Notes to Accounts of Jay Ushin Ltd.

Mar 31, 2025

3.13 Provisions and contingencies
Provision

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

Warranties

The estimated liability for product warranties is recorded when products are sold. These estimates are established using histor¬
ical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible
future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim
will arise- being typically two to five years. These assurance-type warranties are accounted for under Ind AS 37 Provisions,
Contingent Liabilities and Contingent Assets.

Contingent liabilities

A disclosure for a contingent liability is made where it is more likely than not that a present obligation or possible obligation may
result in or involve an outflow of resources. When no present or possible obligation exists and the possibility of an outflow of
resources is remote, no disclosure is made.

Contingent assets

A contingent assets are disclosed where an inflow of economic benefit is probable. An entity shall not recognise the contingent
assets unless the recovery is virtually certain.

3.14 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through statement of profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in statement of profit or loss.

3.15 Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition and subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.

Subsequent measurement

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on
the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised cost (except for debt instruments
that are designated as at fair value through statement of profit or loss on initial recognition):

• the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive
income (“FVTOCI”) (except for debt instruments that are designated as at fair value through statement of profit or loss on initial
recognition):

• the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling
financial assets; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Interest income is recognised in statement of profit or loss for FVTOCI debt instruments. All other financial assets are
subsequently measured at fair value.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all
fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount
on initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL.
Interest income is recognised in statement of profit or loss and is included in the “Other income” line item.

Financial assets at fair value through statement of profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to
present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not
held for trading.

Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria are measured at FVTPL. In addition, debt
instruments that meet the amortised cost criteria or the FVTOCI criteria but are designated as at FVTPL are measured at
FVTPL.

A financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria may be designated
as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different
bases.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on
re-measurement recognised in statement of profit or loss. The net gain or loss recognised in profit or loss incorporates any
dividend or interest earned on the financial asset and is included in the ''Other income'' line item. Dividend on financial assets at
FVTPL is recognised when the company''s right to receive the dividends is established, it is probable that the economic benefits
associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment
and the amount of dividend can be measured reliably.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised
cost, debt instruments at FVTOCI, trade receivables, other contractual rights to receive cash or other financial asset, and
financial guarantees not designated as at FVTPL.

Note : The Company has used a practical expedient by computing the expected loss allowance for trade receivables based on
historical credit loss experience and adjustments for forward looking information.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Company currently has a legally enforceable right to set off the amounts and it intents either to settle them on net basis or to
realise the assets and settle the liabilities simultaneously.

De-recognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

3.16 Financial liabilities and equity instruments

Initial Recognition and Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial
guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Classification as debt or equity

Debt and equity instruments issued by Company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Financial liabilities

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end
of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised
cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset
is included in the ''Finance costs'' Line item.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other
premiums or discounts) through the expected life of the financial liability.

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or
have expired.

3.17 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most
advantageous market must be accessible by the Company.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole;

i. Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

ii. Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable.

iii. Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.18 Statement of Cash flow

Cash flows are reported using the indirect method, whereby profit / (loss) after tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

3.19 Earnings per share

Basic earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares outstanding
during the year/period.

Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered
for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares.

3.20 Royalty

The Company accounting the royalty in accordance with the relevant licence agreements on accrual basis.

3.21 Research and Development

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible
asset when the Company can demonstrate:

• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale

• Its intention to complete and its ability and intention to use or sell the asset

• How the asset will generate future economic benefits

• The availability of resources to complete the asset

• The ability to measure reliably the expenditure during development

Cost incurred by the Company for Research and Development do not meet the recognition criteria and hence have been
classified as research costs and are expensed of in the statement of profit and loss as and when these are incurred.

The amortisation methods, the usual useful lives and the residual values of intangible assets are checked annually.

3.22 Rounding of amounts

All amounts disclosed in the financial statements and the accompanying notes have been rounded off to the nearest lacs as per
the requirement of Schedule III of the Companies Act 2013, unless otherwise stated.

3.23 Material Events

Material events occurring after balance sheet date and till the date of signing of financials are taken into cognizance.

3.24 Recent Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2025, MCA has notified Ind AS
117- Insurance Contracts and amendments to Ind AS 116-Leases, relating to sale and lease back transactions, applicable from
April 1, 2024. The Company has assessed that there is no significant impact on its financial statements.

On May 9, 2025, MCA notified the amendments to Ind AS 21- Effects of changes in Foreign Exchange Rates. These amendments
aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are
not readily exchangeable. The amendments are effective for annual periods beginning on or after April 1, 2025. The company
is currently assessing the probable impact of these amendments on its financial statements.

4. Significant accounting judgements, estimates and assumptions

In the application of the Company accounting policies, which are described in note 3, the management of the Company are
required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods.

The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of
applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the financial
statements:-

Recoverability of intangible asset

Capitalisation of cost in intangible assets under development is based on management''s judgement that technological and
economic feasibility is confirmed and asset under development will generate economic benefits in future. Based on evaluations
carried out, the Company''s management has determined that here are no factors which indicate that these assets have suffered
any impairment loss.

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 if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease,
if it is reasonably certain 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.

Income Taxes

Judgment of the Management is required for the calculation of provision for income taxes and deferred tax assets and liabilities.
The company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates
may differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial
statements.

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses
that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that
are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies
the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the
contingency has been resolved and amounts are received or receivable.

Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment defined benefits are determined using actuarial
valuations. An actuarial valuation involves 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.

Further details about gratuity obligations are given in Note 3.6.

Useful lives of depreciable assets

Management reviews the useful lives of depreciable assets at each reporting. As at March 31,2025 management assessed that
the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful
lives as compared to previous year.

2. Exclusive charge on Company property at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District

3. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

4. Deposits amounting Rs. 53 lakhs pledged for issue of Term Loan as Debts Security Reserve Account, refer note no. 13.

iii) Aditya Birla Financial Services Limited- Term Loan

1. Hypothecation on over entire current assets & movable fixed assets of the Company both existing and future.

2. Exclusive charge by way of equitable mortgage on Industrial property at Plot No. 446F, IMT Manesar, Sector-8, Gurgaon
Haryana.

