Notes to Accounts of Jamna Auto Industries Ltd.

Mar 31, 2025

(ii) Provision for price difference

The Company recognizes the price difference payable
to parties, where settlement is pending for final
negotiation. It is provided on the basis of best estimates
and management''s assessment, considering the
past trend and various other factors. These provisions
are reviewed on a regular basis and adjusted with
respective element with statement of profit and loss
from the adequacy and reasonability point of view.

Contract balances

(iii) Trade receivables

Trade receivables are amounts due from customers for
goods sold in the ordinary course of business and reflect
the company''s unconditional right to consideration (i.e.
payment is due only on the passage of time).

Trade receivables are recognized initially at the
transaction price as they do not contain significant
financing components. The Company holds the
trade receivables with the objective of collecting the
contractual cash flows and therefore measures them
subsequently at amortized cost using the effective
interest method, less loss allowance.

For trade receivables, the Company applies the
simplified approach required by Ind AS 109, which
requires expected lifetime losses to be recognized from
initial recognition of the receivables.

f) Retirement and other employee benefits

Retirement benefit in the form of provident fund and
employee''s state insurance is a defined contribution
scheme. The Company has no obligation, other than the
contribution payable to the provident fund and employee''s
state insurance. The Company recognizes contribution
payable to the provident fund and employee''s state
insurance scheme as expenditure when an employee
renders the related service. If the contribution payable to the

exceeds the contribution already paid, the deficit payable
to the scheme is recognized as a liability after deducting the
contribution already paid. If the contribution already paid
exceeds the contribution due for services received before
the balance sheet date, then excess is recognized as an asset
to the extent that the pre-payment will lead to, for example, a
reduction in future payment or a cash refund.

The Company operates three defined benefit plans for its
employees i.e. gratuity, long service award and benevolent
fund. The costs of providing benefits under these plans are
determined on the basis of actuarial valuation at each year-
end. Actuarial valuation is carried out for these plans using
the projected unit credit method.

Re-measurements, comprising of actuarial gains and losses,
the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return
on plan assets (excluding amounts included in net interest on
the net defined benefit liability), are recognized immediately
in the balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which they
occur. Re-measurements are not reclassified to profit or loss
in subsequent periods.

Past service costs are recognised in statement of profit or loss
on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount rate to the
net defined benefit liability or asset. The Company recognizes
the following changes in the net defined benefit obligation as
an expense in the statement of profit and loss:

• Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and
non-routine settlements; and

• Net interest expense or income

Accumulated leave, which is expected to be utilized within
the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as a
result of the unused entitlement that has accumulated at the
reporting date.

The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long¬
term compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at
the year-end. Actuarial gains/losses are immediately taken
to the statement of profit and loss and are not deferred. The
Company presents the entire leaves as a current liability in the
balance sheet since it does not have an unconditional right
to defer its settlement for 12 months after the reporting date.

g) Suppliers credit / vendor bill discounting

The Company enters into deferred payment arrangements
(acceptances) whereby banks/financial institutions initially
make payment to Company''s suppliers for raw materials,
goods and services directly, while the Company continues
to recognize the liability till settlement with the bank/financial
institution at a later date, which is normally effected within
a period of 90 days. The arrangement provides working
capital timing benefits and the economic substance of the
transaction is determined to be financing in nature. These
arrangements are in the nature of credit extended in normal
operating cycle and these arrangements are recognized
as ''Supplier''s acceptances'' as a separate line item in
the Balance Sheet.

9. Income Tax

The Company is subject to income tax in India on the basis of its financial statements. The Company can claim tax exemptions/ deductions
under specific sections of the Income Tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable.The Company
during the year ended March 31, 2020 had opted for the new tax regime under Section 115BAA of the Act, which provides a domestic
company with an option to pay tax at a rate of 22% (effective rate of 25.168%). The lower rate shall be applicable subject to certain
conditions, including that the total income should be computed without claiming specific deduction or exemptions.

As per the tax laws, capital loss can be carried forward for a maximum period of eight assessment years immediately succeeding the
assessment year to which the loss pertains.

Notes:

(i) The receivables is ''unbilled'' because the Company has not yet issued an invoice; however, the balance has been included under
trade receivables (as opposed to contract assets) because it has an unconditional right to consideration.

(ii) The carrying amounts of the trade receivables includes receivables amounting to Rs. 12,327.96 lakhs (March 31, 2024: Rs. 15,078.60
lakhs) which are subject to a factoring arrangement. Under this arrangement, the Company has transferred the relevant receivables
to the factor in exchange for cash and is prevented from selling or pledging the receivables. However, the Company has retained
substantially all of the risks and rewards of ownership through late payment and credit risk. The Company therefore continues
to recognise the transferred assets in their entirety in its balance sheet. The amount repayable under the factoring agreement is
presented as unsecured borrowing. The Company''s accounting policy is to interpret ''held to collect'' on the basis of the accounting
treatment and the continued recognition of the receivables on the balance sheet. The Company therefore considers that the held to
collect business model remains appropriate for these receivables and hence continues measuring them at amortised cost.

(iii) Trade receivables is net off provision for turnover discount amounting to Rs. 2,384.81 lakhs (March 31, 2024: Rs. 2,780.52 lakhs)
since the Company has a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously. Had this amount not been netted off from trade receivables and disclosed
under other current liabilities, the closing amount of other current liabilities would have been Rs. 3,156.41 lakhs (March 31, 2024: Rs.
3,208.45 lakhs).

(iv) No trade receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any
trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

(v) Management considers that in substance the factor collects the amounts receivable on the entity''s behalf and retains the cash
in settlement of the separate financing transaction. The Company therefore presents the cash inflows received from the factor as
financing cash inflows and the subsequent payments by the debtor as both operating cash inflows and financing cash outflows.

c) Share based payment Reserve

The reserve is used to recognise the grant date fair value of options issued to employees under the Company''s Employees Stock
Option Scheme, 2017. Refer to note 45 for further details of the plan.

d) Capital Reserve

Capital Reserve represents the amount forfeited against warrants and application money received in earlier years. Utilisation of
reserve will be as per the provisions of the relevant statute.

e) Capital Redemption Reserve

Capital Redemption Reserve represents reserve created on account of redemption of preference shares. Utilisation of reserve will be
as per the provisions of the relevant statute.

f) Amalgamation reserve

Amalgamation reserve is on account of merger done by the Company in earlier years. This reserve can be utilised as per the provisions
of Companies Act, 2013.

g) General reserve

General Reserve is a free reserve. It represents appropriation of profit by the Company. General reserve is created by a transfer from
one component of equity to another and is not an item of other comprehensive income.

Notes:

(i) The Company has a cash credit account facility from banks and the amount outstanding as at year end is Rs. Nil (March 31, 2024:
Rs. Nil) carrying rate of interest ranging from 8.13% to 9.40% (March 31, 2024: 8.50% to 9.15%). The Company also has a facility of
working capital demand loans from banks and amount outstanding as at year end is Rs. Nil (March 31, 2024 : Rs. Nil) carrying rate of
interest 7.80% to 9.74% (March 31, 2024: 7.47% to 8.95%). The security against these facilities are as follows:

(a) First pari passu charge on entire current assets of the Company.

(b) Second pari passu charge to be shared with other lenders on all existing and future movable fixed assets of the Company
situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai.

(c) Second pari passu charge on all immovable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar
and Chennai to be shared with other secured working capital lenders.

(ii) Factored receivables from bank (Unsecured) have no interest cost to the Company.

(iii) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or
statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

(i) . The balance includes vendor''s invoices factored amounting to Rs. 1,008.69 lakhs (March 31, 2024: Rs. Nil)) which represents

receivable buyout facility offered by the bank to the vendors of the Company (''the factoring arrangement") and is payable within 90
days without any additional credit period. The factoring arrangement is unsecured under short-term borrowing facilities obtained
from bank and are interest bearing. Under the factoring arrangement, the Bank pays the Company''s suppliers upfront upon factoring
of the vendor''s invoices by the Company and in return, the Company receives an early payment discount from its suppliers. In the
case of default, the bank shall have a recourse on the supplier. The factoring arrangement provide the entity''s suppliers with early
payment terms, compared to the related invoice payment due date.

(ii) . There were no non-cash changes in the carrying amount of factoring arrangements in either period.

(iii) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act) for the year ended March 31, 2025 and March 31, 2024 is given below. This information has been determined to the
extent such parties have been identified on the basis of information available with the Company:

(i) The revenue is measured by the Company at the fair value of consideration received/ receivable from its customers and in determining
the transaction price for the sale of finished goods, the Company considers the effect of various factors such as price differences and
volume-based discounts, rebates and other promotion incentive schemes ("trade schemes”) provided to the customers. Adequate
provisions have been made for such price differences, and trade schemes, with a corresponding impact on the revenue. Accordingly,
revenue for the current year is net of price differences, trade schemes, rebates, discounts, etc.

(ii) Revenue from sale of goods is recognized at the point in time when control of the inventory is transferred to the customer, generally
on delivery of the products.

(iii) The Company has categorised its revenue into product mix and market mix. Product mix comprises of revenue from existing products
and new products and market mix comprises of revenue from existing markets and new markets. The Company considers After¬
market sales as revenue from new market.

Defined benefit plans

Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees as per The Payment
of Gratuity Act, 1972. 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 days salary payable for each completed year of service. Vesting occurs upon
completion of five years of service. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. The
Company accounts for the liability for gratuity benefits payable in the future based on a year-end actuarial valuation.

Long service award

Under long term service award, the employee is entitled to a fixed amount on completion of ten years and fifteen years of service. The
scheme of long term service award is unfunded.

The defined benefit plans expose the Company to a number of actuarial risks as below:

(i) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference
to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.

(ii) Interest rate risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an
increase in the value of plan assets.

(iii 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 salary of the plan participants will increase the plan''s liability.

(iv) 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.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice,
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined
benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated
with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit
liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is as certified
by the Actuary.

Discount rate is based on the prevailing market yields of Indian Government bonds as at the balance sheet date for the estimated
term of the obligations.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation
as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Details of significant contingent liability matters:

Claims against Company not acknowledged as debts (civil cases)

1) Matter pending with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) pertaining to FY 2012 to 2014 for non
payment of cross subsidy charges which were introduced subsequently with retrospective effect whereas the scheme mentioned
no such charges. The matter is pending adjudication before Supreme Court in a Special leave petition (SLP) and the Hon''ble Court
has directed to maintain the status quo till further order. Thereafter, TANGEDCO has kept the demand in abeyance till the disposal of
SLP. The amount involved is Rs. 54.62 lakhs (March 31, 2024: Rs. 54.62 lakhs).

2) Department in proceedings under section 7A of the Provident Fund and Miscellaneous Provisions Act for the peiod from February
2005 to March 2009, has confirmed the demand of Rs. 39.29 lakhs, which the Company has deposited under protest. Thereafter the
department has issued notice and has confirmed the demand for paying interest of Rs. 42.19 lakhs on demand confirmed earlier.
Against the said demand, the Company has filed a writ petition with High Court of Madhya Pradesh. The amount involved is Rs. 81.48
lakhs (March 31, 2024: Rs. 81.48 lakhs).

Custom duty

3) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG licence obtained by the Company, however,
the same was lost without being used in 2008. The Company is under an obligation to surrender the licence in case of non utilisation
and has received a letter from the office of ADGFT for the same. The Company has appeared before the authority and submitted the
facts of losing the licence without utilisation. The amount involved is Rs. 32.67 lakhs (March 31, 2024: Rs. 32.67 lakhs).

Goods and services tax

4) Matter pending before Apellate Authority, Gwalior in regard to show cause notice, where it has been alleged that the Company has
wrongly carried forward credit in TRAN-1 return under GST. The amount involved is Rs. 72.23 lakhs (March 31, 2024 Rs. 72.23 lakhs).

5) The Rajasthan sales tax department has raised and issued ASMT-10 wherein it has been alleged that upon scrutiny of the returns,
it has observed that Company instead of availing ITC under IGST has availed ITC under CGST & SGST. Company has filed its reply,
however department has issued the SCN. Company has filed its reply to the SCN clarifying that it was an bona fide mistake which
does not cause any revenue loss to the government, however department vide order dated 06.09.2023 has confirmed the demand
with interest and penalty. Against said order, Company has filed an instant appeal. The amount involved is Rs. 23.68 lakhs (March 31,
2024: Rs. 23.68 lakhs).

6) During the current year, the Company has received an order for the years 2017-18 to 2019-20 from Office of the Commissioner of
GST and Central Excise mainly in regard to the excess availment of ITC due to difference between GSTR 3B & GSTR 2A and other
certain other matters. The amount involved is Rs. 458.16 lakhs (March 31, 2024: Rs. 458.16 lakhs).

7) Company has filed an instant Writ against Show Cause Notice issued by the Department demanding to make payment of ITC availed
by the unit in respect of material purchased from M/s Rajshree Ispat, as M/s Rajshree Ispat has availed the credit on material purchased
from M/s Mittal Ceramic and M/s Mittal Ceramic has availed the ITC on basis of bogus invoices issued by about 11 taxpayers. Hon''ble
Court vide order dated 11.09.2023 has directed the company to submit Bank Guarantee of tax amount and directed the department
to file a detailed reply informing about the progress in the inquiry against other dealers in the supply chain. In compliance of the Court
order, Company has submitted the Bank Guarantee of the requisite amount with the Department. The amount involved is Rs. 641.15
lakhs (March 31, 2024: Rs. 641.15 lakhs).

8) During the current year, the Company has received an order from Sales Tax Officer, Delhi on ground of discrepencies between
GST returns filed for FY 2019-20, amount involved is Rs. 75.78 lakhs (March 31, 2024: Nil), Company has filed appeal with
Appellate Authority.

Sales tax

9) Matter pending before Assistant Commissioner (ST), Chengalpattu Assessment Circle in respect of F.Y. 2015-2016 wherein the
department has claimed that the Industrial Input Certificate in respect of goods sold to the Industrial units was not issued and in the
absence of the said certificate the concessional tax rates were applied. The department raised a demand for Rs. 1,363.59 lakhs and
asked the Company to file its objection against the said demand. The Company filed a reply along with the Industrial Input certificates
but has not yet submitted the balance certificates. The amount involved is Rs. 30.92 lakhs (March 31, 2024: Rs. 30.92 lakhs) for the
balance part of certificates pending to be submitted.

Entry tax

10) During the current year, the Company has received show cause notice for FY 2015-16 to FY 2017-18 from Excise and Taxation
officer, Assessing Authority, Jagadhri on ground of Haryana Tax on Entry of Goods into Local Areas Act, 2008, the Company is in
process of filing it''s reply. Amount involved is Rs. 349.70 lakhs (March 31, 2024: Nil).

11) The Company has received an demand order for FY 2011-12 for an amount of Rs. 32.79 lakhs (March 31, 2024: 32.79 lakhs) on
ground of shortfall in payment of taxes under Uttar Pradesh Tax on Entry of Goods Act, 2007.

12) Matter pending before Assistant Commissioner (ST), Maraimalai Nagar assessment circle, Poonamallee, where it has been
alleged/directed that:

- exemption of stock transfer was allowed without movement of goods- amount involved is Rs. 6.01 lakhs (March 31, 2024
Rs. 6.01 lakhs)

- interstate sale was not supported with Form C- amount involved is Rs. 1.83 lakhs (March 31, 2024 Rs. 1.83 lakhs)

- reversal of input tax credit under Section 19 of Tamil Nadu VAT Act be made- amount involved is Rs. 22.42 lakhs (March 31,
2024 Rs. 22.42 lakhs).

In regard to all of the above matters, the management, in consultation with its legal experts, wherever required, has assessed that it
is only possible, but not probable, that outflow of economic resources will be required. Accordingly, the above matters have been
disclosed as a contingent liability in the standalone financial statements for the year ended March 31, 2025.

40. Segment Reporting

The Company is engaged in the business of manufacturing of Automotive suspension products which includes Parabolic/ Tapered leaf
spring and Lift axle which constitute single reporting business segment. The entire operations are governed by the same set of risk and
returns. Based on the "management approach" as defined in Ind AS 108, the management i.e. Managing Director and CEO also reviews and
measures the operating results taking the whole business as one segment and accordingly make decision about the resource allocation.
In view of the same, separate segment information is not required to be given as per the requirements of Ind AS 108 "Operating Segments”.

The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned
geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed
that they carry same risk and rewards. The Company has considered domestic and exports markets and accordingly disclosed these as
separate. Addtional information required under Ind AS 108:

All other assets used in the Company business are located in India and are used to cater both the customers (within India and outside
India), accordingly the total cost incurred during the period to acquire the property, plant and equipment and intangible assets has not
been disclosed.

41. Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most
significant effect on the amounts recognised in the financial statements.

Estimates and assumptions

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

Recording of price adjustments and their impact on revenue recognition

Revenue is measured by the Company at the transaction price i.e. amount of consideration received/receivable from its customers. In
determining the transaction price for the sale of products, the Company considers the effects of various factors such as volume-based
discounts, price adjustments to be passed on to the customers based on various parameters like negotiations based on savings on
materials/ share of business, rebates etc. provided to the customers. The Company''s business also requires passing on these credits
related to price adjustments and others to the customers for the sales made by the Company. The Company, at the year end, has provided
for such price adjustments to be passed on to the customers based on agreed terms, negotiations undertaken, commercial considerations
and other factors. This requires significant judgement and estimate in calculating the price adjustments to be recorded under Trade
payables/adjusted with Trade receivables as at the year end.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations.
An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the
management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those
mortality tables tend to change only at interval. Future salary increases and gratuity increases are based on expected future inflation rates.
Further details about gratuity obligations are given in Note 36.

Property, plant and equipment

The management has estimated based on the independent assessment and past experience the useful life and residual value of property,
plant and equipment. Management believes that the assigned useful lives and residual value are reasonable and the estimates and
assumptions made to determine depreciation are critical to the Company''s financial position and performance.

Recoverability of loans and investments to subsidiaries

Loans to subsidiaries are carried out at amortised cost and investments in subsidiaries are carried at cost. At each balance sheet date,
the management assesses the indicators of impairment of such loans and investments. This requires assessment of several external and
internal factors including capitalisation rate, key assumption used in discounted cash flow models (such as revenue growth, unit price and
discount rates) which may affect the carrying value of loans and investments in subsidiaries.

Taxation

In preparing financial statements, there are many transactions and calculations for which the ultimate tax determination is uncertain. The
Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax
positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow
of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded,
such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made.
Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits together with future tax planning strategies.

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of
money is material, provisions are determined by discounting the expected future cash flows. In the normal course of business, contingent
liabilities may arise from obligation or other claim against the Company which are very difficult to quantify reliably and such obligation are
treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements.

43. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, 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.
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 net debt to equity ratio, which includes debts divided
by total equity.

Notes:

(i) For the calculation of net debt to equity ratio, the Company has not considered supplier''s acceptances in net debts amounting to Rs.
21,767.27 (March 31, 2024: Rs. 12,292.39 lakhs).

(ii) The net debt to equity ratio for the current year has decreased from 9.24% to 13.00% majorly on account of decrease in the amount
of factored receivables and increase in cash and cash equivalents.

44. Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, lease liabilities, trade and other
payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets
include investments, loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed
to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a
finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior
professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are

accountable to the Board of Directors. This process provides assurance to Company''s senior management that the Company''s financial
risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in
accordance with Company''s policies and Company''s risk objective. In the event of crisis caused due to external factors, the management
assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in
these situations through internal and external source of funds. These forecast and assumptions are reviewed by Board of Directors.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:"

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial
instruments affected by market risk include loans and borrowings and deposits.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s
long-term debt obligations with floating interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s
operating activities (when revenue or expense is denominated in a foreign currency). The Company''s profit and loss is not
sensitive to reasonable changes in the foreign curreny rates.

(iii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchases of
steel which is a volatile product and is major component of end product. The prices in these purchase contracts are linked to the
price of raw steel and demand supply matrix. However, at present, the Company do not hedge its raw material procurements, as
the price of the final product of the Company also vary with the price of steel which mitigate the risk of price volatility.

(b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks, loans given and other financial instruments. Management has a credit policy in place and
the exposure to credit risk is monitored on an ongoing basis.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk
management. The major customers of the Company are original equipment manufacturers (OEM''s) which have a defined period for
payment of receivables and from related party, and the balance as at the year end majorly includes balance from one OEM customer.
Hence, the Company evaluates the concentration of risk with respect to trade receviables as low. At March 31, 2025, approximately
92% (March 31, 2024: 95%) of all the receivables outstanding were from OEMs and related party.

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track
changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company uses a
provision matrix to calculate ECL for trade receivables. The provision rates are based on days past due for groupings of customers
that have similar loss patterns. The maximum exposure to credit risk at the reporting date is the carrying value of financial assets
disclosed in note 11.

Financial instruments and cash deposits

Credit risk from loans given, balances with banks is managed by the Company''s treasury department in accordance with the
Company''s policy. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with the banks
with high credit ratings. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2025
is the carrying amounts as disclosed in Note 6, 7, 12 and 13.

(c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The
Company monitors its risk of a shortage of funds by doing liquidity planning. The Company''s objective is to maintain a balance
between continuity of funding and flexibility through the use of bank overdrafts, bank loans, cash credits and advance payment terms.

Financing arrangements

The Company had access to the following undrawn facilities at the end of reporting period:

45. Share based payments

The Company formulated an ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI
(Share Based Employee Benefits) Regulation, 2021, which was duly approved in the Annual General Meeting of the Shareholders of the
Company on August 1, 2017 and the Company also got in-principle approval from both NSE and BSE dated March 20, 2018 and March
27, 2018 respectively in respect of the said Scheme. Under the ESOP Scheme, the eligible employees shall be granted a total of 2,555,000
employee Stock Options which will be exercisable into equal number of equity shares of Rs. 1 (absolute amount) each of the Company.
The fair value of the share options is estimated at the grant date using Black Scholes option pricing model, taking into account the terms
and conditions upon which the share options were granted.

47. Additional regulatory information required by Schedule III

(i) Details of benami property held: The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property under the Prohibition of Benami Property Transactions Act, 1988 (as
amended from time to time) and the rules made thereunder.

(ii) Borrowing secured against current assets: The Company has borrowings from banks and financial institutions on the basis
of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial
institutions are in agreement with the books of accounts.

(iii) Wilful defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(iv) Relationship with struck off companies: The Company has no transactions with the companies struck off under Companies Act,
2013 or Companies Act, 1956.

(v) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, and there are no companies
beyond the specified layers.

(vi) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which
has an accounting impact on current or previous financial year.

vii) Utilisation of borrowed funds and share premium:

(A) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(B) The Company has not received any fund from any person or entity, 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 persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(viii) Undisclosed income: 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 assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961).

(ix) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency
during the financial year.

(x) Valuation of Property, Plant and Equipment, intangible: 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.

(xi) Title deeds of immovable properties not held in name of the Company: The title deeds of all the immovable properties (other
than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed
in Note 3 and Note 3(b) to the financial statements, are held in the name of the Company.

