency exposures relating to the underlying transactions on its capital and revenue account. The Company does not use these contracts for trading or speculative purpose.

iii. Defined Benefit Plans

a) Contribution to Gratuity Fund - Employee''s Gratuity Fund scheme of the company is managed by a trust (Life Insurance Corporation of India).

b) Leave Encashment/ Compensated Absence

In accordance with Accounting Standard 15 (Revised 2005), the actuarial valuation carried out in respect of the aforesaid defined benefit plans is based on the following assumption:

* Expected short term liability of Rs, 22.66 Lacs (P.Y. Rs, 35.85 Lacs).

# This pertains to Long term liability only. Actual payments (under the various heads) incurred over the undervaluation period should be added to this figure.

The estimate of future salary increase, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors.

Represents actual outflow during the year

Note: Figures in brackets represents previous year''s amounts

c) Related party Transaction in relation to Corporate Social Responsibility : NIL

d) Provision movement during the year 2015-16: NIL

NOTE: 29 Company has reviewed the useful life of intangible assets and revised the useful life of Prototype, design, technical know- how and related License fees of Bus Division from 7 years to 10 years based on the expected pattern of consumption of economic benefits and in accordance with the rebuttable presumption that the useful life of asset will not exceed 10 years from the date asset is available for use, effective April 1, 2015. Consequently, amortization for the year is lower and profit before tax is higher by Rs, 177.85 Lacs.

NOTE: 30 The Company has filed a writ petition with the Hon''ble High Court of Kolkatta, West Bengal for injunction restraining the Govt, of West Bengal for acting in terms of Singur Land rehabilitation and Development Act, 2011. The Division Bench of the Kolkata High Court had held that the Singur Act was unconstitutional and had therefore struck down the Act. The State Government has challenged the said judgment of the Kolkata High Court before the Hon''ble Supreme Court and the same is still pending. Meanwhile the Division Bench had granted a stay on the said order dated 21st June, 2012 which has also been extended by Supreme Court. By virtue of the order of stay, the State Government is still retaining the possession of the Singur land.

Pending finalization of the case, the company has not made any provision against advance given for the same.

NOTE: 3. On 5th November, 2014, a fire occurred in the administration block of the Sector-59 unit (Ballabgarh, Haryana) of the Company. All the records, documents, computer system etc. were burnt. The Company has filed the insurance claim against the loss, which is pending for settlement. No provision has been made for the same. Any variation from insurance claim filed will be accounted for as and when it is realized

NOTE: 4. Consumption of Raw materials and Components has been computed by adding purchase to the opening stock and deducting closing stock verified physically by the management.

NOTE: 5. Trade and Other Receivables and Payables are subject to confirmation.

NOTE: 6. Additional information pursuant to the general instructions for preparation of Statement of Profit and Loss of Schedule III of the Companies Act,2013 are as under:

NOTE: 7. Previous year''s figures have been regrouped and/or rearranged wherever considered necessary.


Mar 31, 2015

NOTE: 1 CONTINGENT LIABILITIES

(Rs,in Lacs)

Sr. No. Partculars March, 2015 March, 2014

i) Leter of Credit outstanding 1293.03 876.94

ii) Guarantees issued by the Bank on behalf of the Company 418.57 857.05

iii) Claims against the Company not acknowledged as debt 871.17 350.29

NOTE: 2 SEGMENT INFORMATION

i) Primary Segment Reporting

A. Primary business segments of the company are as under:

(a) Sheet Metal Components, Assemblies & Sub-assemblies - Segment manufactures components etc.

(b) Tool, Dies & Moulds - Segment manufactures Dies for Sheet Metal Segment or sells Dies.

(c) Bus Division - Segment includes actives related to Development, Design, Manufacture, Assembly and Sale of Bus as well as Parts, Accessories and Maintenance contracts of the same.

B. Inter Segment Transfer Pricing

Inter Segment Prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, within an overall optimization objective for the company.

NOTE: 3 The Company uses forward exchange contracts and other derivative contracts to hedge against its foreign currency exposures relating to the underlying transactions on its capital and revenue account. The Company does not use these contracts for trading or speculative purpose.

