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Notes to Accounts of Maharashtra Scooters Ltd.

Mar 31, 2023

On the basis of information requested from vendors with regards to their registration (filing of Memorandum) under ''The Micro,Small and Medium Enterprises Development Act ,2006(27 of 2006)''and in view of the terms of payaments not exceeding 45 days, which has been promptly paid, no liability exists as at 31 March 2023 and 31 March 2022 and hence no disclosures have been made in this regard.

According to the records available with the Company, dues payable to entities that are classified as the Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is C Nil (Previous year: C Nil). Further, no interest has been paid or was payable to such parties under the said Act during the year. Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company.

All above trade payables are undisputed.

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of C 10 per share. Each holder of equity shares is entitled to one vote per share. The interim dividend declared by the Board of Directors and the dividend proposed by the Board of Directors and approved by the shareholders in the annual general meeting is paid 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 shareholders.

Nature and purpose of reserve

General reserve : General reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013.

Equity instruments through other comprehensive income : The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated in FVTOCI reserve within equity. The Company transfers amounts from this reserve to retained earnings when relevant equity securities are derecognised.

31 Employee benefits

Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Ind AS 19 the details of which are as hereunder.

Funded schemes Gratuity

The Company provides for gratuity payments to employees. The gratuity benefit payable to the employees of the Company is greater of the provisions of the Payment of Gratuity Act, 1972 and the Company''s gratuity scheme. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The gratuity plan is a funded plan and the Company makes contributions to approved gratuity fund.

Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarises defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analysis.

Funding arrangement and policy

The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to insurance companies.

The insurance companies in turn manage these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The Company''s philosophy is to fund the benefits based on its own liquidity and tax position as well as level of under funding of the plan.

ii) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation techniques used to determine fair value

Valuation techniques used to determine fair value include

- Liquid mutual funds and certain bonds and debentures at NAV''s/rates declared and/or quoted.

- For other bonds and debentures values with references to prevailing yields to maturity matching tenures, quoted on sites of credible organisation such as ICRA (Invetment information and Credit Rating Agency).

- Commercial papers and certificate of deposits, being short term maturity papers, amortised cost is assumed to be the fair value .

35 Financial risk management

The Company operates, at present, only in India. Whilst risk is inherent in the Company''s activities, it is managed through a risk management framework, including ongoing identification, measurement and monitoring subject to risk limits and other controls. The Company''s activities expose it to credit risk, liquidity risk and market risk.

This note explains the sources of risk which the Company is exposed to and how the entity manages the risk.

The Board of Directors provide guiding principles for overall risk management, as well as policies covering specific areas, such as, credit risk, liquidity risk, and investment of available funds. The Company''s risk management is carried out by its Risk Management Committee as per such policies approved by the Board of Directors. Accordingly, Company''s Risk Management Committee identifies, evaluates and manages financial risks.

A. Credit risk

Credit risk refers to the risk that a counterparty may default on its contractual obligations leading to a financial loss to the Company. Credit risk primarily arises from cash equivalents, financial assets measured at amortised cost, financial assets measured at FVTPL and trade receivables.

Credit risk management

In regard to Trade receivables, which are typically unsecured, credit risk is managed through credit approvals, establishing credit limit and continuously monitoring the credit worthiness of customers to whom credit is extended (substantially through debt securities) in the normal course of business.

With regards to financial assets represented substantially by investments, the Company has an investment policy which allows the Company to invest only with counterparties having a credit rating equal to or above AA and P1 . The Company reviews the creditworthiness of these counterparties on an on-going basis. Counter party exposure limits maybe updated as and when required, subject to approval of Board of Directors.

B. Liquidity risk

The Company''s principal sources of liquidity are ''cash and cash equivalents, investments in money market instruments'' and cash flows that are generated from operations. The Company believes that its working capital is sufficient to meet the financial liabilities within maturity period.

C. Other risk (Market risk)

The Company has deployed its surplus funds in debt and money market instruments (including through funds). The Company is exposed to price risk on such investments; which arises on account of movement in interest rates, liquidity and credit quality of underlying securities.