(xii) Registration of charges or satisfaction with Registrar of Companies: The Company does not have any charges or satisfaction

which is yet to be registered with ROC beyond the statutory period.

as disclosed in note(s) 3 and 4 to the finanical statements, are held in the name of the company.

(xiii) Utilisation of borrowings availed from bank and financial institutions: The borrowings obtained by the company from bank

and financial institutions have been applied for the purposes for which such loans were taken.

(xiv) As on Balance sheet date, there is no default in repayment of loans and interest.

48 (i) Cyber Incident: On July 5, 2024, the Company detected a ransomware incident at its server at Pune, India, that had affected

Company''s IT systems including accounting software(s). The Company acted promptly and took necessary precautions and
protocols to mitigate the impact of the incident and successfully recovered /restored the data from backups with the help

of cybersecurity experts. One of the accounting software was restored within a few days, during this period the accounting

software was not open for recording any transactions. Based on further review and analysis of the data recovered the Company
was able to assess that there had been no material impact on systems involved for production. The Sales and other operations
of the Company and no price sensitive information or data was deleted or impacted as a result of this incident and have not
detected any further anomalies.

The Company appointed a Cyber Auditor to further assess the Company''s IT systems, identify shortcomings and recommend
further improvements to address the cyber security risk, management is taking necessary steps in this regard.

(ii) The daily back up as required by law has been kept for multiple ERP systems of the Company other than for the period July 4,
2024 to October 20, 2024 for all ERPs and from February 21, 2025 to March 4, 2025 for one of the ERPs.

49. Certain promoters of the Company are also the promoters of SW Farms Private Limited (CIN: U74899DL1994PTC057506), a service
provider mainly engaged in the activity of renting of immovable properties and is a Core Investment Company (CIC) as defined in the
regulations made by the Reserve Bank of India.

50. Summary of other accounting policies:

c) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as

current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period

All other assets are classified as non-current. A liability is current when:

- It is expected to be settled in normal operating cycle.

- It is held primarily for the purpose of trading.

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.
The Company has identified twelve months as its operating cycle.

d) Foreign currencies

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in
which the Company operates (''the functional currency''). The financial statements are presented in Indian Rupee (INR), which is the
Company''s functional and presentation currency.

Transactions and balances

Foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency
amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at
the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the
dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value is determined. The gain or loss arising on translation of non- monetary items measured at fair
value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

e) Investment property

Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs.
Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits
associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the
replaced part is derecognised. The investment property is depreciated on a straight-line basis over its useful life.

f) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization. Internally generated intangible assets, excluding capitalized development costs, are
not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

The useful lives of the intangible assets are assessed as either finite or infinite.

Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that
the intangible assets may be impaired. The amortization period and amortization method of the intangible asset with a useful finite life
are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and
are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the
statement of profit and loss unless such expenditure forms part of carrying value of another assets.

Software is amortized on a straight-line basis over the period of five years.

An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits
are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when
the asset is derecognized.

g) Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing
costs are expensed in the period they occur. Borrowing cost includes interest and other costs that an entity incurs in connection with
the borrowing of funds and charged to Statement of Profit & Loss. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing cost.

h) Impairment of non-financial asset

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists,
or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s
recoverable amount is the higher of an asset''s or cash-generating units'' (CGU) net selling price and its value in use. The recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are 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. In determining net selling price,
recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or
other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for
each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover
a period of four to five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after
the forecast period. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company
extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing
rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or
country or countries in which the Company operates, or for the market in which the asset is used.

A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s
recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had
no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss unless
the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Impairment losses on non-financial asset, including impairment on inventories, are recognized in the statement of profit and loss.

i) Warranty Obligations

The Company generally provides for warranties for general repair of defects. These warranties are assurance-type warranties under
Ind AS 115, which are accounted for under Ind AS 37 (Provisions, Contingent Liabilities and Contingent Assets), consistent with its
current practice. The Company adjust the transaction price for the time value of money where the period between the transfer of the
promised goods or services to the customer and payment by customer exceed one year.

j) Significant Financing Components

---

Mar 31, 2024

(ii) There are no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

(iii) The investment property is leased to tenant under operating lease with rent payable monthly. Lease income from operating lease where the company is a lessor is recognised as income on a straight-line basis over the lease term. There are no other variable lease payments that depends on an index or rate.

(iv) There are no minimum lease payments receivable on the lease of investment property.

The company obtains independent valuations for its investment property at least annually. The best evidence of fair value is current prices in an active market for similar properties.

The fair value of investment property has been determined by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

*Notes:

(i) The Company have given loans of Rs. 7,940.00 lakhs (March 31, 2023 Rs. 3,350.00 lakhs) and Rs. 4,878.98 lakhs (March 31, 2023 Rs. 2,983.98 lakhs) to Jai Suspensions Limited and Jai Automotive Components Limited respectively which are repayable on demand, but 2 years from the commencement of commercial production at an interest rate of 9% p.a. or 1 year MCLR 0.65% spread p.a. whichever is higher. Interest payment shall start quarterly after 12 months from start of commercial production. These loans have been given for setting up new plants in Indore and Adityapur by Jai Automotive Components Limited and Jai Suspensions Limited respectively.

(ii) The above amount includes interest accured amounting to Rs. 686.09 lakhs (March 31, 2023: Rs. 160.16 lakhs).

9 Income Tax

The Company is subject to income tax in India on the basis of its financial statements. The Company can claim tax exemptions/ deductions under specific sections of the Income Tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable. The Company during the year ended March 31, 2020 had opted for the new tax regime under Section 115BAA of the Act, which provides a domestic company with an option to pay tax at a rate of 22% (effective rate of 25.17%). The lower rate shall be applicable subject to certain conditions, including that the total income should be computed without claiming specific deduction or exemptions. As per the tax laws, capital loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains.

The company has recognised deferred tax assets on carried forward short-term capital loss. The loss relates to sale of land in the year 2021, acquired in year 2018, situated at Indore, Madhya Pradesh. The company has concluded that the deferred tax assets will be recoverable using the estimated future taxable income based on the approved business plans. The losses can be carried forward for a period of 8 years as per local tax regulations and the company expects to recover the losses.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

(ii) Trade receivables includes receivable amounting to Rs. 15,078.60 lakhs (March 31, 2023: Rs. 1,778.30 lakhs) from a customer, which are subject to a factoring arrangement under the tripartite agreement between the Company, Bank and the customer, where the obligation to pay may arise due to unforeseen event of default by the Company''s customer. The amount repayable under the bill discounting arrangement is presented as unsecured borrowing. The Company therefore continues to recognise the transferred assets and liability in its standalone financial statements and considers that the held to collect business model remains appropriate for these receivables and hence continues measuring them at ammortised cost. Also refer note 16.

(iii) No trade receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

b. Term and Rights attached to equity shares

Equity shares have a value of Rs. 1 each.Each shareholder is entitled to one vote per share. The Company pays and declares dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

d. Shares reserved for issue under options

For details of shares reserved for issue under the share based payment plan of the Company, please refer note no 45.

(1) The Company has paid an interim dividend of Rs. 1.10 for every equity share of Rs. 1 (absolute amount) (March 31, 2023: Rs. 0.80) (absolute amount) per equity share of Rs. 1 (absolute amount).

(2) The Board of Directors of the Company at their meeting held on May 24, 2024 recommended a final dividend of Rs. 1.10 (absolute amount) [March 31, 2023 : Rs. 1.10 (absolute amount)] per equity share of Rs. 1 (absolute amount) each of the Company. Final dividend is subject to the approval of shareholders.

(3) Description of Nature and Purpose of each Reserve

a) Securities Premium

Securities Premium represents amount received on issue of shares in excess of the par value. Utilisation of reserve will be as per the provisions of the relevant statute.

b) Retained Earnings

Retained Earnings comprises of prior years as well as current year''s undistributed earnings after taxes.

c) Share based payment Reserve

The reserve is used to recognise the grant date fair value of options issued to employees under the Company''s Employees Stock Option Scheme, 2017. Refer to note 45 for further details of the plan.

d) Capital Reserve

Capital Reserve represents the amount forfeited against warrants and application money received in earlier years. Utilisation of reserve will be as per the provisions of the relevant statute.

e) Capital Redemption Reserve

Capital Redemption Reserve represents reserve created on account of redemption of preference shares. Utilisation of reserve will be as per the provisions of the relevant statute.

f) Amalgamation reserve

Amalgamation reserve is on account of merger done by the Company in earlier years. This reserve can be utilised as per the provisions of Companies Act, 2013.

g) General reserve

General Reserve is a free reserve. It represents appropriation of profit by the Company. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

The Company has a cash credit account facility from banks and amount outstanding as at year end is Rs. Nil (March 31, 2023: Rs. Nil) carrying rate of interest ranging from 8.50% to 9.15% (March 31, 2023: 7.30% to 8.95%). The company also has facility of working capital demand loans from banks and amount outstanding as at year end is Rs. Nil (March 31, 2023 : Rs. Nil) carrying rate of interest 7.47% to 8.95% (March 31, 2023: 4.50% to 7.75%). The security against these facilities are as follows:

(a) First pari passu charge on entire current assets of the Company.

(b) Second pari passu charge to be shared with other lenders on all existing and future movable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai.

(c ) Second pari passu charge on all immovable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai to be shared with other secured working capital lenders.

(d) Bills Discounting from bank (Unsecured) have no interest cost to the Company.

(e) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

18(a)# Provision for warranties

A provision is recognized for expected warranty claims on products sold during the last one year, based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the one-year warranty period for all products sold. The table below gives information about movement in warranty provisions.

1 Government grants have been received for the purchase of certain items of property, plant and equipment. There are no unfulfilled conditions or contingencies attached to these grants.

2 The Company has opted the EPCG scheme, to avail the benefit of saving of custom duty by committing export of goods worth six times, of the value of duty saved, over a period of six years from the date of utilisation of benefit. Duty so saved has been recognised as Government grant and being released to profit & loss on the basis of export obligation fulfilled.

3 At the year end, the Company has an outstanding export obligation of Rs. 7,622.25 Lakhs (March 31, 2023: Rs. 11,581.73 Lakhs).

The amount represents credit availed by the company from the banks for payment to suppliers of materials purchased by the company and are payable within 90 days. Acceptances are secured under short-term borrowing facilities obtained from banks and are interest bearing.

Terms and condition of the above trade payables:

Trade payables are non-interest bearing and are normally settled on 30-90 day terms.

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended March 31, 2024 and March 31, 2023 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

32(b) Corporate social responsibility expenditure

As per the provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility ("CSR”). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. The Company has contributed a sum of Rs. 370.30 Lakhs (March 31, 2023: Rs. 316.79 Lakhs) towards this cause and charged the same to the Statement of Profit And Loss.

35 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Options granted to employees under the ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) are considered to be potential equity shares. They have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share. Details relating to the options are set out in note 45.

36 Employee benefits

Defined contribution plan

The Company provides provident fund benefits for eligible employees as per applicable regulations wherein both employees and the Company make monthly contributions at a specified percentage of the eligible employee''s salary.The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period. The expense recognised during the year towards contribution to provident and other fund is:

Defined benefit plans Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees as per The Payment of Gratuity Act, 1972. 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 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. The Company accounts for the liability for gratuity benefits payable in the future based on a year-end actuarial valuation.

Long service award

Under long term service award, the employee is entitled to a fixed amount on completion of ten years and fifteen years of service. The scheme of long term service award is unfunded.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 9.08 years (March 31, 2023: 10.23 years)

The defined benefit plans expose the Company to a number of actuarial risks as below:

(i) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government bond yields. If the return on plan asset is below this rate, it will create a plan deficit.

(ii) Interest rate risk: A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the value of plan assets.

(iii) 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 salary of the plan participants will increase the plan''s liability.

(iv) 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.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

Discount rate is based on the prevailing market yeilds of Indian Government bonds as at the balance sheet date for the estimated terms of the obligations.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

37 Leases

The Company''s lease assets primarily consists of leases for lands, warehouses and offices having the various lease terms.

Following is the carrying value of right-of use-assets and movements thereof during the year ended :

38 (a)	Commitments and contingencies Capital commitments and other commitments Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows : -
	Particulars	March 31, 2024	March 31, 2023
	Estimated amount of contracts remaining to be executed on capital account [Net of advances of Rs. 987.10 lakhs (March 31, 2023: Rs. 1,196.59 lakhs)]	3,183.82	1,504.43
	Total	3,183.82	1,504.43
(b)	Contingent liabilities (to the extent not provided for)
	Particulars	March 31, 2024	March 31, 2023
	(i) Income tax	-	482.27
	(ii) Claims against company not acknowledged as debts (civil cases)	142.91	142.81
	(iii) Custom and excise duty / service tax / GST	1,280.40	5,613.56
	(iv) ''Sales tax and entry tax	61.18	61.18
	Total	1,484.49	6,299.82

In relation to income tax matters disclosed in (i) above:

1 With respect to assessment year 2012-13 and 2013-14, the assessing officer has increased the taxable income of the Company by Rs 1,418.45 lakhs contending that the parent Company has sold material to its subsidiary firm (Jai Suspension System LLP (JSSLLP) at lower margin in order to divert its profits to JSSLLP as JSSLLP was enjoying tax exemption during that period. The Company had preferred an appeal with CIT(A). During the year, the Company has received a favorable order against the appeal filed. Tax impact of the same is Rs. Nil (March 31, 2023: Rs. 482.27 lakhs).

In relation to (ii) above claims against company contested by the Company majorly comprises of:

1) Matter pending with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) pertaining to Financial year 2012 to 2014 for non payment of cross subsidy charges which were introduced subsequently with retrospective effect whereas the scheme mentioned no such charges. The matter is pending adjudication before Supreme Court in a Special leave petition (SLP) and the Hon''ble Court has directed to maintain the status quo till further order. Thereafter, TANGEDCO has kept the demand in abeyance till the disposal of SLP. The amount involved is Rs. 54.62 lakhs (March 31, 2023: Rs. 54.62 lakhs).

2) Matter pending with the Employee Provident Fund (EPF) Appellate Tribunal pertaining to Provident Fund (PF) liability on BPO consultants hired. The amount involved is Rs. 6.71 lakhs (March 31, 2023: Rs. 6.71 lakhs).

3) Department in proceedings under section 7A of the PF Act for the peiod from February 2005 to March 2009, has confirmed the demand of Rs. 39.29 lakhs, which the Company has deposited under protest. Thereafter the department has issued notice and has confirmed the demand for paying interest of Rs. 42.19 lakhs on demand confirmed earlier. Against the said demand, the Company has filed awrit petition with High Court ofMadhya Pradesh. The amount involved isRs. 81.48Lakhs(March 31,2023: Rs. 81.48 Lakhs).

In relation to (iii) above customs and excise duty/service tax and GST contested by the Company majorly comprises of:

1) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG licence obtained by the Company, however, the same was lost without being used in 2008. The Company is under an obligation to surrender the licence in case of non utilisation and has received a letter from the office of ADGFT for the same. The Company has appeared before the authority and submitted the facts of losing the licence without utilisation. The amount involved is Rs. 32.67 lakhs (March 31, 2023: Rs. 32.67 lakhs).

2) Matters pending before appellate authority pertaining to imposition of penalty due to missing details in e-way bill on dispatch of goods.The Company has filed the present appeal before the appellate authority. The amount involved is Rs. 2.63 lakhs (March 31, 2022: Rs. 2.63 lakhs). The Company has made a payment of Rs. 2.63 lakhs (March 31, 2023: Rs. 2.63 lakhs) under protest in this regard.

3) Matter pending before Appellate Authority, Gwalior in regard to show cause notice, where it has been alleged that the Company has wrongly carried forward credit in TRAN-1 return under GST. The amount involved is Rs. 72.23 lakhs (March 31, 2023 Rs. 36.11 Lakhs).

4) The Rajasthan sales tax department has raised and issued ASMT-10 wherein it has been alleged that upon scrutiny of the Returns, it has observed that Company instead of availing ITC under IGST has availed ITC under CGST & SGST. Company has filed its reply, however department has issued the SCN. Company has filed its reply to the SCN clarifying that it was a bona fide mistake which does not cause any revenue loss to the government, however department vide order dated 06.09.2023 has confirmed the demand with interest and penalty. Against said order, Company has filed the instant appeal.The amount involved is Rs.23.68 lakhs (March 31, 2023: 61.57 Lakhs).

5) During the current year, the Company has received an order for the years 2017-18 to 2019-20 from Office of the Commissioner of GST and Central Excise mainly in regard to the excess availment of ITC due to difference between GSTR 3B & GSTR 2A and certain other matters. The amount involved is Rs. 458.16 lakhs (March 31, 2023: 5,452.71 Lakhs).

6) Company has filed an instant Writ against Show Cause Notice issued by the Department demanding to make payment of ITC availed by the unit in respect of material purchased from M/s Rajshree Ispat, as M/s Rajshree Ispat has availed the credit on material purchased from M/s Mittal Ceramic and M/s Mittal Ceramic has availed the ITC on basis of bogus invoices issued by about 11 taxpayers. Hon''ble Court vide order dated 11.09.2023 has directed the company to submit Bank Guarantee of tax amount and directed the department to file a detailed reply informing about the progress in the inquiry against other dealers in the supply chain. In compliance of the Court order, Company has submitted the Bank Guarantee of the requisite amount with the Department.The amount involved is Rs. 641.15 lakhs (March 31, 2023: Rs. Nil).

7) Matters pending before Asisstant Commissioner pertaining to input tax credit availed against which the Company had not produced the supporting documents for amount aggregating to Rs.12.44 lakhs (March 31, 2023:Rs. 12.44 lakhs). The department has issued show cause notice regarding the balance amount to the Company.

8) During the earlier years, the Company applied under Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS) for the resolution of part of the matters pending with Assistant Commissioner in respect of Cenvat Credit availed by the Company on service tax paid on charges of Canteen, outdoor catering and security services. Pursuant to the application made, the Company also received the discharge certificate for the same in the previous years and accordingly these cases were closed. One matter of same nature is pending with Assistant Commissioner, Kurukshetra for which the Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 15.43 lakhs (March 31, 2023 15.43 lakhs).

In relation to (iv) above sale tax and entry tax matters contested by the Company majorly comprises of:

1) Matter pending before Assistant Commissioner (ST), Chengalpattu Assessment Circle in respect of F.Y. 2015-2016 wherein the department has claimed that the Industrial Input Certificate in respect of goods sold to the Industrial units was not issued and in the absence of the said certificate the concessional tax rates were applied. The department raised a demand for Rs. 1,363.59 lakhs and asked the Company to file its objection against the said demand. The Company filed a reply along with the Industrial Input certificates but has not yet submitted the balance certificates. The amount involved is Rs. 30.92 lakhs (March 31, 2023: Rs. 30.92 lakhs) for the balance part of certificates pending to be submitted.

2) Matter pending before Assistant Commissioner (ST), Maraimalai Nagar assessment circle, Poonamallee, where it has been alleged/directed that:

- exemption of stock transfer was allowed without movement of goods- amount involved is Rs. 6.01 lakhs (March 31, 2023 Rs. 6.01 lakhs)

- interstate sale was not supported with Form C- amount involved is Rs. 1.83 lakhs (March 31, 2023 Rs. 1.83 lakhs).

- reversal of input tax credit under Section 19 of Tamil Nadu Vat Act be made- amount involved is Rs. 22.42 lakhs (March 31, 2023 Rs. 22.42 lakhs).

In regard to all of the above matters, the management, in consultation with its legal experts, wherever required, has assessed that it is only possible, but not probable, that outflow of economic resources will be required. Accordingly, the above matters have been disclosed as a contingent liability in the standalone financial statements for the year ended March 31, 2024.

(a) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

(b) All the liabilities for post retirement benefits being ''Gratuity'' are provided on actuarial basis for the Company as a whole, the amount pertaining to Key management personnel are not included above.

(c) Outstanding balances at the year-end are unsecured and interest free, except loans to subsidiaries which carries a rate of interest. The settlement occurs in cash, where applicable.

(d) There are no stock options held by key managerial persons under ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI (Share Based Employee Benefits) Regulation, 2014.

Loan to subsidiary

For the terms on loan to subsidiary refer note 6.

Gurantee given by the company

The company had given guarantee to the bank of Jai Suspension Systems Private Limited and Jai Automotive Components Limited for the utilisation of short term borrowings from the banks.

40 Segment Reporting

The Company is engaged in the business of manufacturing of Automotive suspension which includes Parabolic/ Tapered leaf spring and Lift axle which constitute single reporting business segment. The entire operations are governed by the same set of risk and returns. Based on the "management approach” as defined in Ind AS 108, the management also reviews and measures the operating results taking the whole business as one segment and accordingly make decision about the resource allocation. In view of the same, separate segment information is not required to be given as per the requirements of Ind AS 108 "Operating Segments”.

The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed that they carry same risk and rewards. The Company has considered domestic and exports markets and accordingly disclosed these as separate. Addtional information required under Ind AS 108:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

Sales to customers generating more than 10% of total revenue aggregates to Rs. 127,407.16 lakhs (March 31, 2023: Rs. 117,317.58 lakhs)

All other assets used in the Company business are located in India and are used to cater both the customers (within India and outside India), accordingly the total cost incurred during the period to acquire the property, plant and equipment and intangible assets has not been disclosed.

41 Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Recording of price adjustments and their impact on revenue recognition

Revenue is measured by the Company at the transaction price i.e. amount of consideration received/receivable from its customers. In determining the transaction price for the sale of products, the Company considers the effects of various factors such as volume-based discounts, price adjustments to be passed on to the customers based on various parameters like negotiations based on savings on materials/ share of business, rebates etc. provided to the customers. The Company''s business also requires passing on these credits related to price adjustments and others to the customers for the sales made by the Company. The Company, at the year end, has provided for such price adjustments to be passed on to the customers based on agreed terms, negotiations undertaken, commercial considerations and other factors. This requires significant judgement and estimate in calculating the price adjustments to be recorded as at the year end.

Estimates and assumptions

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

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 36.

Taxation

In preparing financial statements, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS. A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows. In the normal course of business, contigent liabilities may arise from obligation or other claim against the company which are very difficult to quantify reliably and such obligation are treated as contigent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements.

43 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, 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. 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 includes both long-term and short-term debts (including current maturities) plus amount payable for purchase of property, plant and equipment divided by Capital and net debt.

44 Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company''s policies and Company''s risk objective. In the event of crisis caused due to external factors, the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds. These forecast and assumptions are reviewed by Board of Directors.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). The Company''s profit and loss is not sensitive to reasonable changes in the foreign curreny rates.

(iii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchases of steel which is a volatile product and is major component of end product. The prices in these purchase contracts are linked to the price of raw steel and demand supply matrix. However, at present, the Company do not hedge its raw material procurements, as the price of the final product of the Company also vary with the price of steel which mitigate the risk of price volatility.

(b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The major customers of the Company are original equipment manufacturers (OEM''s) which have a defined period for payment of receivables and from related party, and the balance as at the year end majorly includes balance from one OEM customer. Hence, the Company evaluates the concentration of risk with respect to trade receviables as low. At March 31, 2024, approximately 95% (March 31, 2023: 98%) of all the receivables outstanding were from OEMs and related party.