NOTE: 4 Estimated amount of contracts remaining to be executed on capital account (Net of advances) not provided for Rs. 674.14 Lacs (Previous year Rs. 2045.92 Lacs).

NOTE: 5 RETIREMENT BENEFITS

The Company has calculated the benefits provided to employees as under:

NOTE: 6 The Company has taken land on lease for a period of 35 years, admeasuring 9.579 acre under an agreement commencing w.e.f. 5th May, 2009 with Tata Motors Ltd. on an annual rent payable from the 3rd year onwards. The lease rent as stipulated in the agreement shall increase periodically.

NOTE: 7 In accordance with the provisions of Schedule II to the Companies Act 2013, the Company has revised the useful life of its fixed assets based on technical assessment from April 1, 2014 as further amended on August 29, 2014. In case of fixed assets where the useful life is NIL as determined above, the company has adjusted the net residual value as at April 1, 2014 aggregating to Rs. 56.55 lacs (net of deferred tax of Rs. 29.12 lacs) to retained earnings. Further depreciation for the period up to 31-03-2015 is lower and the profit before tax is higher to the extent of Rs. 102.12 lacs.

Effective April 1, 2014, the Company has revised the useful life of Intangible assets to 3 to 7 years as against existing 3 years. Consequently amortization for the year is lower and profit before tax is higher by Rs. 143.49 lacs.

NOTE: 8 Other Non-Current Assets and Advance Recoverable in Cash or in Kind or for Value to be received include Singur project relocation cost, which shall be recovered from Tata Motors Ltd.

NOTE: 9 The Company has fled a writ petton with the Hon'ble High Court of Kolkata, West Bengal for injunction restraining the Govt. of West Bengal for acting in terms of Singur Land rehabilitation and Development Act, 2011. The Division Bench of the Kolkata High Court had held that the Singur Act was unconstitutional and had therefore struck down the Act. The State Government has challenged the said judgment of the Kolkata High Court before the Hon'ble Supreme Court and the same is still pending. Meanwhile the Division Bench had granted a stay on the said order dated 21st June, 2012 which has also been extended by Supreme Court. By virtue of the order of stay, the State Government is still retaining the possession of the Singur land.

Pending finalization of the case, the company has not made any provision against advance given for the same.

NOTE: 10 The Company was awarded a sum of Rs. 355.13 Lacs in the arbitration proceedings against a trade receivable. The other Party had appealed against the arbitration order in the Supreme Court of India and has deposited 50% of the said sum amounting to Rs. 177.56 Lacs in the form of Interest bearing FDR's till the finalization of appeal. In pursuance the SLP, the Hon'ble Supreme Court of India has allowed to release the said sum of 50% along with interest, an amount of Rs. 231.02 Lacs in favour of the company with a direction that if ultimately the SLP is decided against the Company, then the Company has to refund the amount with interest.

During the year the Hon'ble Supreme court of India decided the SLP in favour of the company and a further sum of Rs. 609.44 lacs (in addition to Rs. 231.02 lacs) was given to company. Pursuant to above decision, the company has received total of Rs. 840.46 lacs which comprises Rs. 355.14 lacs disputed receivable & Rs. 485.32 lacs interest thereon.

In view of the same the interest so received is recognized as exceptional items amounting to Rs. 201.51 lacs after adjusting litigation expenses of Rs. 283.81 lacs.

NOTE: 11 In order to promote investment in the state of Rajasthan and to generate further employment opportunities through such investment, the state has noted "The Rajasthan investment promotion scheme 2010" under which an enterprise commencing commercial production/operation is granted a subsidy from the date on which the enterprise makes sales up to a period of 7 years by an investment subsidy of 30% of the sales tax payable which have become due. The same has been in accordance with AS-12 "Accounting for Government Grants" noted under Companies (Accounting Standard) Rules,2006 credited to statement of Profit and Loss under the head " other income". For the purpose of Calculation of taxable income as per Income Tax Act, such Investment Subsidy has been considered as capital receipt.