3. Personal guarantees of Mr. Ashwani Minda, Mr. Anirudh Minda and Mrs. Vandana Minda.

iv) ICICI Bank Limited - Term Loan

1. Exclusive equitable mortgage charge on immovable property situated at Plot No. 4, Sector-3, IMT Manesar, Gurgaon, Haryana
122050.

2. Exclusive Charge on current assets and movable fixed assets.

3. Personal guarantees of Mr. Ashwani Minda , Mrs. Vandana Minda and Mr. Anirudh Minda.

*There are no differences in the figures reported in the quarterly returns / statements filed with the banks vis-a-vis the books
of accounts. For the determination of Drawing power, the Company follow the guidance of the RBI prescribed for commodities
covered under selective credit control.

Short term borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited- Working Capital Facilities.

1. First pari-passu charge on all existing and future current assets of the Company.

2. Second pari-passu charge over all present and future movable assets of the Company excluding movable fixed assets
situated at Karnataka plant which is exclusively charged with other banker.

3. Second pari-passu equitable mortgage charge on immovable properties being land and building situated at GP-14,
Industrial Estate, Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot''s Industrial Park at Sriperumbudur.

4. Personal guarantees of Mr. Ashwani Minda, Mrs. Vandana Minda and Mr. Anirudh Minda

5. Deposits are pledged with bank for LC,BG facility and security for loans, refer note no. 11.

ii) RBL Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 11.

iii) ICICI Bank Limited - Cash Credit

1. Exclusive charge by way of equitable mortgage on immovable property situated at Plot No. 4, Sector-3, IMT Manesar,
Gurgaon, Haryana 122050

2. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

iv) State Bank of India- Foreign Currency Term Loan

1. Hypothecation of Current Assets, both present & future.

2. Hypothecation of all movable fixed assets of the company, both present and future.

3. Equitable Mortgage of Industrial property situated at Plot No. 446 F, sector 8, Industrial Estate, IMT Manesar, District
Gurugram

4. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

B. Defined benefits plans
Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in
excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The
Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan. Liability
has been accounted for on the basis of actuarial valuation certificate.

C. Other long term employee benefits
Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and/or on separation
as per the Company''s policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance
of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial
statements:

Risk exposure

The gratuity scheme is a salary defined benefit plan that provides for lump sum payment made on exit either by way of
retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of
service and paid as lump sum at exit. The plan design means the risk commonly affecting the liabilities and the financial
results are expected to be:

(a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds, if bond
yield fall, the defined benefit obligation will tend to increase.

(b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

(c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not
straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

52 SEGMENT INFORMATION

The Company primarily operates in one segment which comprises of manufacturing and sale of automobile components
identified in accordance with principle enunciated in Indian Accounting Standard Ind AS-108, Segment Reporting. Hence,
separate business segment information is not applicable.

The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM),
evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the
Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of IND AS 108
“Operating Segments”.

Geographical Locations: The Geographical segments have been considered for disclosure as the secondary segment, under
which the domestic segment includes sales to customers located in India and overseas segment includes sales to customer
located outside India.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments
which are traded in the stock exchanges is valued using the closing price as at the reporting period. The
mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-the
counter derivatives) is determined using valuation techniques which maximize the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

(ii) Valuation Techniques Used to Determine Fair Value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and
most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date.

Specific valuation technique used to value financial instrument includes :

- the use of quoted market prices or dealer quotes for similar financial instruments.

- the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis.

The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term
deposits etc. are considered to be their fair value, due to their short term nature and long-term fixed-rate and variable-rate
receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk
factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow
(DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the Company is
considered to be insignificant in valuation.

56 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on
the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and
foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives
are used exclusively for hedging and not as trading or speculative instruments.

The Company''s activities are expose to Market risk, Credit risk and Liquidity risk.

I. Market risk

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

The sensitivity analyses in the following section relate to the position as at 31st March 2025 and 31st March 2024
(a) 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. In order to optimize the Company''s position with regard to interest income and interest expenses
and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by bal¬
ancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .

(i) The exposure of group borrowings to interest rate changes at the end of reporting period are as follows:

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial
loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into
account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts
receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant
increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in
credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

The Company''s major exposure is from trade receivables, which are unsecured and derived from external customers. Credit
risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high
credit ratings assigned by international and domestic credit rating agencies.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix
is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forward¬
looking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking
estimates are analysed. However there is no trade receivable which is require allowance for expected credit loss.

III. Liquidity Risk

Liquidity risk is defined as the risk that Company will not be able to settle or meet its obligation on time or at a reasonable price.
The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements.
The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risk are overseen by senior management. Management monitors the company''s net
liquidity position through rolling, forecast on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments:

58 Previous year figures have been re-grouped / re-classified wherever necessary to corresponding with the current year''s
classification /disclosure.

59 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company
towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social
Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are
notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes
effective and the related rules to determine the financial impact are published.

60 Other Disclosures

i) Revaluation of Property, Plant & Equipment & Intangible assets

The Company has not done any revaluation of Property, Plant & Equipment including Right of use assets, investment
property and Intangible assets during the year, refer note no. 5,7 8 & 9.

ii) Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

iii) Relationship with struk off companies

The Company has not transacted with any Company which is either struk off or in the process of striking off by the Ministry
of corporate Affairs.

iv) Title deed of Immovable Properties

We have the title deeds in the name of the Company in respect 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) except as disclosed below.
The title deed of the same will be transferred when all the installment of deferred payments including interest will be paid,
refer note no. 29 & 36.

v) Undisclose Income

The Company has not disclosed or surrendered any income during any previous year in the course of Income tax Assessment
proceedings, survey or any other relevant provision of the Income Tax Act, 1961. All transaction, incomes & assets are duly
recorded in the books of accounts.

vi) Utilisation of borrowed funds and security premium

The Company has not

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.

vii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

viii) Registration of Charges or Satisfaction with Registrar of Companies

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

As per our report of even date

For NSBP & CO For and on behalf of the Board of Directors of

Chartered Accountants Jay Ushin Limited

Firm Registration No.: 001075N

Sanjay Kumar Agrawal Ashwani Minda Vandana Minda

Partner Chairman,Managing Director and CEO Director

Membership No.: 089090 DIN : 00049966 DIN : 03582322

Place: Gurugram Amit Kithania Jyoti Kataria

Date: May 29, 2025 Chief Financial Officer Company Secretary

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Mar 31, 2024

The Company has only one class of equity shares with a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

23.1 Nature and purpose of reserves

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve is the retained earnings of a Company which are kept aside out of the Company''s profits to meet future (known or unknown) obligations.