As an unregistered CIC, the Company must invest at least 90% of its net assets in Group companies, of which at least 60% must be through equity investments. Therefore 10% of its net assets are currently invested in liquid fixed income securities such as certificate of deposits and liquid mutual funds to ensure adequate liquidity is available. Hence temporary market volatility, if any is not considered to have material impact on the carrying value of these Investments. Nevertheless, the Company has invested its surplus funds primarily in debt instruments of its subsidiary with CRISIL AAA and STABLE A1 rating and thus the Company does not have significant risk exposure.

36 Capital management a) Risk management

The Company is cash surplus and has no capital other than Equity. The Company is not exposed to any regulatory imposed capital requirements.

The cash surpluses are currently invested in income generating debt instruments (including through mutual funds) and money market instruments depending on economic conditions in line with the guidelines set out by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

38 Analytical ratios

The Company is termed as an Unregistered Core Investment Company (CIC) as per Reserve Bank of India Guidelines dated 25 August 2016 (last updated 26 December 2022) and is not exposed to any regulatory imposed capital requirements. Thus, the following analytical ratios are not applicable to the Company:

1. Capital to risk-weighted assets ratio (CRAR)

2. Tier I CRAR

3. Tier II CRAR

4. Liquidity Coverage Ratio

39 Other notes

a. The Company has performed an assessment to identify transactions with struck off companies as at 31 March 2023 and no such company was identified.

b. No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of

the Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

c. No funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

e. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

40 Miscellaneous

There have been no events after the reporting date that require disclosure in these financial statements.

Previous year figures have been regrouped wherever necessary.

The accompanying notes are an integral part of the financial statements


Mar 31, 2022

On the basis of information requested from vendors with regards to their registration (filing of Memorandum) under ''The Micro,Small and Medium Enterprises Development Act ,2006(27 of 2006) ''and in view of the terms of payaments not exceeding 45 days ,which has been promptly paid,no liability exists as at 31 March 2022 and 31 March 2021 and hence no disclosures have been made in this regard.

According to the records available with the Company, dues payable to entities that are classified as the Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is ? Nil (Previous Year: ? 11.13 lakh) . Further, no interest has been paid or was payable to such parties under the said Act during the year. Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company.

Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Accounting Standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation techniques used to determine fair value

Valuation techniques used to determine fair value include

• Liquid mutual funds and certain bonds and debentures at NAV''s/rates declared and/or quoted.

• For other bonds and debentures values with references to prevailing yields to maturity matching tenures, quoted on sites of credible organisation such as ICRA (Investment Information and Credit Rating Agency).

• Commercial papers and certificate of deposits, being short term maturity papers, amortised cost is assumed to be the fair value

The carrying amounts of commercial papers, certificate of deposits, trade receivables, trade payables, other financial assets/liabilities, loans and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

28 Financial risk management

The Company''s activities expose it to liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial statements.

The Board provides guiding principles for overall risk management, as well as policies covering specific areas, such as credit risk and investment of surplus liquidity. The Company''s risk management is carried out by finance department as per the policies approved by the Board of Directors.

Credit risk

Credit risk arises from cash and cash equivalents, financial assets measured at amortised cost and fair value through profit or loss and trade receivables.

Credit risk management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having credit rating equal to or above AA and P1 . The Company reviews the creditworthiness of these counterparties on an on-going basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss on the basis of past data and experience. Expected credit losses of financial assets

receivable in the next 12 months are estimated on the basis of historical data provided the Company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further provision than that already made is considered necessary.

Review of outstanding trade receivables and financial assets are carried out by Management at every month end. The Company has a practice to provide for doubtful debts on a case to case basis after considering inter-alia customer''s credibility etc. Provision is made in the books generally, for all outstanding trade receivables which are outstanding for more than 180 days from their due date, if they are considered to be doubtful.

Liquidity risk

The Company''s principal source of liquidity are ''cash and cash equivalents, investments in money market instruments and cash flows that are generated from operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the Company does not perceive any liquidity risk.

29 Capital Management a) Risk management

The Company is cash surplus and has no capital other than Equity. The Company is not exposed to any regulatory imposed capital requirements.

The cash surpluses are currently invested in income generating debt instruments (including through mutual funds) and money market instruments depending on economic conditions in line with the guidelines set out by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

33 Employee benefits

Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Ind AS 19 the details of which are as hereunder.

Funded schemes Gratuity :

The Company provides for gratuity payments to employees. The gratuity benefit payable to the employees of the Company is greater of the provisions of the Payment of Gratuity Act, 1972 and the Company''s gratuity scheme. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The gratuity plan is a funded plan and the Company makes contributions to approved gratuity fund.

