Notes to Accounts of Automobile Corporation Of Goa Ltd.

Mar 31, 2025

c. Provisions and contingencies

A provision is recognised where the Company has a
present obligation (Legal and constructive) as a result of

a past event, for which it is probable that cash outflow
wiLL be required and a reLiabLe estimate can be made
of the amount of the obLigation. A Contingent LiabiLity is
discLosed when the Company has a possibLe obLigation
that arising from past events and whose existence will
be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not whoLLy within
the control of the entity or present obligation arising from
past events where it is not probabLe that an outfLow of
resources will be required to settle it or the amount of the
obLigation cannot be measured with sufficient reLiabiLity.
Provisions, contingent LiabiLities and contingent assets
are reviewed at each Balance Sheet date.

d. Income taxes

The income tax expense or credit for the period is the tax
payable on the current period''s taxable income based
on the applicable income tax rate for each jurisdiction
adjusted by changes in deferred tax assets and LiabiLities
attributabLe to temporary differences and to unused tax
losses. The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where
the Company operate and generate taxabLe income.
Management periodically evaluates positions taken in
tax returns with respect to situations in which appLicabLe
tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities. Deferred
income 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 standaLone financiaL statements. Deferred income
tax is determined using tax rates (and Laws) that have
been enacted or substantiaLLy enacted by the end of
the reporting period and are expected to appLy when
the reLated deferred income tax asset is reaLised or the
deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax Losses onLy if it is
probabLe that future taxabLe amounts wiLL be avaiLabLe to
utiLise those temporary differences and Losses. Deferred
tax assets and LiabiLities are offset when there is a
LegaLLy enforceabLe right to offset current tax assets and
liabilities and when the deferred tax balances when they
reLate to taxation Levied by the same taxation authority.
Current tax assets and tax LiabiLities are offset where
the entity has a LegaLLy enforceabLe right to offset and
intends either to settLe on a net basis, or to reaLise the
asset and settLe the LiabiLity simuLtaneousLy. Current
and deferred tax is recognised in profit or Loss, except
to the extent that it reLates to items recognised in other
comprehensive income or directLy in equity. In this case,

the tax is also recognised in other comprehensive income
or directly in equity, respectively.

e. Inventories

Inventories are measured at the Lower of cost and net
realisable value. The cost of inventories is based on the
weighted average cost basis and incLudes expenditure
incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing
them to their present Location and condition. In the case
of raw materiaLs, cost comprises of cost of purchase. In
the case of finished goods and work in progress, cost
incLudes an appropriate share of production overheads
based on normal operating capacity. Net realisable
vaLue is the estimated seLLing price in the ordinary course
of business, Less estimated costs of compLetion and the
estimated costs necessary to make the sale. The net
realisable value of work-in-progress is determined with
reference to the seLLing prices of reLated finished goods.
Raw materiaLs, components and other suppLies heLd for
use in the production of finished products are not written
down beLow cost except in cases when a decLine in the
price of materiaLs indicates that the cost of the finished
products shaLL exceed the net reaLisabLe vaLue.

Items of inventory are valued on the basis given below;

i. Raw Material, Bought out components, Stores and
Spares: at cost or net realizable value, whichever is
Lower. Cost is determined by the weighted average
method.

ii. Work in progress and Finished goods: at cost or
net realizable value, whichever is lower. Cost is
determined on the basis of absorption costing.

iii. Scrap: at net reaLizabLe vaLue.

f. Property, plant and equipment

The cost of an item of property, plant and equipment
shaLL be recognised as an asset if, and onLy if it is
probabLe that future economic benefits associated with
the item will flow to the company and the cost of the item
can be measured reliably. Property, plant and equipment
are stated at cost of acquisition or construction Less
accumulated depreciation. All cost relating to the
acquisition and instaLLation of Property, pLant and
equipment are capitaLised and incLude financing cost
relating to borrowed funds attributable to construction or
acquisition of fixed assets, upto the date the asset is ready
for intended use. Subsequent expenditure is capitaLised
onLy if it is probabLe that the future economic benefits
associated with the expenditure will flow to the Company
and the cost of the item can be measured reliably. Any
gain or Loss on disposaL of an item of property, pLant and
equipment is recognised in profit or Loss.

Depreciation is provided on the Straight Line Method
(SLM) over the estimated useful lives of the assets
considering the nature, estimated usage, operating
conditions, past history of repLacement, anticipated
technological changes, manufacturers'' warranties and
maintenance support. Taking into account these factors,
the Company have decided to retain the usefuL Life
hitherto adopted for various categories of fixed assets,
which are different from those prescribed in ScheduLe II
of the Act as under:

Depreciation on capitaL work-in-progress is recorded
upon compLetion of construction and instaLLation of the
asset and once the asset is ready for its intended use.
CapitaL advances given is recognized as capitaL work-
in-progress to the extent the work is compLeted and
biLLed. The residuaL vaLue and the usefuL Life of an asset
is reviewed at the end of each financiaL year and upon
change in estimates, the change(s) are accounted for as,
a change in an accounting estimate in accordance with
Ind AS 8, ''Accounting Policies, Accounting Estimates and
Errors''. The carrying vaLue recorded in the baLance sheet
as at year end accounts for impairment Losses, if any
basis ''accounting estimates and errors''.

g. Other intangible assets

The cost of an item of intangible assets shall be
recognised as an asset if, and onLy if it is probabLe that
future economic benefits associated with the item
wiLL fLow to the company and the cost of the item can
be measured reLiabLy. Other intangibLe assets in the
nature of computer software are stated at cost Less
accumuLated amortisation. Computer software are
amortised over 4 years being their estimated useful
Life on straight Line methods. ALL cost reLating to the
acquisition and instaLLation of assets are capitaLised
and incLude financing cost reLating to borrowed funds
attributabLe to construction or acquisition of assets, upto
the date the asset is ready for intended use. Subsequent

expenditure is capitalised only if it is probable that the
future economic benefits associated with the expenditure
will flow to the Company and the cost of the item can
be measured reliably. Any gain or loss on disposal of
an item is recognised in profit or loss. carrying value
recorded in the balance sheet as at year end accounts
for impairment losses, if any basis ''accounting estimates
and errors''.

h. Impairment of non-financial assets

For impairment testing, assets are grouped together into
the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the
cash inflows of other assets or CGUs. The recoverable
amount of an individual asset or CGU is the greater of
its value in use and its fair value less costs of disposal.
Value in use is based on the estimated future cash flows,
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset or CGU.
Non-financial assets are evaluated for recoverability
whenever there is any indication that their carrying
amounts may not be recoverable. If any such indication
exists, the recoverable amount (i.e. higher of the fair value
less cost to sell and the value-in-use) is determined
on an individual asset basis unless the asset does not
generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable
amount is determined for the cash generating unit (CGU)
to which the asset belongs. In respect of assets for which
impairment loss has been recognised in prior periods,
the Company reviews at each reporting date whether
there is any indication that the loss has decreased or no
longer exists. An impairment loss is reversed if there has
been a change in the estimates used to determine the
recoverable amount. Such a reversal is made only to the
extent that the asset''s carrying amount does not exceed
the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss
had been recognised. If the recoverable amount of an
asset (or CGU) is estimated to be less than its carrying
amount, the carrying amount of the asset (or CGU) is
reduced to its recoverable amount. An impairment loss is
recognized in the statement of profit or loss.

i. Financial instruments

(i) Recognition: A financial instrument is any contract that
gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Financial
instruments are recognised on the balance sheet when
the Company becomes a party to the contractual
provisions of the instrument.

Initial measurement: - Financial instruments are

initially recognised at its fair value. Transaction costs
directly attributable to the acquisition or issue of
financial instruments are recognised in determining the
carrying amount, if it is not classified as at fair value
through profit or loss. However, trade receivables that
do not contain a significant financing component are
measured at transaction price. Transaction costs of
financial instruments carried at fair value through profit
or loss are expensed in the statement of profit and loss.
Subsequently, financial instruments are measured
according to the category in which they are classified.

Classification and measurement - financial assets
Classification of financial assets is based on the business
model in which the instruments are held as well as
the characteristics of their contractual cash flows. The
business model is based on management''s intentions
and past pattern of transactions. Financial assets with
embedded derivatives are considered in their entirety
when determining whether their cash flows are solely
payment of principal and interest. The Company
reclassifies financial assets when and only when its
business model for managing those assets changes.

Financial assets are classified into three categories
Financial assets at amortised cost: Financial assets
having contractual terms that give rise on specified dates
to cash flows that are solely payments of principal and
interest on the principal outstanding and that are held
within a business model whose objective is to hold such
assets in order to collect such contractual cash flows
are classified in this category. Subsequently, these are
measured at amortised cost using the effective interest
method less any impairment losses.

Equity investments at fair value through other
comprehensive income (Equity instruments): These
include financial assets that are equity instruments
and are designated as such upon initial recognition
irrevocably. Subsequently, these are measured at fair
value and changes therein are recognised directly in
other comprehensive income, net of applicable income
taxes. Dividends from these equity investments are
recognised in the statement of Profit and Loss when the
right to receive payment has been established. When the
equity investment is derecognised, the cumulative gain
or loss in equity is transferred to retained earnings.

Financial assets at fair value through other
comprehensive income (Debt instruments): Financial
assets having contractual terms that give rise on specified
dates, to cash flows that are solely payments of principal
and interest on the principal outstanding and that are
held within a business model whose objective is to hold

such assets in order to collect such contractual cash
flows as wett as to sett the financial asset, are classified in
this category. Subsequently, these are measured at fair
value, with unrealised gains or losses being recognised
in other comprehensive income apart from any expected
credit tosses or foreign exchange gains or tosses, which
are recognised in profit or toss.

Financial assets at fair value through profit and loss:

Financial assets are measured at fair value through profit
and toss untess it is measured at amortised cost or at fair
vatue through other comprehensive income on initiat
recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair
value through profit and loss are immediately recognised
in profit and toss.

Classification and measurement - financial liabilities:

Financiat tiabitities are ctassified as measured at
amortised cost or FVTPL A financial liability is classified
as at FVTPL if it is classified as held-for-trading, it is a
derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value
and net gains and tosses, inctuding any interest expense,
are recognised in profit or loss. Other financial liabilities
are subsequentty measured at amortised cost using the
effective interest method.

Interest expense and foreign exchange gains and
tosses are recognised in profit or toss. Any gain or
toss on derecognition is atso recognised in profit or
toss. Financiat guarantee contracts: These are initiatty
measured at their fair vatues and, are subsequentty
measured at the higher of the amount of loss allowance
determined or the amount initiatty recognised
less, the cumulative amount of income recognised.
Other financiat tiabitities: These are measured at
amortised cost using the effective interest method.

Equity instruments: An equity instrument is any
contract that evidences residuat interests in the assets
of the Company after deducting att of its tiabitities. Equity
instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs.

(ii) Determination of fair value: Fair value is the price that
would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market
participants at the measurement date, regardtess of
whether that price is directly observable or estimated
using another valuation technique. The fair value of a
financiat instrument on initiat recognition is normatty the
transaction price (fair value of the consideration given or
received). In estimating the fair value of an asset or liability,

the Company takes into account the characteristics of
the asset or liability if market participants would take
those characteristics into account when pricing the asset
or liability at the measurement date.

Subsequent to initial recognition, the Company
determines the fair vatue of financiat instruments that
are quoted in active markets using the quoted bid prices
(financiat assets hetd) or quoted ask prices (financiat
liabilities held) and using valuation techniques for other
instruments. Valuation techniques include discounted
cash ftow method and other vatuation methods.