NOTE: 12 On 5th November, 2014, a fre occurred in the administration block of the SPV unit (Ballabgarh, Haryana) of the Company. All the records, documents, computer system etc. were burnt. The aforesaid results have been compiled & audited on the basis of information available with the Company at its other locations / corporate office, which in the opinion of auditors is reasonable and reliable. The Company has fled the insurance claim against the loss, which is pending for settlement. No provision has been made for the same. Any variation from insurance claim fled will be accounted for as and when it is realized

NOTE: 13 The Company has entered into a new segment of manufacturing Buses from KOSI plant. The commercial production commenced from 21.03.2015. The total expenditure capitalized under Bus project is given below:

NOTE: 14 Consumption of Raw materials and Components has been computed by adding purchase to the opening stock and deducting closing stock verified physically by the management.

NOTE: 15 The Company has decided to exercise the option provided in notification GSR No.914 (E) dated 29-12-2011 issued by ministry of company's affairs regarding the treatment of exchange differences.

NOTE: 16 Trade and Other Receivables and Payables are subject to confirmation.

NOTE: 17 Additional information pursuant to the general instructions for preparation of Statement of Profit and Loss of Schedule III of the Companies Act,2013 are as under :

NOTE: 18 Previous year's figures have been regrouped and/or rearranged wherever considered necessary.


Mar 31, 2014

SHARE CAPITAL

The company has one class of equity shares having par value of Rs. 10/- per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the board of director is subject to the approval of shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

In F.Y. 2009-10, the Company issued 50,00,000 (Fifty Lacs) Non Cumulative Redeemable Preference Share of Rs. 10/- (Rupees Ten only) each at a premium of Rs.50/- (Rupees Fifty only) per share. Preference Share carry non cumulative dividend @ 8% p.a and do not have voting rights. Such preference shares are redeemable after six years from the date of allotment i.e. 26th December, 2009. During the current F.Y. 2013-14, the Company has issued 50,00,000 (Fifty Lacs) Non Cumulative Redeemable Preference Share of Rs. 10/- (Rupees Ten only) each at a premium of Rs. 50/- (Rupees Fifty only) per share. Preference Share carry non cumulative dividend @ 8% p.a and do not have voting rights. These preference shares are redeemable after six years from the date of allotment i.e. 14th February, 2014. In the event of liquidation of the Company, the holders of preference shares will have priority over equity shares in payment of dividend and repayment of capital.

Surplus

* Includes premium on Preference Share Capital of Mrs. 5000.00 Lacs (P.M. Rs. 2500.00 Lacs)

** @ Rs. 3 /- per share (P.Y. Rs. 2/- Per Share)

*** The company had during the year 2012-13 received dividend from subsidiary company JBM Auto System Limited amounting to Rs. 367.80 lacs on which corporate dividend tax was paid by the subsidiary company under the provision of section 115(O) of Income Tax Act 1961. The company has entitled to take benefit of same, accordingly the provision for corporate dividend tax made in the last year has been reversed in current year.

NON - CURRENT LIABILITIES

* Secured by First Pari Passu charge on the current assets of the Company (Excluding those from Sanand, Gujrat unit) and by Second Pari Passu charge on the moveable and Immovable fixed assets of the Greater Noida, Uttar Pradesh and Faridabad, Haryana unit of the Company.

** Term Loan of Rs. 900.00 Lacs is secured by first pari passu charge on the entire moveable fixed assets including plant & machinery situated at Sanand, Gujrat unit of the company and by first pari passu charge by way of equitable mortgage on the immovable property situated at Nashik, Maharastra unit of the company . The Term Loan of Rs. 2814.60 lacs is secured by first pari passu charge by way of Equitable Mortgage of leasehold land situated at Sanand, Gujrat subleased by Tata Motors Limited & on the moveable fixed assets including plant & machinery situated at Sanand, Gujarat unit of the Company. Term loan of Rs. 1250.00 lacs is secured by first pari-passu charge on all the current assets of the company excluding those from Sanand, Gujrat unit of the company and second pari-passu charge on the movable and immovable fixed assets of the company pertaining to Indore, Madhya Pradesh, Greater Noida Uttar Pradesh and Faridabad, Haryana unit of the Company.