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company uses a provision matrix to calculate ECL for trade receivables. The provision rates are based on days past due for groupings of customers that have similar loss patterns. The maximum exposure to credit risk at the reporting date is the carrying value of financial assets disclosed in note 11.

Financial instruments and cash deposits

Credit risk from loans given, balances with banks is managed by the company''s treasury department in accordance with the company''s policy. Credit risk on cash and cash equivalents is limited as the company generally invests in deposits with the banks with high credit ratings. The company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 is the carrying amounts as illustrated in Note 6, 7, 12 and 13.

(c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company monitors its risk of a shortage of funds by doing liquidity planning. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, cash credits and advance payment terms.

45 Share based payments

The Company formulated an ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI (Share Based Employee Benefits) Regulation, 2014, which was duly approved in the Annual General Meeting of the Shareholders of the Company on August 1, 2017 and the Company also got in-principle approval from both NSE and BSE dated March 20, 2018 and March 27, 2018 respectively in respect of the said Scheme. Under the ESOP Scheme, the eligible employees shall be granted employee Stock Options which will be exercisable into equal number of equity shares of Rs. 1 each of the Company. The fair value of the share options is estimated at the grant date using Black Scholes option pricing model, taking into account the terms and conditions upon which the share options were granted.

(iii) Wilful defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iv) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, and there are no companies beyond the specified layers.

(v) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(vi) Undisclosed income: 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 assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(vii) Valuation of Property, Plant and Equipment, intangible assets: 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.

(viii) Registration of charges or satisfaction with Registrar of Companies: The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(ix) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(x) Utilisation of borrowed funds and share premium: The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or;

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

(xi) Utilisation of borrowed funds and share premium: The Company has not received any fund from any persons or entities, 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 persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;

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

(xii) Title deeds of immovable properties not held in name of the Company: The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3 and Note 3(b) to the financial statements, are held in the name of the Company, except as disclosed in Note 3(ii) to the financial statements.

(xiii) Utilisation of borrowings availed from bank and financial institutions: The borrowings obtained by the company from bank and financial institutions have been applied for the purposes for which such loans were taken.

(xiv) Borrowing secured against current assets: The company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the company with banks and financial institutions are in agreement with the books of accounts.

48. Summary of other accounting policies:

a) Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current. A liability is current when:

- It is expected to be settled in normal operating cycle.

- It is held primarily for the purpose of trading.

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

b) Foreign currencies

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (''the functional currency''). The financial statements are presented in

Indian Rupee (INR), which is the Company''s functional and presentation currency.

Transactions and balances

Foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non- monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

c) Investment property

Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintennace costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised. The investment property is depreciated on a straight-line basis over its useful life.

d) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization. Internally generated intangible assets, excluding capitalized

development costs, are not capitalized and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.

The useful lives of the intangible assets are assessed as either finite or infinite.

Intangible assets with finite lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible assets may be impaired. The amortization period and amortization method of the intangible asset with a useful finite life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss unless such expenditure forms part of carrying value of another assets.

Software is amortized on a straight-line basis over the period of five years.

An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

e) Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing cost includes interest and other costs that an entity incurs in connection with the borrowing of funds and charged to Statement of Profit & Loss. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing cost.

f) Impairment of non-financial asset

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the

higher of an asset''s or cash-generating units'' (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are 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. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of four to five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the forecast period. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the Company operates, or for the market in which the asset is used.

For assets excluding goodwill and intangible assets having indefinite life, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is

recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

Impairment losses on non-financial asset, including impairment on inventories, are recognized in the statement of profit and loss.

g) Investment

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.<

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Mar 31, 2023

The Company has given a loan of Rs. 3,350 lakhs (March 31, 2022 Rs. 100 lakhs) to Jai Suspensions Limited which is repayable on demand, 2 years after the commencement of commercial production at an interest rate of 9% p.a. or 1 year MCLR 0.65% spread p.a. whichever is higher and Rs. 2,983.98 lakhs (March 31, 2022 Rs. 550 lakhs) to Jai Automotive Components Limited which is repayable on demand, 2 years after the commencement of the commercial production at an interest rate of 9% p.a. or 1 year MCLR 0.65% spread p.a. whichever is higher. Interest payment shall start quarterly after 12 months from start of commercial production, till such time interest will be accrued.

Trade receivable includes receivable amounting to Rs. 1,778.30 lakhs (March 22: Rs. 16,665.40 lakhs) from a customer, which are subject to bill discounting arrangement under the tripartite agreement between the Company, Bank and the customer, where the obligation to pay may arise due to unforeseen event of default by the Company''s customer. The Company therefore continues to recognise the transferred assets and liability in its standalone financial statements. Also refer note 17.

No trade receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

For terms and conditions relating to related party receivables, refer note 38.

b. Term and rights attached to equity shares

Each shareholder is entitled to one vote per share. The Company pays and declares dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares..

(1) The Company has paid a final dividend of Rs. 1 (absolute amount) for every equity share of Rs. 1 (absolute amount) per equity share of Rs. 1 (absolute amount) for the financial year ended March 31, 2022.

(2) The Company has paid an interim dividend of Rs. 0.80 for every equity share of Rs. 1 (absolute amount) (March 31, 2022 Rs. 0.50) (absolute amount) per equity share of Rs. 1 (absolute amount).

(3) Includes Rs. 247 lakhs (March 31, 2022 Rs. 247 lakhs) amount forfeited against warrants and application money received in earlier years.

(4) Represents reserve created on account of redemption of preference shares during earlier years.

(5) The Company formulated an ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI (Share Based Employee Benefits) Regulation, 2014, which was duly approved in the Annual General Meeting of the Shareholders of the Company on August 01, 2017 and the Company also got in-principle approval from both NSE and BSE dated March 20, 2018 and March 27, 2018 respectively in respect of the said Scheme. During the earlier years, pursuant to the approval by the Compensation Committee of the Board of Directors on December 26, 2020, the Company granted options to certain eligible employees under the said approved Scheme. (Also, refer note 45).

(6) Movement in General Reserve includes amount transferred from share based payment reserve. The amount transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(7) The Board of Directors of the Company at their meeting held on May 29, 2023 recommended a final dividend of Rs.1.10 (absolute amount) per equity share of Rs.1 (absolute amount) each of the Company. Final dividend is subject to the approval of shareholders

(8) Amalgamation reserve is on account of merger done by the Company in earlier years. This reserve can be utilised as per the provisions of Companies Act, 2013.

The Company has a cash credit account facility from banks and amount outstanding as at year end is Rs. Nil (March 31, 2022: Rs. Nil) carrying

rate of interest ranging from 7.30% to 8.95% and 7.20% to 8.05% respectively and facility of working capital loans from Banks and amount

outstanding as at year end is Rs. Nil (March 31, 2022 : Rs. Nil) carrying rate of interest 4.50% to 7.75% and 4.50% to 7.50% respectively.

The security against these facilities are as follows:

(a) First pari passu charge on entire current assets of the Company

(b) Second pari passu charge to be shared with other lenders on all existing and future movable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai.

(c ) Second pari passu charge on all immovable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai to be shared with other secured working capital lenders

(d) Bills Discounting from bank (Unsecured) have no interest cost to the Company.

(e) The Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks are in agreement with the books of accounts of the Company.

19 (a) Provision for warranties

A provision is recognized for expected warranty claims on products sold during the last one year, based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the one-year warranty period for all products sold. The table below gives information about movement in warranty provisions.

1 Government grants have been received for the purchase of certain items of property, plant and equipment.

2 The Company has opted the Export Promotion Credit Guarantee scheme, to avail the benefit of saving of custom duty by committing export of goods worth six times, of the value of duty saved, over a period of six years from the date of utilisation of benefit. Duty so saved has been recognised as Government grant and being released to profit & loss on the basis of export obligation fulfilled.

3 At the year end, the Company has an outstanding export obligation of Rs. 11,581.73 lakhs (March 31, 2022: Rs. 15,915.57 lakhs)

Terms and condition of the above financial liabilities:

Trade payables are non-interest bearing and are normally settled on 30-90 day terms.

For terms and conditions with related parties, refer note 38.

*Trade payable includes acceptances of Rs. 7,369.90 lakhs (March 31, 2022 Rs. 10,323.50 Lakhs). Acceptances represent credit availed by the Company from banks for payment to suppliers of materials purchased by the Company and are payable within 90 days. Acceptances are secured under short term borrowing facilities obtained from banks and are interest bearing.

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended March 31, 2023 and March 31, 2022 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

31 (b) CSR expenditure

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. The Company has contributed a sum of Rs. 316.79 Lakhs (March 31, 2022: Rs. 320.97 Lakhs) towards this cause and charged the same to the Statement of profit and loss.

35 Gratuity and other employment benefit plans

The Company operates three plans viz gratuity, long term service awards and benevolent fund for its employees. Under the gratuity plan every employee who has completed at least five years of service gets Gratuity on departure @15 days of last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy.

Under long term service award the employee is entitled to a fixed amount on completion of ten years and fifteen years of service. The scheme of long term service award is unfunded..

The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

36 Leases

The Company''s lease asset primarily consist of leases for plants,warehouses and offices having the various lease terms at the incremental borrowing rate.

“The future cash outflows relating to leases are disclosed in note 44(d).

The Company had total cash outflows for leases of Rs. 243.53 lakhs in March 31, 2023 (Rs. 219.01 lakhs in March 31, 2022). The Company had additions to right-of-use assets and lease liabilities of Rs. Nil in March 31, 2023 (Rs. 159.99 lakhs in March 31, 2022).

The weighted average incremental borrowing rate applied to lease liabilities is 9% .

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

37 Commitments and contingencies (a) Capital commitments and other commitments Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows: -
Particulars	March 31, 2023	March 31, 2022
Estimated amount of contracts remaining to be executed on capital account and not	1,504.43	1,131.24
provided for relating to plant expansion and revaming of machinery projects (Net of
advances of Rs. 1,196.59 lakhs; March 31, 2022: Rs. 453.80 lakhs)
Total |	1,504.43	1,131.24
(b) Contingent liabilities (to the extent not provided for)
Particulars	March 31, 2023	March 31, 2022
(i) Income tax	482.27	482.27
(ii) Claims against company not acknowledged as debts (civil cases)	142.81	143.47
(iii) Custom and excise duty / service tax / GST	5,613.56	38.76
(iv) Sales tax and entry tax	61.18	87.28
Total |	6,299.82	751.78

In relation to income tax matters disclosed in (i) above:

1 With respect to assessment year 2012-13 and 2013-14, the assessing officer has increased the taxable income of the Company by Rs 1,418.45 lakhs contending that the parent Company has sold material to its subsidiary firm (Jai Suspension System LLP (JSSLLP) at lower margin in order to divert its profits to JSSLLP as JSSLLP was enjoying tax exemption during that period. Tax impact of the same is Rs. 482.27 lakhs (March 31, 2022: Rs. 482.27 lakhs). The Company has preferred an appeal with CIT(A).

In relation to (ii) above claims against company contested by the Company majorly comprises of:

1) Matter pending with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) pertaining to Financial year 2012 to 2014 for non payment of cross subsidy charges which were introduced subsequently with retrospective effect whereas the scheme mentioned no such charges. The matter is pending adjudication before Supreme Court in a Special leave petition (SLP) and the Hon''ble Court has directed to maintain the status quo till further order. Thereafter, TANGEDCO has kept the demand in abeyance till the disposal of SLP. The amount involved is Rs. 54.62 lakhs (March 31, 2022: Rs. 54.62 lakhs).

2) Matter pending with the Employee Provident Fund (EPF) Appellate Tribunal pertaining to Provident Fund (PF) liability on BPO consultants hired. The amount involved is Rs. 6.71 lakhs (March 31, 2022: Rs. 6.71 lakhs).

3) Matter is pending with EPF. Department in proceedings under section 7A of the PF Act for the peiod from February 2005 to March 2009, has confirmed the demand of Rs. 39.29 lakhs, which the Company has deposited. Thereafter the department has issued notice and has confirmed the demand for paying interest of to Rs. 42.19 lakhs on demand confirmed earlier. Against the said demand, the Company has filed instant writ.

In relation to (iii) above customs and excise duty/service tax and GST contested by the Company majorly comprises of:

1) During the earlier years, the Company applied under Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS) for the resolution of part of the matters pending with Assistant Commissioner in respect of Cenvat Credit availed by the Company on service tax paid on charges of Canteen, outdoor catering and security services. Pursuant to the application made, the Company also received the discharge certificate for the same in the previous years and accordingly these cases were closed. One matter of same nature is pending with Assistant Commissioner, Kurukshetra for which the Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 15.43 lakhs (March 31, 2022 15.43 lakhs).

2) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG licence obtained by the Company, however, the same was lost without being used in 2008. The Company is under an obligation to surrender the licence in case of non utilisation and has received a letter from the office of ADGFT for the same. The Company has appeared before the authority and submitted the facts of losing the licence without utilisation. The amount involved is Rs. 32.67 lakhs (March 31, 2022: Rs. 8.25 lakhs).

3) Matters pending before appellate authority pertaining to imposition of penalty due to missing details in e-way bill on dispatch of goods. The Company has filed the present appeal before the appellate authority. The amount involved is Rs. 2.63 lakhs (March 31, 2022: Rs. 2.63 lakhs). The Company has made a payment of Rs. 2.63 lakhs (March 31, 2022: Rs. 2.63 lakhs) under protest in this regard.

4) Matters pending before Asisstant Commissioner pertaining to input tax credit availed against which the Company had not produced the supporting documents for amount aggregating to Rs.12.44 lakhs (March 31, 2022:Rs.12.44 lakhs). The department has issued show cause notice regarding the balance amount to the Company.

5) Matter pending before Commissioner, CGST, Gwalior in regard to show cause notice, where it has been alleged that the Company has wrongly carried forward credit in TRAN-1 return under GST. The amount involved is Rs. 36.11 lakhs (March 31, 2022 Rs. Nil).

6) The Rajasthan sales tax department has raised the demand on basis of discrepancies observed after scrutiny of returns filed by the Company for the financial year 2018-19. The Company is in process of filling its reply. The amount involved is Rs. 61.57 lakhs (March 31, 2022: Rs. Nil).

7) During the current year, the Company has received Show Cause Notice (SCN) for the years 2017-18 to 2019-20 from Office of the Commissioner of GST and Central Excise mainly in regard to the excess availment of ITC due to difference between GSTR 3B & GSTR 2A and other certain other matters. The amount involved is Rs. 5,452.71 lakhs (March 31, 2022: Nil). The management has filed its reply to the SCN and basis their evaluation and as per legal opinion, is confident that no outflow of resources is probable in the said case.

In relation to (iv) above sale tax and entry tax matters contested by the Company majorly comprises of

1) Matter pending before Assistant Commissioner (ST), Chengalpattu Assessment Circle in respect of F.Y. 2015-2016 wherein the department has claimed that the Industrial Input Certificate in respect of goods sold to the Industrial units was not issued and in the absence of the said certificate the concessional tax rates were applied. The department raised a demand for Rs. 1,363.59 lakhs and asked the Company to file its objection against the said demand. The Company filed a reply along with the Industrial Input certificates but has not yet submitted the balance certificates. The amount involved is Rs. 30.92 lakhs (March 31, 2022: Rs. 30.92 lakhs) for the balance part of certificates pending to be submitted.

2) Matter pending before Assistant Commissioner (ST), Maraimalai Nagar assessment circle, Poonamallee, where it has been alleged/ directed that:

- exemption of stock transfer was allowed without movement of goods- amount involved is Rs. 6.01 lakhs (March 31, 2022 Rs. Nil)

- interstate sale was not supported with Form C- amount involved is Rs. 1.83 lakhs (March 31, 2022 Rs. Nil)

- reversal of input tax credit under Section 19 of Tamil Nadu Vat act be made- amount involved is Rs. 22.42 lakhs (March 31, 2022 Rs. Nil).”

In regard to all of the above matters, the management, in consultation with its legal experts, wherever required, has assessed that it is only possible, but not probable, that outflow of economic resources will be required. Accordingly, the above matters have been disclosed as a contingent liability in the standalone financial statements for the year ended March 31, 2023.

c) Other contingent liabilities
Particulars	March 31, 2023	March 31, 2022
(i) Guarantee given by the Company to lender of its subsidiary		10,000.00
(ii) Bank guarantees1	1,286.43	2,285.54
Total	1,286.43	12,285.54

39 Segment Reporting

Ind AS 108 establishes standards for the way the Company report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company is engaged in the business of manufacturing of Automotive suspension which includes Parabolic/ Tapered leaf spring and Lift axle which constitute single reporting business segment. The entire operations are governed by the same set of risk and returns. Based on the “management approach” as defined in Ind AS 108, the management also reviews and measures the operating results taking the whole business as one segment and accordingly make decision about the resource allocation. In view of the same, separate segment information is not required to be given as per the requirements of Ind AS 108 on “Operating Segments”. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed that they carry same risk and rewards. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

The following is the distribution of the Company revenue of operations by geographical market, regardless of where the goods were produced:

Sales to customers generating more than 10% of total revenue aggregates to Rs. 1,11,967.47 lakhs (March 31, 2022 Rs.59,932.29 lakhs )

Trade receivables from customers generating more than 10% of total revenue aggregates to Rs. 2,582.53 lakhs (March 31, 2022: Rs. 5,644.62 lakhs).

The trade receivable information above is based on the location of the customers.

All other assets (other than trade receivable) used in the Company business are located in India and are used to cater both the customers (within India and outside India), accordingly the total cost incurred during the period to acquire the property, plant and equipment and intangible assets has not been disclosed

40 Significant accounting judgements, estimates and assumptions

The preparation of the Company financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Recording of price adjustments and their impact on revenue recognition

Revenue is measured by the Company at the transaction price i.e. amount of consideration received/receivable from its customers. In determining the transaction price for the sale of products, the Company considers the effects of various factors such as volume-based discounts, price adjustments to be passed on to the customers based on various parameters like negotiations based on savings on materials/ share of business, rebates etc provided to the customers. The Company''s business also requires passing on these credits related to price adjustments and others to the customers for the sales made by the Company. The Company, at the year end, has provided for such price adjustments to be passed on to the customers based on agreed terms, negotiations undertaken, commercial considerations and other factors. This requires significant judgement and estimate in calculating the price adjustments to be recorded as at the year end.

Estimates and assumptions

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

Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses a Black Scholes Option pricing model for ESOP scheme The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 45

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 35.

Taxation

“In preparing financial statements, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such

differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Provisions and contingencies

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

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

Impairment of financial assets, expected credit loss for loans and investments

The impairment provisions of financial assets, expected credit loss for loans are based on assumptions about risk of default and expected loss rates. the Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. The Company evaluates expected credit loss in regard to loans given.

41 Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Group financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that cash and cash equivalents, short-term borrowings, interest accrued but not due, trade receivables, trade payables and creditor for fixed asset, investor education and protection fund approximate their carrying amounts largely due to the shortterm maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.The following methods and assumptions were used to estimate the fair values:

The security deposits (paid/received) are evaluated by the Company based on parameters such as interest rate, risk factors, risk characteristics, and individual credit worthiness of the counterparty. Based on this evaluation allowances are taken into account for the expected losses of the security deposits.

Borrowing are evaluated by the Company based on parameters such as interest rates, specific country risk factors and prepayment.

The fair value of unquoted instruments, other non-current financial assets and non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

Lease obligations are evaluated by the Company based on parameters such as interest rates, lease period and other lease terms.

43 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, 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.

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 sharesThe Company monitors capital using a gearing ratio, which is long term debts plus amount payable for purchase of fixed assets divided by total equity.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period and in the previous year.

44 Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

“The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors . This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective. In the event of crisis caused due to external factors such as caused by the pandemic “’’COVID-19””, the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds. These forecast and assumptions are reviewed by Board of Directors.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company''s exposure to foreign currency changes for all other currencies is not material.

(b) Legal, taxation and accounting risk:

The Company is exposed to few legal and administrative proceedings arising during the course of business. The management makes an assessment of these pending cases and in case where it believes that loss arising from a proceeding is probable and can reasonably be estimated, the amount is recorded in the books of account. To mitigate these risks arising from the proceedings, the Company employs third party tax and legal experts to assist in structuring significant transactions and contracts.

(c) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The major customers of the Company are original equipment manufacturers (OEM''s) which have a defined period for payment of receivables and from related party, hence the Company evaluates the concentration of risk with respect to trade receivables as low. At March 31, 2023, approximately 98% (March 31, 2022: 98%) of all the receivables outstanding were from OEMs and related party.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, all the minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 13. The Company does not hold collateral as security except in case of dealer''s securities deposit in after market.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with the banks with high credit ratings. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31, 2022 is the carrying amounts as illustrated in Note 14.

(d) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company monitors its risk of a shortage of funds by doing liquidity planning. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, cash credits and advance payment terms.

(e) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchases of steel which is a volatile products and is major component of end product. The prices in these purchase contracts are linked to the price of raw steel and demand supply matrix. However, at present, the Company do not hedge its raw material procurements, as the price of the final product of the Company also vary with the price of steel which mitigate the risk of price volatility.

45 Share based payments

(A) The Company formulated an ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI (Share Based Employee Benefits) Regulation, 2014, which was duly approved in the Annual General Meeting of the Shareholders of the Company on August 1, 2017 and the Company also got in-principle approval from both NSE and BSE dated March 20, 2018 and March 27, 2018 respectively in respect of the said Scheme. Under the ESOP Scheme, the eligible employees shall be granted employee Stock Options which will be exercisable into equal number of equity shares of INR 1/- each of the Company. The fair value of the share options is estimated at the grant date using a Black Scholes option pricing model, taking into account the terms and conditions upon which the share options were granted..

48 During the previous year, Jai Suspension Systems LLP (hereinafter referred to as “LLP”) was converted into a private limited company namely “Jai Suspension Systems Private Limited” by virtue of provisions of section 366 to 369 of the Companies Act, 2013 w.e.f 28 May 2021 vide Certification of Incorporation dated June 01, 2021 issued by the Registrar of Companies, NCT of Delhi & Haryana. . Further, till the date of conversion, LLP earned profits for the period April 01, 2021 to May 27, 2021 and accordingly Rs. 117.44 Lakhs (share of profits) was credited to the respective current accounts of the partners.

49 Revenue is measured by the Company at the fair value of consideration received/receivable from its customers and in determining the transaction price for the sale of finished goods, the Company considers the effect of various factors such as price differences and volume based discounts, rebates and other promotion incentive schemes (“trade schemes”) provided to the customers. Adequate provisions have been made for such price differences, and trade schemes, with a corresponding impact on the revenue. Accordingly, revenue for the current year is net of price differences, trade schemes, rebates, discounts, etc.

50 Other Statutory Information

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

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

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

(v) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any persons or entities, 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 persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments

51 Previous year figures have been regrouped /reclassified wherever necessary to conform to current year''s classification.

52 Amounts appearing as zero “0” in the standalone financial statements are below the rounding off norm adopted by the Company.