(iii) Derecognition of financial assets and financial
liabilities: The Company derecognises a financiat asset
onty when the contractuat rights to the cash ftows from
the asset expires or it transfers the financiat asset and
substantially all the risks and rewards of ownership of the
asset to another entity. If the Company neither transfers
nor retains substantiatty att the risks and rewards of
ownership and continues to controt the transferred
asset, the Company recognises its retained interest in
the asset and an associated tiabitity for amounts it may
have to pay. If the Company retains substantiatty att the
risks and rewards of ownership of a transferred financiat
asset, the Company continues to recognise the financiat
asset and atso recognises a cottateratised borrowing
for the proceeds received. Any gain or toss arising on
derecognition is recognised in profit or loss. When a
financial instrument is derecognised, the cumulative gain
or toss in equity is transferred to the statement of profit
and loss unless it was an equity instrument electively
held at fair value through other comprehensive income.
In this case, any cumulative gain or loss in equity is
transferred to retained earnings. Financiat assets are
written off when there is no reasonabte expectation
of recovery. The Company reviews the facts and
circumstances around each asset before making a
determination. Financiat assets that are written off
could still be subject to enforcement activities. Financial
liabilities are derecognised when these are extinguished,
that is when the obtigation is discharged, cancetted or
has expired

(iv) Impairment of financial assets: The Company recognises
a loss allowance for expected credit losses on a financial
asset that is at amortised cost or at fair value through
other comprehensive income. Expected credit losses
are forward tooking and are measured in a way that is
unbiased and represents a probability-weighted amount,
takes into account the time vatue of money (vatues are
discounted using the appticabte effective interest rate)
and uses reasonable and supportable information.

j. Employee benefits

Short term employee benefits

Short-term employee benefits are measured on an
undiscounted basis and expensed as the related service
is provided. A Liability is recognised for the amount
expected to be paid under short-term cash bonus, if the
Company has a present LegaL or constructive obLigation
to pay this amount as a resuLt of past service provided
by the empLoyee and the obLigation can be estimated
reLiabLy.

Long term employee benefits:

i. Defined benefits plans

A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The
Company''s net obligation in respect of defined
benefit pLans is caLcuLated separateLy for each pLan
by estimating the amount of future benefit that
empLoyees have earned in the current and prior
periods, discounting that amount and deducting
the fair vaLue of any pLan assets. The caLcuLation of
defined benefit obLigations is performed annuaLLy
by a quaLified actuary using the projected unit credit
method. When the caLcuLation resuLts in a potentiaL
asset for the Company, the recognised asset is
Limited to the present vaLue of economic benefits
avaiLabLe in the form of any future refunds from
the pLan or reductions in future contributions to the
plan (''the asset ceiling''). To calculate the present
vaLue of economic benefits, consideration is given
to any applicable minimum funding requirements.
Remeasurements of the net defined benefit Liability,
which comprise actuarial gains and Losses, the
return on pLan assets (excLuding interest) and the
effect of the asset ceiLing (if any, excLuding interest),
are recognised immediately in OCI. The Company
determines the net interest expense (income) on the
net defined benefit LiabiLity (asset) for the period by
appLying the discount rate determined by reference
to market yields at the end of the reporting period
on government bonds. This rate is applied on the net
defined benefit LiabiLity (asset), both as determined at
the start of the annuaL reporting period, taking into
account any changes in the net defined benefit Liability
(asset) during the period as a resuLt of contributions
and benefit payments. Net interest expense and
other expenses reLated to defined benefit pLans are
recognised in profit or Loss. When the benefits of a
pLan are changed or when a pLan is curtaiLed, the
resuLting change in benefit that reLates to past service
(''past service cost'' or ''past service gain'') or the gain
or Loss on curtaiLment is recognised immediateLy in
profit or Loss. The Company recognises gains and
Losses on the settLement of a defined benefit pLan

when the settLement occurs.

ii. Defined contribution plan

A defined contribution pLan is a post-empLoyment
benefit pLan where the Company''s LegaL or
constructive obLigation is Limited to the amount that it
contributes to a separate LegaL entity. The Company
makes specified monthLy contributions towards
Government administered provident fund scheme.
ObLigations for contributions to defined contribution
pLan are expensed as an empLoyee benefits expense
in the statement of profit and Loss in period in which
the reLated service is provided by the empLoyee.
Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in future
payments is avaiLabLe

iii. Other long - term employee benefits - Compensated
absences

AccumuLated absences expected to be carried
forward beyond tweLve months is treated as Long¬
term empLoyee benefit for measurement purposes.
The Company''s net obLigation in respect of other
Long-term empLoyee benefit of accumuLating
compensated absences is the amount of future
benefit that empLoyees have accumuLated at the end
of the year. That benefit is discounted to determine
its present vaLue The obLigation is measured annuaLLy
by a quaLified actuary using the projected unit credit
method. Remeasurements are recognised in profit or
Loss in the period in which they arise.

The obligations are presented as current LiabiLities
in the baLance sheet if the Company does not have
an unconditionaL right to defer the settLement for at
Least tweLve months after the reporting date. The
Company has the poLicy of Leave encashment.

iv. Termination benefits

Termination benefits are expensed at the earLier of
when the Company can no Longer withdraw the offer
of those benefits and when the Company recognises
costs for a restructuring. If benefits are not expected
to be settLed whoLLy within 12 months of the reporting
date, then they are discounted.

k. Leases

At inception of a contract, the Company assesses whether
a contract is, or contain a Lease. A contract is, or contains,
a Lease if the contract conveys the right to controL the
use of an identified asset for a period of time in exchange
for consideration. To assess whether a contract conveys
the right to controL the use of an identified asset, the
Company assesses whether:

- The contract involves the use of an identified asset -
this may be specified explicitly or implicitly, and should
be physically distinct or represent substantially all
of the capacity of a physically distinct asset. If the
supplier has a substantive substation right, then the
asset is not identified;

- The Company has the right to substantially all of
the economic benefits from the use of the asset
throughout the period of use; and

- The Company has the right to direct the use of the
asset. The Company has this right when it has the
decision making rights that are most relevant to
changing how and for what purposes the asset is
used. In rare cases where the decision about how and
for what purpose the asset is used is predetermined,
the Company has the right to direct the use of the
asset if either:

- The Company has the right to operate the asset; or

- The Company designed the asset in a way that

predetermines how and for what purposes it will be
used. As a practical expedient, Ind AS 116 permits a
lessee not to separate non-lease components, and
instead account for any lease and associated non
lease components as a single arrangement. The
Company has not used this practical expedient. At
inception or on reassessment of a contract that
contains a lease component, the Company allocates
the consideration in the contract to each lease
component on the basis of their lease component
on the basis of their relative stand-alone prices.
The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises of the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs
incurred and estimated dilapidation costs, less any
lease incentives received. The right-of-use asset
is subsequently amortised using the straight-line
method over the shorter of the useful life of the
leased asset or the period of lease. If ownership of
the leased asset is automatically transferred at the
end of the lease term or the exercise of a purchase
option is reflected in the lease payments, the right-
of-use asset is amortised on a straightline basis over
the expected useful life of the leased asset. The lease
liability is initially measured at the present value of the
lease payments that are not paid at commencement
date, discounted using, the Company''s incremental
borrowing rate. The lease liability is measured at
amortised cost using the effective interest method.
It is re-measured when there is a change in future
lease payments. Lease payments include fixed
payments, i.e. amounts expected to be payable by
the Company under residual value guarantee, the
exercise price of a purchase option if the Company
is reasonably certain to exercise that option and

payment of penalties for terminating the lease if the
lease term considered reflects that the Company
shall exercise termination option. The Company also
recognises a right of use asset which comprises of
amount of initial measurement of the lease liability,
any initial direct cost incurred by the Company and
estimated dilapidation costs. Payment made towards
short term leases (leases for which non-cancellable
term is 12 months or lesser).

Short term leases: The Company has elected not to
recognise right of use assets and lease liabilities for
short term leases. The Company recognises the lease
payments associated with these leases as an expense
in the profit or loss on straight line basis over the lease
term

Lessor: At the inception of a lease, the lease arrangement
is classified as either a finance lease or an operating
lease, based on contractual terms and substance of
the lease arrangement. Whenever the terms of the
lease transfer substantially all the risks and rewards of
ownership to the lessee, the contract is classified as a
finance lease. All other leases are classified as operating
leases. Amounts due from lessees under finance leases
are recognised as receivables at the amount of the
Company''s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the Company''s
net investment outstanding in respect of the leases.
Rental income from operating leases is recognised on
a straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of
the leased asset and recognised on a straight-line basis
over the lease term.

l. Segmental reporting
Basis for segmentation

An operating segment is a component of the company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relates to transactions with any
of the Company''s other components and for which
discrete financial information is available. All operating
segments'' operating results are reviewed regularly
by the company''s Chief Executive Officer (CEO) to
make decisions about resources to be allocated to the
segments and assess their performance.

Reportable segments

The Company operates in the following two reportable
segments:

♦ Bus body building division

♦ Pressing division

m. Investment property

i. Recognition and measurement

Investment property is property held either to earn
rental income or for capital appreciation or for both,
but not for sate in the ordinary course of business, use
in the production or supply of goods or services or
for administrative purposes. Upon initial recognition,
an investment property is measured at cost, including
related transaction costs. Subsequent to initial
recognition, investment property is measured at cost
tess accumutated depreciation and accumutated
impairment tosses, if any. Investment property is
derecognised either when it has been disposed of
or when it is permanentty withdrawn from use and
no future economic benefit is expected from its
disposat. Any gain or toss on disposat of investment
property (calculated as the difference between the
net proceeds from disposat and the carrying amount
of the item) is recognised in profit or loss.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and
the cost of the item can be measured retiabty.

iii. Depreciation

Based on technical evaluation and consequent
advice, the management believes a period of 35 years
as representing the best estimate of the period over
which investment property (which is quite simitar)
is expected to be used. Accordingly, the Company
depreciates investment property over a period of 35
years on a straight-line basis. The useful life estimate
of 35 years is different from the indicative usefut tife
of relevant type of buildings mentioned in Part C of
Schedule II to the Act i.e. 30 years.

iv. Reclassification from / to investment property

Transfers to (or from) investment property are
made onty when there is a change in use. Transfers
between investment property, owner-occupied
property and inventories do not change the carrying
amount of the property transferred and they do not
change the cost of that property for measurement or
disctosure purposes.

v. Fair value disclosure

The fair vatues of investment property is disctosed
in the notes. Fair vatues is determined by an
independent vatuer who hotds a recognised and
relevant professional qualification and has recent
experience in the tocation and category of the
investment property being vatued.

n. Exceptional items

Items of income or expense which are non-recurring

or outside the ordinary course of business for which

the company have not budgeted for and are of such
size, nature or incidence that their separate disctosure
is considered necessary to explain the performance of
the Company are disctosed as exceptionat items in the
Statement of Profit and Loss.

o. Cash Flow Statement

Cash ftow from operation are reported using the indirect
methods where by profits before tax is adjusted for the
effects of transactions of a non cash nature, any deferrals
or accruats of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated.

p. Earnings per share

Basic earnings per share is calculated by dividing the
profit (or toss) attributabte to the owners of the company
by the weighted average number of equity shares
outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for bonus issue, bonus etement in a rights issue
to existing shareholders, share split and reverse share
sptit

Diluted Earnings Per Share

Diluted earnings per share is computed by dividing the
profit (considered in determination of basic earnings per
share) after considering the effect of interest and other
financing costs or income (net of attributable taxes)
associated with dilutive potential equity shares by the
weighted average number of equity shares considered
for deriving basic earnings per share adjusted for the
weighted average number of equity shares that would
have been issued upon conversion of all dilutive potential
equity shares.

q. Contingent assets

Contingent asset is not recognised in financial statements
since this may resutt in the recognition of income that
may never be realised. However, when the realisation of
income is virtuatty certain, then the retated asset is not a
contingent asset and is recognized.

r. Recent pronouncements

Ministry of Corporate Affairs (MCA) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules

as issued from time to time. For the year ended 31 March
2025, MCA has notified Ind AS - 117 Insurance Contracts

and amendments to Ind AS 116 - Leases, relating to sale
and teaseback transactions, appticabte to the Company
w.e.f April 1, 2024. The Company has reviewed the
new pronouncements and based on its evatuation has
determined that it does not have any significant impact in
its financiat statements.

(iii) Performance obligations

The Company satisfies its performance obligations pertaining to the sate of bus bodies and pressing segment items at
point in time when the control of goods is actually transferred to the customers. No significant judgment is involved
in evaluating when a customer obtains control of promised goods. The contract is a fixed price contract and does not
contain any financing component. The amount receivable is generally due within 30 days. The Company have opted for
invoice discounting facility with HDFC Bank Limited from 5 July 2024 onwards. The facility is unsecured and discounting
rate is 1.12% which is paid by the Company to TML (31 March 2024 - 1.08% with Tata Capital Financials Services Ltd.).
There are no other significant obligations attached in the contract with customer.