Surplus in statement of profit and loss, during the year the Company has paid dividend of financial year 2022-23 amounting Rs 115.94 Lakhs and in previous year the Company has paid dividend amounting Rs 115.94 Lakhs to its equity shareholders.

Other comprehensive income (OCI) represents the remeasurement of defined benefit obligation net of income tax, which is directly recognised in other comprehensive income.

The Board of Directors recommended a dividend of Rs 3 per share (nominal value of Rs 10 per share) for the financial year 2023-24. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in these financial statements. The total cash outflow will be Rs 115.94 Lakhs.

a) Borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited - Foreign Currency Term Loan/Terms Loan

1. Second pari-passu charge on all existing and future current assets of the Company.

2. First pari-passu charge over all present and future moveable assets of the Company excluding movable fixed assets situated at Karnataka plant which is exclusively charged with other banker.

3. First equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana.

4. Exclusive equitable mortgage charge on immovable property situated at plot no 150, Sector-44, Gurgaon.

5. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

ii) TATA Capital Financial Services Limited - Term Loan

1. Hypothacation over the movable fixed assets of the Company at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District, Karnataka

2. Exclusive charge on Company property at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District

3. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

4. Deposits amounting Rs. 53 lakhs pledged for issue of Term Loan as Debts Security Reserve Account, refer note no. 13.

iii) Aditya Birla Financial Services Limited- Term Loan

1. Hypothacation on over entire current assets & movable fixed assets of the Company both existing and future.

2. Exclusive charge by way of equitable mortgage on Industrial property at Plot No. 446F, IMT Manesar, Sector-8, Gurgaon Haryana.

3. Personal guarantee of Mr. Ashwani Minda Mr. Anirudh Minda and Mrs. Vandana Minda.

vi) ICICI Bank Limited - Term Loan

1. Exclusive equitable mortgage charge on immovable property at Plot No. 4, Sector-3, IMT Manesar, Gurgaon, Haryana 122050.

2. Exclusive Charge on machinery financed by ICICI Bank Limited.

3. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

a) The Company has utilised the funds for which it was availed however, as per requirement of fund, the company has utilized short term borrowings for long term purpose.

b) The Company is not declared as wilful defaulter by any bank or financial institution or other lenders in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

27.1 Provision for warranty

The provision for warranty claims represents the present value as best estimate of the future economic benefits that will be required under the Company''s obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.

1. Rs. 349.90 Lakhs including current deferred payment liabilities Rs 102.75 Lakhs (P.Y. Rs. 452.65 Lakhs including current deferred payment liabilities Rs 94.97 Lakhs) payable towards leasehold land at Bhagpura, Gujarat. Refer note no. 36.

2. Rs. 165.16 Lakhs for current deferred payment liabilities (P. Y. Rs. 165.16 Lakhs including current deferred payment liabilities Rs Nil) payable towards Land purchased at Rohtak, Haryana.Refer note no. 36.

3. Total cost of above land excluding interest is Rs. 1639.52 Lakhs.

No default as on the balance sheet date in terms of repayment of loans and interest.

*There are no differences in the figures reported in the quarterly returns / statements filed with the banks vis-a-vis the books of accounts. For the determination of Drawing power, the Company follow the guidance of the RBI prescribed for commodities covered under selective credit control.

Short term borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited- Working Capital Facilities.

1. First pari-passu charge on all existing and future current assets of the Company.

2. Second pari-passu charge over all present and future moveable assets of the Company excluding movable fixed assets situated at Karnataka plant which is exclusively charged with other banker.

3. Second pari-passu equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot''s Industrial Park at Sriperumbudur.

4. Exclusive equitable mortgage charge on immovable property situated at plot no 150, Sector-44, Gurgaon.

5. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

6. Deposits are pledged with bank for LC facility and security for loans, refer note no. 11.

ii) Yes Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 17.

iii) RBL Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 11.

iv) ICICI Bank Limited - Cash Credit

1. Exclusive charge by way of equitable mortgage on immovable property situated at Plot No. 4, Sector-3, IMT Manesar, Gurgaon, Haryana 122050

2. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

During the financial year ended March 31, 2024 and March 31, 2023, there are no disputed trade payable.

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified by the Company, on the basis of information and records available with the Company. Disclosure in respect of amount remaining unpaid and interest due on delayed payment has been determined only in respect of payments made after the receipt of information, with regards to filing of memorandum, from the respective suppliers. Disclosure as required under section 22 of the Act, is as under:

41.1 Employee benefit obligations

The Company has in accordance with Indian Accounting Standard (Ind AS)- 19 “Employee Benefits” calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident fund

II. Employee state insurance plan

The provident fund and the employees'' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

The Company has recognized the following amounts in the Statement of profit and loss for the year:

B. Defined benefits plans Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company''s policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

Risk exposure

The gratuity scheme is a salary defined benefit plan that provides for lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The plan design means the risk commonly aecting the liabilities and the financial results are expected to be:

(a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds, if bond yield fall, the defined benefit obligation will tend to increase.

(b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

(c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

*Pursuant to introduction of section 115BAA of the Income Tax Act, 1961, the domestic Companies have option to pay corporate Income tax at reduced rate plus applicable surcharge and cess (New Tax Rate) by foregoing certain exemptions / deduction and minimum alternate tax (MAT) credits. During the current year ended March 31,2024, the company has made the tax provisions based on new tax regime.

48 The Company is in the process of obtaining confirmations and reconciliation with its trade receivables, trade payables and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

49 Subsequent events:

No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization of these financial statements.