1

Includes an amount of INR 128.24 lakhs (March 31, 2022: Nil) being the bank guarantee given by the Company to State Industries Promotion Corportation of Tamil Nadu Limited (SIPCOT), for the unutilised portion of land in its plant at Chennai AS. The SIPCOT has granted time till December 31, 2023 for utilisation of the unutilised portion of land, failing which such Bank guarantee will be invoked by SIPCOT.

---

Mar 31, 2022

Trade receivable includes receivable amounting to Rs.16,665.39 lakhs (March 21 Rs.11,468 lakhs) from a customer, which are subject to bill discounting arrangement under the tripartite agreement between the Company, Kotak Mahindra Bank Ltd and the customer, where the obligation to pay may arise due to unforeseen event of default by the Company''s customer. The company therefore continues to recognise the transferred assets and liability in financial statement

No trade receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

Trade receivable are non-interest bearing and are generally on terms of 30 to 90 days.

For terms and conditions relating to related party receivables, refer Note 36.

b. Term and Rights attached to equity shares

Each shareholder is entitled to one vote per share. The Company pays and declares dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(1) The Company has paid a final dividend of INR 0.50 (absolute amount) for every equity share of INR 1 (absolute amount) per equity share of INR 1 (absolute amount) for the financial year ended March 31, 2021.

(2) The Company has declared a interim dividend of INR 0.50 for every equity share of INR 1 (absolute amount) (March 31, 2021 INR 0.25) (absolute amount) per equity share of INR 1 (absolute amount).

(3) Includes INR 247 Lakhs (March 31, 2021 INR 247 Lakhs) amount forfeited against warrants and application money received in earlier years.

(4) Represents reserve created on account of redemption of preference shares during earlier years.

(5) The Company formulated an ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI (Share Based Employee Benefits) Regulation, 2014, which was duly approved in the Annual General Meeting of the Shareholders of the Company on August 1, 2017 and the Company also got in-principle approval from both NSE and BSE dated March 20, 2018 and March 27, 2018 respectively in respect of the said Scheme. During the previous year, pursuant to the approval by the Compensation Committee of the Board of Directors on December 26, 2020, the Company has granted options to certain eligible employees under the said approved Scheme. (Also, refer note 43).

(6) The Board of Directors of the Company at their meeting held on May 21, 2022 recommended a final dividend of INR 1 per equity share of INR 1 each of the Company. Final dividend is subject to the approval of shareholders.

Short term borrowing

The Company has a cash credit account facility from HDFC Bank and Kotak Bank and amount outstanding as at year end is INR Nil (March 31, 2021: INR Nil) carrying rate of interest ranging from 4.50% to 7.30% and 4.50% to 7.20% respectively and facility of working capital loan from HDFC and Kotak Mahindra Bank amounting to INR Nil (March 31, 2021 : INR Nil) carrying rate of interest 4.50% to 7.40% and 4.50% to 7.30% respectively. The security against these facilities are as follows:

(a) First pari passu charge on entire current assets of the Company

(b) Second pari passu charge to be shared with other lenders on all existing and future movable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai.

(c) Second pari passu charge on all immovable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai to be shared with other secured working capital lenders

(d) Bills Discounting from Kotak Mahindra Bank Limited (Unsecured) having no interest cost on the Company

* Represent bill discounting outstanding, refer note number 51. Customer is same and position remains unchanged from financial year 2021.

1 Government grants have been received for the purchase of certain items of property, plant and equipment. There are no unfulfilled conditions or contingencies attached to these grants.

2 The Company has opted the EPCG scheme, to avail the benefit of saving of custom duty by committing export of goods worth six times, of the value of duty saved, over a period of six years from the date of utilisation of benefit. Duty so saved has been recognised as Government grant and being released to profit & loss on the basis of export obligation fulfilled.

3 At the year end, the Company has an outstanding export obligation of INR 15,915.57 Lakhs (March 31, 2021: INR 18,186.64 Lakhs)

Terms and condition of the above financial liabilities:

Trade payables are non-interest bearing and are normally settled on 30-90 day terms.

For terms and conditions with related parties, refer note 36.

*Trade payable includes Acceptances of INR 10,323.50 lakhs (March 31, 2021 INR 11,370.42 Lakhs). Acceptances represent credit availed by the Company from banks for payment to suppliers of materials purchased by the Company and are payable within 90 days. Acceptances are secured under short term borrowing facilities obtained from banks and are interest bearing.

The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

30 (b) CSR expenditure

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility ("CSR"). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. The Company has contributed a sum of INR 320.97 Lakhs (March 31, 2021: INR 330.09 Lakhs) towards this cause and charged the same to the Statement of Profit And Loss.

33 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

34 Gratuity and other employment benefit plans

The Company operates three plans viz gratuity, long term service awards and benevolent fund for its employees. Under the gratuity plan every employee who has completed at least five years of service gets Gratuity on departure @15 days of last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. Under long term service award the employee is entitled to a fixed amount on completion of ten years and fifteen years of service. The scheme of long term service award is unfunded.

The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

35 Commitments and contingencies (a) Leases The Company''s lease asset primarily consist of leases for warehouses having the various lease terms at the incremental borrowing rate. Following is carrying value of right of use assets and movements thereof during the year ended March 31, 2022:
Particulars	Leasehold improvement
	As at March 31, 2022		As at March 31, 2021
Gross carrying amount
Balance at the beginning of the year	3,796.88		4,087.91
Add: Reclassified from property, plant and equipment on account of adoption of Ind AS 116 "Leases" (refer note 3)	-		684.93
Additions	159.99		1,004.62
Disposals	(176.19)		(1,980.58)
Balance at the end of the year	3,780.68		3,796.88
Particulars	Leasehold improvement
	As at March 31, 2022		As at March 31, 2021
Accumulated depreciation
Balance at the beginning of the year	480.14		263.18
Add: Reclassified from property, plant and equipment on account of adoption of Ind AS 116 "Leases" (refer note 3)	-		28.46
Additions	222.95		283.64
Disposals	(151.02)		(95.14)
Balance at the end of the year	552.07		480.14
Net carrying amount
	3,228.61
Balance at the end of the year			3316.74
The following is the carrying value of lease liability and movement thereof during the year ended March 31, 2022:
Particulars		As at March 31, 2022		As at March 31, 2021
Balance at the beginning of the year		755.18		736.05
Addition		159.99		365.97
Interest on lease liabilities		111.44		100.70
Payment of Lease Liabilities		219.01		282.87
Deletions		27.92		164.67
Balance at the end of the year		779.68		755.18
Current Liability		180.56		155.12
Non- Current Liability		599.12		600.06

The future cash outflows relating to leases that have not yet commenced are disclosed in note 42(d)

The Company had total cash outflows for leases of INR 219.01 in March 31, 2022 (INR 282.87 in March 31, 2021). The Company also had non-cash additions to right-of-use assets and lease liabilities of Rs.159.99 in March 31, 2022 (INR 365.97 in March 31, 2021). The weighted average incremental borrowing rate applied to lease liabilities as at April 01, 2021 is 9% .

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

The following are the amounts recognised in statement of profit or loss:
Particulars	As at March 31, 2022	As at March 31, 2021
Depreciation expense of right-of-use assets (Refer note 32)	222.95	283.64
Interest expense on lease liabilities (Refer note 31)	111.44	100.70
Income on de-recognition of Liability	-	(29.70)
Total amount recognised in (profit) or loss	334.39	354.64
(b) Capital commitments and other commitments Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows :-
Particulars	As at March 31, 2022	As at March 31, 2021
Estimated amount of contracts remaining to be executed on Capital Account and not provided forr relating to the plant expansion and revamping of machinery projects (Net of advances of INR 453.80 Lakhs; March 31,.2021: INR 587.85 Lakhs)	1,131.24	1,244.03
	1,131.24	1,244.03
(c) Contingent liabilities (to the extent not provided for)
Particulars	As at March 31, 2022	As at March 31, 2021
(i) Income tax	482.27	474.79
(ii) Claims against company not acknowledged as debts (civil cases)	143.47	76.04
(iii) Custom and excise duty / service tax / GST	38.76	26.97
(iv) Sales tax and entry tax	87.28	131.44
Total	751.78	709.24

In relation to income tax matters disclosed in (i) above:

1) With respect to assessment year 2012-13 & 2013-14, the assessing officer has increased the taxable income of the Company by Rs 1,418.45 contending that the parent Company has sold material to its subsidiary firm (Jai Suspension System LLP (JSSLLP) at lower margin in order to divert its profits to JSSLLP as JSSLLP was enjoying tax exemption during that period. Tax impact of the same is INR 482.27 Lakhs (March 31, 2021: INR 474.79 Lakhs)The Company has preferred an appeal with CIT(A) and based on discussion with the legal counsel is confident of a favourable outcome.

In relation to (ii) above claims against company contested by the Company majorly comprises of:

1) Matter pending with Tamil Nadu Generation and Distribution Corporation Limited pertaining to Financial year 2012-2014 for non payment of cross subsidy charges which were introduced subsequently with retrospective effect whereas the scheme mentioned no such charges. The Company has done an analysis and is of the opinion that it has a fair chance of favourable decision. The amount involved is INR 54.62 Lakhs. (March 31, 2021 : 54.62 Lakhs).

2) During the earlier years matter was pending with the Labour court pertaining to ESI with respect to the bifurcation of material and labour in an invoice and the ESI deducted on the same.Court vide order dated 31.08.2021 has set aside the demand raised by the department and remand back the matter to reconsider afresh. After re-consideration department vide order dated 15.03.2022 has confirmed the demand of INR 4.79 Lakhs. which company has deposited on 25.03.2022 and the amout involved is Rs.Nil (March 31, 2021: INR 14.05 Lakhs).

3) Matter pending with the EPF Appelate Tribunal pertaining to PF with respect to the PF liability on BPO consultants hired.The Company has done an analysis and is of the opinion that it has fair chance of a favourable decision. The amount involved is INR 6.71 Lakhs (March 31, 2021: INR 6.71 Lakhs ).The Company has made a payment of INR 3.35 Lakhs (March 31, 2021 : INR 3.35 Lakhs) under protest in this regard.

4) Matter is pending with EPF. Department in proceedings U/s 7A of the Act for the peiod from February 2005 to March 2009, vide order dated 29.01.2016 has confirmed the demand of INR 39.29 Lakhs, which company has deposited. Thereafter on 15.10.2020 department has issued notice and vide order dated 22.04.2021 has confirmed the demand of paying interest amounting to INR 42.19 Lakhs on demand confirmed in 2016. Against said confirmation, company has filed instant Writ.

In relation to (iii) above customs and excise duty/service tax and GST contested by the Company majorly comprises of:

1) During the previous year, the Company applied under Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS) for the resolution of part of the matters pending with Assistant Commissioner in respect of Cenvat Credit availed by the Company on service tax paid on charges of Canteen,outdoor catering and security services.Pursuant to the application made, the Company has also received the discharge certificate for the same in the current year and accordingly these cases have been closed. One matter of same nature is pending with Assistant Commissioner, Kurukshetra for which the Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is INR 15.43 Lakhs (March 31, 2021: 7.72 Lakhs).

2) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG licence obtained by the Company, however, the same was lost without being used in 2008. The Company is under an obligation to surrender the licence in case of non utilisation and has received a letter from the office of ADGFT for the same. The Company has appeared before the authority and submitted the facts of losing the licence without utilisation. Accordingly, the Company is of the opinion that it has fair chance of a favourable decision. The amount involved is INR 8.25 Lakhs (March 31, 2021: INR 8.25 Lakhs).

3) Matters pending before Appellate Auhtority, Muradabad (Uttar Pradesh) and Appellate Auhtority, Rudrpur (Uttarakhand) pertaining to imposition of penalty on E-way bill errors.The Company has filed the present appeal before the Appellate Authority on the ground that there was typo error between invoice and Eway bill and has done an analysis and is of the opinion that it has a fair chance of a favourable decision. The amount involved is INR Nil. (March 31, 2021 : 8.36 Lakhs).Matter has been disposed off.

4) Matters pending before Appellate Auhtority pertaining to imposition of penalty due to missing details in e-way bill on dispatch of goods.The Company has filed the present appeal before the Appellate Authority and has done an analysis and is of the opinion that it has a fair chance of a favourable decision. The amount involved is INR 2.63 Lakhs. (March 31, 2021 : 2.63 Lakhs)The Company has made a payment of INR 2.63 Lakhs (March 31, 2021 : INR 2.63 Lakhs) under protest in this regard.

5) Matters pending before Asisstant Commissioner pertaining to input tax credit availed against which the Company had not produced the supporting documents for amount aggregating to Rs.12.44 Lakhs (March 31, 2021: Nil). The department has issued show cause notice to show cause as why the balance amount should not be recovered from the Company.

1) During the previous year,the matter pending before Additional Commissioner, Grade-2, (Appeal) Fourth, Commercial Tax, Lucknow pertaining to Assessment year 2011-12 for non submission of form F. The Joint Commissioner in its order, set aside the demand against CST and VAT and allowed a refund and confirmed a demand against entry tax which is appealed for to be adjusted with the VAT refund by the Company.The Company has done an analysis and is of the opinion that it has fair chance of favourable decision on the adjustment.The amount involved is INR 32.78 Lakhs for entry tax (March 31, 2021: INR 149.59 Lakhs) after adjustment of duty paid under protest. The Company has made a payment of INR 11.95 Lakhs (March 31, 2021 : INR 22.89 Lakhs) under protest in this regard.

35 Commitments and contingencies (Codtd.)

2) Matter pending before Assistant Commissioner (ST), Chengalpattu Assessment Circle in respect of reversal of input tax credit on stock transfer on Form F. The said liability has been discharged by the Company by adjusting the amount refundable to the Company, hence as on date nothing is payable by Company to the department and is due for the approval for same from the department.The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The Amount involved is INR 25.72 Lakhs (March 31, 2021: INR 25.72 Lakhs).

3) Matter pending before Assistant Commissioner (ST), Chengalpattu Assessment Circle in respect of reversal of input tax credit on purchases from cancelled dealers. The Company in its reply apart from other grounds has stated that Company has rightly claimed the ITC on basis of invoices issued by the dealers.The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The Amount involved is INR 6.37 Lakhs (March 31, 2021: INR 6.37 Lakhs).

4) Matter pending before Assistant Commissioner (ST), Chengalpattu Assessment Circle in respect of F.Y. 2015-2016 wherein the department has claimed that the Industrial Input Certificate in respect of goods sold to the Industrial units was not issued and in the absence of the said certificate the concessional tax rates were applied.The department has raised the instant demand and asked the Company to file its objection agasint the said demand . Company has filed a detailed reply along with the Industrial Input certiifcate. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The Amount involved is Rs.30.92 Lakhs (March 31, 2021: Rs.30.92 Lakhs).

The Company is contesting the demands and based on past judicial precedents, favourable decisions, views from external experts, the management believes that its position will likely be upheld and will not have a material adverse impact on the Company''s financial position and results of operation of the Company. Accoringly, no provision has been made in the financial statements.

(d) Other contingent liabilities
Particulars	As at March 31, 2022	As at March 31, 2021
Guarantee given by the Company to lender of its subsidiary	10,000.00	13,500.00
Bank guarantees	2,285.54	1,815.23
Total	12,285.54	15,315.23

(a) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

(b) All the liabilities for post retirement benefits being ''Gratuity'' are provided on actuarial basis for the Company as a whole, the amount pertaining to Key management personnel are not included above.

(c) Transactions have been reported gross off Goods and Service Tax.

(d) Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

(e) For the year ended March 31, 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2021 : Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Loan to Subsidiary

For the terms on loan to subsidiary refer note 7.

Guarantee given by the Company

The Company has given the guarantee to the bank of Jai Suspension Systems Private Limited and Jai Automotive Components Limited (Subsidiary entity) for the utilisation of short term borrowing from the banks.

37 Segment Reporting

Ind AS 108 establishes standards for the way the Company report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company is engaged in the business of manufacturing of Automotive suspension which includes Parabolic/ Tapered leaf spring and Lift axle which constitute single reporting business segment. The entire operations are governed by the same set of risk and returns. Based on the "management approach" as defined in Ind AS 108, the management also reviews and measures the operating results taking the whole business as one segment and accordingly make decision about the resource allocation. In view of the same, separate segment information is not required to be given as per the requirements of Ind AS 108 on “Operating Segments”. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed that they carry same risk and rewards. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. The geographical segments considered for disclosure are as follows:

The trade receivable information above is based on the location of the customers.(*restated refer Note - 51)

All other assets (other than trade receivable) used in the Company business are located in India and are used to cater both the customers (within India and outside India), accordingly the total cost incurred during the period to acquire the property, plant and equipment and intangible assets has not been disclosed.

38 Significant accounting judgements, estimates and assumptions

The preparation of the Company financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease ifit isreasonablycertainto be exercised, oranyperiodscoveredbyan option to terminate the lease, ifit isreasonablycertain not to be exercised. The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

Estimates and assumptions

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

Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-settled transactions with employees at the grant date, the Company uses a Black Scholes Option pricing model for ESOP scheme The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 43.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 34.

Taxation

In preparing financial statements, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Provisions and contingencies

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

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

The Company has significant capital commitments in relation to various capital projects which are not recognized in the balance sheet. 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.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer note 39 for such measurement.

Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay'', which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease . The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

The management assessed that cash and cash equivalents, short-term borrowings, interest accrued but not due, trade receivables, trade payables and creditor for fixed asset, investor education and protection fund approximate their carrying amounts largely due to the short-term maturities of these instruments. (Refer note No- 51)

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

The security deposits (paid/received) are evaluated by the Company based on parameters such as interest rate, risk factors, risk characteristics, and individual credit worthiness of the counterparty. Based on this evaluation allowances are taken into account for the expected losses of the security deposits.

Borrowing are evaluated by the Company based on parameters such as interest rates, specific country risk factors and prepayment.

The fair value of unquoted instruments, other non-current financial assets and non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

Lease obligations are evaluated by the company based on parameters such as interest rates, lease period and other lease terms.

40 Fair Value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities.

41 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, 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.

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 sharesThe Company monitors capital using a gearing ratio, which is long term debts plus amount payable for purchase of fixed assets divided by total equity.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2022 and March 31, 2021.

42 Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also enters into derivative transactions.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors . This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective. In the event of crisis caused due to external factors such as caused by the pandemic ''"''COVID-19''"'', the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds. These forecast and assumptions are reviewed by board of directors.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period for hedges of forecasted sales and purchases(including property, plant and equipment).

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

The Company hedges its exposure to fluctuations on the translation into INR of its foreign operations by entering into forward contracts.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and EURO exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company''s exposure to foreign currency changes for all other currencies is not material.

(b) Legal, taxation and accounting risk:

The Company is exposed to few legal and administrative proceedings arising during the course of business. The management makes an assessment of these pending cases and in case where it believes that loss arising from a proceeding is probable and can reasonably be estimated, the amount is recorded in the books of account. To mitigate these risks arising from the proceedings, the Company employs third party tax and legal experts to assist in structuring significant transactions and contracts.

(c) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The major customers of the Company are original equipment manufacturers (OEM''s) which have a defined period for payment of receivables and from related party, hence the Company evaluates the concentration of risk with respect to trade receivables as low. At March 31, 2022, approximately 98% (March 31, 2021: 98%) of all the receivables outstanding were from OEMs and related party.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, all the minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 13. The Company does not hold collateral as security except in case of dealer''s securities deposit in after market.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with the banks with high credit ratings. The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2022 and March 31, 2021 is the carrying amounts as illustrated in Note 14.

(d) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company monitors its risk of a shortage of funds by doing liquidity planning. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, cash credits and advance payment terms.

(e) Commodity price risk (Refer note- 51)

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchases of steel which is a volatile products and is major component of end product. The prices in these purchase contracts are linked to the price of raw steel and demand supply matrix. However, at present, the Company do not hedge its raw material procurements, as the price of the final product of the Company also vary with the price of steel which mitigate the risk of price volatility.

43 Share based payments

(A) The Company formulated an ESOP Scheme (referred as Company''s Employee Stock Option Scheme, 2017) in accordance with SEBI (Share Based Employee Benefits) Regulation, 2014, which was duly approved in the Annual General Meeting of the Shareholders of the Company on August 1, 2017 and the Company also got in-principle approval from both NSE and BSE dated March 20, 2018 and March 27, 2018 respectively in respect of the said Scheme. Under the ESOP Scheme, the eligible employees shall be granted employee Stock Options which will be exercisable into equal number of equity shares of Rs 1/- each of the Company. The fair value of the share options is estimated at the grant date using a Black Scholes option pricing model, taking into account the terms and conditions upon which the share options were granted.

Details of the ESOP Scheme:

a) Total number of Options granted: 25,55,000 Stock Options

b) Grant date : 26 December,2020

c) Exercise Price: Rs.50 each Option.

d) Exercise Period: 3 years post vesting.

e) Fair value of option : Rs.31.10

f) Method of settlement: Equity.

46 During the current year, Jai Suspension Systems LLP (hereinafter referred to as "LLP") has been converted into a private limited company namely "Jai Suspension Systems Private Limited" by virtue of provisions of section 366 to 369 of the Companies Act, 2013 w.e.f 28th May 2021 vide Certification of Incorporation dated June 01, 2021 issued by the Registrar of Companies, NCT of Delhi & Haryana. On the basis of internal assessment, as well as legal advice, the management is of the view that such conversion should be tax-neutral in the hands of the LLP as well as the partners of LLP under the provisions of the Income-tax Act, 1961. Further, till the date of conversion, LLP earned profits for the period April 01, 2021 to May 27, 2021 and accordingly Rs. 117.44 Lakhs (share of profits) has been credited to the respective current accounts of the partners.

47 Revenue is measured by the Company at the fair value of consideration received/receivable from its customers and in determining the transaction price for the sale of finished goods, the Company considers the effect of various factors such as price differences and volume based discounts, rebates and other promotion incentive schemes (""trade schemes"") provided to the customers. Adequate Provisions have been made for such price differences, and trade schemes, with a corresponding impact on the revenue. Accordingly, revenue for the current year is net of price differences, trade schemes, rebates, discounts, etc.

48 Company had given loan of Rs.100 lakhs to Jai Suspensions Limited repayable in 3 years in (equal quaterly installment) after moratorium period of two years at interest rate of 9% or 1 year MCLR 0.65% spread p.a. whichever is higher and Rs.550 lakhs to Jai Automotive Components Limited repayble on demand at interest rate of 9% or 1 year MCLR 0.65% spread p.a. whichever is higher.

49 Standards issued but not yet effective

There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company''s financial statements.

50 Other Statutory Information

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

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

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

(v) 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 persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) 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 persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

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

51 As at March 31, 2021, the Company presented its trade receivables, net of the amounts subject to bill discounting, for one of its principal customer, with a bank. The customer is of very high standing and with an impeccable payment record. As a result, trade receivables and bill discounting liabilities have each been understated by Rs. 11,468.13 lakhs as at March 31, 2021 since the Company saw no risk of any liability arising on this account. Nonetheless in accordance with Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors'', even though the Company sees no risk of any liability arising on account of the bill discounting availed (wherein the bill discounting charges are borne by the customer), the trade receivable balance and bill discounting availed (and treated as a liability) at March 31, 2021 have been restated along with consequential changes in the standalone cash flow statement. There is no impact on the standalone profit before tax, profit after tax and total comprehensive income for the year ended March 31, 2021.