*** Secured by hypothecation of specific vehicles.

CURRENT LIABILITIES

* Secured by hypothecation on pari passu interse between banks by way of first charge on current assets of the company (excluding current assets of Sanand, Gujarat unit and Indore, Madhya Pradesh unit) and by way of second charge on entire moveable assets of the company (excluding moveable assets of Sanand, Gujarat unit) both present and future. Facility utilised of Rs. 200.00 Lacs is secured by exclusive first charge on the entire current assets of Sanand, Gujrat unit of the Company and second charge on movable fixed assets including plant and machinery at Sanand, Gujrat unit of the Company, both present and future, further secured by second pari passu by way of equitable mortgage on immovable property situated at Nashik, Maharashtra unit of the Company.

** Buyer''s credit / External Commercial Borrowings are secured by guarantee of Indian Banks.

*** It represents bills discounted by bankers

TRADE PAYABLES*

* In terms of Section 22 of Micro, Small & Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to get registered under the Act. On communicating with them no enterprise has filed any registration certification with the Company. Hence, the disclosure of required information is not applicable.

CONTINGENT LIABILITIES

(Rs. in Lacs)

Sr. No. Particulars 2014 2013

i) Letter of Credit outstanding 876.94 2050.67

ii) Guarantees issued by the Bank on behalf of the Company 857.05 338.11

iii) Claims against the Company not acknowledged as debt 350.29 460.37

SEGMENT INFORMATION

i) Primary Segment Reporting

A. Primary business segments of the company are as under:

(a) Sheet Metal Components, Assemblies & Sub-assemblies - Segment manufactures components etc.

(b) Tool, Dies & Moulds - Segment manufactures Dies for Sheet Metal Segment or sells Dies.

B. Inter Segment Transfer Pricing

Inter Segment Prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, within an overall optimization objective for the company.

ii) Segment Revenues, Results and other information

* The Company uses forward exchange contracts and other derivative contracts to hedge against its foreign currency exposures relating to the underlying transactions on its capital and revenue account. The Company does not use these contracts for trading or speculative purpose.

iii. Defined Benefit Plans

a) Contribution to Gratuity Fund - Employee''s Gratuity Fund.

b) Leave Encashment/ Compensated Absence

* The Company has taken land on lease for a period of 35 years, admeasuring 9.579 acre under an agreement commencing w.e.f. 5th May, 2009 with Tata Motors Ltd. on an annual rent payable from the 3rd year onwards. The lease rent is being charged to revenue during the year. The lease rent as stipulated in the agreement shall increase periodically.

* Other Non Current Assets and Advance Recoverable in Cash or in Kind or for Value to be received includes Singur project relocation cost, which shall be recovered from Tata Motors Ltd. by way of amortization in sales.

* The Company has filed a writ petition with the Hon''ble High Court of Kolkatta,West Bengal for injunction restraining the Govt. of West Bengal for acting in terms of Singur Land rehabilitation and Development Act, 2011. The Division Bench of the Kolkatta High Court had held that the Singur Act was unconstitutional and had therefore struck down the Act. The State Government has challenged the said judgement of the Kolkatta High Court before the Hon''ble Supreme Court and the same is still pending. Meanwhile the Division Bench had granted a stay on the said order dated 21st June, 2012 which has also been extended by Supreme Court. By virtue of the order of stay, the State Government is still retaining the possession of the Singur land.

Pending finalization of the case, the company has not made any provision against advance given for the same.

* The Company was awarded a sum of Rs. 355.13 lacs in the arbitration proceedings against a trade receivable. The other party had appealed against the arbitration order in the Hon''ble Supreme Court of India and has deposited 50% of the said sum amounting to Mrs. 177.56 lacs in the form of interest bearing FDR''s till the finalization of appeal. The company filed an SAP in the hobble Supreme Court and got released amount deposited as FDR along with interest amounting to Rs. 231.02 lacs in 2012 with a direction that if ultimately the SLP is directed against the Company, then the Company has to refund the amount with interest.

In view of the same the effect of the same will be accounted for on the final settlement of the case.

* Consumption of Raw materials and Components has been computed by adding purchase to the opening stock and deducting closing stock verified physically by the management.