(iv) Transaction price

There is no remaining performance obligation for any contract for which revenue has been recognised till year end.

(v) Determining the timing of satisfaction of performance obligations

There are no significant judgments involved in ascertaining the timing of satisfaction of performance obligations, in
evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the performance
obligations.

(vi) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the
contract with the customer. There is no variable consideration involved in the transaction price.

(vii) Cost to obtain contract or fulfill a contract

There is no cost incurred for obtaining or fulfilling contract with customers.

39) Segment information

(a) The Company has identified business segments as reportable segments.

The Company has two reportable segments:-

i) Pressing division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range
of automobiles.

ii) Bus body building division - Manufacturing of bus bodies and component parts for bus bodies.

(b) Inter-segment

Inter-segment transfers are made at transfer price.

(c) Common Expenses

Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

Level 2: Level 2 hierarchy includes fair value of the financial instruments that are not traded in an active market. Fair value
of these financial instruments is determined using valuation, which maximise the use of observable market data and rely
as little as possible on entity specific estimates. Investments in mutual funds are valued using the closing net assets value
(NAV).

Level 3: level 3 hierarchy includes financial instruments that are not based on the observable market data.

All financial instruments are classified as level 3.
iii. Risk management framework

The risk management process is coordinated by the management assurance functions and is regularly reviewed by the
Company''s audit committee. The audit committee meets regularly to review risks as well as the progress against the
planned actions. Key business decisions are also discussed at the periodic meetings of the audit committee and the board of
directors. The overall internal control environment and risk management programme including financial risk management
is reviewed by the audit committee and the board.

The risk management framework aims to:

- improve financial risk awareness and risk transparency.

- identify, control and monitor key risks.

- identify risk accumulations.

- provide management with reliable information on the Company''s risk situation.

- improve financial returns.

The Company has exposure to the following risks arising from financial instruments:

(i) Market risk

The Company''s activities does not expose it to the financial risks of changes in foreign currency exchange rates and interest
rates.

(ii) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

(iii) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, the Company manages liquidity risk
by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast
and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

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

IV. Capital management

For the purpose of the Company''s capital management, capital (total equity) includes issued equity capital, securities premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s
capital management is to maximise the shareholder value. Management monitors the return on capital, as well as the
level of dividends to ordinary shareholders. The Company manages its capital structure and makes adjustments in light of
changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure,
the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The
Company monitors capital using a gearing ratio, which is net debt divided by adjusted equity. Net debt is calculated as
total liabilities (as shown in the balance sheet) less cash and cash equivalents and other bank balances. Adjusted equity
comprises all components of equity other than amounts accumulated in the hedging and cost of hedging, if any.

42) The Company does not have any Long - term contract including derivative contract for which provision would be required for
materiat foreseeable losses.

43) The company do not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property

44) The Company do not have any charges or satisfaction which is yet to be registered with the ROC beyond the statutory
period.

45) The Company have not traded or invested in Crypto
currency or virtual currency during the current financial
year.

46) The Company does not have any transaction which is
not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in
the tax assessment under the Income Tax Act, 1961 (such
as search or survey or any other relevant provisions of
the Income Tax Act, 1961.)

47) The Company has not been declared wittfut defaulter
by any bank or financial institution or government or any
government authority.

48) The Company has not entered into any scheme of
arrangement which has an accounting impact on current
or previous financial year.

49) The Company has not revalued its property, plant and
equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

50) The Company has not provided any guarantee, security
or the Like on behalf of the Ultimate Beneficiaries

51) The Company has not advanced or Loaned or invested
funds to any other person(s) or entity (ies), including
foreign entities (intermediaries) with the understanding
that the intermediary shaLL :

a) DirectLy or indirectLy Lend or invest in other person
(s) or entities identified in any manner whatsoever on
behaLf of the Company (uLtimate beneficiaries).

b) Provide any guarantee, any securities or the like to or
on behaLf of the uLtimate beneficiaries

52) The Company has not received any fund from any person
(s) or entity (ies), including foreign entities (Funding party)
with the understanding (whether recorded in writing or
otherwise) that the company shaLL

a) DirectLy or indirectLy Lend or invest in other person (s)
or entities identified in any manner whatsoever on
behaLf of the Company (uLtimate beneficiaries)

b) Provide any guarantee, any securities or the Like to or
on behaLf of the uLtimate beneficiaries.

53) On 08 May 2025, the Board of Directors of the Company
have proposed a final dividend of Rs. 20.00 per equity
share in respect of the year ended 31 March 2025,
subject to the approval of shareholders at the Annual
General Meeting, and if approved, would result in a cash
outflow of approximately Rs. 1,217.72 lakhs.

54) Dividend paid during the year ended 31 March 2025
incLude an amount of Rs 5.00 per equity share towards
interim dividend for the year ended 31 March 2025 and
Rs. 15.00 per equity share towards finaL dividend for
previous year ended 31 March 2024 which resulted in a
cash outfLow of Rs. 304.43 Lakhs and Rs. 913.29 Lakhs
respectiveLy. Further, Dividend paid during the year
ended 31 March 2024 incLude an amount of Rs 5.00 per
equity share towards interim dividend for the year ended
31 March 2024 and Rs. 15.00 per equity share towards
finaL dividend for previous year ended 31 March 2023
which resulted in a cash outflow of Rs. 304.43 lakhs and
Rs. 913.29 Lakhs respectiveLy.

55) The company does not have any investments through
more than two Layers of investment companies as per
section 2(87) (d) and section 186 of Companies Act,
2013

56) On JuLy 2, 2024, the Company received a show cause
notice (SCN) from the Karnataka Industrial Areas
Development Board (KIADB) for not utilizing the allotted
Land in accordance with the terms and conditions
specified in the Lease cum saLe agreement.

The Company has received a one year extension from
KIADB and is evaluating alternate options to comply with
the requirements. The Company believes that they would
be abLe to compLy with the requirements, and this wouLd
not have any materiaL impact on the assets or resuLt in
any LiabiLity on the Company.

57) The Company has no transactions with the companies
struck off under Companies Act, 2013 or Companies Act,
1956

In terms of our report attached Shrinivas V Dempo Raghwendra Singh Butola

For B S R & Co. LLP Chairman - DIN 00043413 Chief Financial Officer

Chartered Accountants Membership no. 25252

Firm Registration No. 101248W/W-100022

Kalpesh Khandelwal Pranab Ghosh Mitesh Gadhiya

Partner CEO & Executive Director Company Secretary

Membership No. 133124 DIN 10536772 Membership no. F10000

UDIN: 25133124BMJHXE8724

PLace: Mumbai, Maharashtra PLace: Mumbai, Maharashtra

Dated: 08 May 2025 Dated: 08 May 2025

---

Mar 31, 2024

(1) Terms and rights attached

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets on winding up. The equity shareholders are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to his/its share of the paid-up equity share capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture. On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the number of equity shares held.

(2) The promoter holding of 6.66% of EDC Limited have been reclassified as public holding w.e.f 02 May 2022.

(3) The Company have bought back 3.33 lakhs shares in F.Y. 2019-20, apart from this there is no other corporate actions/changes w.r.t share capital viz, bonus issue, fresh issue, allotment of shares, change in paid up capital in the last five years.

(iii) Performance obligations

The Company satisfies its performance obligations pertaining to the sate of bus bodies and pressing segment items at point in time when the control of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains control of promised goods. The contract is a fixed price contract and does not contain any financing component. The amount receivable is generally due within 30 days. The Compnay have opted for invoice discounting facility with Tata Capital Limited. The facility is unsecured and discounting rate is 1.08% which is paid by the Compay to TML (31 March 2023 - 0.47%). There are no other significant obligations attached in the contract with customer.

(iv) Transaction price

There is no remaining performance obligation for any contract for which revenue has been recognised till year end.

(v) Determining the timing of satisfaction of performance obligations

There are no significant judgments involved in ascertaining the timing of satisfaction of performance obligations, in evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

(vi) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract with the customer. There is no variable consideration involved in the transaction price.

(vii) Cost to obtain contract or fulfill a contract

There is no cost incurred for obtaining or fulfilling contract with customers.

(v) TheHon''bLeSupremeCourtofIndia("SC”)bytheirorderdated28.02.2019,setouttheprincipLesbasedonwhichaLLowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed and is pending before the SC for disposal. Further, thereareinterpretative challengesand considerableuncertainty, including estimating theamountretrospectively. Pending the outcome of the review petition and directions from the EPFO, the impact for past periods, if any, is not ascertainable reliably and consequently no financial effect has been provided for in the financial statements. The Company has also obtained a legal opinion on the matter and basis the same there is no material impact on the financial statements as at 31.03.2023 and 31.03.2024. The Company would record any further effect on its financial statements, on receiving additional clarity on the subject.

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported year.

36) Employee Benefits A Defined benefit plan

(a) Gratuity: -

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable to each completed year of service as per the Company policy. Vesting occurs upon completion of 5 years of service. The Company account for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Further more, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligations liability recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

IX. The Company has invested in assets which are insurer managed funds.

B Defined contribution plans

I. The Company has a superannuation plan (defined contribution plan). The Company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 301.90 lacs (Previous year Rs. 255.05 lacs).

II. In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary (currently 12% of employees'' salary). The contributions, as specified under the law, were made to the government administrated fund. The amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 249.52 lakhs (Previous year Rs. 204.71 lakhs).

1. Maximum amount of outstanding Loans given to TML during the year is Rs. 9,200 Lakhs

2. The Return on investment of the above investment is 7.26% (previous year 6.14%).

d. There is no loans or advance in the nature of loans granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties.

38) Segment information

(a) The Company has identified business segments as reportable segments.

The Company has two reportable segments:-

i) Pressing division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body building division - Manufacturing of bus bodies and component parts for bus bodies.

(b) Inter-segment

Inter-segment transfers are made at transfer price.

(c) Common Expenses

Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

* Financials assets and Liabilities such as trade receivables, cash and cash equivalents, other bank balances, inter corporate deposits, advances to employees, interest accrued, subsidy receivable from Government, cash credit account, trade payables, unclaimed dividends, payable for voluntary retirement scheme and other financial liabilities are largely short term in nature. The fair value of these financial assets and liabilities approximate their carrying amount due to the short term nature of such assets and liabilities.

ii. Measurement of fair values

Level 1: level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: level 2 hierarchy includes fair value of the financial instruments that are not traded in an active market. Fair value of these financial instruments is determined using valuation, which maximise the use of observable market data and rely

as Little as possible on entity specific estimates. Investments in mutual funds are valued using the closing net assets value (NAV).

Level 3: level 3 hierarchy includes financial instruments that are not based on the observable market data.

All financial instruments are classified as level 3. iii. Risk management framework

The risk management process is coordinated by the management assurance functions and is regularly reviewed by the Company''s audit committee. The audit committee meets regularly to review risks as well as the progress against the planned actions. Key business decisions are also discussed at the periodic meetings of the audit committee and the board of directors. The overall internal control environment and risk management programme including financial risk management is reviewed by the audit committee and the board.

The risk management framework aims to:

- improve financial risk awareness and risk transparency.

- identify, control and monitor key risks.

- identify risk accumulations.

- provide management with reliable information on the Company''s risk situation.

- improve financial returns.

The Company has exposure to the following risks arising from financial instruments:

(i) Market risk

The Company''s activities does not expose it to the financial risks of changes in foreign currency exchange rates and interest rates.

(ii) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

(iii) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, the Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

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

Note (i) - Credit facility includes cash credit from HDFC bank Ltd. of Rs. 1,000 Lakhs, non funded facility from HDFC Bank Ltd of Rs. 300 lakhs (letter of credit, bank guarantee), facility relating to invoice discounting of Rs. 8,500 lakhs from Tata Capital Limited in the current year.

IV. Capital management

For the purpose of the Company''s capital management, capital (total equity) includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value. Management monitors the return on capital, as well as the level of dividends to ordinary shareholders. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by adjusted equity. Net debt is calculated as total liabilities (as shown in the balance sheet) less cash and cash equivalents and other bank balances. Adjusted equity comprises all components of equity other than amounts accumulated in the hedging and cost of hedging, if any.

41) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956

42) The Company does not have any Long - term contract including derivative contract for which provision would be required for material foreseeable losses.

43) The company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property

44) The Company do not have any charges or satisfaction which is yet to be registered with the ROC beyond the statutory period.

45) The Company have not traded or invested in Crypto currency or virtual currency during the current financial year.

46) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961.

47) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

48) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

49) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

50) Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''SEBI Listing Regulations''), the Board of Directors of the Company at its meeting held on 15 February 2024, appointed Mr. Pranab Ghosh as Chief Executive officer (CEO) and Executive Director (ED) of the Company, with effect from 1 April 2024 for a tenure of 5 years, subject to completion of applicable regulatory formalities and approval of the shareholders of the Company in the ensuing Annual General Meeting.

51) The Company has not provided any guarantee, security or the like on behalf of the Ultimate Beneficiaries

52) The Company has not advanced or loaned or invested funds to any other person(s) or entity (ies), including foreign entities (intermediaries) with the understanding that the intermediary shall : a) Directly or indirectly lend or invest in other person

(s) or entities identified in any manner whatsoever on behalf of the Company (ultimate beneficiaries). b) Provide any guarantee, any securities or the like to or on behalf of the ultimate beneficiarie

53) "The Company has not received any fund from any person (s) or entity (ies), including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company shall

a) Directly or indirectly lend or invest in other person (s) or entities identified in any manner whatsoever on behalf of the Company (ultimate beneficiaries)

b) Provide any guarantee, any securities or the like to or on behalf of the ultimate beneficiaries.

54) On 08 May 2024, the Board of Directors of the Company have proposed a final dividend of Rs. 15.00 per equity share in respect of the year ended 31 March 2024, subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs. 913.29 lakhs.

55) Dividend paid during the year ended 31 March 2024 include an amount of Rs 5.00 per equity share towards interim dividend for the year ended 31 March 2024 (Rs. 2.50 per equity share towards interim dividend for the comparative year ended 31 March 2023, resulted in cash outflow of Rs 152.22 lakhs) and Rs. 15.00 per equity share towards final dividend for previous year ended 31 March 2023 which resulted in a cash outflow of Rs. 304.43 lakhs and Rs. 913.29 lakhs respectively.

56) The fire incidence took place on 8 February 2022 at Plant 1 of Goa which had affected the main stores and some property, plant and equipment. The Company had lodged the claim with the insurance company and accordingly reported the exceptional loss of Rs. 594.22 Lakhs (after netting-off of interim payment received from insurance company of Rs. 200 Lakhs) during the year ended 31 March 2022. Further, the Company has received Rs. 410.80 Lakhs, as full and final settlement towards the claim and accordingly recognised exceptional income of Rs. 296.69 Lakhs (after netting-off of expenditure in relation to repairs of such assets amounting to Rs. 114.11 lakhs) during the previous year ended 31 March 2023.

57) The company does not have any investments through more than two layers of investment companies as per section 2(87) (d) and section 186 of Companies Act, 2013.

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Mar 31, 2023

i. Securities premium

The securities premium represents the additional amount shareholders paid for their issued shares that was in excess of the par value of those shares.

ii. Capital redemption reserve account

When a company redeems preference shares or buys back its shares, the company is required to create capital redemption reserve. Capital redemption reserve is created out of the profits. The Capital redemption reserve is created in accordance with the provisions of section 69 of the Companies Act, 2013 for the nominal value of shares bought back.

iii. General reserve

Under the erstwhile Companies Act,1956, a general reserve was created through an annual transfer of the net income at a specified percentage in accordance with the applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of net profit to general reserve has been withdrawn. The balances in the general reserve as determined in accordance with applicable regulations is Rs. 1,537.06 lakhs as at 31 March 2022 and 31 March 2023.

iv. Retained earning

Retained earnings includes re-measurement loss/(gain) on defined benefits plan, net of taxes that will not be reclassified to the statement profit and loss. Retained earnings is a free reserve available to the Company.

ii. Defined contribution plan Superannuation

The Company has a Superannuation plan (defined contribution plan). The Company maintains separate irrevocable trust for employees covered and entitled to benefits. The Company has obtained insurance policy with Life Insurance Corporation of India. The Company contributes 15% of eligible employee''s salary to the trust every year. The Company recognizes such contributions as an expense when incurred. The Company has no further obligation beyond this contribution.

iii. Other long - term employee benefits Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The employee''s are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each Balance Sheet date on the basis of an independent actuarial valuation, carried out as at the year end.

m. Borrowing cost

Borrowing cost that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for the intended use. All other borrowing costs are charged to revenue.

n. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the noncancellable period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

o. Segmental reporting

Basis for segmentation

An operating segment is a component of the company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the company''s other components, and for which discrete financial information is available. All operating segments'' operating results are reviewed regularly by the company''s Chief Executive Officer (CEO) to make decisions about resources to be allocated to the segments and assess their performance.

Reportable segments

The Company operates in the following two reportable segments:

• Pressing division

• Bus body building division

p. Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received. Government grants are recognised in the statement of Profit or Loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate.

q. Investment property

The Company recognises property as investment property Land and building, land, building etc if the property is held with an intention to earn rental or capital appreciation or for both rather than for use in the production or supply of goods or services or for administrative purposes; or sale in the ordinary course of business. The Company recognises property as investment property only when the Company is certain that the future economic benefits that are associated with the investment property will flow to the entity; and the cost of the investment property can be measured reliably. The investment property is recognised at cost including the transaction cost excluding the start up

* The property meets the definition criteria of Ind AS 40 - Investment property. The property has been let out for a further period of 1 year. As at 31 March 2023 and 31 March 2022, the fair value of the properties are Rs. 215.10 lakhs and Rs. 204 lakhs respectively. These valuation are based on valuation performed by S.A. Boarkar an accredited independent valuer and a specialist in valuing these types of investment properties and is a registered valuer as defined under rule 2 of Companies (Registered valuers and valuation) Rules, 2017.

(2) Terms and rights attached

Each holder of equity shares is entitled to one vote per share. 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.

* During the current year ended 31 March 2023 the Company has recognised a deferred tax asset amounting to Rs. nil lakhs on account of tax losses in the current year (year ended 31 March 2022 -Rs. 570.13 lakhs). The Company has a convincing other evidence that sufficient taxable profit will be available against which the tax losses will be utilised based on the future projections provided by the management.

(iii) Performance obligations

The Company satisfies its performance obligations pertaining to the sale of bus bodies and pressing segment items at point in time when the control of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains control of promised goods. The contract is a fixed price contract and does not contain any financing component. The payment is generally due within 30-45 days. The bill discounting facility with Tata Capital Limited is unsecured and interest rate is 0.47% (31 March 2022 - 0.42%) There are no other significant obligations attached in the contract with customer.

(iv) Transaction price

There is no remaining performance obligation for any contract for which revenue has been recognised till year end.

(v) Determining the timing of satisfaction of performance obligations

There are no significant judgments involved in ascertaining the timing of satisfaction of performance obligations, in evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

(vi) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract with the customer. There is no variable consideration involved in the transaction price.

(vii) Cost to obtain contract or fulfill a contract

There is no cost incurred for obtaining or fulfilling contract with customers.

28) Estimated amount of contracts remaining to be executed on capital account and not provided for.

29) The Company is involved in the following appellate, judicial and arbitration proceeding matters arising in the course of conduct of the Company''s businesses. In few of the proceedings in respect of matters under litigation are in early stages, and in other cases, the claims are indeterminate. Contingent liability in respect of:

Claims against the Company not acknowledged as debt:

(i) Disputed demands of excise authorities

- Pending before the Commissioner of Central Excise (Appeals)

(i) Denial of MODVAT due to technical lapses in the invoices. MODVAT on technical lapses are allowed by CESTAT under various case laws. The amount involved is Rs. 19.40 lakhs.

(ii) Prior to February 2006, ACGL were reversing Cenvat Credit on inputs used for export buses and TML used to claim duty drawback (DBK) on these buses. However, TML discontinued claiming DBK on non AC buses and Claimed DBK only on AC buses. This fact was not intimated to ACGL and hence ACGL reversed the Credit as per the normal practice. As TML had not claimed DBK, ACGL filed for refund which was initially rejected by the lower authority. However, the Commissioner (Appeals) allowed the refund and the amount was refunded. The appeal is filed by the Department against the order of the Commissioner (Appeals) before CESTAT and is remanded back to the adjudicating authority for disposal. The total amount involved is Rs. 496.86 lakhs

(ii) Disputed demand of Commercial Tax authority

- Pending before Additional Commissioner of Commercial Taxes

i. Disallowance of input tax credit availed on entry tax paid through credit account & ITC reversal on Stock Transfer. Total demand is Rs. 222.83 lakhs and imposed penalty of Rs. 2.00 lakhs. ACGL has filed an appeal against the said order before the Additional Commissioner of Commercial Taxes.

ii. Disallowance of ITC carry forward based on the earlier assessment order of 2016-17. The total tax of Rs. 28.84 lakhs and the interest of Rs. 20.63 lakhs is demanded due to denial of ITC carry forward of the earlier tax period. ACGL filed appeal against the assessment order before the Addl. Commissioner of Commercial Taxes.

(iii) During the current year the below cases have been settled

- Pending before Joint Commissioner of Commercial Taxes

i) The Deputy commissioner has disallowed input credit based on J2 report available with department and liability reversal on rate reduction debit note. Tax is calculated on expenses reimbursed (die cost) by Tata Cummins Private Limited. ACGL preferred appeal contending that reimbursement of die cost will not form part of turnover, VAT to be calculated after adjusting the rate reduction debit note and input is considered based on J2 reports and not as per the actual purchases which is less than input as per actual purchases of amounting to Rs. 17.61 lakhs.

ii) The Deputy commissioner has disallowed the reversal of CST on rate reduction done by ACGL. Differential tax has been demanded on account of form C and form H not submitted the amount involved isRs. 0.74 lakhs of basic and an amount of Rs. 0.70 towards interest.

(iv) Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) for alleged violation of Regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

(v) Income Tax Department has gone into Appeal in the Supreme Court against the order of the High Court dismissing their Review Application in the matter of depreciation not claimed by the Company in assessment year 1990-91. The Company has filed a counter affidavit with Supreme Court against the appeal. Vide Order dated 12.08.2016, Supreme Court has disposed off Appeal filed by IT Dept. The Supreme Court has allowed the appeals and set aside both the Orders dated 25.08.2010 and 28.03.2012 passed by the High Court in Tax Appeal No. 7 of 2004 and Civil Application (Review) no. 26 of 2010 and requested the High Court to decide upon the Review Petition and thereafter Appeal itself, if so on merits. The Supreme Court has also made it clear that they have expressed no opinion on the merits of any of the contentions of the parties. The High Court has restored back the appeal to ITAT,who has allowed the appeal and restored the issue to the office of Assessing Officer directing Assessing Officer for re-examining the issue after providing an opportunity of being heard.

(vi) The Hon''ble Supreme Court of India ("SC") by their order dated 28.02.2019, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed and is pending before the SC for disposal. Further, there are interpretative challenges and considerable uncertainty, including estimating the amount retrospectively.

Pending the outcome of the review petition and directions from the EPFO, the impact for past periods, if any, is not ascertainable reliably and consequently no financial effect has been provided for in the financial statements. The Company has also obtained a legal opinion on the matter and basis the same there is no material impact on the financial statements as at 31.03.2022 and 31.03.2023. The Company would record any further effect on its financial statements, on receiving additional clarity on the subject.

A number of contingent liabilities have arisen as a result of

a) Show cause notice for wrong availment of Modvat by Central Excise which was procedural and technical in nature and similar case decision was given in Company''s favour. Decision made by Commissioner Excise (Appeals) in favour of ACGL for restoration of cenvat reversal whereas appeal filed by Excise department against the Commissioner (Appeals) was remanded back to adjudicating authorities.

b) Appeal filed by Company against Rule 10 A where any liability arising out of demand will be reimbursed by Tata Motors Limited.

c) Disallowance of ITC availed on entry tax paid through credit account.

d) Income Tax notional demand for penalty was dismissed by High Court. Thereafter set aside by Supreme court and sent back to High Court to review. The High Court has restored back the appeal to ITAT.