50	CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)		Rs. In Lakhs
	Particulars	For the year ended March 31, 2024	For the year ended March 31, 2023
	a) Contingent liability Income tax cases (Assessment year 2018-19)	51.32	51.32
	Central excise cases (Financial year 2013 to 2017)	-	126.16
	Goods & Service tax (Financial year 2018-19) b) Commitments	46.26	-
	Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances paid amounting to Rs 44.38 Lakhs and (previous year Rs. 109.53 Lakhs))( Refer note no.13)	137.29	457.77

52 SEGMENT INFORMATION

The Company primarily operates in one segment which comprises of manufacturing and sale of automobile components identified in accordance with principle enunciated in Indian Accounting Standard Ind AS-108, Segment Reporting. Hence, separate business segment information is not applicable.

The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of IND AS 108 “Operating Segments”.

D. Terms and Conditions

The transactions with the related parties are made on term equivalent to those that prevail in arm''s length transactions. The assessment is under taken each financial year through examining the financial position of the related party and in the market in which the related party operates. Outstanding balances are unsecured.

55 FAIR VALUE MEASUREMENT

Financial instruments by category and hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-thecounter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

(ii) Valuation Techniques Used to Determine Fair Value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Specific valuation technique used to value financial instrument includes:

> the use of quoted market prices or dealer quotes for similar financial instruments.

> the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value, due to their short term nature and long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the Company is considered to be insignificant in valuation.

56 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.

The Company''s activities are expose to Market risk, Credit risk and Liquidity risk.

I. Market risk

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

The sensitivity analyses in the following section relate to the position as at 31st March 2024 and 31st March 2023 (a) 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. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .

(b) 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 has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk which are unhedged as per Policy.

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

The Company''s major exposure is from trade receivables, which are unsecured and derived from external customers. Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Expected credit loss for trade receivable on simplified approach :

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forwardlooking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed. However there is no trade receivable which is require allowance for expected credit loss.

Liquidity risk is defined as the risk that Company will not be able to settle or meet its obligation on time or at a reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling, forecast on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments:

(b) Loan covenants

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 call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current year and the previous years.

No changes were made in the objectives, policies or processes for managing capital during the current years and previous years.

58 Previous year figures have been re-grouped / re-classified wherever necessary to corresponding with the current year''s classification /disclosure.

59 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

60 Other Disclosures

i) Revaluation of Property, Plant & Equipment & Intangible assets

The Company has not done any revaluation of Property, Plant & Equipment including Right of use assets and Intangible assets during the year, refer note no. 5,7 8 & 9.

ii) Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

iii) Relationship with struk off companies

The Company has not transacted with any Company which is either struk off or in the process of striking off by the Ministry of corporate Affairs.

iv) Title deed of Immovable Properties

We have the title deeds in the name of the Company in respect 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) except as disclosed below. The title deed of the same will be transferred when all the instalment of deferred payments including interest will be paid, refer note no. 29 & 36.

v) Undisclose Income

The Company has not disclosed or surrendered any income during any previous year in the course of Income tax Assessment proceedings, survey or any other relevant provision of the Income Tax Act, 1961. All transaction, incomes & assets are duly recorded in the books of accounts.

vi) Utilisation of borrowed funds and security premium

The Company has not

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.

vii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

viii) Registration of Charges or Satisfaction with Registrar of Companies

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

---

Mar 31, 2023

Estimation of fair value: The Company has obtained independent valuation of its freehold land Building located at Manesar & Gurgaon, based on current prices in an active market for properties of similar nature. The fair values of investment property have been determined by an independent valuer. The main inputs used are the rental growth rates and a study of the micro market in discussion with industry experts. Resulting fair value estimate for investment property are included in level 3.

*Capital & Tooling advances given to parties other than promoters, directors, key managerial persons and related parties.

** These deposits are pledged with bank for issue of Term Loan as Debts Security Reserve Account, refer note 23

* These deposits are pledged with bank for working capital loans (LC and security for loans) and these are not available for use by the Company, (refer note no 29)

The concentration of credit risk is limited due to the fact that the customer base is large and unrelated

*Related parties are JNS Instruments Limited, Jay ACE Technologies Limited, Jay Fe Cylinders Limited, U-shin International Trading Shanghai Limited & U-shin Thailand Co. Ltd. refer note 52 for trade receivable.

Refer statement of change in equity

The Company has only one class of equity shares with a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

22.1 Nature and purpose of reserves

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve is the retained earnings of a Company which are kept aside out of the Company''s profits to meet future (known or unknown) obligations.

Surplus in statement of profit and loss, during the year the Company has paid dividend of financial year 2021-22 amounting Rs 115.94 Lakhs and in previous year the Company has not paid any dividend to its equity shareholders.

* The amount relates to the previous year dividend appropriation and employee benefit obligations adjustment.

Other comprehensive income (OCI) represents the remeasurement of defined benefit obligation net of income tax, which is directly recognised in other comprehensive income.

The Board of Directors recommended a dividend of Rs 3 per share (nominal value of Rs 10 per share) for the financial year 2022-23. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in these financial statements. The total cash outflow will be Rs 115.94 Lakhs.

a) Borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited - Foreign Currency Term Loan/Terms Loan

1. Second pari-passu charge on all existing and future current assets of the Company.

2. First pari-passu charge over all present and future moveable assets of the Company excluding movable fixed assets situated at Karnataka plant which is exclusively charged with other banker.

3. First equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana.

4. Exclusive equitable mortgage charge on immovable property situated at plot no 150, Sector-44, Gurgaon.

5. Personal guarantee of Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

ii) Yes Bank Limited -Foreign Currency Term Loan/Terms Loan

1. First Pari Passu Charge on Movable and immovable Fixed Assets being land and Building located at Plot No. 4, IMT Manesar, Dist Gurgaon.