52 Amounts appearing as zero “0” in the standalone financial statements are below the rounding off norm adopted by the Company.

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Mar 31, 2018

1 Corporate information

Jamna Auto Industries Limited (“the Company”) is engaged in manufacturing and selling of Tapered Leafs, Parabolic Springs and Lift Axles. The Company has its manufacturing facilities at Malanpur, Chennai, Yamuna Nagar, Jamshedpur, Hosur, Pillaipakkam and Pune.

The Company is public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the Company is located at Jai Spring Road,Yamuna Nagar, Haryana -135001

Information on related party relationships of the Company is provided in note 39.

The financial statements were approved for issue in accordance with a resolution of the board of directors on May 22, 2018.

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended.

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 (Indian GAAP). These financial statements for the year ended March 31, 2018 are the first financial statements, the Company has prepared in accordance with Ind AS. Refer to note 34 for information on how the Company adopted Ind AS.

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value as referred in the accounting policies:

(a) Certain financial assets and liabilities measured at fair value and

(b) Derivative financial instruments.

The Financial Statements are presented in Indian Rupees (Rs.) and all values are rounded to the nearest lakhs (Rs. 00,000), except wherever otherwise stated.

Trade receivables include :

No trade receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.

a. Pursuant to shareholders approval dated August 1, 2017, the Company has sub - divided equity shares of Rs. 5(absolute amount) each into equity shares of Rs. 1(absolute amount) each for which October 6, 2017 was fixed as the record date. Accordingly, in previous year no. of shares have been restated based on the revised number of shares and face value of Rs. 1 (absolute amount) per equity shares.

c. Term and Rights attached to equity shares

The Company has only one type of equity shares having par value of Rs. 1 (absolute amount) each per share, splitted during the year from face value of Rs. 5 to Rs 1, on dated October 6, 2017 and accordingly number of shares increased and previous year’s number of shares have also been reinstated. Each shareholder is entitled to one vote per share. The Company pays and declares dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

e. Shares reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment, including the terms and amounts

The Company provides shares based payment schemes to its employees. During the year ended March 31, 2018, an employee stock option scheme was in existence and 28,025 stock options (Previous year: 57,462) can be exercised by the employees as per their vesting and in accordance with the terms of issue of stock option. Refer note 47 on ESOP.

1. Includes Rs.247 being amount forfeited against warrants and application money received in earlier years.

2. Represents reserve created on account of redemption of preference shares during earlier years.

3. The Company has proposed a final dividend of Rs. 0.55 (absolute amount) for every equity share of Rs. 1 (absolute amount) (March 31, 2017 Rs. 0.40 (absolute amount) per equity share of Rs.1 (absolute amount) for the year, subject to the approval of shareholders.

4. The Company has declared an interim dividend of Rs. 0.30 (absolute amount) for every equity share of Rs. 1 (absolute amount) (March 31, 2017 Rs. 0.30 (absolute amount) per equity share of Rs.1 (absolute amount) for the year.

5. The Share application money pending allotment includes amount received from employees against the employee stock option plan. The shares will be allotted in the next compensation committee meeting.

Short term borrowing

# The Company has a facility for short term borrowings from State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank and Yes Bank. The balance outstanding as at the year end is Rs. 2,250.80 (previous year Nil) carries interest rate of 5% to 9.15% and is secured by:

a. First pari passu charge on the entire current assets of the Company both present and future.

b. Second pari passu charge over immovable fixed assets of the Company situated at Malanpur Plant, Jamshedpur Plant, Yamuna Nagar Plant and Chennai Plant.

c. Second pari passu charge on all existing and future movable fixed assets of the Company situated at Malanpur Plant, Jamshedpur Plant, Yamuna Nagar Plant and Chennai Plant.

## During the previous years, the Company has taken short term borrowing from HDFC Bank and Standard Chartered Bank, which carries interest rate varied between 8.4% to 8.75% in March 31, 2017 and April 1, 2016.

# Provision for warranties

A provision is recognized for expected warranty claims on products sold during the last one year, based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the one-year warranty period for all products sold. The table below gives information about movement in warranty provisions.

# # Provision for contingencies

Provision for contingencies represents, provision made against claim made by one of the supplier not acknowledged by the Company and other possible losses based on best estimate of the management.

Notes:

1. Government grants have been received for the purchase of certain items of property, plant and equipment. There are no unfulfilled conditions or contingencies attached to these grants.

2. The Company has opted the EPCG scheme, to avail the benefit of saving of custom duty by committing export of goods worth six times, of the value of duty saved, over a period of six years from the date of utilisation of benefit. Duty so saved as been recognised as Government grant and being released to profit & loss on the basis of export obligation fulfilled. As at March 31, 2018, the Company has an outstanding export obligation of Rs. 6,070.41 (March 31, 2017: Rs. 5,068.76) (April 1, 2016:.Nil)

* The acceptances are secured under short term borrowings facility from banks. Refer note 16 for details of securities.

Note (a) : Based on the information presently available with the Company, there are no dues outstanding as at the year end or interest payable / paid on delays in payment to micro and small enterprises covered under the Micro, Small and Medium Enterprise Development Act 2006.

3 Earnings per share (EPS)

Basic and Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

The following reflects the income and share data used in the basic and diluted EPS computations:

Pursuant to shareholders approval dated August 1, 2017, the Company has sub - divided equity shares of Rs. 5 (absolute amount) each into equity shares of Rs. 1 (absolute amount) each for which October 6, 2017 was fixed as the record date. Accordingly, number of shares for current year as well as previous year have been restated based on the revised number of shares and face value of Rs. 1 (absolute amount) per equity shares.

4 First time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, are the first financial statement, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 1, 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

5 Exemptions applied

Ind AS 101 allows first time adopter certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied following exemptions : -

1. Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per IGAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible assets. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets at their IGAAP carrying value;

2. Ind AS 101 grants an option for investments in subsidiaries, associates and joint ventures to be carried at cost in its financial statements on the date of transition to Ind AS. Further, Ind AS 27 requires investments in subsidiaries, associates and joint ventures to be recorded at cost or in accordance with Ind AS 109 in its separate financial statements. The Company has availed the above exemption and recognized the investment in an associate and joint ventures at the amount carried in previous IGAAP on the date of transition to Ind AS. Subsequent to date of transition, the investments are carried at cost.

3. Ind AS 101 grants an option for share based payment to equity instrument that were granted on or before the date of transition to Ind AS, to be carried at cost in its financial statements on the date of transition to Ind AS. The Company has availed the above exemption and recognized the share based payment to equity instrument at the amount carried in previous IGAAP on the date of transition to Ind AS. Subsequent to date of transition, the share based payment to equity instrument are carried at cost.

6 Reconciliation

The following reconciliation provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101:

1. Equity as at April 1, 2016 and March 31, 2017

2. Net profit/ loss for the year ended on March 31, 2017

6.1

(a) Cash flow statement

There were no significant reconciliation items between cash flow prepared under IGAAP and those prepared under Ind AS.

(b) Explanation for reconciliation of Balance Sheet as per previously reported under IGAAP to Ind AS Provisions

Under IGAAP, proposed dividends including DDT are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability of Rs. 2,629.57 for the year ended on March 31, 2016 recorded for dividend (including dividend distribution tax) has been derecognised against retained earnings on April 1, 2016.

Deferred tax assets (net)

Previous IGAAP required calculation of deferred tax using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 “Income Taxes” requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 has resulted in recognition of deferred tax on new temporary differences which was not required under previous IGAAP.

Retained earnings

Retained earnings as at April 01, 2016 has been adjusted consequent to Ind AS transition adjustments.

Financial assets - Security deposit

Financial assets, including long term deposit paid have been stated at amortised cost fair value.

Financial liabilities - Borrowings

The Company had an interest free borrowing (deferred sales tax loan) from the Government of India. The same has been disclosed at fair value using effective interest rate of 10%.

Long term provisions

Other than re-measurements gain/(loss) on defined benefit plans, it includes adjustments on account of accrual of leave encashment expenditure as prior period items for liability up to April 1, 2016.

Derivative instruments

Outstanding derivative instruments taken by the Company as at April 1, 2016 which were earlier accounted for an amortisation of premium cost, now under Ind AS have been recognised with MTM.

Other current liabilities

The previous IGAAP figures have been reclassified to conform to Ind AS presentation requirement for this note.

Explanation for reconciliation of statement of profit and loss as per previously reported under IGAAP to Ind AS Revenue from operations

Under the previous IGAAP, cash discount paid for early receipt from customer was recorded under the head finance cost. As per Ind AS 18, revenue is measured at fair value of the consideration received and receivable taking into account the amount of cash discounts allowed by the entity.

Further under previous IGAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Thus sale of goods under Ind AS has increased by Rs. 14,232.77 for the year ended March 31, 2017 with a corresponding increase in expenses.

Financial guarantee contracts

Financial guarantee provided to subsidiary for loan obtained by them has been accounted for on the basis of fair value. Employee benefits expenses

Under Ind AS, all items of income and expenses recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes re-measurement of defined benefit plans. The concept of other comprehensive income did not exist under previous IGAAP.

Other comprehensive income

Under IGAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled IGAAP profit or loss to profit or loss as per Ind AS. Further, IGAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

7 Gratuity and other post-employment benefit plans

The Company operates three plans viz gratuity, long term service awards and benevolent fund for its employees. Under the gratuity plan every employee who has completed atleast five years of service gets Gratuity on departure @15 days of last drawn salary for each completed year of service, in terms of Payment of Gratuity Act, 1972. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. Under long term service award the employee is entitled to a fixed amount on completion of ten years and fifteen years of service. The scheme of long term service award is unfunded.

8 Commitments and contingencies

(a) Leases

Operating lease: Company as lessee

The Company has entered into certain operating leases for office premises, guest houses and others. These leases are cancellable as well as non-cancellable leases. Cancellable leases are having an average life of 11 months. These leases are renewable on mutual consent of lessor and the Company. There are no restrictions placed upon the Company by entering into these leases. During the year, the Company has incurred Rs. 728.53 (Previous year: Rs. 441.93) as rental expense. The minimum future lease payments under non-cancellable leases are as under:

Future minimum rentals payable under non-cancellable operating leases are as follows:

(b) Capital commitments and other commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilites is as follows :

(c) Contingent liabilities

In relation to (i) above income tax matters contested by the Company comprise of:

1) With respect to assessment year 2010-11 to 2013-14, the assessing officer has added to the income of the Company, a notional interest amounting to Rs. Nil (March 31, 2017 : Rs. 43.20) on certain interest free advances given by the Company. The tax impact of the same is Rs Nil (March 31, 2017 : Rs. 14.68). The Company has preferred appeal with CIT (A) and based on internal assessment, the Company is confident of a favourable outcome.

2) With respect to assessment year 2008-09 to 2012-13 the assessing officer has disallowed certain expenses amounting to Rs. 76.91 (March 31, 2017 : Rs. 193.61) for various reasons. Tax impact of the same is Rs. 26.14 (March 31, 2017: Rs. 65.81). The Company’s appeal before CIT(A) and based on internal assessment, the Company is confident of a favourable outcome.

3) With respect to assessment year 2009-10 the assessing officer had increased income of the Company by Rs. 2,560.85 (March 31, 2017 : Rs. 2,560.85) contending that the Company has concealed production and sales to that extent. Tax impact of the same was Rs. 870.43 (March 31, 2017 : Rs. 870.43). The Company’s appeal before CIT(A) has been decided in favor of the Company, however department has filed an appeal against the order in ITAT and based on internal assessment, the Company is confident of a favourable outcome.

4) With respect to assessment year 2012-13 and 2013-14, the assessing officer has increased the taxable income of the Company by Rs 1,396.86 (March 31, 2017 Rs 1,396.86) contending that it has sold material to its subsidiary firm Jai Suspension Systems LLP (JSSLLP) at lower margin in order to divert its profits to JSSLLP as JSSLLP was enjoying tax exemption during that period. Tax impact of the same is Rs. 474.79 (March 31, 2017: Rs. 474.79). The Company has preferred an appeal with CIT(A) and based on discussion with the legal counsel is confident of a favourable outcome.

5) With respect to the assessment year 2010-11, the assessing officer has increased the taxable income of the Company by Rs Nil (March 31, 2017 : Rs 6.62) contending that it has disclosed lower scrap sales during that year. Tax impact of the same is Rs Nil (March 31, 2017 : Rs. 2.25). The Company, based on internal assessment and discussion with its legal counsel is confident of a favourable outcome.

In relation to (iii) above excise and service tax matters contested by the Company comprise of:

1) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid on charges of Custom House Agent for export of finished goods after clearance from the factory for the period from November 2005 to March 2010. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 2.62 (March 31, 2017 : Rs. 2.62).

2) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid to the transport agency for outward transportation of the goods for the period 2010-11. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 3.17 (March 31, 2017 : Rs. 3.17).

3) Matter pending before CESTAT, New delhi in respect of SCN issued by the department against Cenvat not reversed on sale of exempted goods. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 53.13 (March 31, 2017 : Rs. 53.13) plus penalty of Rs. 143.15 (March 31, 2017 : Rs. 143.15) plus interest as applicable.

4) Matter pending before Commissioner of Central Excise & Service Tax, Lucknow in respect of Cenvat Credit wrongly availed as capital goods instead of input and service tax credit availed without actual documents. The Company has done an analysis and is of the opinion that it has a fair chance of favourable decision. The amount involved is Rs. 5.95 (March 31, 2017: Rs. 5.95).

5) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG licence obtained by the Company, however, the same was lost without being used in 2008. The Company is under an obligation to surrender the licence in case of non utilisation and has received a letter from the office of DGFT for the same. The Company has appeared before the authority and submitted the facts of losing the licence without utilisation. Accordingly, the Company is of the opinion that it has fair chance of a favourable decision. The amount involved is Rs. 8.25 (March 31, 2017 : Rs. 8.25).

6) Matter pending before CESTAT, Chandigarh, in respect of wrong availment of Cenvat Credit and disposing of machinery without reversal of Cenvat Credit. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. Nil (March 31, 2017 : Rs. 28.18).

In relation to (iv) above sales tax and entry tax matters contested by the Company comprise of:

1) Matter pending before Supreme Court, Delhi in respect of demand by sales tax department against entry tax paid on raw material. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The Amount involved is Rs. 48.53 (March 31, 2017: Rs. 48.53).

2) Matter pending before Additional Commissioner, Grade-2, (Appeal) Fourth, Commercial Tax, Lucknow for non submission of form F. The Company has done an analysis and is of the opinion that it has a fair chance of favourable decision. The amount involved is Rs. 125.76 (VAT), Rs. 22.00 for entry tax and Rs. 1.83 for CST, totalling up to Rs. 149.59 (March 31, 2017: Rs. 149.59). The Company has made a payment of Rs. 22.89 under protest in this regard.

In relation to (vii) above factoring comprise of:

1) During the year, the Company has entered into factoring arrangement of its trade receivables with two of its existing bankers, on without recourse basis. Liability of the Company will arise only if it does not meet its performance obligation to its customers as per the terms of contract with the respective parties. Based on its assessment, management does not forsee any exposure in this regards. Total amount of trade receivable which has been factored as at March 31, 2018 is Rs. 12,440.87. (March 31, 2017 : Nil).

9 Related party transactions

A) Related parties under Ind AS-24 with whom transactions have taken place during the year

I. Subsidiary

Jai Suspension Systems LLP Jai Suspensions Limited

II. Key managerial personnel and their relatives

III. Companies/Concerns controlled by KMP & their relatives

Jamna Agro Implements Private Limited

S.W. Farms Private Limited Map Auto Limited

10 Segment Reporting

Ind AS 108 establishes standards for the way the Company report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company’s operations comprises of only one segment i.e. manufacturing and selling of automobile suspension products. The entire operations are governed by the same set of risk and returns. Based on the “management approach” as defined in Ind AS 108, the management also reviews and measure the operating results taking the whole business as one segment and accordingly make decision about the resource allocation. In view of the same, separate segment information is not required to be given as per the requirements of Ind AS 108 on “Operating Segments”. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed that they carry same risk and rewards. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

The following is the distribution of the Company’s revenue of operations by geographical market, regardless of where the goods were produced:

Sales to customers generating more than 10% of total revenue aggregates to Rs. 86,534.23 (March 31, 2017 : Rs. 64,702.10).

Trade receivables from customers generating more than 10% of total revenue aggregates to Rs. 10,654.67 (March 31, 2017 : Rs. 1,263.13).

The trade receivable information above is based on the location of the customers.

All other assets (other than trade receivable) used in the Company’s business are located in India and are used to cater both the customers (within India and outside India), accordingly the total cost incurred during the period to acquire the property, plant and equipment and intangible assets has not been disclosed.

11 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

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

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 37.

Taxation

In preparing financial statements, there are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Provisions and contingencies

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

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

The Company has significant capital commitments in relation to various capital projects which are not recognized in the balance sheet. 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.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer note 42 for such measurement.

12 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, 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.

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 long term debts plus amount payable for purchase of fixed assets divided by total equity.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

13 Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk, legal risk, taxation risk, accouting risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

(ii) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period for hedges of forecasted sales and purchases (including property, plant and equipment).

When a derivative is entered into for the purpose of being a hedge, the Comapny negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

The Company hedges its exposure to fluctuations on the translation into INR of its foreign operations by entering into forward contracts. Since the hedge transaction done by the Company does not have significant impact on the results of operations, a sensitivity analysis is not presented.

(b) Legal, taxation and accounting risk

The Company is exposed to few legal and administrative proceedings arising during the course of business. The management makes an assessment of these pending cases and in case where it believes that loss arising from a proceeding is probable and can reasonably be estimated, the amount is recorded in the books of account. To mitigate these risks arising from the proceedings, the Company employs third party tax and legal experts to assist in structuring significant transactions and contracts.

(c) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk management. The major customers of the Company are original equipment manufacturers (OEM’s) which have a defined period for payment of receivables and from related party, hence the Company evaluates the concentration of risk with respect to trade receivables as low. At March 31, 2018, approximately 98% (March 31, 2017: 93%, April 01, 2016 : 93%) of all the receivables outstanding were from OEMs and related party.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, all the minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12. The Company does not hold collateral as security except in case dealer’s securities deposit in after market.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with the banks with high credit ratings. The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as illustrated in Note 13.

(d) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company monitors its risk of a shortage of funds by doing liquidity planning. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, cash credits and advance payment terms.

(e) Commodity risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchases of steel which is a volatile product and is major component of end product. The prices in these purchase contracts are linked to the price of raw steel and demand supply matrix. However, at present, the Company do not hedge its raw material procurements, as the price of the final product of the Company also vary with the price of steel which mitigate the risk of price volatility.

14 Share based compensation

(A) The Company has issued stock options to its employees in accordance with the Company’s Employee Stock Option Scheme 2006 and 2008. Both the schemes are administered by the Compensation Committee constituted pursuant to SEBI (Share based employee benefits) Regulations, 2014. All the permanent employees of the Company and the subsidiary, including Directors but excluding promoters of the Company are eligible to participate in the schemes. The Committee grants stock options to the employees at its discretion depending upon criteria such as role/designation of the employee, length of service with the Company, past performance record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of 5 years from the date of grant in the ratio of 15% for the first year, 20% for second to fourth year and 25% for the fifth year. The options would be granted at the exercise price that is equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of option. The lapsed option is available for being re-granted/ re-issued at a future date. The maximum number of options that may be granted to any specific employee is upto 0.5 % of the issued capital of the company.

(B) Summary of stock options

All the options vested to its employees prior to transition date to Ind AS i.e. April 1, 2016.

(C) Weighted average share price on the date of exercise of the options is Rs. 120.65 (Previous year Rs. 113.81)

(D) Range of exercise price and weighted average remaining contractual life of stock options outstanding

(E) Weighted average fair value of options: The fair value of each option is estimated using the Black Scholes model after applying the following weighted average assumptions:-

* Not applicable since the Company has not granted stock options during the year.

(F) The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Share based employee benefits) Regulations, 2014, to account for stock options issued under the Company’s stock options schemes. Under this method, compensation expenses are recorded on the basis of excess of the market price of share at the date of grant of option over exercise price of the option.

There would be no impact on the profit or earnings per share had the company used the fair value of the options as the method of accounting instead of intrinsic value as the fair value is less than the intrinsic value of the option.

(G) Following is the table showing fair value, exercise price and amount of expenditure not recognised at each balance sheet date:

15. During the year, the management has evaluated usefulness of certain machinery basis on that accelerated depreciation of Rs. 445.28 has been charged during the period. In the previous year, in order to upgrade its manufacturing facilities, the management has estimated that certain machines were not usable and accordingly, accelerated depreciation of Rs. 1,138.62 has been provided.

16. The Company has incurred expenses on its in-house research and development center at Pune approved and recognised by the Ministry of Science & Technology.

17. Standards issued but not yet effective

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was notified on March 28, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after April 1, 2018. The Company will adopt the new standard on the required effective date using the modified retrospective method. The Company has established an implementation team to implement Ind AS 115 related to the recognition of revenue from contracts with customers and it continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. A reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the implementation project has been completed.

The Company has identified following areas, where Ind AS 115 will impact.

(a) Sale of goods

Contracts with customers in which the sale of equipment is generally expected to be the only performance obligation are not expected to have any impact on the Company’s profit or loss. The Company expects the revenue recognition to occur at a point in time when control of the asset is transferred to the customer, generally on delivery of the goods.

In preparing for Ind AS 115, the Company is considering the following:

Variable consideration

Some contracts with customers provide a right of return, trade discounts or volume rebates. Currently, the Company recognizes revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. If revenue cannot be reliably measured, the Company defers revenue recognition until the uncertainty is resolved. Such provisions give rise to variable consideration under Ind AS 115, and will be required to be estimated at contract inception.

Ind AS 115 requires the estimated variable consideration to be constrained to prevent over-recognition of revenue. The Company continues to assess individual contracts to determine the estimated variable consideration and related constraint. The Company expects that application of the constraint may result in more revenue being deferred than under current Ind AS.

(b) Presentation and disclosure requirements

Ind AS 115 provides presentation and disclosure requirements, which are more detailed than under current Ind AS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in Company’s financial statements. Many of the disclosure requirements in Ind AS 115 are completely new.