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported year.

35) IND AS 116 - Lease

The Company has adopted IND AS 116 Leases from 1st April 2019. Discounting rate 8.8 % had been applied. On application of Ind AS116, the nature of expenses have changed from lease rentals in previous periods to depreciation cost on ROU asset and finance cost on lease liability. The difference between the future minimum lease commitments reported as at 31 March 2019 and lease liability accounted as on 1 April 2019 is primarily due to discounting of lease payments as per Ind AS 116 requirements.

A Defined benefit plan (a) Gratuity: -

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable to each completed year of service as per the Trust deed. Vesting occurs upon completion of 5 years of service.

The Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Further more, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligations liability recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

IX. The Company has invested in assets which are insurer managed funds.

(b) Contributions are made to recognized provident fund trust established by the Company and Family Pension Fund which covers eligible employees of the Company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognised as expense in respect of these defined benefits plans, aggregate to Rs. 204.71 lacs (Previous year Rs.240.95 lacs).

B Defined contribution plans

I. The Company has a superannuation plan (defined contribution plan). The Company maintains separate irrevocable trust for employees covered and entitled to benefits. The Company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 255.05 lacs (Previous year Rs. 260.36 lacs).

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Mar 31, 2019

1) Background and operations

Automobile Corporation of Goa Ltd. (ACGL) was incorporated on 1 September 1980 as a Public Limited Company under the Companies Act 1956. The Company was jointly promoted by EDC Limited (a Government of Goa Undertaking) and Tata Motors Limited.

The Company is engaged in the manufacture of pressed parts, components, sub assemblies for various range of automobiles and manufacture Bus bodies and components thereof.

The financial statements for the year ended 31 March 2019 were approved by the Board of Directors and authorized for issue on 10 May 2019.

2) Basis of preparation

a. Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the ‘Act'') and other relevant provisions of the Act.

Details of the Company''s significant accounting policies are included in Note 3.

b. Functional and presentation currency

The financial statements are prepared in Indian Rupees, which is the Company''s functional and presentation currency. All financial information presented in Indian Rupees has been rounded to the nearest Rupees, except when otherwise indicated.

c. Basis of measurement

These financial statements have been prepared on a historical cost basis except for the following items:

Items Measurement basis

Certain financial assets and liabilities Fair value

Net defined benefit (asset) / liability Fair value of plan assets less present value of defined benefit

obligations

d. Use of estimates and judgments

In preparing these financial statements, management has made judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

Assumptions and estimation uncertainties

i. Impairment of non-financial assets

In assessing the non-financial assets for impairment, factors leading to significant reduction in profits such as reduction in finished goods prices and increase in raw material prices, the Company''s business plans and changes in regulatory environment are taken into consideration. The carrying value of the assets of a cash generating unit (CGU) is compared with the recoverable amount of those assets, that is, the higher of fair value less costs of disposal and value in use.

ii. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past events, it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company is involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

iii. Defined benefit plans

Refer note no. 35 for details of the key assumptions used in determining the accounting for these plans.

iv. Provision against obsolete and slow-moving inventories

The Company reviews the condition of its inventories and makes provision against obsolete and slow-moving inventory items which are identified as no longer suitable for sale or use. Company estimates the net realizable value for such inventories based primarily on the latest invoice prices and current market conditions. The Company carries out an inventory review at each balance sheet date and makes provision against obsolete and slow-moving items. The Company reassesses the estimation on each balance sheet date.

v. Useful lives of property, plant and equipment.

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

vi. Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax asset at the end of each reporting period. The policy for the same has been explained under note 3f.

vii. Measurement of fair values

A number of the accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.The Company has an established control framework with respect to the measurement of fair values which is overseen by the Chief Financial Officer (CFO). Significant valuation issues are reported to the Company''s audit committee. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as a lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

e. Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non current classification.

An asset is classified as current when it satisfies any of the following criteria:

- it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle.

- it is held primarily for the purpose of being traded;

- it is expected to be realized within 12 months after the reporting date; or

- it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

A liability is classified as current when it satisfies any of the following criteria:

- it is expected to be settled in the Company''s normal operating cycle;

- it is held primarily for the purpose of being traded;

- it is due to be settled within 12 months after the reporting date; or

- the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current assets/liabilities include current portion of non-current financial assets/liabilities respectively. All other assets/ liabilities are classified as non-current. Deferred tax liabilities are classified as non-current liabilities.

f. Standards issued but not yet effective

The standard issued, but not yet effective up to the date of issuance of the Company''s financial statements is disclosed below. The Company intends to adopt the standard from 1 April 2019.

Ind AS - 116 Leases

Ind AS 116 will replace the existing leases standard, Ind AS 17 Leases. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lessee accounting model for lessees. A lessee recognises right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. The standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17. The amendment is effective for annual periods beginning on or after 01 April 19. The Company is in the process of evaluating the impact of this amendment on the financial statements.

Ind AS 12 Income taxes (amendments relating to income tax consequences of dividend and uncertainty over income tax treatments)

The amendment relating to income tax consequences of dividend clarify that an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. The Company does not expect any impact from this pronouncement. It is relevant to note that the amendment does not amend situations where the entity pays a tax on dividend which is effectively a portion of dividends paid to taxation authorities on behalf of shareholders. Such amount paid or payable to taxation authorities continues to be charged to equity as part of dividend, in accordance with Ind AS 12.

The amendment to Appendix C of Ind AS 12 specifies that the amendment is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. It outlines the following: (1) the entity has to use judgement, to determine whether each tax treatment should be considered separately or whether some can be considered together. The decision should be based on the approach which provides better predictions of the resolution of the uncertainty (2) the entity is to assume that the taxation authority will have full knowledge of all relevant information while examining any amount (3) entity has to consider the probability of the relevant taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates would depend upon the probability. The company does not expect any significant impact of the amendment on its financial statements.

Ind AS 109 - Prepayment Features with Negative Compensation

The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments. The Company does not expect this amendment to have any impact on its financial statements.

Ind AS 19 - Plan Amendment, Curtailment or Settlement

The amendments clarify that if a plan amendment, curtailment or settlement occurs, it is mandatory that the current service cost and the net interest for the period after the re-measurement are determined using the assumptions used for the re-measurement. In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The Company does not expect this amendment to have any significant impact on its financial statements.

Ind AS 23 - Borrowing Costs

The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. The Company does not expect any impact from this amendment.

Ind AS 28 - Long-term Interests in Associates and Joint Ventures

The amendments clarify that an entity applies Ind AS 109 Financial Instruments, to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The Company does not currently have any long-term interests in associates and joint ventures and hence does not expect any impact from this amendment.

Ind AS 103 - Business Combinations and Ind AS 111 - Joint Arrangements

The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a business that is a joint operation, it re-measures previously held interests in that business. The amendments to Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not re-measure previously held interests in that business. The Company does not have control / joint control / joint control of a business that is a joint operation and hence does not expect any impact from this amendment.

(3) Terms and rights attached

Each holder of equity shares is entitled to one vote per share.

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.

(iv) Performance obligations

The Company satisfies its performance obligations pertaining to the sale of bus bodies and pressing segment items at point in time when the control of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains control of promised goods. The contract is a fixed price contract and do not contain any financing component. The payment is generally due within 30-45 days. There are no other significant obligations attached in the contract with customer.

(v) Transaction price

There is no remaining performance obligation for any contract for which revenue has been recognised till period end.

(vi) Determining the timing of satisfaction of performance obligations

There is no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

(vii) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract with the customer. There is no variable consideration involved in the transaction price.

(viii) Cost to obtain contract or fulfil a contract

_There is no cost incurred for obtaining or fulfilling contract with customers._

(v) The Hon''ble Supreme Court of India (“SC”) by their order dated February 28, 2019, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed and is pending before the SC for disposal. Further, there are interpretative challenges and considerable uncertainty, including estimating the amount retrospectively. Pending the outcome of the review petition and directions from the EPFO, the impact for past periods, if any, is not ascertainable reliably and consequently no financial effect has been provided for in the financial statements. The Provision for the same, has not been made prospectively from the date of the SC order, as the amount is not material.

a) Show cause notice for wrong availment of Modvat by Central Excise which was procedural and technical in nature and similar case decision was given in Company''s favour. Decision made by Commissioner Excise (Appeals) in favour of ACGL for restoration of cenvat reversal whereas appeal filed by Excise department against the Commissioner (Appeals) was remanded back to adjudicating authorities.

b) Appeal filed by Company against Rule 10 A where any liability arising out of demand will be reimbursed by Tata Motors Limited.

c) Disallowance of ITC availed on entry tax paid through credit account.

d) Income Tax notional demand for penalty was dismissed by High Court. Thereafter set aside by Supreme court and sent back to High Court to review. The High Court has restored back the appeal to ITAT.

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a “material adverse effect on net income in the respective reported period.“

4) Employee Benefits

A Defined benefit plan

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable to each completed year of service as per the Trust deed. Vesting occurs upon completion of 5 years of service.

The amount recognised in balance sheet and movements in the net defined benefit obligation over the year are as follows:

The Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be corelated. Further more, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligations liability recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

IX. The Company has invested in assets which are insurer managed funds.

B Defined contribution plans

I. Contributions are made to recognized provident fund trust established by the Company and Family Pension Fund which covers eligible employees of the Company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 18,595,985 (Previous year Rs.18,373,347).

II. The Company has a superannuation plan (defined contribution plan). The Company maintains separate irrevocable trust for employees covered and entitled to benefits. The Company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 24,693,049 (Previous year Rs. 22,765,413).

5) Segment information

(a) The Company has identified business segments as reportable segments.

The Company has two business segments:-

i) Pressing division - manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus Body building division - manufacturing of Bus bodies and component parts for bus bodies.

(b) Inter-segment transfer pricing

Inter-segment transfers are made at transfer price.

(c) Common expenses

Common expenses are allocated to different segments on reasonable basis as considered appropriate.

ii. Measurement of fair values

Level 1: level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: level 2 hierarchy includes fair value of the financial instruments that are not traded in an active market. Fair value of these financial instruments is determined using valuation, which maximise the use of observable market data and rely as little as possible on entity specific estimates. Investments in mutual funds are valued using the closing net assets value (NAV).

Level 3: level 3 hierarchy includes financial instruments that are not based on the observable market data.

iii. Risk management framework

The risk management process is coordinated by the management assurance functions and is regularly reviewed by the Company''s audit committee. The audit committee meets regularly to review risks as well as the progress against the planned actions. Key business decisions are also discussed at the periodic meetings of the audit committee and the board of directors. The overall internal control environment and risk management programme including financial risk management is reviewed by the audit committee and the board.

The risk management framework aims to:

- improve financial risk awareness and risk transparency.

- identify, control and monitor key risks.

- identify risk accumulations.

- provide management with reliable information on the Company''s risk situation.

- improve financial returns.

The Company has exposure to the following risks arising from financial instruments:

(i) Market risk

The Company''s activities does not expose it to the financial risks of changes in foreign currency exchange rates and interest rates.

(ii) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

(iii) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, the Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

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

6) The Company does not have any long - term contract including derivative contract for which provision would be required for material foreseeable losses.

7) Exceptional items includes:

(a) Expenses of Rs. 41,701,959 (previous year Rs. Nil) towards provision for Voluntary Retirement Scheme of employees at manufacturing facilities at Goa.

(b) Income of Rs. Nil (previous year Rs. 28,182,000) received from Government of Maharashtra towards grant under Package Scheme of Incentives 2007 for expansion of manufacturing facilities at Jejuri (pressing segment).

(c) Expense of Rs. Nil (previous year Rs.13,474,978) towards provision for sub-lease charges payable in accordance with Goa-IDC (Transfer & Sub-Lease Regulations), 2018 (bus segment).

8) Current tax expenses for the year ended 31 March 2019 includes tax for earlier years amounting to Rs. 90,550 (previous year Rs. 7,376,473).