Sensitivity Analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarises defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analysis.

Funding arrangement and policy

The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to insurance companies. The insurance companies in turn manage these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations.

There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The Company''s philosophy is to fund the benefits based on its own liquidity and tax position as well as level of under funding of the plan.

The expected contribution payable to the fund under the plan next year is ? 13.00 lakh

The compensated absences cover the Company''s liability for earned leave.

Entire amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

a. The Company has performed an assessment to identify transactions with struck off companies as at 31 March 2022 and no such company was identified.

b. No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

c. No funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

d. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

e. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

36 Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2019

1.Financial risk management

The company''s activities expose it to liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial statements

The board provides guiding principles for overall risk management, as well as policies covering specific areas, such as credit risk and investment of surplus liquidity. The Company''s risk management is carried out by finance department as per the policies approved by the board of directors.

Credit risk

Credit risk arises from cash and cash equivalents, financial assets measured at amortized cost and fair value through profit or loss and trade receivables.

Credit Risk Management

For financial assets the company has an investment policy which allows the company to invest only with counterparties having credit rating equal to or above AA and P1 . The company reviews the creditworthiness of these counterparties on an on-going basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The company estimates the expected credit loss on the basis of past data and experience. Expected credit losses of financial assets receivable in the next 12 months are estimated on the basis of historical data provided the company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further provision than that already made is considered necessary.

Review of outstanding trade receivables and financial assets are carried out by management at every month end. Company has a practice to provide for doubtful debts on a case to case basis after considering inter-alia customer''s credibility etc. Provision is made in the books generally, for all outstanding trade receivables which are outstanding for more than 180 days from their due date, if they are considered to be doubtful.

Liquidity Risk

The company''s principal source of liquidity are “cash and cash equivalents” and cash flows that are generated from operations. The company has no outstanding term borrowings. The company believes that its working capital is sufficient to meet its current requirements. Additionally, the company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the company does not perceive any liquidity risk.

2.Capital management

a) Risk management

The Company is cash surplus and has no capital other than Equity. The Company is not exposed to any regulatory imposed capital requirements. The cash surpluses are currently invested in income generating debt instruments (including through mutual funds) and money market instruments depending on economic conditions in line with the guidelines set out by the management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

The Company does not have any borrowings and does not borrow funds unless circumstances require.

Funding arrangement and policy

The money contributed by the Company to the fund to finance the liabilities of the plan has to be invested.

The trustees of the plan have outsourced the investment management of the fund to insurance companies. The insurance companies in turn manage these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations.

There is no compulsion on the part of the Company to fully pre fund the liability of the Plan. The Company''s philosophy is to fund the benefits based on its own liquidity and tax position as well as level of underfunding of the plan.

The expected contribution payable to the plan next year is Rs, 11.00 Lakhs

The compensated absences cover the Company''s liability for earned leave.

Entire amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

Name of the related party and nature of the related party relationship where control exists have been disclosed irrespective of whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there have been transactions with those parties. Related parties as defined under clause 9 of the Ind As 24 "Related Party Disclosures" have been identified based on representations made by key managerial personnel and information available with the company.

All above transactions are in ordinary course of business and on arms'' length basis. All outstanding balances are unsecured and are repayable in cash.

3. According to the records available with the Company, dues payable to entities that are classified as the Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is '' Nil (Previous Year: '' Nil) . Further, no interest has been paid or was payable to such parties under the said Act during the year. Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company.

4. Previous year figures

Post the applicability of GST with effect from 1 July 2017, revenue from operations ( i.e. Sales ) are required to be disclosed net GST. Sales before this date are disclosed as gross of excise duty. Accordingly, revenue from operations for the current year is not comparable with the previous year.

5. Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2018

1. Employee benefits

a) Privilege leave entitlements

Privilege leave entitlements are recognized as a liability, in the calendar year of rendering of service, as per the rules of the Company. As accumulated leave can be availed and/or encased at any time during the tenure of employment, subject to terms and conditions of the scheme, the liability is recognized at higher of the actual accumulated obligation or actuarially determined valuation.

b) Gratuity

Payment for present liability of future payment of gratuity is being made to approved gratuity fund, which fully covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India (LIC). However, any deficit / surplus in plan assets managed by LIC as compared to the liability on the basis of an independent actuarial valuation is recognized as a liability / asset.