(a) Up to 31 st March, 2012 the exchange difference arising from long term foreign borrowings, to the extent they were regarded as an adjustment to interest cost, were treated as borrowing cost in terms of AS-16, "Borrowing costs". Pursuant to a clarification dated 9 August 2012 from the MCA, the Company has changed the accounting policy w.e.f. from 1st April 2011, to treat the same as " Foreign exchange fluctuation" accounted as per AS-11 " Effects of changes in Foreign Exchange Rates", instead of AS-16 " Borrowing Costs" This has resulted in to reversal of finance cost of Rs. 35.88 lacs/- and increase in depreciation by Rs. 6.91/- lacs in the previous year. The aforesaid change, resulting in net gain of Rs. 28.97/- lacs has been shown as exceptional items and has increased Basic/ Diluted EPS by Rs. 0.28/- in the previous year.

(b) The Company has decided to exercise the option provided in notification GSR No.914(E) dated 29-12-2011 issued by ministry of companies affairs regarding the treatment of exchange differences.

* Trade and Other Receivables and Payables are subject to confirmation.

* Previous year figures have been regrouped and/or rearranged wherever considered necessary.


Mar 31, 2013

NOTE:1 The Company has taken land on lease for a period of 35 years, admeasuring 9.579 acre under an agreement commencing w.e.f. 5th May, 2009 with Tata Motors Ltd. on an annual rent payable from the 3rd year onwards. The lease rent is being charged to revenue during the year. The lease rent as stipulated in the agreement shall increase periodically.

NOTE:2 Other Non Current Assets and Advance Recoverable in Cash or in Kind or for Value to be received includes Singur project relocation cost, which shall be recovered from Tata Motors Ltd. by way of amortization in sales.

NOTE:3 The Company has fled a writ petition with the Hon''ble High Court of Kolkatta,West Bengal for injunction restraining the Govt. of West Bengal for acting in terms of Singur Land rehabilitation and Development Act, 2011. The Division Bench of the Kolkatta High Court had held that the Singur Act was unconstitutional and had therefore struck down the Act. The State Government has challenged the said judgement of the Kolkatta High Court before the Hon''ble Supreme Court and the same is still pending. Meanwhile the Division Bench had granted a stay on the said order dated 21st June, 2012 which has also been extended by Supreme Court. By virtue of the order of stay, the State Government is still retaining the possession of the Singur land. Pending fnalization of the case, the company has not made any provision against advance given for the same.


Mar 31, 2012

Note: 1 Contingent Liabilities Rs.in Lacs

i) Letter of Credit outstanding 2862.82 1189.62

ii) Guarantees issued by the Bank on behalf of the Company 1055.86 1009.91

iii) Claims against the Company not acknowledged as debt 450.49 480.49

Note: 2 Retirement Benefits

The Company has calculated the benefits provided to employees as under:

iii. Defined Benefit Plans

a) Contribution to Gratuity Fund - Employee's Gratuity Fund.

b) Leave Encashment/ Compensated Absence

In accordance with Accounting Standard 15 (Revised 2005), the actuarial valuation carried out in respect of the aforesaid defined benefit plans is based on the following assumption:

Note: 3

Expansion project at Greater Noida unit, Uttar Pradesh and Faridabad unit, Haryana of the Company capitalized on 31st July 2011 and 17th October 2011 respectively.

Note: 4 Statement On Assets, Liabilities, Income & Expenses Of Joint Ventures

Details of the Company's share in the Joint Venture Assets, Liabilities, Income & Expenses as required by Accounting Standard 27 "Financial Reporting of Interest in Joint Venture" is as indicated below:

- The assets & liabilities and Income & Expenditure given above are on the basis of unaudited financial results of JBM MA Automotive Pvt. Ltd. and of Indo Tooling Pvt. Ltd.

Note: 5

The Company has taken land on lease for a period of 35 years, admeasuring 9.579 acre under an agreement commencing w.e.f. 5th May, 2009 with Tata Motors Ltd. on an annual rent payable from the 3rd year onwards. The lease rent will be charged to revenue in the year of incurrence. The lease rent as stipulated in the agreement shall increase periodically.