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Mar 31, 2018

1. Background and operations

Automobile Corporation of Goa Ltd. (ACGL) was incorporated on ^September, 1980 as a Public Limited Company under the Companies Act 1956. The Company was jointly promoted by EDC Limited (a Government of Goa Undertaking) and Tata Motors Limited.

The Company is engaged in manufacture of pressed parts, components, sub assemblies for various range of automobiles and manufacture Bus Bodies and components thereof.

The financial statements for the year ended 31^stMarch, 2018 were approved by the Board of Directors and authorized for issue on 27^tllApril, 2018.

2. Basis of preparation

a. Statement of compliance

These financial statements have been prepared in accordance with Indian accounting standards (“Ind AS”) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with section 133 of the Companies Act, 2013.

Details of the Company’s significant accounting policies are included in Note 3.

b. Functional and presentation currency

The financial statements are prepared in Indian Rupees, which is the Company’s functional and presentation currency. All financial information presented in Indian Rupees has been rounded to the nearest Rupees, except when otherwise indicated.

c. Basis of measurement

These financial statements have been prepared on a historical cost basis except for the following items:

Items_Measurement basis

Certain financial assets and liabilities Fair value

Net defined benefit (asset)/liability Fair value of plan assets less present value of defined benefit obligations

d. Use of estimates and judgments

In preparing these financial statements, management has made judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

Assumptions and estimation uncertainties

i. Impairment of non-financial assets

In assessing the non-financial assets for impairment, factors leading to significant reduction in profits such as reduction in finished goods prices and increase in raw material prices, the Company’s business plans and changes in regulatory environment are taken into consideration. The carrying value of the assets of a cash generating unit (CGU) is compared with the recoverable amount of those assets, that is, the higher of fair value less costs of disposal and value in use.

ii. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past events, it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company is involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

iii. Defined benefit plans

Refer Note no. 36 for details of the key assumptions used in determining the accounting for these plans.

iv. Provision against obsolete and slow-moving inventories

The Company reviews the condition of its inventories and makes provision against obsolete and slow-moving inventory items which are identified as no longer suitable for sale or use. Company estimates the net realizable value for such inventories based primarily on the latest invoice prices and current market conditions. The Company carries out an inventory review at each balance sheet date and makes provision against obsolete and slow-moving items. The Company reassesses the estimation on each balance sheet date.

v. Useful lives of property, plant and equipment.

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

vi. Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax asset at the end of each reporting period. The policy for the same has been explained under note 3f.

vii. Measurement of fair values

A number of the accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values which is overseen by the Chief Financial Officer (CFO). Significant valuation issues are reported to the Company’s audit committee. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as a lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

e. Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non current classification.

An asset is classified as current when it satisfies any of the following criteria:

- it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle.

- it is held primarily for the purpose of being traded;

- it is expected to be realized within 12 months after the reporting date; or

- it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

A liability is classified as current when it satisfies any of the following criteria:

- it is expected to be settled in the Company’s normal operating cycle;

- it is held primarily for the purpose of being traded;

- it is due to be settled within 12 months after the reporting date; or

- the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current assets/liabilities include current portion of non-current financial assets/liabilities respectively. All other assets/ liabilities are classified as non-current. Deferred tax liabilities are classified as non-current liabilities.

f. Standards issued but not yet effective

The standard issued, but not yet effective up to the date of issuance of the Company’s financial statements is disclosed below. The Company intends to adopt the standard from 1st April 2018.

Ind AS 115 Revenue from contracts with customers:

The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard establishes a five step model that will apply to revenue earned from a contract with a customer, regardless of the type of revenue transaction or the industry. The standard is effective from 01 April 2018.

The Company has preliminary assessed that the impact on revenue and profit impact of IND AS 115 will be immaterial to the financial statements. The Company is still in the process of assessing the full impact of the application of IND AS 115 on the Company’s financial statements, including on additional disclosures required.

A number of contingent liabilities have arisen as a result of

a) Show cause notice for wrong availment of Modvat by Central Excise which was procedural and technical in nature and similar case decision was given in company’s favour.

b) Decision made by Commissioner Excise (Appeals) in favour of ACGL for resoration of cenvat reversal whereas appeal filed by Excise department against the Commissioner (Appeals).

c) Appeal filed by company against Rule 10 A where any liability arising out of demand will be reimbursed by Tata Motors Limited.

d) Appeal filed against Commercial Tax Department for disallowance of Input Tax Credit where grounds of disallowance stated by Department were incorrect.

e) Income Tax notional demand for penalty which was dismissed by High Court . Thereafter set aside by Supreme court and sent back to High Court to review. The matter is remanded back to Tax Appellete Tribunal, Panaji (ITAT). Registry to communicate the Order to the Tribunal.

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period.

3) Specified Bank Notes disclosure (SBN)

The disclosures regarding details of specified bank notes held and transacted during 8th November,2016 to 30th December,2016 has not been made since the requirement does not pertain to financial year ended 31st March, 2018.Corresponding amounts as appearing in the audited Ind AS financial statements for the period ended 31st March, 2017 have been disclosed.

4) Employee Benefits

A Defined benefit plan

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable to each completed year of service as per Trust deed. Vesting occurs upon completion of 5 years of service.

The amount recognised in balance sheet and movements in the net defined benefit obligation over the year are as follows:

B Defined contribution plans

I. Contributions are made to recognized provident fund trust established by the Company and Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee’s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee’s salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs.18,373,347 /-(Previous year Rs.19,651,848/-)

II. The company has a superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs.22,765,413 /- (Previous year Rs.22,598,002/-).

5) Segment Information

(a) The company has identified business segments as reportable segments.

The company has two business segments:-

i) Pressing Division - manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body building division - manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment transfer pricing Inter-segment transfers are made at transfer price.

(c) Common expenses

Common expenses are allocated to different segments on reasonable basis as considered appropriate.

ii. Measurement of fair values

Level 1: level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: level 2 hierarchy includes fair value of the financial instruments that are not traded in an active market. Fair value of these financial instruments is determined using valuation, which maximise the use of observable market data and rely as little as possible on entity specific estimates. Investments in mutual funds are valued using the closing net assets value (NAV).

Level 3: level 3 hierarchy includes financial instruments that are not based on the observable market data.

iii. Risk management framework

The risk management process is coordinated by the management assurance functions and is regularly reviewed by the Company’s audit committee. The audit committee meets regularly to review risks as well as the progress against the planned actions. Key business decisions are also discussed at the periodic meetings of the audit committee and the board of directors. The overall internal control environment and risk management programme including financial risk management is reviewed by the audit committee and the board.

The risk management framework aims to:

- improve financial risk awareness and risk transparency.

- identify, control and monitor key risks.

- identify risk accumulations.

- provide management with reliable information on the company’s risk situation.

- improve financial returns.

The company has exposure to the following risks arising from financial instruments:

(i) Market risk

The Company’s activities does not expose it to the financial risks of changes in foreign currency exchange rates and interest rates.

(ii) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

(iii) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, the Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

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

* Research and Development expenditure and revenue pertains to period from 26.10.2016 which is from the date recognition of R and D by Department of Scientific and Industrial Research.

6) The Company does not have any long - term contract including derivative contract for which provision would be required for material foreseeable losses.

7) Exceptional items includes:

(a) Income of Rs.28,182,000/- lakhs received from Government of Maharashtra towards grant under Package Scheme of Incentives 2007 for expansion of manufacturing facilities at Jejuri (pressing segment).

(b) Expense of Rs.13,474,978/- lakhs towards provision for sub-lease charges payable in accordance with Goa-IDC (Transfer & SubLease Regulations), 2018. ( bus segment).

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Mar 31, 2017

1. Explanation to Transition to Ind AS

The transition as at 1^st April, 2015 to Ind AS was carried out from previous GAAP.

Reconciliations between Previous GAAP and IND AS

Notes to reconciliations between Previous GAAP and Ind AS

1. Dividends

Under previous GAAP, dividend payable was recorded as a liability in the period to which it related. Whereas, under Ind AS, dividend to Shareholder is recognized as a liability in the period in which the obligation to pay is established. This has resulted in increase in equity by Rs.96,614,138/- and Rs.96,322,283/- as on 31-March, 2016 and 1* April, 2015 respectively.

2. Employee benefits

Under Previous GAAP, actuarial gains and losses were recognized in the Statement of Profit and Loss. Whereas, under Ind AS, the actuarial gains and losses form part of re-measurement of net defined liability/asset which is recognized in Other Comprehensive Income in the respective periods. This has resulted in increase in profits by Rs.4, 195,825/-(net of tax) for the year ended 31^st March, 2016. However, the same does not result in difference in equity or total comprehensive income.

The general reserve is used from time to time to transfer from retained earnings for appropriation purpose. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

Note:

Loans from Banks on Cash Credit accounts are secured by hypothecation of stocks, stores, work-in-progress, finished goods, book debts and receivables, Investment, both present and future.

3) TRADE PAYABLES

i The disclosures under the Micro, Small and Medium Enterprises Development Act, 2006 have been made on the basis of confirmations received from suppliers regarding their status under the said act;

A number of contingent liabilities have arisen as a result of

a) Show cause notice for wrong availment of Modvat by Central Excise which was procedural and technical in nature and similar case decision was given in company''s favour.

b) Decision made by Commissioner Excise (Appeals) in favour of ACGL for resoration of cenvat reversal whereas appeal filed by Excise department against the Commissioner (Appeals).

c) Appeal filed by company against Rule 10 A where any liability arising out of demand will be reimbursed by Tata Motors Limited.

d) Appeal filed against Commercial Tax Department for disallowance of Input Tax Credit where grounds of disallowance stated by Department were incorrect.

e) Income Tax notional demand for penalty which was dismissed by High Court . Thereafter set aside by Supreme court and sent back to High Court to review.

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period.

4) Specified Bank Notes disclosure (SBN)

During the year, the Company had specified bank notes or other denomination notes as defined in the MCA notification G.S.R 308 (E) dated 31st March, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016. The denomination wise SBNs and other denomination notes as per the notification is given below.

5) Employee Benefits

A The disclosure as required under Ind AS-19 regarding the Company''s defined benefit plans is as follows:

i Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. Currently, the fund comprises of relatively balanced mix of investments in Government securities, and other debt instruments.

ii Interest Risk:

A decrease in the bond interest rate will increase the plan liability; however this will be partially offset by an increase in the return on the plan''s debt investments.

iii Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

iv Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

I. Reconciliation of opening and closing balances of Defined Benefit obligation

VI. The amounts of present value of the obligation, fair value of the plan assets, surplus or deficit in the plan, experience adjustments arising on plan liabilities and plan assets for the current annual period and previous annual period are as under:

VII. The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India, HDFC Standard Life Insurance Company Limited and Bajaj Allianz Life Insurance Company Limited. The details of investments made by them are not available.

The Sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Further more, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligations liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

B The disclosure as required under IndAS-19 regarding the Company''s defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company and Family Pension Fund which covers eligible employee''s of the company. Employee''s and the Company make monthly contributions at a specified percentage of the covered employee''s salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognized as expense in respect of these defined contribution plans, aggregate to Rs.19,651,848/- (Previous year Rs.15,103,262/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employee''s covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employee''s salary to the trust every year. Amount recognized as expense in respect of this defined contribution plans, aggregate to Rs.22,598,002/- (Previous year Rs.21,482,523/-).

6) Related Party Disclosures
a ) Name of related parties and nature of relationship:
Name of the party	Relationship
Tata Motors Limited	Enterprise exercising significant influence
Mr. O.V.Ajay	Key Management Personnel (From 16th December,2014)

38) Segment Information

(a) The Company has identified business segments as reportable segments.

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing Inter-segment transfers are made at transfer price.

(c) Common Expenses

Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

7. Financial Instruments

(i) Capital management

The Company manages it''s capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Company is not subject to any externally imposed capital requirements.

(iii) Market Risk

The Company''s activity does not expose it to the financial risks of changes in foreign currency exchange rates and interest rates.

(iv) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

(v) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity risk tables

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

The extent of overall remuneration should be sufficient to attract and retain talented and qualified individuals suitable for every role. Hence remuneration should be market competitive, driven by the role played by the individual, reflective of the size of the Company, complexity of the sector/ industry/ Company''s operations and the Company''s capacity to pay, consistent with recognized best practices and aligned to any regulatory requirements.