2. Second pari passu charge on entire current assets both present and future of the Company

3. Personal guarantee of Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

4. The Loan was fully re-paid during the financial year 2022-23.

iii) RBL Bank Limited - Term Loan

1. Second pari-passu charge on all existing and future current assets of the Company.

2. First Pari Passu Charge on Movable Fixed Assets (excluding asset located at Kolar) of the Company (both present and future)

3. First Pari Passu Charge on immovable Property at Plot No. 4, Sector-3, IMT Manesar, Dist Gurgaon (both present and future)

4. Personal guarantee of Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

5. The Loan was fully re-paid during the financial year 2022-23.

iv) TATA Capital Financial Services Limited - Term Loan

1. Hypothecation over the movable fixed assets of the Company at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District, Karnataka

2. Exclusive charge on Company property at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District

3. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

4. Deposits amounting Rs. 53 lakhs pledged for issue of Term Loan as Debts Security Reserve Account, refer note 13.

v) Aditya Birla Financial Services Limited- Term Loan

1. Hypothecation on over entire current assets& movable fixed assets of the Company both existing and future.

2. Exclusive charge by way of equitable mortgage on Industrial property at Plot No. 446F, IMT Manesar, Sector-8, Gurgaon.

3. Personal guarantee of Mr. Ashwani Minda Mr. Anirudh Minda and Mrs. Vandana Minda.

vi) ICICI Bank Limited - Term Loan

1. Exclusive charge by was of equitable mortgage om a form and manner satisfactory to bank situated at Plot No. 4, Sector-3, IMT Manesar, Dist Gurgaon, Haryana 122050.

2. Exclusive Charge on machinery finance by ICICI Bank Limited.

3. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

vii) Vehicle loans are secured by hypothecation of vehicles financed and fully re-paid during the financial year 2022-23

a) The Company has utilised the funds for which it was availed however, for some time short term borrowings has been used for long term purpose.

b) The Company is not declared as wilful defaulter by any bank or financial institution or other lenders in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

26.1 Provision for warranty

The provision for warranty claims represents the present value as best estimate of the future economic benefits that will be required under the Company''s obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.

1. Rs. 452.65 Lakhs including current deferred payment liabilities Rs 102.75 Lakhs (P.Y. Rs. 558.78 Lakhs including current deferred

payment liabilities Rs 118.31Lakhs) payable towards leasehold land at Bhagpura, Gujarat. Refer note no 35.

2. Rs.165.16 Lakhs including current deferred payment liabilities Rs Nil (P.Y. Rs. 165.16 Lakhs including current deferred payment liabilities Rs Nil) payable towards Land purchased at Rohtak, Haryana.Refer note no 35.

3. Total cost of above land excluding interest is Rs. 1,639.52 lakhs.

No default as on the balance sheet date in terms of repayment of loans and interest.

Short term borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited- Working Capital Facilities.

1. First pari-passu charge on all existing and future current assets of the Company.

2. Second pari-passu charge over all present and future moveable assets of the Company excluding movable fixed assets situated at Karnataka plant which is exclusively charged with other banker.

3. Second pari-passu equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot''s Industrial Park at Sriperumbudur.

4. Exclusive equitable mortgage charge on immovable property situated at plot no 150, Sector-44, Gurgaon.

5. Personal guarantee of Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

6. Deposits are pledged with bank for LC facility and security for loans, refer note no 11.

ii) Yes Bank Limited - Working Capital Facilities.

1. First pari-passu charge on the current assets of the Company.

2. Second pari-passu charge over all present and future moveable fixed assets excluding those which are exclusively charged with other banker.

3. Second pari pasu charge on immovable property situated at plot no D-1/2, SIPCOT Industrial Park, Sriperumbudur, Tamilnadu and GP-14 ,HSIDC Industrial estate, Sector-18, Gurgaon, Haryana.

4. Second charge on movable and immovable fixed assets being land and building located at Manesar (both present and future).

5. Personal guarantee of Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

6. The Company has fully re-paid the amount the working capital during the financial year 2022-23

iii) Yes Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 11.

iv) RBL Bank Limited - Cash Credit/ Overdraft

1. First pari-passu charge on the current assets of the Company.

2. Second pari-passu charge over all present and future moveable fixed assets excluding those located at Kolar plant.

3. Second pari pasu charge on immovable property situated at plot No D-1/2, SIPCOT Industrial Park, Sriperumbudur, Tamilnadu.

4. Second charge on all immovable property located at Manesar.

5. Second pari-pasu charge on immovable property located at GP-14 ,HSIIDC Industrial estate, Sector-18, Gurgaon.

6. First pari-pasu charge by way of equitable mortgage on industrial property at plot no 4 sector-3, IMT Manesar, Gurgaon.

7. Personal guarantee of Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

8. The Company has fully re-paid the amount the working capital during the financial year 2022-23

v) RBL Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 11.

vi) ICICI Bank Limited - Cash Credit

1. Exclusive charge by was of equitable mortgage on a form and manner satisfactory to bank situated at Plot No. 4, Sector-3, IMT Manesar, Dist Gurgaon, Haryana 122050

2. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

40.1 Employee benefit obligations

The Company has in accordance with Indian Accounting Standard (Ind AS)- 19 “Employee Benefits” calculated the various benefits provided to employees as under:

A. Defined contribution plans: i. Provident fund II. Employee state insurance plan

The provident fund and the employees'' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

*Included in contribution to provident and other funds under employee benefit expenses (refer note 40 and 45).

# Included in salaries, wages, bonus and allowances under employee benefit expenses (refer note 40 and 45).

B. Defined benefits plans Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company''s policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

Risk exposure

The gratuity scheme is a salary defined benefit plan that provides for lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The plan design means the risk commonly aecting the liabilities and the financial results are expected to be:

(a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds, if bond yield fall, the defined benefit obligation will tend to increase.

(b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

(c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

47 The Company is in the process of obtaining confirmations and reconciliation with its trade receivables, trade payables and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

48 Subsequent events:

No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization of these financial statements.

49	CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
	Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
	a) Contingent liability Income tax cases (Assessment year 2018-19)	51.32	51.32
	Central excise cases (Financial year 2013 to 2017) b) Commitments	126.16	126.16
	Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances paid amounting to Rs 109.53 Lakhs and (previous year Rs. 83.66Lakhs))( Refer note no. 13)	457.77	37.38

Note: Regarding assessment year 2017-18 the income tax department has disallowed the expenditure to the tune of Rs. 43.87 Lakhs and there is Nil demand as the brought forward losses & depreciation has been adjusted . The Company has filed the appeal against the above disallowed and is in the opinion the same will be reversed.