Note: 6

Other non current assets and advance recoverable in cash or in kind or for Value to be received includes Singur project relocation cost, which shall be recovered from Tata Motors Ltd. by way of amortization in sales.

Note: 7

On 22nd January, 2012, a fire occurred in the administration block of the Greater Noida unit, Uttar Pradesh of the Company. All the records, documents, computer system etc. were burnt. The aforesaid results have been compiled & audited on the basis of information available with the Company at its other locations / corporate office, which in the opinion of Auditors is reasonable and reliable. The Company has filed the insurance claim against the loss, which is pending for settlement. No provision has been made for the same. Any variation from insurance claim filed will be accounted for as and when it is realized.

Note: 8

The Company has filed a writ petition with the Hon'ble High Court of Kolkata, West Bengal for injunction restraining the Govt. of West Bengal for acting in terms of the Singur Land Rehabilitation And Development Act, 2011, which is being heard by Divisional Branch along with the appeals of TATA Motors Ltd. and their other vendors. Pending finalization of the case, the company has not made any provision against advance given for the same.

Note: 9

Consumption of Raw materials and Components has been computed by adding purchase to the opening stock and deducting closing stock verified physically by the management.

Note: 10

The Company has decided to exercise the option provided in notification GSR No. 914(E) dated 29-12-2011 issued by ministry of companies affairs regarding the treatment of exchange differences.

Note: 11

Trade and other receivables and payables are subject to confirmation.

Note: 12

Previous year figures have been regrouped and/ or rearranged wherever considered necessary.


Mar 31, 2010

1. Contingent liabilities:- (Rs. in Lacs)



Sr. Particulars 2010 2009 No. i) Letter of Credit outstanding 1234.84 719.32

ii) Guarantees issued by the Bank on behalf of the Company 374.61 271.00

ii) Claims against the Company not acknowledged as debt 474.41 231.32



2. Estimated amount of contracts remaining to be executed on capital account (Net of advances) not provided for Rs.1468.01 Lacs (Previous year Rs. 1451.06 Lacs).

3. During the year 50,00,000 (Fifty Lacs) 8% Non-Cumulative Redeemable preference shares of Rs 10/- each (Fully Paid-up) have been issued at a premium of Rs 50/- per share redeemable at the end of six years from the date of issue i.e. 26th Dec, 2009.

4. In terms of Section 22 of Micro, Small & Medium Enterprises Development Act 2006, the outstand- ing to these enterprises are required to be disclosed. However, these enterprises are required to get registered under the Act. On communicating with them no enterprise has fled any registration certifcation with the Company. Hence, the disclosure of required information is not applicable.

5. All the salvageable machinery and equipments of Singur projects have been/are being transferred to Sanand unit .Negotiations with Tata Motors Limited (TML) has been fnalized and facilitation agree- ment has been executed under which agreed relocation cost will be recovered by way of amortiza- tion in sales recoverable. Relocation amount to be recovered is included under the head ‘Advance recoverable in cash or in kind or for value to be received’.

6. Segment Information

i) Primary Segment Reporting

A. Primary business segments of the company are as under: -

(a) Sheet Metal Components, Assemblies & Sub-assemblies - Segment manufactures components etc.

(b) Tool, Dies & Moulds: Segment manufactures Dies for Sheet Metal Segment or sells Dies.

(c) Special Purpose Vehicle: Segment assembles and fabricates bodies of heavy vehicles

B. Inter Segment Transfer Pricing

Inter Segment Prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, within an overall optimization objective for the company.

7. Debtors and Creditors Balances are subject to confrmation.

8. Previous year fgures have been regrouped and/ or rearranged wherever considered necessary


Mar 31, 2009

1. Contingent liabilities:-

(Rs. In Lacs) Particulars 2009 2008

i) Letter of Credit outstanding 719.32 1397.39

ii) Guarantees issued by the Bank on behalf of the Company 271.00 0060.70

iii) Claims against the Company not acknowledged as debt 231.32 0231.32

2. Estimated amount of contracts remaining to be executed on capital account (Net of advances) not provided for Rs.1451.06 Lacs (Previous year Rs.821.06 Lacs].