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Mar 31, 2016

1) Estimated amount of contracts remaining to be executed on Capital Account and not provided for.

2) The Company is involved in the following appellate, judicial and arbitration proceeding matters arising in the course of conduct of the Company''s businesses. In few of the proceedings in respect of matters under litigation are in early stages, and in other cases, the claims are indeterminate.

Contingent liability in respect of:

Claims against the Company not acknowledged as debt:

i Disputed demands of excise authorities

- Pending before the Commissioner of Central Excise (Appeals)

- Pending before High Court of Bombay, at Goa

- Pending before CESTAT

- Pending filing of appeal before CESTAT

- Pending before Additional Commissioner of Commercial Taxes

ii Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

iii Income Tax Department has gone into Appeal in the Supreme Court against the order of the High Court dismissing their Review Application in the matter of Depreciation not claimed by the Company in assessment year 1990-91. The Company has filed a counter affidavit with Supreme Court against the appeal.

iv Demand from the Water Resource Department towards usage of ground water from 10 wells/bore wells registered with the said department for the period from August 2008 to November 2013.

v Disputed claim by a service provider.

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period.

3) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

Previous Year

4) Earnings in foreign exchange classified under the following heads, namely:- '' ''

i. Export of goods calculated on F.O.B. basis 5,264,414 4,810,975

36) The Company has exported bus bodies and component parts thereof of

the sales value (Gross) through a merchant exporter. 2,346,401,507 2,394,321,610

5) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and Loss as "Excise Duty".

6) Warranty Provision

Warranty pertains to replacement of defective parts and expenses incurred in relation to rectification of workmanship defects.

7) The remuneration proposed to Mr. V Krishnamurthi (erstwhile Managing Director) for the period 1st April, 2014 to 6th December, 2014 was in excess of the limits specified in Schedule V of the Companies Act, 2013 and hence was subject to approval of the Central Government under section 197 of the Act. The Central Government vide its communication dated 25th August, 2015 approved an amount of '' 13,979,452/- and accordingly an amount of '' 6,412,638/- has been reversed during the current year.

8) During the previous year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1st April, 2014, the Company changed its method of depreciation for certain categories of fixed assets from written down value (WDV) method to straight line method (SLM). The Company also revised the estimated useful lives of some of its assets to align the useful lives with the technical advice obtained during the said year.

Consequent to this change, all fixed assets are now being depreciated under SLM.

The details of previously applied depreciation method, rates / useful lives were as follows:

a) For the change in method of depreciation from WDV to SLM:

Depreciation has been recomputed from the date of capitalization of such assets at SLM rates. Consequent to this there was a write back of depreciation of ''. 45,997,496/- relating to previous years, accounted in the Statement of Profit and Loss for the previous year.

The depreciation expense in the Statement of Profit and Loss for the previous year is lower by '' 4,873,692/- consequent to the change in the method of depreciation from WDV to SLM.

b) For the change in the useful lives of assets:

The Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful lives of the assets were determined to be nil on 1st April, 2014. The depreciation charge of '' 2,338,573/- was adjusted in the Statement of Profit and Loss for the previous year.

The depreciation expense in the Statement of Profit and Loss for the previous year is higher by '' 5,582,430/- consequent to the change in the useful lives of certain fixed assets.

9) Employee Benefits

A The disclosure as required under AS-15 regarding the Company''s defined benefit plans is as follows :

VII. The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company''s defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company and Family Pension Fund which covers eligible employees of the Company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognized as expense in respect of these defined contribution plans, aggregate to '' 15,103,262/-(Previous year '' 14,961,380/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The Company has obtained insurance policy with Life Insurance Corporation of India. The Company contributes 15% eligible employees salary to the trust every year. Amount recognized as expense in respect of this defined contribution plans, aggregate to '' 21,482,523/- (Previous year '' 18,696,013/-)

Notes: 10. Provision for doubtful debts for '' 5,25,914/- (Previous Year Nil) in respect of debts due from related parties.

11. Figures in brackets pertain to the previous year.

12) Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses - Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

13) As per the provisions of section 135 of the Companies Act, 2013, the Company is required to spend '' 4,900,000/- towards Corporate Social Responsibility (CSR) activities. The Company has spent an amount of Rs,3,700,000/- during the year and intends to spend the balance in the coming financial years in line with the CSR policy of the Company.

14) The Company does not have any long-term contract including derivative contract for which provision would be required for material foreseeable losses.

15) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year classification/disclosures.

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Mar 31, 2015

1 CORPORATE INFORMATION:

Automobile Corporation of Goa Limited was incorporated on September 1, 1980 as a Public Limited Company under the Companies Act, 1956. The Company was jointly promoted by EDC Limited (a Government of Goa undertaking) and Tata Motors Limited

The Company is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of Bus bodies and component parts thereof.

2 Terms and rights attached i Equity Shares

Each holder of equity shares is entitled to one vote per share. 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.

3 Estimated amount of contracts remaining to be executed on Capital Account and not provided for 4,172,161 91,608,721

4 The Company is involved in the following appellate, judicial and arbitration proceeding matters arising in the course of conduct of the Company's businesses. In few of the proceedings in respect of matters under litigation are in early stages, and in other cases, the claims are indeterminate.

5 Contingent liability in respect of:

Claims against the Company not acknowledged as debt: i Disputed demands of excise authorities

- Pending before the Commissioner of Central Excise (Appeals). 1,939,003 1,984,533

- Pending before High Court of Bombay, at Goa. 78,769 78,769

- Pending before CESTAT. 90,234,960 51,059,446

- Pending filling of appeal before CESTAT 18,044 -

ii. Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) for 175,000 175,000 alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004

iii Income Tax Department has gone into Appeal in the Supreme Court against the order of the High 3,732,969 3,732,969 Court dismissing their Review Application in the matter of Depreciation not claimed by the Company in assessment year 1990-91. The Company has filed a counter affidavit with Supreme Court against the appeal.

iv Award passed by the Industrial Tribunal and Labour Court, Panaji Goa in favour of ACGL Workers Nil 2,808,872 Union, upholding their demand for increase in VDA (in line with the Central Government notification applicable to Public Sector Undertaking for the period from 1989 to 2006). The Company had filed a writ petition with the High Court against the award.

Parties agreed to out of Court settlement and the High Court of Bombay at Goa passed Order on 21.11.2014 disposing the petition in the said matter.

v Demand from the Water Resource Department towards usage of ground water from 10 wells/bore wells 7,685,622 Nil registered with the said departments for the period from August 2008 to November 2013.

vi Disputed claim by a serviceprovider. 3,296,055 Nil

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period.

6 The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

7 The remuneration proposed to Mr V Krishnamurthi (erstwhile Managing Director ) for the period 1st April, 2014 to 6th December, 2014 is in excess of the limits specified in Schedule V of the Companies Act, 2013 and hence is subject to approval of the Central Government under section 197 of the Act. The Company has made an application to the Central Government on 15th April, 2015.

8 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1st April, 2014 ,the Company changed its method of depreciation for certain categories of fixed assets from written down value (WDV) method to straight line method (SLM). The Company has also revised the estimated useful lives of some of its assets to align the useful lives with the technical advise obtained during the year.

9 a.) For the change in method of depreciation from WDV to SLM:

Depreciation has been recomputed from the date of capitalisation of such assets at SLM rates. Consequent to this there is a write back of depreciation of Rs.45,997,496/- relating to previous years, accounted in the Statement of Profit and Loss for the year.

The depreciation expense in the Statement of Profit and Loss for the year is lower by Rs. 4,873,692/- consequent to the change in the method of depreciation from WDV to SLM

b.) For the change in the useful lives of assets:

The Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful lives of the assets were determined to be nil on 1st April, 2014. The depreciation charge of Rs. 2,338,573/- has been adjusted in the Statement of Profit and Loss for the year.

The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 5,582,430/- consequent to the change in the useful lives of certain fixed assets.

10 The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company's defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee's salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee's salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs.14,961,380/- (Previous year Rs.13,959,290/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 18,696,013/- (Previous year Rs.17,719,899 /-)

11 Related Party Disclosures

a) Name of related parties and nature of relationship:

Name of the party Relationship

Ashiyana Autobodies Associate (upto 5th December, 2014) Private Limited

Tata Motors Limited Enterprise exercising significant influence

Mr. V. Krishnamurthi Key Management Personnel (Upto 6th December, 2014)

Mr. O. V. Ajay Key Management Personnel (From 16th December, 2014)

12 Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses -Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

13 The Company does not have any long - term contract including derivative contract for which provision would be required for material foreseeable losses.

14 Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/disclosures.

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Mar 31, 2014

1) Contingent liability in respect of:

Claims against the Company not acknowledged as debt:

i Disputed demands of excise authorities

- Pending before the Commissioner of Central Excise (Appeals) . 1,984,533 2,025,407

-Pending before High Court of Bombay, at Goa. 78,769 2,882,439

- Pending before CESTAT. 51,059,446 50,978,042

The Company is confident of defending the above demands and expects no liability on this count.

ii. Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) for 175,000 175,000 alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demands and expects no liability on this count.

iii Income Tax Department has gone into Appeal in the Supreme Court against the order of 3,732,969 - the High Court dismissing their Review Application in the matter of Depreciation not claimed by the Company in assessment year 1990-91. The Company has filed a counter affidavit with Supreme Court against the appeal. The Company is confident of defending the above demands and expects no liability on this count.

iv Award passed by the Industrial Tribunal and Labor Court, Panaji Goa in favor of ACGL 2,808,872 Workers Union, upholding their demand for increase in VDA (in line with the Central Government notification applicable to Public Sector Undertaking for the period from 1989 to 2006). The Company has filed a writ petition with the High Court against the award.

The Company is confident of defending the above demands and expects no liability on this count.

2) The disclosures under the Micro, Small and Medium Enterprises Development Act, 2006 have been made on the basis of confirmations received from suppliers regarding their status under the said act;

3) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

4) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and Loss as "Excise Duty".

5) In the financial year ending 31st March 2007,the company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs.465/- per share aggregating Rs. 703,908,675/-. The objects of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda, Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April,2007 and shares were allotted on 19th May,2007. The pressing unit was relocated to Jejuri (Pune). Further, at the AGM held on 8th August, 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies. Accordingly, the Company has drawn plans to deploy the unutilised proceeds.

VII. The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company''s defined contribution plans is as follows:

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 13,959,290/- (PreviousyearRs.13,370,162/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 17,719,899/-(PreviousyearRs.16,986,181/-).

6)Seament Information

(a) Segment information for primary segment reporting (by business segment) The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles. ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses -Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

7) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/ disclosures.

---

Mar 31, 2013

Note: 1 (A)

CORPORATE INFORMATION:

Automobile Corporation of Goa Limited was incorporated on September 1, 1980 as a Public Limited Company under the Companies Act, 1956. The Company was jointly promoted by EDC Limited (a Government of Goa undertaking) and Tata Motors Limited.

The Company is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of Bus bodies and component parts thereof.

2) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 41,117,987 /- (Previous Year Rs. 47,680,736/-)

3) Contingent liability in respect of:

i Disputed demands of excise authorities Rs. 55,885,888/- (Previous Year Rs. 55,896,687/-)

- Pending before the Commissioner of Central Excise (Appeals) Rs. 2,025,407/-, (Previous Year Rs. 2,009,206/-)

- Pending before High Court of Bombay, at Goa Rs. 2,882,439/-, (Previous Year Rs. 2,882,439/-)

- Pending before CESTAT Rs. 50,978,042/-, (Previous Year Rs.. 50,978,042/-)

The Company is confident of defending the above demands and expects no liability on this count.

ii. Claims against the Company not acknowledged as debt Rs. 175,000/- (Previous Year Rs. 175,000/-)

- Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) Rs. 175,000/- (Previous Year Rs. 175,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demand and expects no liability on this count.

4) Operating Lease Rentals:

The company has taken certain sheds and residential premises on cancellable operating lease basis. Amount of lease rentals charged to the statement of Profit and loss in respect of such cancelable operating leases are Rs. 929,028/- (Previous year Rs. 1,702,589/-).

5) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

6) The Company has exported bus bodies and component parts thereof of the sales value (Gross) of Rs. 1,276,988,762/- (Previous year Rs. 1,358,952,157/-) through a merchant exporter.

7) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and Loss as "Excise Duty".

8) In the financial year ending 31st March 2007, the Company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs. 465/- per share aggregating Rs. 703,908,675/-. The objects of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda, Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April,2007 and shares were allotted on 19th May, 2007. The pressing unit was relocated to Jejuri (Pune). Further, at the AGM held on 8th August, 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies. Accordingly, the Company has drawn plans to deploy the unutilise proceeds.

I. The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company''s defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 13,370,162 /- (Previous year Rs. 11,430,955/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 16,986,181/- (Previous year Rs.14,484,839/-).

9) Related Party Disclosures

a) Name of related parties and nature of relationship:

Name of the party Relationship

Ashiyana Autobodies Private Limited Associate

Tata Motors Limited Enterprise exercising significant influence

Mr. V. Krishnamurthi Key Management Personnel

Mr Ananth Prabhu Key Management Personnel (up to 24th August, 2011)

10) Segment Information

(a) Segment information for primary segment reporting (by business segment) The Company has two business segments:- i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies for various range of automobiles ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses - Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

11) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/disclosures.

---

Mar 31, 2012

CORPORATE INFORMATION:

Automobile Corporation of Goa Limited was incorporated on September 1, 1980 as a Public Limited Company under the Companies Act, 1956. The Company was jointly promoted by EDC Limited (a Government of Goa undertaking) and Tata Motors Limited.

The Company is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of Bus bodies and component parts thereof.

1) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.47,680,736/- (Previous year Rs.43,730,826/-)

2) Contingent liability in respect of:

i Disputed demands of excise authorities Rs. 55,869,687/- (Previous year Rs.55,896,851/-)

- Pending before the Commissioner of Central Excise (Appeals) Rs.2,009,206/-, (Previous Year Rs. 1,939,003/-)

- Pending before High Court of Bombay, at Goa Rs.2,882,439/-, (Previous Year Rs.2,882,439/-)

- Pending before CESTAT Rs.50,978,042/-, (Previous Year Rs.51,050,265/-)

- Pending filing appeal with CESTAT Rs. Nil/- (Previous year Rs.25,144/-).

The Company is confident of defending the above demands and expects no liability on this count.

ii. Claims against the Company not acknowledged as debts Rs.175,000/- (Previous year Rs. 3,410,000/-)

- Claim raised by a customer Rs. Nil /- (Previous Year Rs. 3,235,000/-) towards disputed penal charges for delay in meeting delivery deadlines.

- Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) Rs. 175,000/- (Previous Year Rs.175,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demands and expects no liability on these counts.

iii Appeal by the Income Tax Department against the order of Income Tax Appellate Tribunal (ITAT) amount shown in Appeal Rs.37,329,969/- (Previous year Rs.37,329,969/-)

- The Income Tax Department had gone in appeal against the Order of the ITAT in respect of depreciation not claimed by the Company in Assessment Year 1990-91, the income tax liability on which is stated to be computed by the department at Rs. 3,732,996 which, due to a typographical error, had been shown as Rs. 37,329,969/- in the appeal.

The High Court of Bombay at Goa has dismissed the appeal of the Income Tax Department on 25th August 2010. The Income Tax Department has moved a review application which has now been dismissed by the High Court.

iv Disputed demand of Rs. Nil/- (Previous year Rs.1,000,000/-) as and by way of damages, for alleged breach of agreement to sell the Bungalow situated at Panaji, Goa.

3) The disclosures under the Micro, Small and Medium Enterprises Development Act, 2006 have been made on the basis of confirmations received from suppliers regarding their status under the said act;

4) Operating Lease Rentals:

The company has taken certain sheds and residential premises on cancellable operating lease basis. Amount of lease rentals charged to the statement of Profit and loss in respect of such cancellable operating leases are Rs 1,702,598/- (Previous year Rs.2,555,099/).

5) Earnings per share

Earnings per share (EPS) is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year as under:-

6) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

7) The Company has exported bus bodies and component parts thereof of the sales value (Gross) of Rs.1,358,952,157/- (Previous year Rs.2,368,508,913/-) through a merchant exporter.

8) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and loss as "Excise Duty".

9) In the financial year ending 31st March 2007, the Company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs.465/- per share aggregating Rs. 703,908,675/-. The objects of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda,Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April,2007 and shares were allotted on 19th May, 2007. The pressing unit has been relocated to Jejuri (Pune) during the current year. Further, at the AGM held on 8th August, 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies. Accordingly, the Company has drawn plans to deploy the unutilise proceeds.

VII. The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

B The disclosure as required under AS-15 regarding the Company's defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee's salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee's salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 11,430,955/- (Previous year Rs. 9,952,733/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 14,484,839/- (Previous year Rs.12,375,107/-).

10) Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

11) The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 43,730,826/- (Previous Year Rs. 12,578,721/-)

2. Contingent liability in respect of :

i. Disputed demands of excise authorities Rs. 55,896,851/- (Previous Year Rs. 6,185,062/-)

- Pending before the Commissioner of Central Excise (Appeals) Rs. 1,939,003/- (Previous Year Rs. 1,939,003/-)

- Pending before High Court of Bombay, at Goa Rs. 2,882,439/- (Previous Year 2,882,439/-)

- Pending before CESTAT Rs. 51,050,265/- (Previous Year Rs.1,066,076/-)

- Pending filling appeal with CESTAT Rs. 25,144/- (Previous Year Rs. 297,544/-) The Company is confident of defending the above demands.

ii. Claims against the Company not acknowledged as debts Rs. 3,410,000/- (Previous year Rs. 3,410,000/-)

- Claim raised by a customer Rs. 3,235,000/- (Previous Year Rs. 3,235,000/-) towards disputed penal charges for delay in meeting delivery deadlines.

- Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) Rs. 175,000/- (Previous Year 175,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demands and expects no liability on these counts.

iii) Appeal by the Income Tax Dept against the order of Income Tax Appellate Tribunal (ITAT) - amount shown in the appeal Rs. 37,329,969/- (Previous Year Rs. 37,329,969/-)

- The Income Tax Department had gone in appeal against the Order of the ITAT in respect of depreciation not claimed by the Company in Assessment Year 1990-91, the income tax liability is stated to be computed at Rs. 3,732,996/- which, due to a typographical error, had been shown as Rs. 37,329,969/- in the appeal.

The High court of Bombay at Goa has dismissed the appeal of the Income Tax Department on 25th August, 2010. The Income Tax Department has moved a review application with the High Court which is pending admission.

iv) Disputed demand of Rs. 1,000,000/- (Previous Year Rs. 1,000,000/-) as and by way of damages, for alleged breach of agreement to sell the Bungalow situated at Panaji, Goa.

- Appeal pending before High Court of Bombay at Goa.

v) Bills discounted with a bank Rs. Nil (Previous Year Rs. 729,614,768/-)

5 The disclosure as required under As-15 regarding the Companys defined plans is as follows :

VII.The assumptions of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment.

3. Operating Lease Rentals :

The company has taken certain sheds and residential premises on cancellable operating lease basis. Amount of lease rentals charged to Profit and loss account in respect of such cancellable operating leases are Rs. 2,555,099/- (Previous Period Rs. 2,024,483/-).

4 Related party Disclosures

a) Name of related parties and nature of relationship :

Name of the party Relationship

Ashiyana Autobodies Private Ltd Associates

Tata Motors Limited Enterprise exercising significant influence

Mr. N. R. Menon Key Management Personnel (up to 1st August, 2010)

Mr. V. Krishnamurthi Key Management Personnel (with effect from 18th October, 2010)

Mr. Ananth Prabhu Key Management Personnel

5 Segment Information :

(a) Segment information for primary segment reporting (by business segment) The Company has two business segments :

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing

Inter -segment transfers are made at transfer price

(c) Common Expenses

Common Expenses are allocated to different segment on reasonable basis as considered appropriate.

6 The Company has exported bus bodies and component parts thereof of the sales value (Gross) of Rs. 2,368,508,913/- (Previous year Rs. 506,997,266/-) through a merchant exporter.

7 The excise duty related to the difference between the opening and closing stock of finished goods is disclosed separately on the face of the Profit and Loss account as "Excise Duty".

8 In the financial year ending 31st March 2007, the company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs. 465/- per share aggregating to Rs. 703,908,675/-. The object of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda, Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April, 2007 and shares were allotted on 19th May 2007. The management had then decided to shift the pressing unit to Dharwar (Karnataka) instead of Pune.

Further, at the AGM held on 8th August 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies.

9 Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

---

Mar 31, 2010

1 Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.12,578,721/- (Previous year Rs.21,873,473/-)

2 Contingent liability in respect of:

i. Disputed demands of excise authorities Rs.6,185,062/- (Previous year Rs.6,964,013/-)

-Pending before the Commissioner of Central Excise (Appeals) Rs. 1,939,003/-, (Previous Year Rs1l,939,003/-)

-Pending before High Court of Bombay, at Goa Rs. 2,882,439/-, (Previous Year Rs.2,882,439/-)

-Pending before CESTAT Rs. 1,066,076/-, (Previous Year Rs. 1,566,335/-)

-Pending filing appeal with CESTAT Rs.297,544/- (Previous year Rs.576,236/-).

-The Company is confident of defending the above demands and expects no liability on this count.

ii. Claims against the Company not acknowledged as debts Rs.3,410,000/- (Previous year Rs. 9,943,810/-)

-Claim raised by Delhi Transport Corporation Rs. Nil (Previous year Rs. 6,533,810/-) pending before the Delhi High Court. During the year, the matter was decided against the company and the liability has since been settled.

-Claim raised by a customer Rs.3,235,000 /- (Previous Year Rs. 3,235,000/-) towards disputed penal charges for delay in meeting delivery deadlines.

-Penalty proposed to be levied by the Securities and Exchange Board of India Rs. 175,000/- (Previous Year Rs.l75,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

-The Company is confident of defending the above demands and expects no liability on these counts.

iii. Appeal by the Income Tax Dept against the order of Income Tax Appellate Tribunal (ITAT)- amount shown in the appeal Rs.37,329,969/- (Previous year Rs. 37,329,969/-)

-The Income Tax Department has gone in appeal against the Order of the ITAT in respect of depreciation not claimed by the Company in

-Assessment Year 1990-91, the income tax liability on which is stated to be computed by the department at Rs. 3,732,996 which, due to a typographical error, has been shown as Rs. 37,329,969/- in the appeal.

-The Company is confident of defending the above demand and expects no liability on this count.

iv. Disputed demand of Rs. 1,000,000/- (Previous year Rs. 1,000,000/-) as and by way of damages, for alleged breach of agreement to sell the Bungalow situated at Panaji.Goa.

Appeal pending before High Court of Bombay at Goa

v. Bills discounted with a bank Rs.729,614,768/- (Previous year Rs.548,413,885/-)

3 Managerial remuneration under Section 198 of the Companies Act, 1956 to the Managing Director and an Executive Director:

The above remuneration excludes contribution to gratuity and leave encashment as the incremental liability has been accounted for the company as a whole.

The above remuneration is in excess of the limits specified in Schedule XIII of the Companies Act, 1956 and hence is subject to approval of Central Government under Section 198/309 of the Companies Act, 1956.The company is in the process of making the application to the Central Government.

4 Computation of net profits as per Section 349 read with Section 309(5} and Section 198 of the Companies Act, 1956.

Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing

Inter-segment transfers are made at transfer price.

5 The company had opted for sales tax deferral scheme under the 1988 Package Scheme of incentive of Bombay Sales Tax Act, 1959 under certificate of entitlement No 412302/S/R-31B/1069 dated 4/2/2000. The total sales tax collected and deferred under the said scheme aggregated to Rs 48,428,000/-. The repayment under the scheme was due from 2010 onwards. During the previous year the Company settled the full liability by paying an amount of Rs.20,830,269/- being the NPV (Net Present Value) calculated in accordance with the provisions of the said act. The differential amount of Rs. 27,597,731/- had been accounted as income and disclosed as an "exceptional item" in the Profit and loss account.

6 Hitherto, the company was valuing the inventory of Components, Stores and Spares on FIFO Basis. During the year, the company has changed the method to weighted average. The impact of the change is not material.

7 Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.