51 SEGMENT INFORMATION

The Company primarily operates in one segment which comprises of manufacturing and sale of automobile components identified in accordance with principle enunciated in Indian Accounting Standard Ind AS-108, Segment Reporting. Hence, separate business segment information is not applicable.

The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of IND AS 108 “Operating Segments”.

D. Terms and Conditions

The transactions with the related parties are made on term equivalent to those that prevail in arm''s length transactions. The assessment is under taken each financial year through examining the financial position of the related party and in the market in which the related party operates. Outstanding balances are unsecured.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

The fair value of the financial assets and liabilities are 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 provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

Level 1: Quoted prices (unadjusted) in the active markets for identical assets or liabilities Level 2: Other techniques for which all the inputs which have a significant effect on the recorded fair values are observable, either directly or indirectly

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Specific valuation technique used to value financial instrument includes:

> the use of quoted market prices or dealer quotes for similar financial instruments.

> the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value, due to their short term nature and long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the Company is considered to be insignificant in valuation.

Financial assets and liabilities measured at fair value.

54 FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principal financial assets include investments in marketable securities, loans , trade and other receivables and cash and short-term deposits that arise directly from its operations.

The Company''s activities are expose to Market risk, Credit risk and Liquidity risk.

I. Market risk

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

The sensitivity analyses in the following section relate to the position as at 31st March 2023 and 31st March 2022 (a) 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. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .

(b) 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 has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk which are unhedged as per Policy.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligation

(iv) Significant increase in credit risk and other financial instruments of the same counterparty

The Company''s major exposure is from trade receivables, which are unsecured and derived from external customers. Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forwardlooking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed. However there is no trade receivable which is require allowance for expected credit loss.

III. Liquidity Risk

Liquidity risk is defined as the risk that Company will not be able to settle or meet its obligation on time or at a reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling, forecast on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments:

Notes :

(i) Debt is defined as long-term and short-term borrowings including current maturities as described in notes 23 & 29.

(ii) Total equity (as shown in balance sheet) includes issued capital and all other equity.

(b) Loan covenants

I 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 call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current year and the previous years.

No changes were made in the objectives, policies or processes for managing capital during the current years and previous years.

56 Previous year figures have been re-grouped / re-classified wherever necessary to corresponding with the current year''s classification /disclosure.

57 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

58 Other Disclosures

i) Revaluation of Property, Plant & Equipment & Intangible assets

The Company has not done any revaluation of Property, Plant & Equipment including Right of use assets and Intangible assets during the year, refer note 5,7 8 & 9.

ii) Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

iii) Relationship with struk off companies

The Company has not transacted with any Company which is either struk off or in the process of striking off by the Ministry of corporate Affairs.

iv) Title deed of Immovable Properties

We have the title deeds in the name of the Company in respect 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) except as disclosed below. The title deed of the same will be transferred when all the instalment of deferred payments including interest will be paid, refer note 28.

v) Undisclose Income

The Company has not disclosed or surrendered any income during any previous year in the course of Income tax Assessment proceedings, survey or any other relevant provision of the Income Tax Act, 1961. All transaction, incomes & assets are duly recorded in the books of accounts.

vi) Utilisation of borrowed funds and security premium

The Company has not

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.

vii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

viii) Registration of Charges or Satisfaction with Registrar of Companies

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

---

Mar 31, 2018

1. GENERAL INFORMATION

Jay Ushin Limited (the Company) is a public company domiciled & incorporated under the provisions of the Companies Act, 1956 on August 14, 1986. The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report. The shares of the Company are listed on one stock exchange in India i.e. Bombay Stock Exchange (BSE). The Company is primarily in the business of manufacturing and sale of components such as lock and key sets, combination switches, heater control panels (HVAC), and door latches for automobiles.

The financial statements for the year ended March 31, 2018 were approved by the Board of Directors and authorised for issue on May 26, 2018.

2. BASIS OF PREPARATION AND PRESENTATION

2.1 Statement of Compliance

The financial statements have been prepared in accordance with IND AS notified under the Companies (Indian Accounting Standards) Rules, 2015.

Upto the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are Company''s first IND AS financial statements. The date of transition to IND AS is April 1, 2016. Refer Note 3.12 for the details of first-time adoption exemptions availed by the Company. Financial statement has been prepared in Lakhs

2.2 Accounting convention

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

2.3 Operating Cycle

Based on the nature of products/ activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

Notes:

(i) Contractual commitment towards purchase of property, plant and equipment, refer note No. 40

(ii) Opening balances of gross block and accumulated depreciation have been regrouped / reclassified / rearranged wherever considered necessary.

(iii) For assets charged as security, please refer note Nos. 18, 23

(iv) Borrowing cost capitalized during the period is Nil.

(v) Property, plant & equipment includes following assets which have been leased out under operating lease agreement:-

The Company has only one class of equity shares with a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

One of the Investor has acquired 54,797 Nos. (1.41%) shares from one of the Indian Promoter shareholder of Promoter group out of which 52,497 Nos. (1.36%) shares are registered in their name within March 31, 2017 with requisite disclosure for 54,797 Nos. (1.41%) shares under SEBI (PIT) Regulation 2015 with Corresponding update in the register of shareholders accordingly.

(iii) No shares have been, allotted as fully paid up, pursuant to any contract(s), without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years.

2.4 This is item of other comprehensive income arising from remeasurement of defined benefit obligation net of income tax, which is directly recognised in retained earning.

2.5 Nature and purpose of reserves Securities Premium Reserves

The Company can utilize the same for the purpose of buy back of shares or issue of bonus shares as decided by the management.

General Reserve

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

Retained Earnings

In respect of the year ended March 31, 2018, the directors propose that a dividend of Rs. 3.00 per share be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs. 139.76 Lakhs (including dividend distribution tax thereon of Rs. 23.83 Lakhs).

Fair Value through Other Comprehensive Income Reserve

This represents the change in the fair value of investments.

a) Foreign Currency Term Loan (FCTL) of Rs. 1000.00 Lakhs and Term Loan Rs. 1500.00 Lakhs from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 is repayable in 60 monthly installments. The loan is secured by way of Exclusive Equitable Mortgage on Immovable Property situated at Plot No. 150, Sector 44, Gurgaon, Haryana and exclusive hypothecation charge on all existing and future movable assets of the Company finance/to be financed out of the facility of Term Loan of Rs. 1500 Lakhs sanctioned by the bank and also secured by way of personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.