The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method in conformity with the principles and manner of computation specified in Ind AS 19.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

c) Superannuation

Defined contribution to superannuation fund is being made as per the scheme of the Company.

d) Provident fund contributions are made to Company''s Provident Fund Trust. The contributions are recognized as employee benefit expense when they are due.

e) Defined contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority.

2. Taxation

a) Provision for tax is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income-tax Act, 1961 and the Income Computation and Disclosure Standards prescribed therein. Excess/short provisions and interest thereon are recognized only on completion of assessment and where adjustments made by the Assessing Officer are disputed, on receiving the ''Order Giving Effect ‘to the tax determined by the CIT (Appeals) and thereafter on final settlement of further disputes.

b) Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred taxes are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.

3. Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation such as product warranty costs. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

4. Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

5 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

6. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period. The weighted average number of equity shares outstanding during the period and all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

7. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Management which includes the Chairman/Director. The Management examines performance of the identified two operative reportable segments from which significant risks and rewards are derived viz. Manufacturing business and Investments.

(a) At cost, except leasehold land which is at cost, less amounts written off.

(b) On transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognized as at 1 April 2016, measured as per previous GAAP, which in case of the company, corresponds with carrying cost measured in accordance with Ind AS 16 property, plant and equipment. As on 1 April 2016 gross block and accumulated depreciation was Rs, 3054.80 Lakhs and Rs, 2337.28 Lakhs respectively.

(a) At cost, except leasehold land which is at cost, less amounts written off.

(b) On transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognized as at 1 April 2016, measured as per previous GAAP, which in case of the company, corresponds with carrying cost measured in accordance with Ind AS 16 property, plant and equipment. As on 1 April 2016 gross block and accumulated depreciation was Rs, 3054.80 Lakhs and Rs, 2337.28 Lakhs respectively.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs, 10 per share. Each holder of equity shares is entitled to one vote per share. The interim dividend declared by the Board of Directors and the dividend proposed by the Board of Directors and approved by the shareholders in the annual general meeting is paid 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 shareholders.

ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets. Quotes would include rates/values/valuation references published periodically by BSE, NSE etc. basis which trades take place in a linked or unlinked active market. This includes traded bonds and mutual funds, as the case may be, that have quoted price/rate/value.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data (either directly as prices or indirectly derived from prices) and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Valuation Techniques used to determine fair value Valuation Techniques used to determine fair value include

- Liquid mutual funds and certain bonds and debentures at NAV''s/rates declared and/or quoted

- For other bonds and debentures values with references to prevailing yields to maturity matching tenures, quoted on sites of credible organisation such as FIMMDA (Fixed Income Money Market and Derivative Association of India)

- Commercial papers and certificate of deposits, being short term maturity papers, amortized cost is assumed to be the fair value

The carrying amounts of commercial papers, certificate of deposits, trade receivables, trade payables, other financial assets/liabilities, loans and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

The board provides guiding principles for overall risk management, as well as policies covering specific areas, such as credit risk and investment of surplus liquidity. The Company''s risk management is carried out by finance department as per the policies approved by the board of directors.

A) Credit risk

Credit risk arises from cash and cash equivalents, financial assets measured at amortized cost and fair value through profit or loss and trade receivables.

Credit Risk Management

For financial assets the company has an investment policy which allows the company to invest only with counterparties having credit rating equal to or above AA and P1 . The company reviews the creditworthiness of these counterparties on an on-going basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The company estimates the expected credit loss on the basis of past data and experience. Expected credit losses of financial assets receivable in the next 12 months are estimated on the basis of historical data provided the company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further provision than that already made is considered necessary.

Review of outstanding trade receivables and financial assets are carried out by management at every month end. Company has a practice to provide for doubtful debts on a case to case basis after considering inter-alia customer''s credibility etc. Provision is made in the books generally, for all outstanding trade receivables which are outstanding for more than 180 days from their due date, if they are considered to be doubtful.

Liquidity Risk

The company''s principal source of liquidity are "cash and cash equivalents" and cash flows that are generated from operations. The company has no outstanding term borrowings. The company believes that its working capital is sufficient to meet its current requirements. Additionally, the company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the company does not perceive any liquidity risk.