3. In terms of Section 22 of Micro, Small & Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to get registered under the Act. On communicating with them no enterprise has fled any registration certifcation with the Company. Hence, the disclosure of required information is not applicable.

4. Consequent to the notifcation, issued by the Ministry of Corporate Affairs, amending the Accounting Standard (AS) 11 – The Effect of changes in Foreign Exchanges Rates, the exchange differences on foreign currency denominated long term borrowings relating to the acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange differences on other long term foreign currency monetary items is amortised over its tenor till maturity or March 31, 2011, whichever is earlier. Earlier such differences were recognized in the proft and Loss Account. As a result an amount of Rs. 104.38 lacs (Net of Deferred Tax Assets of Rs. 53.75 lacs) related to F.Y 2007-08 has been adjusted in General Reserve as on April 01,2008 and Proft before tax for the year ended March 31, 2009 is higher by Rs.327.61 lacs (net of tax Rs.216.25 lacs).

5. Consequent upon the decision of shifting of Automobile plant by M/s Tata Motors Limited from Singur (West Bengal) to Sanand (Gujrat), the Company has also in-principal decided to shift its Singur plant to the new location. The Company is shifting salvageable machinery and other equipments from Singur to its other locations. Based upon the Management assessment presently no provision is considered necessary to the carrying cost of capital work in progress. Consequential adjustment with regard to impairment, if any, of the above assets will be made as and when ascertained.

6. The Company has, during the year, entered into a Joint Venture Agreement with Ogihara Thailand Co. Ltd. to establish a unit at Bangalore for manufacture of products for Toyota Kirloskar Motors Pvt. Ltd. (TKM). The Company alongwith its associates will be holding 51% paid-up equity shares capital in the Joint Venture Company.

(1) JBM MA Automotive Pvt. Ltd. was incorporated on 12/12/2007 and Indo Toolings Pvt. Ltd on 22/02/2008 respectively and have closed their frst accounts on 31/03/2009 comprising period of 15 months & 20 days in case of JBM MA Automotive Pvt. Ltd. and 13 months & 8 days in case of Indo Toolings Pvt. Ltd. The results given above companies are of the said periods.

(2) The company does not have a subsidiary as on 31/03/2009. The above data is furnished in accordance with AS-27 on “Financial Reporting of Interests in Joint Ventures” as notifed under Companies (Accounting Standards) Rules, 2006.

7. The Company has sold the assets held in inventory to the Joint Venture Company (JBM MA Automotive Pvt. Ltd.). The Assets sold have been adjusted directly from the inventory. The remaining plant & machinery is carried forward in inventory. The borrowing cost for the same has been included in the carrying cost of inventory.

8. Exceptional items represent proft on sale of asset.

9. The Company uses derivative contracts to hedge the interest rates and currency risk on its capital account. The Company does not use these contracts for trading or speculative purpose.

10. Retirement Benefts

A The Company has calculated the benefts provided to employees as under-

Provident Fund

During the year the Company has recognized the following amounts in the Proft and Loss account:- Employers Contribution to Provident Fund* Rs.80.43 Lacs.

B. State Plans

Employers contribution to Employee State Insurance

During the year the Company has recognized the following amounts in the proft and loss accounts:- Employers contribution to Employee State insurance* Rs.8.27 Lacs.

*included in contribution to Provident and other funds under Employee Remuneration and Benefts (Refer schedule 9).

C. Defned Beneft Plans

a) Contribution to Gratuity Fund – Employees Gratuity Fund.

b) Leave Encashment/ Compensated Absence

15. Segment Information

i) Primary Segment Reporting

A. Primary business segments of the company are as under: -

(a) Sheet Metal Components, Assemblies & Sub-assemblies - Segment manufactures components etc.

(b) Tool, Dies & Moulds: Segment manufactures Dies for Sheet Metal Segment or sells Dies.

(c) Special Purpose Vehicle: Segment assembles and fabricates bodies of heavy vehicles.

B. Inter Segment Transfer Pricing

Inter Segment Prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, within an overall optimization objective for the company.

11. Related Party Disclosure

Associate --

Joint venture JBM MA Automotives Pvt. Ltd.