Foreign Currency Term Loan of Rs. 1500.00 Lakhs from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2015-16 and 2016-17 is repayable in 60 monthly installments. The loan is secured by First Equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana belonging to the Company. First paripassu charge on all existing and future moveable assets of the Company (excluding movable fixed assets pertaining to Borrower''s Plant situated at Plot No. 67-69 & 70 (Part), Narasapura Industrial Area, District-Kolar-563113, Karnataka which is exclusively charged to Tata Capital Financial Services Limited and vehicle financed by other lenders/banks). Second paripassu hypothecation charge on all existing and future current assets of the Company. Personal Guarantee/s of Mr.Jaideo Prasad Minda, Mrs.VandanaMinda and Mr.AshwaniMinda.

Term Loan of Rs. 800.00 Lakhs from Yes Bank Limited was taken during the financial year 2016-17. The loan is repayable in 60 monthly installments. The loan is secured by way of First charge on hypothecation on Movable and Immovable Assets of the Company Located at Manesar and personal guarantee of Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.

Foreign Currency Term Loan from Yes Bank Limited was taken during the financial year 2016-17 is repayable in 18 equal quarterly installments. The loan is secured by way of First Charge on movable fixed assets (both present and future) and Immovable Fixed Assets being land and building located at Plot No.4, Sector-3, IMT-Manesar and personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.

Term Loan of Rs. 1700.00 Lakhs from Yes Bank Limited was taken during the finanical year 2017-18. The loan is repayable in 60 monthly installments. First PariPassu charge by way of hypothecation of movable and immovable assets of the Company both present and future located at Plot No. 4, Sector-3, IMTManesar. Personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.

Term Loan of Rs. 950 Lakhs from Tata Capital Financial services Limited was taken during financial year 2016-17. The loan is repayable in 60 monthly installments with a moratorium of 6 months. The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69& 70 (part) Narasapura Industrial area, Kolar District and personal guarantee of Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.

Term Loan from RBL Bank Limited. The loan is repayable in 60 monthly installments. First PariPassu charge by way of hypothecation of movable and immovable assets of the Company at Plot No. 4, Sector-3, IMT Manesar.Personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.

b) Vehicle loans are secured by hypothecation of vehicles financed.

3. PROVISION FOR WARRANTY

The provision for warranty claims represents the present value as best estimate of the future economic benefits that will be required under the Company’s obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.

* Includes payable to related parties (refer note 43)

Dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is Rs. Nil (previous year Rs. Nil). Further no interest has been paid or was payable to such parties under the said Act during the year.

4. CORPORATE SOCIAL RESPONSIBILITY

Gross amount required to be spent by the company during the year is Rs.13.04 Lakhs.However the Company spent the sum of Rs. 13.50 Lakhs for the F.Y 2017-18 and Rs. 14.50 Lakhs for the F.Y 2016-17.

The Company has other commitments, for purchase/sales orders which are issued after considering requirements per operating cycle for purchase /sale of goods and services, employee''s benefits including union agreement in normal course of business. The Company does not have any long term commitments or material non-cancellable contractual commitments/contracts, which might have material impact on the financial statements.

5. LEASES

A. Company as a lessee

The Company has taken various residential /commercial premises and plant and machinery under cancellable operating leases. In accordance with Indian Accounting Standard (Ind AS-17) on ''Leases'' the lease rent charged to statement of Profit & Loss for the year is Rs. 374.64 Lakhs (Preivous year Rs. 375.28 Lakhs).

B. Company as a Lessor

The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating lease 1,297.87 Lakhs previous year Rs.1,449.51 Lakhs.

6. SEGMENT INFORMATION

The\ Company primarily operates in one segment which comprises of manufacturing and sale of automobile components identified in accordance with principle enunciated in Indian Accounting Standard AS-108, Segment Reporting. Hence, separate business segment information is not applicable.

The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of IND AS 108 “Operating Segments”.

Geographical Locations: The Geographical segments have been considered for disclosure as the secondary segment, under which the domestic segment includes sales to customers located in India and overseas segment includes sales to customer located outside India.

a) There are no material non-current assets located outside India.

b) The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. Revenue from operations have been allocated to segments on the basis of their relationship to the operating activities of the segment.

c) Number of customers individually accounted for more than 10% of the revenue in the year ended March 31, 2018 - 2 (Previous year 2).

Terms and Conditions

The transactions with the related parties are made on term equivalent to those that prevail in arm''s length transactions. The assessment is under taken each financial year through examining the financial position of the related party and in the market in which the related party operates. Outstanding balances are unsecured and the settlement will occur in cash.

* FVTPL - Fair Value Through Profit and Loss

# FVTOCI - Fair Value Through Other Comprehensive Income

(I) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

The fair value of the financial assets and liabilities are 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 provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:

Level 1: Quoted prices (unadjusted) in the active markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

(ii) Valuation techniques used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Specific valuation technique used to value financial instrument includes:

- the use of quoted market prices or dealer quotes for similar financial instruments.

- the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis

The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value , due to their short term nature long fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation. Financial assets and liabilities measured at fair value and the carrying amount is the fair value.

7. FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principal financial assets include investments in marketable securities, loans , trade and other receivables and cash and short-term deposits that arise directly from its operations. The Company''s activities are expose to Market risk, Credit risk and Liquidity risk.

I. Market risk

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

The sensitivity analyses in the following sections relate to the position as at March 31 , 2018 and March 31, 2017.

(a) 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. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .

(b) 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 operates internationally and the Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk.

The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk management policy approved by the Board.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period as follows:

Foreign currency sensitivity

1% increase or decrease in foreign exchange rates will have the following impact on profit before tax and other comprehensive income:

The assumed movement in exchange rate sensitivity analysis is based on the currently observable

(c) Price Risk

The company''s exposure to price risk arises from the investment held by the company. To manage its price risk arising from investments in marketable securities, the company diversifies its portfolio and is done in accordance with the company policy. The company''s major investments are actively traded in markets and are held for short period of time. Therefore no sensivity is provided for the same.