8 The company has been classified as a Core Investment Company, not requiring registration with RBI pursuant to the provisions of Section 45-IA of the RBI Act, 1934, and thus is exempted from the requirement of registration with Reserve Bank of India under Section 45 -IA of the Reserve Bank of India Act, 1934.

9 Amount of borrowing costs capitalized as per Ind AS 23 during the year was Nil.

10.EMPLOYEE BENEFITS

Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Ind AS 19 the details of which are as hereunder.

Funded schemes

Gratuity :

The Company provides for gratuity payments to employees. The gratuity benefit payable to the employees of the Company is greater of the provisions of the Payment of Gratuity Act, 1972 and the Company''s gratuity scheme. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The gratuity plan is a funded plan and the Company makes contributions to approved gratuity fund.

Sensitivity Analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other relevant factors, such as demand and supply in the employment market.

Name of the related party and nature of the related party relationship where control exists have been disclosed irrespective of whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there have been transactions with those parties.

Related parties as defined under clause 9 of the Ind As 24 "Related Party Disclosures" have been identified based on representations made by key managerial personnel and information available with the company.

All above transactions are in ordinary course of business and on arms'' length basis. All outstanding balances are unsecured and are repayable in cash.

11. According to the records available with the Company, dues payable to entities that are classified as the Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is Rs, Nil (Previous Year: Rs, Nil) . Further, no interest has been paid or was payable to such parties under the said Act during the year. Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company.

12. Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2017

1. In the previous year, employee benefits expense include Rs,169.51 Lakhs towards expenses incurred for early retirement opted by 12 employees, as against NIL in the current year.

2. The Company has been classified as a Core Investment Company, not requiring registration with RBI pursuant to the provisions of section 45-IA of the RBI Act, 1934, and thus is exempted from the requirement of registration with Reserve Bank of India under section 45 -IA of the Reserve Bank of India Act, 1934.

3. Amount of borrowing costs capitalized as per Accounting Standard 16 during the year was Nil.

4. The Company is operating in a single segment. Hence, no separate segment wise information is given.

5. Disclosure of transactions with related parties as required by the Accounting Standard -18:

Name of the related party and nature of the related party relationship where control exists have been disclosed irrespective of whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there have been transactions with those parties.

Related parties as defined under clause 3 of the Accounting Standard - 18 "Related Party Disclosures" have been identified based on representations made by key managerial personnel and information available with the Company.

6. In view of the uncertainty in utilizing the carried forward business loss as per Income Tax Act 1961, as a prudent measure, the Company has not recognized cumulative net deferred tax asset amounting to Rs, 1,362 Lakhs arising on this account (previous year Rs, 1,361 Lakhs).

7. According to the records available with the Company, dues payable to entities that are classified as the Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is Rs, Nil (Previous Year: Rs, Nil). Further, no interest has been paid or was payable to such parties under the said Act during the year. Dues to micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company. This has been relied upon by the auditors.

8. Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2016

1 Employee benefits expense include Rs. 169.51 Lakhs towards expenses incurred for early retirement opted by 12 employees, as
against Rs. 10 Lakhs for 2 employees in the previous year.

2 During the year company received a letter dated December 22, 2015 from Reserve Bank of India confirming that the company
qualifies as a Core Investment Company, exempt from requirement of registration with Reserve Bank of India under Section 45 -IA
of the Reserve Bank of India Act, 1934.

3 Amount of borrowing costs capitalised as per Accounting Standard 16 during the year was Nil.

4 The Company is operating in a single segment. Hence, no separate segmentwise information is given.

5 Disclosure of transactions with related parties as required by the Accounting Standard -18:

Name of the related party and nature of the related party relationship where control exists have been disclosed irrespective of
whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there
have been transactions with those parties.

Related parties as defined under clause 3 of the Accounting Standard - 18 "Related Party Disclosures" have been identified based
on representations made by key managerial personnel and information available with the company.

6 In view of the uncertainty in utilising the carried forward business loss as per Income Tax Act 1961, as a prudent measure,
the Company has not recognised cumulative net deferred tax asset amounting to Rs. 1361 Lakhs arising on this account (previous
year Rs. 1766 Lakhs).

7 According to the records available with the Company, dues payable to entities that are classified as the Micro and Small
Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is Rs. Nil (Previous Year: Rs.
Nil). Further, no interest has been paid or was payable to such parties under the said Act during the year. Dues to micro, small
and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected
by the Company. This has been relied upon by the auditors.