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Mar 31, 2017

c. Term and Rights attached to equity shares

The Company has only one type of equity shares having par value of Rs. 5 (absolute amount) each per share. Each shareholder is entitled to one vote per share. The Company pays and declares dividends in Indian rupees. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. During the year ended March 31, 2017, the Company has proposed dividend of Rs. 2.00 (absolute amount) for every equity share of Rs. 5 (absolute amount) (previous year Rs. 2.75 (absolute amount) for every equity share of Rs. 5 (absolute amount). Further, during the year the Company has declared and paid an interim dividend of Rs. 1.50 (absolute amount) (Previous year Rs. Nil) for every equity share of Rs. 5 (absolute amount)

d. Details of shareholders holding more than 5% shares in the Company

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

e. Shares reserved for issue under Options and contracts/commitments for the sale of shares/ disinvestment, including the terms and amounts

The Company provides shares based payment schemes to its employees. During the year ended March 31, 2017, an employee stock option scheme was in existence and 57,462 stock options (Previous year: 1,85,212) can be exercised by the employees as per their vesting and in accordance with the terms of issue of stock option. Refer note on 39 on ESOP.

f. Forfeited shares (amount originally paid up, included in capital reserve)

(a) Includes Rs. 150 representing 10% of the issued price of 2,083,333 convertible warrants as application money received towards the subscription of such warrants by the promoters in erstwhile Jai Parabolic Springs Limited. Such application money was forfeited in accordance with SEBI guidelines on the expiry of 18 months from the date of issue. It also includes Rs. 97 representing application money received towards the subscription of 1,343,210 convertible warrants allotted to MAP Auto Limited. Such application money was forfeited on June 27, 2007.

(b) Represents reserve created on account of redemption of preference shares during earlier years.

(c) The Company has proposed a final dividend of Rs. 2.00 (absolute amount) for every equity share of Rs. 5 (absolute amount) (previous year Rs. 2.75 (absolute amount) per equity share of Rs. 5 (absolute amount) for the year, subject to the approval of shareholders.

(d) The Company has declared an interim dividend of Rs. 1.50 (absolute amount) for every equity share of Rs. 5 (absolute amount) (previous year Rs. Nil (absolute amount) per equity share of Rs. 5 (absolute amount) for the year

#Provision for warranties

A provision is recognized for expected warranty claims on products sold during the last one year, based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the one-year warranty period for all products sold. The table below gives information about movement in warranty provisions.

### Provision for contingencies

Provision for contingencies represents, provision made against claim made by one of the supplier not acknowledged by the Company and other possible losses based on best estimate of the management.

# The Company has a facility for short term borrowings from a consortium of State Bank of India, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, HDFC Bank, and Yes Bank. The balance outstanding as at the year end carries interest Rate: Nil (previous year 10.15%) and is secured by:

(a) First pari passu charge on the entire current assets of the Company both present and future.

(b) Second pari passu charge over immovable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai.

(c) Second pari passu charge on all existing and future movable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and Chennai (excluding assets specifically financed by Standard Chartered Bank located at Hosur and Malanpur).

## The Company has taken short term borrowing from HDFC Bank and Standard Chartered Bank, which carries interest rate varied between 8.4% to 8.75%.

In relation to i above income tax matters contested by the Company comprise of:

1) With respect to assessment year 2010-11 to 2013-14, the assessing officer has added to the income of the Company, a notional interest amounting to Rs. 43.20 (Previous year: Rs 43.20) on certain interest free advances given by the Company. The tax impact of the same is Rs 14.68 (Previous year: Rs. 14.68). The Company has preferred appeal with CIT (A) and based on internal assessment, the Company is confident of a favourable outcome.

2) With respect to assessment year 2008-09 to 2012-13 the assessing officer has disallowed certain expenses amounting to Rs. 193.61 (Previous year: Rs. 193.61) for various reasons. Tax impact of the same is Rs. 65.81 (Previous year: Rs. 65.81). The Company''s appeal before CIT(A) and based on internal assessment, the Company is confident of a favourable outcome.

3) With respect to assessment year 2009-10 the assessing officer had increased income of the Company by Rs. 2560.85 (previous year: Rs. 2560.85 ) contending that the Company has concealed production and sales to that extent. Tax impact of the same was Rs. 870.43 (Previous year: Rs. 870.43). The Company''s appeal before CIT(A) has been decided in favor of the Company, however department has filed an appeal against the order in ITAT and based on internal assessment, the Company is confident of a favourable outcome.

4) With respect to assessment year 2012-13 and 2013-14, the assessing officer has increased the taxable income of the Company by Rs 1396.86 (Previous year: Rs 1,396.86) contending that it has sold material of its subsidiary firm (Jai Suspension System LLP (JSSLLP) at lower margin in order to divert its profits to JSSLLP as JSSLLP was enjoying tax exemption during that period. Tax impact of the same is Rs. 474.79 (Previous year: Rs. 474.79). The Company has preferred an appeal with CIT(A) and based on discussion with the legal counsel is confident of a favourable outcome.

5) With respect to the assessment year 2010-11, the assessing officer has increased the taxable income of the Company by Rs 6.62 (Previous year: Rs 6.62) contending that it has disclosed lower scrap sales during that year. Tax impact of the same is Rs 2.25 (Previous year: Rs. 2.25). The Company, based on internal assessment and discussion with its legal counsel is confident of a favourable outcome.

In relation to iii above excise and service tax matters contested by the Company comprise of:

6) Matter pending with Central Excise and Service Tax Appellate Tribunal (CESTAT) in respect of Cenvat Credit availed by the Company on Additional Duty of Custom paid on import of material during the year 2008-09. During the year, case was decided in favour of the Company. The amount involved is Rs. Nil (Previous year: Rs. 40.24).

7) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid on charges of Custom House Agent for export of finished goods after clearance from the factory for the period from November 2005 to March 2010. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 2.62 (Previous year: Rs. 2.62).

8) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid to the transport agency for outward transportation of the goods for the period 2010-11. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 3.17 (previous year: Rs. 3.17).

9) Matter pending before Commissioner of Central Excise, Indore in respect of SCN issued by the department against Cenvat not reversed on sale of exempted goods. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 53.13 (Previous year: Rs. 70.34) plus penalty of Rs. 143.15 (Previous year: Rs. Nil)plus interest as applicable

10) Matter pending before Commissioner of Central Excise & Service Tax, Lucknow in respect of Cenvat credit wrongly avaialed as capital goods instead of input and Service tax credit availed without actual documents. The Company has done an analysis and is of the opinion that it has a fair chance of favourable decision. The amount involved is Rs. 5.95 (Previous year: Rs. 5.95).

11) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG licence obtained by the Company, however, the same was lost without being used in 2008. The Company is under an obligation to surrender the license in case of non utilization and has received a letter form the office of ADGFT for the same. The Company has appeared before the authority and submitted before the authority the facts of losing the license without utilization. Accordingly, the Company is of the opinion that it has fair chance of a favourable decision. The amount involved is Rs. 8.25 (Previous year: Rs. 8.25).

12) Matter pending before CESAT, Chandigarh, in respect of wrong availment of Cenvat Credit and disposing of machinery without reversal of Cenvat Credit. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The amount involved is Rs. 28.88 (Previous year: Rs. Nil).

In relation to iv above sale tax/entry tax matters contested by the Company comprise of:

13) Matter pending before Sales Tax Appellate Tribunal, Chennai in respect of demand by sales tax department against sales tax not paid on finished goods treated as export of goods. The Company has won the case during the year. The Amount involved is Rs. Nil (Previous year: Rs. 4.85).

14) Matter pending before High Court, Gwalior in respect of demand by sales tax department against entry tax paid on raw material. The Company has done an analysis and is of the opinion that it has fair chance of favourable decision. The Amount involved is Rs. 48.53 (Previous year: Rs. 48.53).

15) Matter pending before Additional Commissioner, Grade-2, (Appeal) Fourth, Commercial Tax, Lucknow for non submission of F forms. The Company has done an analysis and is of the opinion that it will be able to collect and submit all the pending forms and has a fair chance of favourable decision. The amount involved is Rs. 125.76 (VAT), Rs. 22.00 for Entry tax and Rs. 1.82 for CST, totalling up to Rs. 149.59 (Previous year: Rs. 149.59). The Company has made a payment of Rs. 22.89 under protest in this regard.

In relation to vi above factoring comprise of:

16) During the year, the Company has taken the factoring facility of debtors from HDFC bank, which has been utilized by Rs. 707.14 (Previous year: Rs. Nil), as per the term of the same, the Company is liable to make good any loss suffered by the Bank in case of non payment of dues by the customers.

In relation to vii above EPCG licenses comprise of:

17) The company has imported plant and machinery under EPCG licenses and has saved duty of Rs. 471.35 (Previous year: Nil). As per the scheme, the Company is required to export goods of six times of duty saved in next six years as per the schedule. If the Company is unable to export then the Company have to pay proportionate amount of duty saved under EPCG licenses along with interest. The Company is confident that it will be able to meet the obligation and no provision is considered necessary at this stage.

The following were the significant transactions between the Company and its related parties w.r.t Enterprises owned or significantly influenced by KMP and their relatives

Job work charges

During the year ended March 31, 2017: Map Auto Limited Rs. 521.08 (Previous Year Rs. 502.10) and Jamna Agro Implements Private Limited Rs. 91.09 (Previous year - Rs.87.92).

Freight forwarding and packaging

During the year ended March 31, 2017: Map Auto Limited Rs. 276.61 (Previous year - Rs. 316.93).

Remunerations

During the year ended March 31, 2017 : Mr. P S Jauhar Rs. 662.84 (Previous year - Rs. 496.25)

During the year ended March 31, 2017 : Mr. R S Jauhar Rs. 666.20 (Previous year - Rs. 500.75)

During the year ended March 31, 2017 : Mr. H S Gujral Rs. 39.46 (Previous year - Rs. 16.15)

During the year ended March 31, 2017 : Mr. Pankaj Gupta Rs. 30.44 (Previous year - Rs. Nil)

During the year ended March 31, 2017 : Mr. Vivek Bhatia Rs. 43.46 (Previous year - Rs. 80.36)

During the year ended March 31, 2017 : Mr. Praveen lakhera Rs. 34.85 (Previous year - Rs. 47.19)

During the year ended March 31, 2017 : Mrs. Kiran Chadha Rs. 19.66 (Previous year - Rs. 18.16)

Rent expenses

During the year ended March 31, 2017 : M/s SW Farms Private Limited Rs. 24.27 (Previous year - Rs. 21.53)

During the year ended March 31, 2017 : Mrs Sonia Jauhar Rs. 12.14 (Previous year - Rs. 33.36)

During the year ended March 31, 2017 : Mr P S Jauhar Rs. 25.64 (Previous year - Rs. 2.13)

Rent income

During the year ended March 31, 2017 : Map Auto Limited Rs. 0.45 (Previous year - Rs. 2.58)

Gaurantees withdrawn

During the year ended March 31, 2017 : Mr. P S Jauhar Rs. Nil (Previous year - Rs. 40,654)

During the year ended March 31, 2017 : Mr. R S Jauhar Rs. Nil (Previous year - Rs. 40,654)

18 Obligation on long term non-cancellable operating lease

The Company has entered into certain operating leases for office premises, guest houses and others. These leases are cancellable as well as non-cancellable leases. Cancellable leases are having an average life of 11 months. These leases are renewable on mutual consent of lessor and the Company. There are no restrictions placed upon the Company by entering into these leases. During the year, the Company has incurred Rs. 430.85 (Previous year: Rs. 324.81) as rental expense. The minimum future lease payments under non-cancellable leases are as under:

19 Segment Information

(a) Business segment

The Company is engaged in the business of manufacturing and selling of parabolic and tapered leaf springs. The entire operations are governed by the same set of risk and returns and, hence, the same has been considered as representing a single primary segment.

Since the Company''s business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting Standard-17 ‘Segment Reporting'' other than those already provided in the Financial Statements.

(b) Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The company operates primarily in India and has presence in international market as well. Its business is accordingly aligned geographically catering to two markets i.e., India and Outside India. For customers located outside India, the company has assessed that they carry same risks and rewards. The company has considered India and Outside India markets as geographical segments and accordingly disclosed these as separate segments. The geographical segment considered for reporting are as follows:

-Sales within India includes sales to customers located within India

-Sales outside India includes sales to customers located outside India

The following is the distribution of the company''s revenue from operation (Net) by geographical market, based on the location of the customer, regardless of where the goods were produced:

All other assets (other than trade receivables) used in the company''s business are located in India and are used to cater both the customers (Within India and Outside India) , accordingly the total cost incurred during the year to acquire property, plant & equipment and intangible assets has not been disclosed.

20 Share based compensation

(a) The Company has issued stock options to its employees in accordance with the Company''s Employee Stock Option Scheme 2006 and 2008. Both the Schemes are administered by the Compensation Committee constituted pursuant to SEBI (Share based employee benefits) Regulations, 2014. All the permanent employees of the Company and the subsidiary, including Directors but excluding promoters of the Company are eligible to participate in the Schemes. The Committee grants stock options to the employees at its discretion depending upon criteria such as role/designation of the employee, length of service with the Company, past performance record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of 5 years from the date of grant in the ratio of 15% for the first year, 20% for second to forth year and 25% for the fifth year. The options would be granted at the exercise price that is equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of option. The lapsed option is available for being re-granted/ re-issue at a future date. The maximum number of options that may be granted to any specific employee is up to 0.5 % of the issued capital of the company.

(f) The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Share base employee benefits) Regulations, 2014, to account for stock options issued under the Company''s stock options schemes. Under this method, compensation expenses are recorded on the basis of excess of the market price of share at the date of grant of option over exercise price of the option.

There would be no impact on the profit or earnings per share had the company used the fair value of the options as the method of accounting instead of intrinsic value as the fair value is less than the instrinsic value of the option.

21 Gratuity and other employee benefits

The Company operates three plans viz gratuity, long term service awards & Benevolent Fund for its employees. Under the gratuity plan every employee who has completed at least five years of service gets Gratuity on departure @15 days of last drawn salary for each completed year of service. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. Under long term service award the employee is entitled to a fixed amount on completion of ten years and fifteen year of service. The Scheme of long term service award is unfunded.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for gratuity.

The estimates 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 market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

22 During the year, the Company has accounted in accordance with the recognition criteria as per the principal laid down under Accounting Standard-12, accounting for Government grant, in relation to refund of VAT as per Jharkhand Industrial Policy, 2012. Accordingly an amount of Rs. 1,902.39 has been accounted, out of which Rs. 242.54 is credited to statement of profit and loss and balance of Rs. 1,659.85 is deferred, to be credited in subsequent years in line with Accounting Standard.

23 As required by notification no. GSR 308(E) issued by Ministry of Corporate Affairs, disclosure in respect of Specified Bank Notes (SBN) is as under:

24 During the year, in order to upgrade its manufacturing facilities, the management has estimated that certain machines may not be usable and accordingly, accelerated depreciation of Rs. 1,138.62 has been provided. In the previous year during the shifting of plant, the management identified, certain assets having net book value of Rs. 907.99, which were no longer actively usable and had accordingly provided for accelerated depreciation in the previous year.

25 The Company has incurred expenses on its in-house research and development center at Pune approved and recognized by the Ministry of Science & Technology, Government of India in current year.

26 Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification. As per our report of even date.

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Mar 31, 2016

c. Term and Rights attached to equity shares

The Company has only one type of equity shares having par value of Rs. 5 (absolute amount) each per share. Each shareholder is
entitled to one vote per share. The Company pays and declares dividends in Indian rupees. The dividend proposed, if any, by the
Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim
dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to
prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets
of the Company after distribution of all preferential amounts, in proportion to their shareholding. During the year ended March
31, 2016, the Company has proposed dividend of Rs. 2.75 (absolute amount) for every equity share of Rs. 5 (absolute amount)
(previous year Rs. 2.20 (absolute amount) for every equity share of Rs. 10 (absolute amount).

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

e. Shares reserved for issue under Options and contracts/commitments for the sale of shares/ disinvestment, including the terms
and amounts

The Company provides shares based payment schemes to its employees. During the year ended March 31, 2016, an employee stock
option scheme was in existence and 185,212 stock options (Previous year: 276,088) can be exercised by the employees as per their
vesting and in accordance with the terms of issue of stock option. Refer note 39 on ESOP.

The Share application money pending allotment includes amount received from employees against the employee stock option plan. The
shares will be allotted in the next compensation committee meeting.

(a) Includes Rs.150 representing 10% of the issued price of 2,083,333 convertible warrants as application money received towards
the subscription of such warrants by the promoters in erstwhile Jai Parabolic Springs Limited. Such application money was
forfeited in accordance with SEBI guidelines on the expiry of 18 months from the date of issue. It also includes Rs.97
representing application money received towards the subscription of 1,343,210 convertible warrants allotted to MAP Auto Limited.
Such application money was forfeited on 27 June 2007.

(b) The Board of Directors have recommended preference dividend amounting to Rs. Nil relating to the year ended March 31, 2016
(Previous year: Rs.10.97). The same is subject to approval of shareholders.

(c) The Company has declared a final dividend of Rs. 2.75 (absolute amount) for every equity share of Rs. 5 (absolute amount)
(previous year Rs. 2.20 (absolute amount) per equity share of Rs.10 (absolute amount)) for the year, subject to the approval of
shareholders.

^ Represents reserves created on account of redemption of Preference shares during previous year.

#Provision for warranties

A provision is recognized for expected warranty claims on products sold during the last one year, based on past experience of the
level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year.
Assumptions used to calculate the provision for warranties were based on current sales levels and current information available
about returns based on the one-year warranty period for all products sold. The table below gives information about movement in
warranty provisions.

# The Company has a facility for short term borrowings from a consortium of State Bank of India, ICICI Bank, Kotak Mahindra Bank,
Standard Chartered Bank, Lakshmi Vilas Bank, HDFC Bank, Axis Bank and Yes Bank. The balance outstanding as at the yearend carries
interest of 10.15% (previous year 2.16%) and is secured by:

(a) First pari passu charge on the entire current assets of the Company both present and future.

(b) Second pari passu charge over immovable fixed assets of the Company situated at Malanpur, Jamshedpur, Yamuna Nagar and
Chennai

(c) Second pari passu charge on all existing and future movable fixed assets of the Company at Malanpur, Jamshedpur, Yamuna Nagar
and Chennai (excluding assets specifically financed by Standard Chartered Bank located at Hosur and Malanpur).

Note (a) : Based on the information presently available with the Company, there are no dues outstanding as at the yearend or
interest payable / paid on delays in payment to micro and small enterprises covered under the Micro, Small and Medium Enterprise
Development Act 2006.

In relation to i above income tax matters contested by the Company comprise of:

1) With respect to assessment year 2010-11 to 2013-14, the assessing Officer has added to the income of the Company, a notional
interest amounting to Rs. 43.20 (Previous year Rs 32.40) on certain interest free advances given by the Company. The tax impact
of the same is Rs 14.68 (Previous year: Rs. 11.01). The Company has preferred appeal with CIT (A) and based on internal
assessment, the Company is confident of a favorable outcome.

2) With respect to assessment year 2008-09 to 2012-13 the assessing Officer has disallowed certain expenses amounting to Rs.
193.61 (Previous year Rs. 193.61) for various reasons. Tax impact of the same is Rs. 65.81 (Previous year: Rs. 65.81). The
Company has preferred an appeal with CIT (A) and based on internal assessment and discussion with its legal counsel is confident
of a favorable outcome.

3) With respect to assessment year 2009-10 the assessing Officer has increased income of the Company by Rs. 2,560.85 (Previous
year Rs. 2,560.85) contending that the Company has concealed production and sales to that extent. Tax impact of the same is Rs.
870.43 (Previous year: Rs. 870.43). The Company has preferred an appeal with CIT (A) and based on internal assessment and
discussion with legal counsel, the management is confident of a favorable outcome.

4) With respect to assessment year 2012-13 and 2013-14. The assessing Officer has increased the taxable income of the Company by
Rs 1,396.86 (Previous year Rs 1,095.73) contending that it has sold material of its subsidiary firm (Jai Suspension System LLP
(JSSLLP) at lower margin in order to divert its Profits to JSSLLP as JSSLLP was enjoying tax exemption during that period. Tax
impact of the same is Rs. 474.79 (Previous year: Rs. 372.46). The Company has preferred an appeal with CIT(A) and based on
discussion with the legal counsel is confident of a favorable outcome.

5) With respect to the assessment year 2010-11, the assessing Officer has increased the taxable income of the Company by Rs 6.62
(Previous year Rs 6.62) contending that it has disclosed lower scrap sales during that year. Tax impact of the same is Rs 2.25
(Previous year: Rs. 2.25). The Company, based on internal assessment and discussion with its legal counsel is confident of a
favorable outcome.

In relation to iii above Custom and excise matters contested by the Company comprise of:

6) Matter pending with Central Excise and Service Tax Appellate Tribunal (CESTAT) in respect of Cenvat Credit availed by the
Company on Additional Duty of Custom paid while import the material during the year 2008-09. The Company has done an analysis and
is of the opinion that it has fair chance of favorable decision. The amount involved is Rs. 40.24 (previous year Rs. 40.24).

7) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid on charges of
Custom House Agent for export of finished goods after clearance from the factory for the period from November 2005 to March 2010.
The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The amount involved is Rs.
2.62 (previous year Rs. 2.62).

8) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid to the
transport agency for outward transportation of the goods for the period 2010-11. The Company has done an analysis and is of the
opinion that it has fair chance of favorable decision. The amount involved is Rs. 3.17 (previous year Rs. 17.04).

9) Matter pending before Commissioner of Central Excise, Indore in respect of SCN issued by the department against Cenvat not
reversed on sale of exempted goods. The Company has done an analysis and is of the opinion that it has fair chance of favorable
decision. The amount involved is Rs. 70.34 (previous year Rs. nil).

10) Matter pending before Commissioner of Central Excise & Service Tax, Luck now in respect of Cenvat credit wrongly availed as
capital goods instead of input and Service tax credit availed without actual documents. The Company has done an analysis and is
of the opinion that it has a fair chance of favorable decision. The amount involved is Rs. 5.95 (previous year Rs. nil).

11) Matter pending before Director General of Foreign Trade, New Delhi in respect of EPCG license obtained by the Company,
however, the same was lost without being used in 2008. The Company is under an obligation to surrender the license in case of non
utilization and has received a letter from the Office of ADGFT for the same. The Company has appeared before the authority and
submitted before the authority the facts of losing the license without utilization. Accordingly, the Company is of the opinion
that it has fair chance of a favorable decision. The amount involved is Rs. 8.25 (previous year Rs. nil).

In relation to iv above sale tax/entry tax matters contested by the Company comprise of:

12) Matter pending before Sales Tax Appellate Deputy Commissioner Chennai in respect of demand by sales tax department against
sales tax not paid on finished goods treated as export of goods. The Company has done an analysis and is of the opinion that it
has fair chance of favorable decision. The Amount involved is Rs. 4.85 (previous year Rs. 4.85).

13) Matter pending before High Court, Gwalior in respect of demand by sales tax department against entry tax paid on raw material.
The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The Amount involved is Rs.
33.97 (previous year Rs. 33.97).

14) Matter pending before Additional Commissioner, Grade-2, (Appeal) Fourth, Commercial Tax, Luck now for non submission of F
forms. The Company has done an analysis and is of the opinion that it will be able to collect and submit all the pending forms
and has a fair chance of favorable decision. The amount involved is Rs. 125.76 (VAT), Rs. 22.00 for Entry tax and Rs. 1.82 for
CST, totaling up to Rs. 149.58 (previous year Rs. nil). The Company has made a payment of Rs. 22.89 under protest in this regard.