Indo Toolings Pvt. Ltd. JBM Ogihara Automotives Pvt. Ltd.

Enterprises over which key Jay Bharat Exhaust System Ltd.

management personnel and JBM Industries Ltd.

Their relatives are able to exercise Neel Metal Products Ltd.

Jay Bharat Maruti Ltd. signifcant infuence

Gurera Industries Limited

Key management personnel and their Mr. H. R. Saini, Executive Director relatives Ms. Esha Arya, Executive Director

Mr. S. K. Arya , Father of Ms. Esha Arya , Executive Director

12. Previous year fgures have been regrouped and/ or rearranged wherever considered necessary


Mar 31, 2003

1. Contingent liabilities not provided for:,

(Rs. In Lacs)

2003 2002

1.1 Guarantees issued by the Bank on behalf of the Company 123.87 313.34

1.2 Letter of Credit outstanding - 260.59

1.3 Claims for Excise Duty not acknowledged as debt by the Company 14.25 13.11

1.4 Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances). 36.03 -

2. Future obligation in respect of land taken on lease amounts to Rs. 249 lacs (previous year Rs.252 lacs)

3. a) Sundry Creditors includes Rs.22.03 lacs (Previous year Rs.36.07 lacs) due to Small Scale and /or Ancillary Industrial undertakings to the extent such parties have been identified from available information with the Company.

b) The names of Small Scale and Ancillary Industrial undertakings to whom the company owes dues outstanding for more than 30 days at the Balance Sheet date are:

Allied Ferro Industries, Ashoka Enterprises, Associated Industries, Atop Products Pvt. Ltd., Azad Wood Works, Bharat Box Makers & Printers, Bhartiya Insulations, C.K. Enterprises, Capital Rubber & Plastic Products, Champion Engineering Works, Chasaki, Cherian & Associates, Classic Pneumatics, Cozy International, D.P. Auto Industries, Godavari Industries, Gupta Instrument Works, Hyline Auto Industries, International Castings, B.S. Bindra Engineers, Kanika Metals, Khosla Engineering Works, Marksman Industries, Metal Treatment Centre, Minda Stampings, Modern Engineering Industries, NGR Metal Perforators, Salim Wood Works, SMS Filtron Pvt. Ltd., Suruchi Alloys Pvt. Ltd., Ultra Ferro Metal Pvt. Ltd., Vikram Fabricators, Vinay Trading Corporation, Yamuna Industries.

The above information and that given in Schedule 5 "Current Liabilities and Provisions" regarding Small Scale and Ancillary Industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

4. The Lease Hold Land at Faridabad is yet to be registered in the name of the Company. However, the Company has already obtained "No Objection Certificate" from lessor for change of name of the Company.

5. The Honble High Court of Delhi in the petition for demerger of JBM Tools Limited had directed that the shares of the Company be listed on National Stock Exchange, Delhi Stock Exchange and Bombay Stock Exchange of India. In accordance therewith the Company had filed an application which has not been approved by Delhi Stock Exchange Association Limited (DSE). The Company has preferred an appeal in the Honble High Court of Delhi against the decision.

6. The company has been advised that the computation of net profit for the purpose of remuneration to directors U/s 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the directors. Only fixed monthly remuneration has been paid to the Executive Director as per Schedule XIII of Companies Act, 1956.

7. Segment Information

i) Primary Segment Reporting

A. Primary business segments of the company are as under: -

(a) Sheet Metal Components, Assemblies & Sub-assemblies - Segment sells components etc. primarily to Original Equipment Manufacturers (OEM).

(b) Tool, Dies & Moulds: Segment manufactures Dies for Sheet Metal Segment or sells Dies.

B. Inter Segment Transfer Pricing

Inter Segment Prices are normally negotiated amongst the segments with reference to the costs, market prices and business risks, within an overall optimization objective for the company.

ii) Secondary Segment Reporting by Geographical Segments:

The Company is engaged in business in India only, which in the context of Accounting Standard (AS) 17- Segment Reporting issued by The Institute of Chartered Accountants of India (ICAI) is considered the only Geographical segment.

8. Previous year figures have been regrouped and/or rearranged wherever considered necessary.

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