8 Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2015

1 Contingent liabilities

a Claims against the Company not acknowledged as debts 4.07 3.97

b Excise and Customs demand - matters under dispute and Claims for refund of Excise Duty, if any, against Excise Duty Refund received in the earlier year 20.29 20.29

c Sales Tax matters under dispute 1,038.95 320.69

d Income-Tax matters under dispute

i) Appeal by Company - -

ii) Appeal by Department 39.84 42.08

39.84 42.08

No provision has been made, since the Company expects favourable decision.

2 Amount of borrowing costs capitalised as per Accounting Standard 16 during the year was Nil.

3 The Company is operating in a single segment. Hence, no separate segmentwise information is given.

4 Disclosure of transactions with related parties as required by the Accounting Standard 18.

Name of the related party and nature of the related party relationship where control exists have been disclosed irrespective of whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there have been transactions with those parties.

Related parties as defined under clause 3 of the Accounting Standard - 18 "Related Party Disclosures" have been identified based on representations made by key managerial personnel and information available with the company.

5 In view of the uncertainty in utilising the carried forward business loss as per Income Tax Act 1961, as a prudent measure, the Company has not recognised cumulative net deferred tax asset amounting to Rs.1766 lacs arising on this account (previous year Rs. 1958 lacs).

6 Liability for gratuity has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (revised) the details of which are as hereunder:

Note: The Company has fully funded the Group Gratuity policy of Life insurance Corporation of India, to pay the expenditure required to settle a defined benefit obligation. As such the fair value of insurance policy is deemed to be present value of the related defined benefit obligation.

7 Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2014

1 Contingent liabilities

a Claims against the Company not acknowledged as debts 3.97 3.88

b Excise and Customs demand - matters under dispute and Claims for refund of Excise Duty, if any, against Excise Duty Refund received in the earlier year 20.29 20.29

c Sales Tax matters under dispute * 320.69 320.69

d Income-Tax matters under dispute

i) Appeal by Company * - -

ii) Appeal by Department 42.08 42.08

42.08 42.08

* No provision has been made, since the Company expects favourable decision.

2 Capital and other commitments

Capital commitments, net of capital advances 1.74 -

3 Value of Imports calculated on CIF basis

Capital goods 84.52 94.90

4 Imported and indigenous raw materials, boughtout items consumed Entire raw material and bought out items consumed are indigenous.

5 Amount of borrowing costs capitalised as per Accounting Standard 16 during the year was Nil.

6 The Company is operating in a single segment. Hence, no separate Segment wise information is given.

7 In view of the uncertainty in utilising the carried forward business loss as per Income Tax Act 1961, as a prudent measure, the Company has not recognised cumulative net deferred tax asset amounting to Rs.19.58 crores arising on this account.

8 These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Consequent to the clarification from the Ministry of Corporate Affairs, vide General Circular 08/2014 dated 4 April 2014, these financial statements have been prepared in accordance with the relevant provisions/Schedules/Rules of the Companies Act, 1956. Accordingly, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

9 Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2013

A Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid 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 amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

* Current year expenses includes Rs. 45.11 Lacs paid to Maharashtra Scooters Consumers'' Co-operative Society Ltd on account of reimbursement of early retirement of employees working in Canteen.

No Managerial remuneration under section 198 of the Companies Act, 1956, is paid or payable to Shri Ranjit Gupta, ''Manager'' of the Company. Shri Ranjit Gupta is on deputation from Bajaj Holidings & Investment Limited.

1 Earning per share (EPS)

Earnings per share is calculated by dividing the profit attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year. The numbers used in calculating basic and diluted earnings are stated below :

2 Contingent liabilities

a Claims against the Company not acknowledged as debts 3.88 3.79

b Excise and Customs demand - matters under dispute and Claims for refund of Excise Duty, if any, against Excise Duty Refund received in the earlier year 20.29 20.29

c Sales Tax matters under dispute * 320.69 320.69

d Income-Tax matters under dispute

i) Appeal by Company * - 25.25

ii) Appeal by Department 42.08 315.62

42.08 340.87

* No provision has been made, since the Company expects favourable decision.

3 Imported and indigenous raw materials, boughtout items consumed Entire raw material and boughtout items consumed are indigenous.