15 Related party disclosures

A) Names of related parties and relationship

i. Related parties where control exists Subsidiary Jai Suspension Systems LLP

II. Related parties under Accounting Standard-18 (AS-18), "Related Parties Disclosure", with whom transactions have taken place
during the year

a. Key managerial personnel and their relatives Mr. B.S. Jauhar Chairman

Mr. R.S. Jauhar CEO & Executive Director (From May 20, 2016 Vice Chairman)

Mr. P.S. Jauhar COO & Executive Director (From May 20, 2016 Managing Director & CEO)

Mr. H.S. Gujral Executive Director

Mrs. Sonia Jauhar Wife of CEO and Executive Director

Mrs. Kiran Chadha Daughter of Chairman

b. Enterprises controlled, owned or significantly influenced by individuals having significant influence over the Company or
their relatives

Jamna Agro Implements Private Limited S.W. Farms Private Limited Map Auto Limited

III Additional related parties as per the Companies Act 2013, with whom transactions have taken place during the year:

Chief Financial Officer Mr. Vivek Bhatia

Company Secretary Mr. Praveen Lakhera

Enterprises in which Director is a member MAP Auto Limited

Jamna Agro Implements Private Limited S.W. Farms Private Limited

Pursuant to shareholders approval dated September 29, 2015, the Company has sub-divided equity shares of Rs. 10 (absolute amount)
each into equity shares of Rs. 5 (absolute amount) each for which December 4, 2015 was fixed as the record date. Accordingly,
the basic and diluted earnings per share have been computed for the current year and recomputed for the previous periods based on
the revised number of shares and face value of Rs. 5 (absolute amount) per equity shares.

16 Obligation on long term non-cancellable operating lease

The Company has entered into certain operating leases for Office premises and guest houses. These leases have an average life of
11 months. These leases are renewable on mutual consent of less or and the Company. There are no restrictions placed upon the
Company by entering into these leases. During the year, the Company has incurred Rs. 166.86 (Previous year: Rs. 120.72) as
rental expense. There is no non-cancellable period under these leases.

17 Segment information

(a) Business segment

The Company is engaged in the business of manufacturing and selling of parabolic and tapered leaf springs. The entire operations
are governed by the same set of risk and returns and, hence, the same has been considered as representing a single primary
segment.

Since the Company''s business activity falls within a single business segment, there are no additional disclosures to be provided
under Accounting Standard-17 ''Segment Reporting'' other than those already provided in the Financial Statements.

(b) Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The company operates primarily in
India and has presence in international market as well. Its business is accordingly aligned geographically catering to two
markets i.e., India and Outside India. For customers located outside India, the company has assessed that they carry same risks
and rewards. The company has considered India and Outside India markets as geographical segments and accordingly disclosed these
as separate segments. The geographical segment considered for reporting are as follows:

– Sales within India includes sales to customers located within India

– Sales outside India includes sales to customers located outside India

The following is the distribution of the company''s revenue from operation (Net) by geographical market, based on the location of
the customer, regardless of where the goods were produced

All other assets (other than trade receivables) used in the company''s business are located in India and are used to cater both
the customers (Within India and Outside India) , accordingly the total cost incurred during the year to acquire tangible and
intangible fixed assets has not been disclosed.

18 Share based compensation

(a) The Company has issued stock options to its employees in accordance with the Company''s Employee Stock Option Scheme 2006 and
2008. Both the Schemes are administered by the Compensation Committee constituted pursuant to SEBI (Share based employee
benefits) Regulations, 2014. All the permanent employees of the Company and the subsidiaries, including Directors but excluding
promoters of the Company are eligible to participate in the Schemes. The Committee grants stock options to the employees at its
discretion depending upon criteria such as role/designation of the employee, length of service with the Company, past performance
record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of 5 years from the date of grant in the ratio of 15% for the first
year, 20% for second to forth year and 25% for the fifth year. The options would be granted at the exercise price that is
equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time
of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of
option. The lapsed option is available for being re-granted/ re-issue at a future date. The maximum number of options that may be
granted to any specific employee is up to 0.5 % of the issued capital of the Company.

Pursuant to sub division of shares of the Company, the employees are entitled to 2 equity shares of Rs. 5 each for each option
held by them. (Refer note 3a for details)

*Not applicable since the Company has not granted stock options during the year

(f) The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Share based employee
benefits) Regulations, 2014 and the Guidance Note on Accounting for Employee Share-based Payments, to account for stock options
issued under the Company''s stock option schemes. Under this method, compensation expenses are recorded on the basis of excess of
the market price of share at the date of grant of option over exercise price of the option. There would be no impact on the
Profit or earnings per share had the Company used the fair value of the options as the method of accounting instead of intrinsic
value as the fair value is less than the intrinsic value of the option.

19 The Company was allotted a land at Chennai by State Industrial Promotion Corporation of Tamilnadu Limited (SIPCOT). As per the
agreement with SIPCOT, the Company was required to start production within 24 months of allotment. The staid period expired in
March 2014 and the Company applied for extension upto December 31, 2014 which was approved by SIPCOT. During previous year, the
Company started construction of building and further requested for an extension, on which no response from SIPCOT was received.
During the year, the Company has completed construction of the building and shifted machinery from its existing plant. The
Company has started trial production at new location and expect to start regular production soon. Subsequent to year end, the
management has informed SIPCOT about the current situation, however, no response from SIPCOT has been received till date. The
management on the basis of discussion, is confident that it shall be able to resolve the issue with SIPCOT amicably and no
provision is required in this regard.

20 During the shifting of one plant, the management identified certain assets having book value of Rs. 907.99, which are no
longer actively usable and has accordingly provided for accelerated depreciation on the same.

21 Provision for contingencies includes:

(a) Rs. 220 relates to claims raised by one of the suppliers of the Company and challenged by the Company;

(b) Rs. 108 relates to possible losses in respect of other matters.

22. Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification.

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Mar 31, 2015

1 Contingent liability

As at As at March 31, 2015 March 31, 2014

Contingent liability

i. Income tax 1,305.00 954.85

ii. Claims against company not acknowledged as debts (civil cases) 294.09 336.56

iii. Custom and excise duty / service tax 59.90 46.03

iv. Sales tax and entry tax 38.82 6.37

v. Guarantee given by the Company 5,000.00 5,000.00

vi. Bank guarantees 286.52 41.81

6,984.33 6,385.62

In relation to i above income tax matters contested by the Company comprise of:

1) With respect to assessment year 2010-11 to 2012-13, the assessing officer has added to the income of the Company, a notional interest amounting to Rs 32.40 on certain interest free advances given by the Company. The tax impact of the same is Rs 11.01 (Previous year: Rs. Nil). The Company has preferred appeal with CIT (A) and based on internal assessment, the Company is confident of a favorable outcome.

2) With respect to assessment year 2008-09 to 2012-13 the assessing officer has disallowed certain expenses amounting to Rs. 143.74 on adhoc basis. Tax impact of the same is Rs. 48.85 (Previous year: Rs. 39.66). The Company has preferred an appeal with CIT (A) and based on internal assessment and discussion with its legal counsel is confident of a favorable outcome.

3) With respect to assessment year 2009-10 the assessing officer has increased income of the Company by Rs. 2,560.85 contending that the Company has concealed production and sales to that extent. Tax impact of the same is Rs. 870.43 (Previous year: Rs. 870.43). The Company has preferred an appeal with CIT (A) and based on internal assessment and discussion with legal counsel, the management is confident of a favorable outcome.

4) During the year, the Company received an assessment order with respect to assessment year 2012-13. The assessing officer has increased the taxable income of the Company by Rs 1,095.73 contending that it has sold material of its subsidiary form (Jai Suspension System LLP (JSSLLP) at lower margin in order to divert its profits to JSSLLP as JSSLLP was enjoying tax exemption during that year. Tax impact of the same is Rs. 372.46 (Previous year: Rs. Nil). The Company is in process of fling an appeal against this order and based on discussion with the legal counsel is confident of a favorable outcome.

5) With respect to the assessment year 2010-11, the assessing officer has increased the taxable income of the Company by Rs 6.62 contending that it has disclosed lower scrap sales during that year. Tax impact of the same is Rs 2.25 (Previous year: Rs. 7.07). The Company, based on internal assessment and discussion with its legal counsel is confident of a favorable outcome.

6) With respect to the assessment years 2005-06, 2006-07 and 2008-09 the assessing officer has added to the income of the Company notional interest amounting to Rs. 92.61 on certain interest free deposits given by it. The matter has been settled during the year. Tax impact of the same is Rs. Nil (Previous year: Rs. 31.47).

7) With respect to the assessment years 2008-09 the assessing office has disallowed certain penalties amounting to Rs. 18.29 which were already disallowed by the Company while fling its return of income. The matter has been settled during the year. The tax impact of the same is Rs. Nil (Previous year: Rs. 6.22).

In relation to iii above Custom and excise matters contested by the Company comprise of:

1) Matter pending with Central Excise and Service Tax Appellate Tribunal (CESTAT) in respect of Cenvat Credit availed by the Company on Additional Duty of Custom paid while import the material during the year 2008-09. The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The amount involved is Rs. 40.24 (Previous year Rs. 40.24).

2) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid on charges of Custom House Agent for export of finished goods after clearance from the factory for the period from November 2005 to March 2010. The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The amount involved is Rs. 2.62 (Previous year Rs. 2.62).

3) Matter pending with Commissioner Appeal in respect of Cenvat Credit availed by the Company on service tax paid to the transport agency for outward transportation of the goods for the period 2008-09 to 2013-14. The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The amount involved is Rs. 17.04 (Previous year Rs. 3.17).

In relation to iv above sale tax/entry tax matters contested by the Company comprise of:

1) Matter pending with High court Allahabad in respect of penalty demanded by sales tax department against incomplete information in form 38 for the year 2009. During the year, the matter has been decided in favour of the Company. The amount involved is Rs. Nil (Previous year Rs. 6.37).

2) Matter pending before Sales Tax Appellate Tribunal, Chennai in respect of demand by sales tax department against sales tax not paid on finished goods treated as export of goods. The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The Amount involved is Rs. 4.85 (Previous year Rs. Nil).

3) Matter pending before High Court, Gwalior in respect of demand by sales tax department against entry tax paid on raw material. The Company has done an analysis and is of the opinion that it has fair chance of favorable decision. The Amount involved is Rs. 33.97 (Previous year Rs. Nil).

2. Related party disclosures

A) Names of related parties and relationship

I. Related parties where control exists Jai Suspension Systems LLP

II. Related parties under Accounting Standard-18 (AS-18), "Related Parties Disclosure", with whom transactions have taken place during the year

a. Associates MAP Auto Limited

b. Key Managerial Personnel and their relatives

Mr. B.S. Jauhar Chairman

Mr. R.S. Jauhar CEO and Executive Director

Mr. P.S. Jauhar COO and Executive Director

Mr. S.P.S. Kohli up to 30th May 2013 President and Executive Director

Mr. H.S. Gujral w.e.f 31st May 2013 Executive Director

c. Relatives of Key Managerial Personnel

Mrs. Khem Kaur Relative of Key Managerial Personnel

Mrs. Sonia Jauhar Relative of Key Managerial Personnel

Mrs. Kiran Chadha Relative of Key Managerial Personnel

d. Enterprises controlled, owned or significantly influenced by individuals having significant influence over the Company

or their relatives

Jamna Agro Implements Private Limited

S.W. Farms Private Limited

Map Auto Limited

Winthrop Marketing up to 30th May 2013

B.S. Jauhar (HUF)

III Additional Related parties as per the Companies Act 2013, with whom transactions have taken place during the year:

Chief Financial Officer Mr. Vivek Bhatia

Company Secretary Mr. Praveen Lakhera

Enterprises in which Director is a member MAP Auto Limited

Jamna Agro Implements Private Limited S.W. Farms Private Limited

3. Obligation on long term non-cancellable operating lease

The Company has entered into certain operating leases for office premises and guest houses. These leases have an average life of 11 months. These leases are renewable on mutual consent of lessor and the Company. There are no restrictions placed upon the Company by entering into these leases. During the year, the Company has incurred Rs. 120.72 (Previous year: Rs. 154.32) as rental expense. There is no non-cancellable period under these leases.

4. Segment Information

(a) Business segment

The Company is engaged in the business of manufacturing and selling of parabolic and tapered leaf springs. The entire operations are governed by the same set of risk and returns and, hence, the same has been considered as representing a single primary segment.

Since the Company's business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting Standard-17 'Segment Reporting' other than those already provided in the Financial Statements.

(b) Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The company operates primarily in India and has presence in international market as well. Its business is accordingly aligned geographically catering to two markets i.e., India and Outside India. For customers located outside India, the company has assessed that they carry same risks and rewards. The company has considered India and Outside India markets as geographical segments and accordingly disclosed these as separate segments. The geographical segment considered for reporting are as follows:

- Sales within India includes sales to customers located within India

- Sales outside India includes sales to customers located outside India

The following is the distribution of the company's revenue from operation (Net) by geographical market, based on the location of the customer, regardless of where the goods were produced

All other assets (other than trade receivables) used in the company's business are located in India and are used to cater both the customers (Within India and Outside India), accordingly the total cost incurred during the year to acquire tangible and intangible fixed assets has not been disclosed.

5. Share based compensation

(a) The Company has issued stock options to its employees in accordance with the Company's Employee Stock Option Scheme 2006 and 2008. Both the Schemes are administered by the Compensation Committee constituted pursuant to SEBI (Share based employee benefits) Regulations, 2014. All the permanent employees of the company and the subsidiaries, including Directors but excluding promoters of the Company are eligible to participate in the Schemes. The Committee grants stock options to the employees at its discretion depending upon criteria such as role/designation of the employee, length of service with the company, past performance record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of 5 years from the date of grant in the ratio of 15% for the first year, 20% for second to forth year and 25% for the ffth year. The options would be granted at the exercise price that is equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of option. The lapsed option is available for being re-granted/ re-issue at a future date. The maximum number of options that may be granted to any specific employee is up to 0.5 % of the issued capital of the company.

(f) The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Share based employee benefits) Regulations, 2014 and the Guidance Note on Accounting for Employee Share-based Payments, to account for stock options issued under the Company's stock option schemes. Under this method, compensation expenses are recorded on the basis of excess of the market price of share at the date of grant of option over exercise price of the option. There would be no impact on the profit or earnings per share had the company used the fair value of the options as the method of accounting instead of intrinsic value as the fair value is less than the intrinsic value of the option.

6. Gratuity and other Employee benefits

The Company operates two plans viz ,gratuity and long term service awards for its employees. Under the gratuity plan every employee who has completed at least five years of service gets Gratuity on departure @15 days of last drawn salary for each completed year of service. The scheme is funded with an Insurance Company in the form of a qualifying insurance policy. Under long term service award the employee is entitle to a fixed amount on completion of ten years and fifteen year of service. The Gratuity scheme is funded with an insurance Company in the form of a qualifying insurance policy. The Scheme of Long term service award is unfunded.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

The estimates 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 market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

7. CSR expenditure

(a) Gross amount required to be spent by the Company during the year 54.29

(b) Amount spent during the year on other than construction of assets 56.43

8. During the previous year, the Company had paid Rs. 191.33 towards Directors remuneration. This amount is in excess of permissible remuneration determined under the Companies Act, 1956. Management has fled an application with the Central Government for approval of payment of salary to the Directors in excess of permissible limits. Pending such approval from the government, management has taken a confirmation from the Directors that they shall refund the amounts in the event of such approvals being refused.

9. The Company has been allotted a land at Chennai by State Industrial Promotion Corporation of Tamilnadu Limited (SIPCOT). As per the agreement with SIPCOT the Company was required to start production within 24 months of allotment. The staid period expired in March 2014 and the Company applied for extension for such period up to December 31, 2014 which was approved by SIPCOT. The Company started construction of building and further requested for an extension, on which it is waiting for response from SIPCOT. The management on the basis of discussion, is confident that it shall be able to resolve the issue with SIPCOT amicably and no provision is required in this regard.

10. Previous year figures have been regrouped / reclassified, where necessary, to conform to this year's classification.

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Mar 31, 2014

1 Corporate information

Jamna Auto Industries Limited (hereinafter referred to as ''the Company'' or ''JAI'') is a manufacturer of Tapered Leaf and Parabolic springs. The Company''s manufacturing facilities are located at Malanpur, Chennai, Yamuna Nagar, Jamshedpur and Hosur.

2 Basis of preparation

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with all material aspect of the Accounting Standard (AS) Notifed by the Companies Accounting Standard Rules, 2006 (as amended), and the relevant provisions of the Companies Act, 1956 read with General Circular 8/2014 dated April 4, 2014, issued by the Ministry of Corporate Affairs to the extent applicable. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

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

3 Related party disclosures

Names of related parties and related party relationship

I. Parties where control exists Jai Suspension Systems LLP

II. Related parties with whom transactions have taken place during the year A. Associates

MAP Auto Limited

B. Key managerial personnel and their relatives

Mr. B.S. Jauhar Chairman

Mr. R.S. Jauhar CEO and Executive Director

Mr. P.S. Jauhar COO and Executive Director

Mr. S.P.S. Kohli up to 30th May 2013 President and Executive Director

Mr. H. S. Gujral wef 31st May 2013 Executive Director

C. Relatives of key managerial personnel

Mrs. Khem Kaur Relative of key managerial personnel

Mrs. Sonia Jauhar Relative of key managerial personnel

Mrs. Kiran Chadha Relative of key managerial personnel

III. Enterprises controlled, owned or significantly infuenced by individuals having significant infuence over the Company or their relatives Jamna Agro Implements Private Limited S.W. Farms Private Limited Randeep Investment Map Auto Limited

Winthrop Marketing up to 30th May 2013 B S Jauhar (HUF)

4 Segment Information

(a) Business segment

The Company is engaged in the business of manufacturing and selling of parabolic and tapered leaf springs. The entire operations are governed by the same set of risk and returns and, hence, the same has been considered as representing a single primary segment.

Since the Company''s business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting Standard-17 ''Segment Reporting'' other than those already provided in the Financial Statements.

(b) Geographical segment

The manufacturing facilities are common to both the segments and it is not possible to segregate expenses, assets (except for Sundry Debtors balances) and liabilities between the two segments on any reasonable basis.

5 Share based compensation

(A) The Company has issued stock options to its employees in accordance with the Company''s Employee Stock Option Scheme 2006 and 2008. Both the Schemes are administered by the Compensation Committee constituted pursuant to SEBI (Employee Stock Options Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. All the permanent employees of the company and the subsidiaries, including Directors but excluding promoters of the Company are eligible to participate in the Schemes. The Committee grants stock options to the employees at its discretion depending upon criteria such as role/ designation of the employee, length of service with the company, past performance record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of 5 years from the date of grant in the ratio of 15% for the frst year, 20% for second to fourth year and 25% for the ffth year. The options would be granted at the exercise price that is equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of option. The lapsed option is available for being re-granted/ re-issue at a future date. The maximum number of options that may be granted to any Specific employee is upto 0.5 % of the issued capital of the company.

(F) The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guide Lines 1999, to account for stock options issued under the Company''s stock option schemes. Under this method, compensation expenses are recorded on the basis of excess of the market price of share at the date of grant of option over exercise price of the option.

There would be no impact on the Profit or earnings per share had the company used the fair value of the options as the method of accounting instead of intrinsic value as the fair value is less than the intrinsic value of the option.

6 Employee benefits

The Group has a Defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months. The benefit vests on the employees after completion of 5 years of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of Profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

7 The Company, during the year, has carried a detailed exercise to identify stocks that are no longer required for various reasons and has accordingly disposed off such stocks. The loss, which is estimated around Rs. 618 has been included in the consumption of raw materials (Rs. 225), consumption of components, stores and spares (Rs. 321) and change in inventories of FG and WIP (Rs. 347) less scrap sale of Rs. 275 which is included in other operating income.

8 Employee benefit expenses under note 23 include Rs. 191.33 towards director''s remuneration. This amount is in excess of permissible remuneration determined under the Companies Act, 1956. Management is in process of filling an application with the central government for approval of payment of salary to the directors in excess of permissible limits. Pending such approval from the government, management has taken a confirmation from the director that they shall refund the amounts in the event of such approvals being refused.

9 The Company has been allotted land at Chennai by SIPCOT. While the final relief date for the commercial production is in July 2014, the management on the basis of discussions, is confdent that it shall be able to resolve the issue amicably with the State Government and no provision is required in this regard.

10 Previous year financial statements have been audited by another auditor.

11 Previous year figures have been regrouped / reclassified, where necessary, to conform to this year''s classification

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Mar 31, 2013

NOTE NO. 1 CORPORATE INFORMATION

Jamna Auto Industries Limited (hereinafter referred to as ''the Company'' or ''JAI'') is a manufacturer of Tapered Leaf, Parabolic springs and Lift Axle. The Company''s manufacturing facilities are located at Malanpur, Chennai, Yamuna Nagar, Jamshedpur, Lucknow and Hosur.

NOTE NO: 2 RELATED PARTY DISCLOSURES

List of related parties

Enterprise in which the Company holds controlling interest

Jai Suspension Systems LLP

Key managerial personnel and their relatives

Mr. B. S. Jauhar Chairman

Mr. R. S. Jauhar CEO and Executive Director

Mr. P. S. Jauhar COO and Executive Director

Mr. S. P. S. Kohli President and Executive Director

Mrs. Khem Kaur Relative of key managerial personnel

Mrs. Sonia Jauhar Relative of key managerial personnel

Mrs. Kiran Chadha Relative of key managerial personnel

Entities over which key managerial personnel/ their relatives are able to exercise signifcant infuence

Jamna Agro Implements Private Limited Mrs. Khem Kaur

S.W. Farms Private Limited Mr. R. S. Jauhar

Map Auto Limited Mr. B. S. Jauhar

Winthrop Marketing Mr. S. P. S. Kohli

NOTE NO: 3 OBLIGATION ON LONG TERM NON-CANCELLABLE OPERATING LEASE

The Company has taken Lucknow plant space on operating lease. The lease rentals charged during the year in respect of cancellable and non cancellable operating leases and maximum obligations on long term non-cancellable operating lease payable as per the rentals stated in the agreement are as follows:

NOTE NO: 4 SEGMENT INFORMATION

(a) Information about primary business segment

The Company recognises ''Parabolic/ Tapered Leaf Spring/Lift axle'' as its only primary segment since its operations consist of manufacturing of these products and related activities. Accordingly, ''Parabolic/ Tapered Leaf Spring'' segment is the only segment comprising the primary basis of segmental information set out in these fnancial statements.

(b) Information on secondary/ geographical segment

The Company sells its products to various manufacturers within the country and also exports to other companies. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as two geographical segments. Information of geographical segment is based on the geographical location of the customers.

NOTE NO: 5 SHARE BASED COMPENSATION

A The Company has issued stock options to its employees in accordance with the Company''s Employee Stock Option Scheme 2006 and 2008. Both the Schemes are administered by the Compensation Committee constituted pursuant to SEBI (Employee Stock Options Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. All the permanent employees of the Company and the subsidiaries, including Directors but excluding promoters of the Company are eligible to participate in the Schemes. The Committee grants stock options to the employees at its discretion depending upon criteria such as role/designation of the employee, length of service with the Company, past performance record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of 5 years from the date of grant in the ratio of 15% for the frst year, 20% for second to forth year and 25% for the ffth year. The options would be granted at the exercise price that is equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of option. The lapsed option is available for being re-granted/ re-issue at a future date. The maximum number of options that may be granted to any specifc employee is upto 0.5 % of the issued capital of the Company.

NOTE NO: 6

Until 31 March 2011, Company was recognising revenue on dispatch of material to customers from factory gate. The Company had refned its revenue recognition policy in the year ended 31 March 2012 to recognise revenue on transfer of signifcant risk and rewards to customers coinciding with the time of delivery. The impact of correction on previous year ended 31 March 2012 is as given below and formed part of the adjustments related to prior period expenditure in the previous year:

NOTE NO: 7

The Company is in the process of establishing a comprehensive system of maintenance of information and documents of specifed domestic transactions as required by the transfer pricing legislation under Section 92-92F of the Income Tax Act, 1961, The Company expects such records to be in existence latest by 30 November 2013. The management is of the opinion that its domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the fnancial statements, particularly on the amount of tax expense and that of provision for taxation.

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Mar 31, 2012

NOTE NO. 1 CORPORATE INFORMATION

Jamna Auto Industries Limited (hereinafter referred to as 'the Company' or 'JAI') is a manufacturer of Tapered Leaf and Parabolic springs. The Company's manufacturing facilities are located at Malanpur, Chennai, Yamuna Nagar, Jamshedpur and Lucknow.

a. Term and rights attached to Equity shares

The Company has only one type of equity shares having par value of Rs10 each. All shares rank pari passu with respect to dividend, voting rights and other terms. Each shareholder is entitled to one vote per share except, in respect of any shares on which any calls or other sums payable have not been paid. The Company pays and declares dividends in Indian '. The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. During the year, the Company has declared two interim dividends of Rs1 per share each (Previous year one interim and final dividend of Rs1 each). The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

b. Terms and rights of preference shares including the terms of conversion/redemption

The preference shares were issued to IFCI Limited pursuant to the debt restructuring scheme entered between erstwhile Jai Parabolic Springs Limited and IFCI Limited in the year ended 31 March 2003. The redemption of preference share capital will be made in two equal instalments of Rs175 each on 1 October 2013 and 1 October 2014. The preference shareholders are not entitled to any voting rights. The preference shares are entitled to dividend as follows-

The Boards of Directors have recommended a cumulative preference dividend amounting to Rs432 lakhs relating to the period December 2002 to 31 March 2012 in the board meeting held on 7 June 2012. The preference dividend for the year ended 31 March 2012 amounts to Rs43.75 (previous year Rs43.75). The same is subject to the approval of shareholders.

c. S8ares reserved for issue under Options and contracts/commitments for t8e sale of s8ares/ disinvestment, including t8e terms and amounts

The Company provides shares based payment schemes to its employees. During the year ended 31 March 2012, employee stock option schemes were in existence and 853,775 stock options (Previous year: 1,202,857) is eligible to be exercised by the employees as per their vesting and in accordance with the terms of issue of stock option. Refer note 38 on employee stock option plan.

During the year ended 31 March 2008 pursuant to the scheme of amalgamation, erstwhile Jai Parabolic Springs Limited and MAP Springs Limited amalgamated with the Company with effect from 1 July 2007. In accordance with the scheme, the Company had issued and alloted:

(A) 12,395,821 equity shares of face value of Rs10 each fully paid up to the shareholders of esrtwhile Jai Parabolic Springs Limited and MAP Springs Limited;

(B) 1,795,227 equity shares of face value of Rs10 each fully paid up were issued to Clearwater Capital Parnters (Cyprus) Limited in lieu of 3,590,455 optionally convertible debentures of Rs72 each held in Jai Parabolic Springs Limited.

(C) 350,000 Preference shares of Rs100 each fully paid up were issued to IFCI Limited held in erstwhile Jai Parabolic Springs Limited. Also, refer note 3(c).

b. During the previous year, in the Annual General Meeting held on 7 August 2010, the Company had made preferential allotment of 15,78,947 equity shares of Rs10 each to Clearwaters Capital Partners Singapore Fund III Private Limited and 10,52,631 equity shares of Rs10 each to MAP Auto Limited at a premium of Rs85 per equity share aggregating to equity share capital amounting to Rs263.16 lakhs and share premium amounting to Rs2,236.84 lakhs.

The share application money includes amount received from employees against the employee stock option plan. The Company has sufficient authorised share capital to cover the share capital amount on allotment of shares out of share application money. The share application money pending allotment was received between 23 February 2011 to 14 March 2012 and the corresponding shares have been allotted in the compensation committee meeting held on 30 May 2012.

(a) Includes Rs150 lakhs representing 10% of the issued price of 2,083,333 convertible warrants as application money received towards the subscription of such warrants by the promoters in erstwhile Jai Parabolic Springs Limited. Such application money was forfeited in accordance with SEBI guidelines on the expiry of 18 months from the date of issue. It includes Rs97 lakhs representing application money received towards the subscription of 1,343,210 convertible warrants alloted to MAP Auto Limited. Such application money was forfeited on 27 June 2007.

(b) Total interim dividend of Rs2 (previous year Rs1) per equity share was declared in the current year ended 31 March 2012.

(A) Working capital term loan (Rs1,217.43 (Previous year : Nil))

The working capital term loan from Kotak Mahindra Bank is an unsecured facility and shall be repaid in 24 equal instalments of Rs70.96 and 25th instalment of Rs71.05. The instalment is inclusive of interest @ 12.5% per annum.

(B) Deferred sales tax loan (Rs1,614.91 (previous year Rs1,859.71))

As per the eligibility certificate issued, the Company is eligible for waiver of deferred sales tax repayable over the period from 1 March 2010 to 28 February 2019 and is unsecured and interest free.

(C) Ve8icle loans (Rs34.98 (previous year Rs53.91))

Vehicle loans are secured by the hypothecation of specific vehicles. The loans are repayable in equated monthly instalments in accordance with terms and conditions of bank. The period of loan ranges from 3 to 5 years.

# Buyer's credit is a part of term loan facility from ICICI Bank Limited. For details of security, refer note 5(B) on security related to term loans from banks

The Company has not availed any fund based working capital facility from the consortium limits. The details of security are as follows-

working capital

(a) First pari passu charge by way of hypothecation on the current assets (inventory, spares (not relating to plant and machinery), bills receivable and book debts) of the Company.

(b) Second pari passu charge on the immovable fixed assets of the Company and other movable fixed assets of the borrower.

(c) Personal guarantees of Mr. R. S. Jauhar, CEO & Executive Director and Mr. P. S. Jauhar, COO & Executive Director. (Refer Note 34 on related party)

(d) First pari passu charge on 15 lakhs shares of the Company held by Promoters/Promoters group given as collateral securities for working capital. (Refer Note 34 on related party)

Note (a) : Details of dues to micro and small enterprises defined under the MSMED Act, 2006

Based on the information presently available with the Company, there are no dues outstanding to micro and small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006.

(i) During the year ended 31 March 2012, the management had re-assessed the classification of expenditure incurred in earlier years on development of design and prototypes for which the Company has obtained copyrights amounting to Rs3,497.58 (previous year: 3,497.58) (net of accumulated depreciation as at 31 March 2011: Rs1,921.34 (previous year Rs971.05)) and has correctly reclassified the same as part of Intangible Assets. Consequently, the amortisation charge of Rs755.19 (previous year Rs950.29) for the year ended 31 March 2012 has been included in depreciation. Such expenses were previously classified under deferred revenue expenditure.

(ii) Additions include directly attributable borrowing cost capitalised amounting to Rs62.05 for factory building (Previous year nil) and Rs288.94 for plant and machinery (previous year Rs454.10).

NOTE NO: 2 CONTINGENT LIABILITY As at As at 31 March 2012 31 March 2011 Claims against Company not acknowledged as debts 872.32 152.05

Guarantee given by Company 7.89 6.50

Import of machinery under Export Promotion of Capital Goods scheme 335.48 288.32

Income tax and other demands 20.63 20.63

1,236.32 467.50

NOTE NO: 3 SEGMENT INFORMATION

(a) Information about primary business segment

The Company recognises 'Parabolic/ Tapered Leaf Spring' as its only primary segment since its operations consist of manufacturing of these products and related activities. Accordingly, 'Parabolic/ Tapered Leaf Spring' segment is the only segment comprising the primary basis of segmental information set out in these financial statements.

(b) Information on secondary/ geograp8ical segment

The Company sells its products to various manufacturers within the country and also exports to other companies. Considering the size and proportion of exports to local sales, the Company considers sales made within the country and exports as two geographical segments. Information of geographical segment is based on the geographical location of the customers.

# The Company has common assets for producing goods for domestic market and overseas markets. Hence, separate figures for other assets/ additions to other assets cannot be furnished.

NOTE NO: 4 SHARE BASED COMPENSATION

(A) The Company has issued stock options to its employees in accordance with the Company's Employee Stock Option Scheme 2006 and 2008. Both the Schemes are administered by the Compensation Committee constituted pursuant to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. All the permanent employees of the Company and the subsidiaries, including Directors but excluding promoters of the Company are eligible to participate in the schemes. The Committee grants stock options to the employees at its discretion depending upon criteria such as role/ designation of the employee, length of service with the Company, past performance record, future potential of the employee and/or such other criteria that may be determined by the Committee.

The stock option shall vest proportionately over the period of five years from the date of grant in the ratio of 15% for the first year, 20% for second to fourth year and 25% for the fifth year. The options would be granted at the excercise price that is equivalent to the prevailing market price at the time of grant. The exercise price, in cash, is paid by the employee at the time of exercise of the stock option. The option lapses if not exercised within a period of 3 years from the date of vesting of option. The lapsed option is available for being re-granted/ re-issue at a future date. The maximum number of options that may be granted to any specific employee is upto 0.5 % of the issued capital of the Company.

*Not applicable since the Company has not granted stock options during the year

(F) The Company had been using intrinsic value method of accounting ESOP expenses as prescribed by SEBI (Employees Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines 1999, to account for stock options issued under the Company's stock option schemes. Under this method, compensation expenses are recorded on the basis of excess of the market price of share at the date of grant of option over exercise price of the option.

There would be no impact on the profit or earnings per share had the Company used the fair value of the options as the method of accounting instead of intrinsic value as the fair value is less than the instrinsic value of the option.

ii) The guidance on implementing AS-15 issued by Accounting Standards Board of the Institute of Chartered Accountants of India states that benefit involving employer established provided funds, which requires interest shortfall to be re-compensated, are to be considered as defined benefit plans. Considering a confirmation by the actuary that there is no formal guidance available from Actuarial Society of India in this regard, the Company believes that actuarial valuation at present is not necessary. Amount charged to the Profit and Loss Account in this regard is Rs161.31 lakhs (Previous year Rs135.98 lakhs).

Experience adjustments

The disclosure relating to experience adjustments have not been given in the financial statements, the management is of the view that the same will not be material to the overall financial statement disclosure and presentation.

NOTE NO: 5

Until 31 March 2011, Company had recognised revenue on dispatch of material to customers from factory gate. The Company has refined its revenue recognition policy during the year to recognise revenue on transfer of significant risk and rewards to customers that coincides at the time of delivery. The impact of correction on the year ended 31 March 2012 is as given below and forms part of the adjustments related to prior period expenditure:

* In the year ended 31 March 2012, revenue amounting to Rs1905 lakhs had been recognised on the basis of dispatch of goods to its customers, however the goods were actually delivered in the year ended 31 March 2012. As a consequence, revenue relating to previous year has been adjusted in the current year financial statements.

# As explained above, the consequential impact of finished goods in transit amounting to Rs1,767 lakhs relating to those goods that had not been delivered as on 31 March 2011 has been adjusted to the Changes in inventory of finished goods in the current year financial statements.

## The cumulative effect of the above on the profit after tax amounting to Rs138 lakhs has been disclosed as a prior year expenditure.

NOTE NO: 6

In the previous year ended 31 March 2011, erstwhile Jai Suspension Systems Limited (JAI), a wholly owned subsidiary of the Company, converted into a Limited Liability Partnership Firm in accordance with the Limited Liability Partnership Act, 2008 w.e.f. 21 October 2010 and was named Jai Suspension Systems LLP (LLP). The shareholders that existed as on the date of conversion became the partners of the LLP with their profit sharing ratios determined on the basis of the shareholding in JAI as on the date of conversion.

As a consequence, the profit of JAI upto 20 October 2010 aggregating to Rs718.59 lakhs was recognized as an income and was disclosed as an exceptional item in the Statement of Profit and Loss.

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Mar 31, 2011

I. Contingent Liabilities not provided for in respect of

Rs. in Lacs

As at 31 As at 31 March 2011 March 2010

a. Demands against the 49.42 92.56 company not acknowledged as debts.

b. Claim pending against the 116.45 55.19 company not acknowledged as debts.

c. Import machinery under 288.32 280.58 EPCG Scheme

d. Bank Guarantees 6.50 6.50

ii. Capital commitments outstanding (net of advances) and not provided for Rs.1617.01 lacs (previous year Rs.299.38 lacs).

iii. Government of India has promulgated an Act namely The Micro, Small and Medium Enterprises Development Act, 2006 which came into force with effect from 02 October 2006. As per the Act, the company is required to identify the Micro, Small and Medium suppliers and pay them interest on overdue beyond the specified period irrespective of the terms agreed with the suppliers. The information related to their dues / overdue has been furnished by the company for those parties from whom the data is received towards the same.

iv. Fixed Deposits with Banks are pledged against Letter of Credit and Guarantees by the company.

v. In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized in the ordinary course of business.

vi. The company has changed the method of valuation of Inventories as compared to the method as adopted erstwhile by the company. The company has valued the stock by considering weighted average purchase price on the basis of rolling average due to wide fluctuation in purchase price, whereas, earlier Inventory had been valued by considering the weighted average price of goods for the entire period of relevant financial year. As a result of such change, value of inventory has increased by Rs.353.76 lacs and accordingly the profit for the period is higher with the similar amount

vii. Deferred Revenue Expenditure has been amortised over a period of five years. A sum of Rs.971.71 lacs has been amortised for the current year. However, from the current financial year, the company has not allocated any sum toward Deferred Revenue Expenditure on account of sample development expenses (previous year Rs.1425.40 lacs including depreciation of Rs.255.40 lacs). If the company had continued the same practice, profit for the year would have been higher by Rs.1158.40 lacs and the Deferred Revenue Expenditure in the Balance Sheet would have been higher by the same amount.

viii. Balances of some parties are subject to confirmation/ reconciliations

ix. The company operates in a single business segment i.e. manufacturing of Parabolic/Tapered leaf Spring and has its production facilities and all other assets in India. During the year Domestic Segment Revenue is Rs.89541.32 lacs (previous year Rs.60064.45 lacs) and International Segment Revenue is Rs.964.85 lacs (previous year Rs.538.05 lacs).

x. Jai Suspension Systems Ltd. was converted into Jai Suspension Systems LLP w.e.f. 21 October 2010. Consequently the profit of Jai Suspension Systems Ltd. upto 20 October 2010 agreegating to Rs.718.59 lacs has been shown as Exceptional Items in the Profit & Loss Accounts.

Actuarial Assumptions

a) Economic Assumptions

The principal assumptions are the discount rate and salary growth rate. The discount rate is generally based upon the market yields available on Government Bonds at the accounting date with a term that matches that of the liabilities and the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis. Valuation assumptions are as follows which have been agreed by the company

Actuarial Method

a) Actuary has used the projected unit credit (PUC) actuarial method to assess the plan's liabilities of exit employees for retirement, death-in-service and withdrawals (Resignations / Terminations).

b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active member of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as of the beginning or end of period, but using member's final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.

Actuarial Value

Leave encashment is accounted on the basis of actual leaves outstanding to the credit of respective employees at the end of the financial year as per the company's policy.

Note:

In Malanpur unit fund value as per the records of LIC is Rs.150.28 lacs. Since as per actuarial valuation total obligation of Rs.142.92 lacs is less than fund value with LIC, no provision for gratuity has been made during the year in Malanpur unit.

xiv. Debtors includes debts of Jai Suspension Systems LLP to the extent of Rs.1393.25 lacs.

xi. As required by Accounting Standard 28 on Impairment of Assets, the company has reviewed potential generation of economic benefits from fixed assets. Accordingly, the provision for impairment loss amounting to Rs. Nil (previous year Rs.17.01 lacs) has been made during the year.

xii. Related party disclosures

Names of related parties and nature of related party relationships are as under: Companies/entities in which the company has substantial *Jai Suspension Systems Limited interest (i.e. more than 20% in voting power) *Jai Suspension Systems LLP

Key Management Personnel and their relatives

1. Mr. B. S. Jauhar (Chairman)

2. Mr. R. S. Jauhar (CEO & Executive Director)

3. Mr. P. S. Jauhar (COO & Executive Director)

4. Mr. S. P. S. Kohli (President & Executive Director)

5. Mrs. Khem Kaur (W/o Mr. B. S. Jauhar)

6. Mrs. Sonia Jauhar (W/o Mr. R. S. Jauhar)

7. Mrs. Kiran Chadha (Relative of Mr. B. S. Jauhar, Mr. R. S. Jauhar and Mr. P. S. Jauhar)

Entities over which key management personnel/their relatives are able to exercise significant influence

1. Jamna Agro Implements Pvt. Ltd. (Mrs. Khem Kaur/ Mrs. Kiran Chadha)

2. S.W. Farms Pvt. Ltd. (Mrs. Sonia Jauhar/Mr. R. S. Jauhar)

3. MAP Auto Ltd. (Mr. B. S. Jauhar/ Mr. R. S. Jauhar/Mr. P. S. Jauhar)

4. Jai Suspension Systems Ltd Wholly owned subsidiary company

5. Jai Suspension Systems LLP Majority partner in LLP

6. Winthrop Marketing (Relative of Mr. S. P. S. Kohli)

* (Jai Suspension Systems Ltd was converted into Jai Suspension System LLP w.e.f. 21 October 2010)

xiii. Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with those of current year.

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Mar 31, 2010

I. Contingent Liabilities not provided for in respect of:

(Rs in lacs) For the year ended on

31.03.2010 31.03.2009

(i) Remuneration 168.35 172.42

(ii) Provident Fund 13.05 12.47

(iii) Perquisites 4.21 0.48

ii. Capital commitments outstanding (net of advances) and not provided for Rs 299.38 lacs (previous year Rs 1682.31 lacs).

iii. Managerial Remuneration

iv. Government of India has promulgated an Act namely The Micro, Small and Medium Enterprises Development Act, 2006 which came into force with effect from October 2, 2006. As per the Act, the company is required to identify the Micro, Small and Medium suppliers and pay them interest on overdue beyond the specified period irrespective of the terms agreed with the suppliers. The information related to their dues / overdue has been furnished by the company for those parties from whom the data is received towards the same. The total liability of interest is Rs 0.16 lacs on a liability of Rs 21.82 lacs.

v. Fixed Deposit Receipts with Banks are pledged against guarantees and other facilities availed of by the company.

vi. In the opinion of the Management, Current Assets, Loans & Advances are approximately of the value stated, if realized in the ordinary course of business.

vii. The company has charged depreciation on Plant and Machinery on Double Shift basis for the period 01.04.2009 to 30.09.2009 and on Triple Shift basis for the period 01.10.2009 to 31.03.2010. Depreciation on other fixed assets is provided at the rate provided by Schedule XIV to the Companies Act, 1956 under the straight line method.

viii. Balances in debtors are subject to confirmation.

ix. Deferred revenue expenditure has been amortised over a period of five years. A sum of Rs 1053.35 lacs has been amortised for the current year.

x. The company operates in a single business segment i.e. manufacturing of Parabolic/Tapered leaf Spring and has its production facilities and all other assets in India. During the year Domestic Segment revenue is Rs 60064.45 lacs (previous year Rs 51067.21 lacs) and International Segment Revenue is Rs 538.05 lacs (previous year Rs 310.96 lacs).

xi. Gratuity liability is provided on the basis of actuarial valuation.

xii. The company has allocated and apportioned during the year a sum of Rs 1425.40 lacs including depreciation of Rs 255.40 lacs (previous year Rs 1203.89 lacs including depreciation of Rs 116.29 lacs) being expenditure incurred towards Sample Development, based on the technical and costing estimates/ reports. The Management is of the view that the company shall be deriving future benefits on this account and hence such expenditure has been considered as Deferred Revenue Expenditure.

xiii. In compliance to accounting of various exchange contracts under Accounting Standards-30 and clarification issued by the Institute of Chartered Accountants of India from time to time the Mark to Market loss of Rs 199.74 lacs against forward contracts taken by the company has been provided as foreign exchange loss in the Profit & Loss Account.

xiv. Debtors includes debts of wholly owned subsidiary Jai Suspension Systems Limited to the extent of Rs 1122.76 lacs.

xv. The company has changed method of charging depreciation on Fixed Assets other than Building and Plant & machinery installed at its Chennai plant with effect from 1st April 2009. An amount of Rs. 58.89 lacs has arisen as surplus on account of retrospective computation of depreciation in Straight Line Method. This surplus is accounted and disclosed under exceptional item in the Profit & Loss account.

xvi. As required by Accounting Standard - 28 on Impairment of Assets, the company has reviewed potential generation of economic benefits from fixed assets. Accordingly, the provision for impairment loss amounting to Rs.17.01 lacs (Previous year 8.06 lacs) has been made during the year.

xvii. a) Transaction with the wholly owned subsidiary company Rs 7065.00 lacs. Amount receivable Rs 1122.76 lacs.

b) Related party disclosures:

Names of related parties and nature of related party relationships are as under:

Companies in which the company has substantial interest (i.e. more than 20% in voting power)

Jai Suspension Systems Limited

Key Management Personnel and their relatives:

(1) Mr. B. S. Jauhar (Chairman)

(2) Mr. R. S. Jauhar (CEO & Executive Director)

(3) Mr. P. S. Jauhar (COO & Executive Director)

(4) Mr. S. P. S. Kohli (President & Executive Director)

(5) Mrs. Khem Kaur (W/o Mr. B. S. Jauhar)

(6) Mrs. Sonia Jauhar (W/o Mr. R. S. Jauhar)

(7) Mrs. Kiran Chadha (Relative of Mr. B. S. Jauhar,

Mr. R. S. Jauhar and Mr. P. S. Jauhar)

(8) Mrs. Inder Beer Kaur (W/o Mr. S. P. S. Kohli)

Entities over which key management personnel/their relatives are able to exercise significant influence

(1) Jamna Agro Implements Pvt. Ltd. (Mrs. Khem Kaur/ Mr. R. S, Jauhar/ Mr. P.S. Jauhar/Mr. B. S. Jauhar)

(2) S.W. Farms Pvt. Ltd. (Mrs. Sonia Jauhar/R.S.Jauhar)

(3) MAP Auto Ltd. (Mr.B.S.Jauhar/ Mr.R.S.Jauhar/ Mr.P.S.Jauhar)

(4) Mrs. Inder Beer Kaur (Mr.S.P.S.Kohli)

xx. Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with those of current year.