4 Amount of borrowing costs capitalised as per Accounting Standard 16 during the year was Nil.

5 The Company is operating in a single segment. Hence, no separate segmentwise information is given.

6 In view of the uncertainty in utilising the carried forward business loss as per Income Tax Act 1961, as a prudent measure, the Company has not recognised net deferred tax asset arising on this account.

Note: The Company has fully funded the Group Gratuity policy of Life insurance Corporation of India, to pay the expenditure required to settle a defined benefit obligation. As such the fair value of insurance policy is deemed to be present value of the related defined benefit obligation.

7 Previous year figures

Previous year figures have been regrouped wherever necessary.


Mar 31, 2012

A Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors and approved by the shareholders in the Annual General Meeting is paid 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 amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

1 Exceptional items

Expenditure on Voluntary Retirement Scheme

The Company had announced Voluntary Retirement Schemes (VRS) for its workmen on 6th June, 2011 and on 7th November, 2011 and for staff on 1st December, 2011. In response to the Schemes, a total of437 employees opted for the same. The company has incurred a total expenditure of Rs. 5839.45 lacs on the said schemes. In compliance with the provisions of the Accounting Standard-15 'Employees Benefits' the entire amount of Rs. 5839.45 lacs is charged to the Statement of Profit & Loss in the current financial year.

2 Contingent liabilities

a Claims against the Company not acknowledged as debts 3.79 3.69

b Excise duty matters under dispute 20.29 20.29

c Sales Tax matters under dispute * 320.69 320.69

d Income-Tax matters under dispute

i) Appeal by Company * 25.25 25.25

ii) Appeal by Department 315.62 577.08 340.87 602.33

* No provision has been made, since the Company expects favorable decision.

3 Capital and other commitments Capital Commitments, net of capital advances 67.63 -

4 Imported and indigenous raw materials, bought out items consumed Entire raw material and bought out items consumed are indigenous.

5 Amount of borrowing costs capitalized as per Accounting Standard 16 during the year was Nil.

6 The Company is operating in a single segment. Hence, no separate Segment wise information is given.

C. Amount written-off or written-back in respect of debts due from or to related parties is Nil.

7 In view of the uncertainty in utilizing the carried forward business loss as per Income Tax Act 1961, as a prudent measure, the Company has not recognized net deferred tax asset arising on this account.

8 Liability for gratuity has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (revised) the details of which are as hereunder:

9 Previous year figures

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

2009-10 2008-09 Rupees Rupees

1. Contingent Liabilities not provided for

(a) Claims against the Company not acknowledged as debts 360,725 351,230

(b) Excise duty matters under dispute 2,028,547 2,028,547

(c) Income-Tax matters under dispute

i) Appeal by Company - 7,221,506

ii) Appeal by Department 59,325,072 38,599,963

Total of (c) 59,325,072 45,821,469

(d) Sales Tax matters under dispute - Appeal by Company* 29,639,858 29,835,519

* No provision has been made, since the Company expects favourable decision.

2. No Managerial remuneration under section 198 of the Companies Act, 1956, is paid or payable to Shri Ranjit Gupta, Manager of the Company. Shri Ranjit Gupta is on deputation from Bajaj Finserv Limited.

3. C.I.F. Value of Imports and Expenditure in Foreign Currency

4. Depreciation on fixed assets has been calculated on a single shift basis in the current year.

5. Amount of borrowing costs capitalised as per Accounting Standard 16 during the year was Nil.

6. The Company is operating in a single segment. Hence, no separate segmentwise information is given.

7. Related Party disclosures in accordance with Accounting Standard 18.

(A) Related Parties and nature of relationship

Sr. No. Name of Related Party Nature of relationship

1. Bajaj Holdings & Investment Ltd. Promoter Company holding 24% of equity capital

2. Western Maharashtra Development Corporation Ltd. Promoter Company holding 27% of equity capital

3. Shri Ranjit Gupta Key Management Personnel

8. In view of the uncertainty in utilising the carried forward business loss as per Income Tax Act 1961, as a prudent measure, the Company has not recognised net deferred tax asset arising on this account.

9. In absence of any intimation from the vendors with regard to their registration (filing of Memorandum) under "The Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006)" and in view of the terms of payments not exceeding 45 days, no liability exists at the close of the year and hence no disclosures have been made in this regard.

10. Previous years figures have been regrouped wherever necessary.

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