II Credit risk

Credit risk arises from the possibility that the counter party will default on its contractual obligations resulting in financial loss to the company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counter party.

(iii) Financial or economic conditions that are expected to cause a significant change to the counter party ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counter party.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

The company''s major exposure is from trade receivables, which are unsecured and derived from external customers. Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units, quoted securities and certificates of deposit which are funds deposited at a bank for a specified time period. Other loans are majorly provided to the subsidiaries and employee which have very minimal risk of loss.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forward- looking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed. However there is no trade receivable which is required to be cover under ECL Model.

III Liquidity Risk

Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling, forecast on the basis of expected cash flows. The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undescended payments:

Notes-

(i) Debt is defined as long-term and short-term borrowings including current maturities (excluding derivatives) as described in notes 18 and 23.

(ii) Total equity (as shown in balance sheet) includes issued capital and all other equity.

(b) Loan Covenants

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 call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year and the previous years.

8. TRANSITION TO IND AS

These financial statements for the year ended March 31, 2018 are the first IND AS financials prepared in accoradnce with IND AS notified under Companies (Indian Accounting Standards) Rules, 2015. The adoption of IND AS was carried out in accordance with IND AS 101, using April 1, 2015 as the transition date. IND AS 101 requires that all IND AS standards and interpretations that are effective for the IND AS financial statements for year ended March 31, 2018, be applied consistently and retrospectively for all fiscal years presented. All applicable IND AS have been applied consistently and retrospectively wherever required.

For the periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the 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 its financial statement to comply with the IND AS for the year ending March 31, 2018, together with the comparative date as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, Company''s opening balance sheet was prepared as at April 1, 2016 the 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.

8(A) EXEMPTIONS AND EXCEPTIONS OPTED BY THE COMPANY ON THE DATE OF TRANSITION:-

IND AS 101 allows first-time adopters certain exemptions and exceptions from the retrospective application of certain requirements under IND AS. The Company has applied the following exemptions and exceptions:

a) Exemptions and Exceptions from retrospective application

1. The Company has elected not to apply IND AS 103- Business Combinations, retrospectively to past business combinations that occurred before April 1, 2016. Consequent to use of this exemption from retrospective application:

i) The carrying amount of assets and liabilities acquired pursuant to pas business combinations and recognised in the financial statements prepared under Previous GAAP, are considered to be the deemed cost under IND AS, on the date of acquisition. After the date of acquisition, measurement of such assets and liabilities is in accordance with respective IND AS. Also, there is no change in classification of such assets and liabilities;

ii) The company had not recognised assets and Liabilities that neither were recognised in the financial statements prepared under Previous GAAP nor qualify for recognition under IND AS in the Balance Sheet of the acquiree;

iii) The company had excluded from its opening balance sheet (As at April 1, 2015), those assets and liabilities which were recognised in accordance with Previous GAAP but do not qualify for recognition as an asset or liability under IND AS; and

2. For financial instruments, wherein fair market values are not available (viz. interest free and below market rate security deposits or loans) the Company has elected to adopt fair value recognition prospectively to transactions entered after the date of transition.

3. The Company has elected to consider the carrying value of all its items of property, plant and equipment and intangible assets recognised in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.

4 Appendix C to IND AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with IND AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used IND AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place as at the date of transition

b) Estimates

The estimates as at April 1, 2016 and as at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).

Notes to the first time of adoption to IND AS

1) Fair Value of Investments

Under Indian GAAP current investments are measured at the lower of cost or market price and non-current investments are measured at cost less any permanent diminution in value of investment. Under IND AS investments are designated as Fair Value through Other Comprehensive Income (FVOCI), Fair Value through Profit and Loss (FVTPL) and carried at amortised cost. For investment designated as FVOCI, difference between the fair value and carrying value is recognised in Other Comprehensive Income (OCI). For investment designated as FVTPL, difference between the fair value and carrying value is recognised in profit and loss. For investment designated at amortised cost, accrual of interest is recognised in profit and loss with which value of investment will be equal to maturity date contractual cash flows which includes solely payments of interest and principal.

2) Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to profit or loss for the period. Under IND AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

3) Dividend

Under Indian GAAP, 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, a 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 the caseof the Company, the declaration of dividend occurs after period end. Therefore, the liability for the year ended on March 31, 2016 recorded for dividend has been derecognised against retained earnings on April 1, 2016. The proposed dividend for the year ended on March 31, 2017 recognized under Indian GAAP was reduced with a corresponding impact in the retained earnings.

4) Security Deposits

Under previous GAAP, interest free lease security deposits(that are refundable in cash on completion of lease term) are recorded at their transaction value. Under IND AS all financial Assets are required to be recognised at fair value. Accordingly, the company has fair valued these security deposits under IND AS. Difference between fair value and transaction value of the security deposit has been recognised as prepaid rent. Consequent to this change, the amount of security deposits decreased as at the date of transition to IND AS with corresponding increase in prepaid rent.

5) Leasehold land

Under IND AS expense incurred in relation to operating lease has to be charged to P&L A/c on a straight line basis or systematic basis over the period of lease. Accordingly, the company has classified one of its land as operating lease and amount paid has been amortised over the period of lease on the basis of the lease term.

6) Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. IND AS 12 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 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

7) Defined benefit liabilities

Under Indian GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under IND AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under IND AS instead of the statement of profit and loss.

8) Sale of goods

Under Indian GAAP, 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 presented as a part of other expenses in statement of profit and loss. Thus sale of goods under IND AS has increased with a corresponding increase in other expense.

9 STANDARDS ISSUED BUT NOT YET EFFECTIVE

Appendix B to IND AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to IND AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is evaluating the effect of this on the financial statements.

IND AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the IND AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with IND AS 8- Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The effective date for adoption of IND AS 115 is financial periods beginning on or after April 1, 2018. The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The company is evaluatng the effect on adoption of IND AS 115.

10 : Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to currentyear’s classification.

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Mar 31, 2016

(b) Rights, preferences and restriction attached to equity shares

- The Company has only one class of equity shares with a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, 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 amount of per share dividend recognized for distributions to equity shareholders is Rs. 2.50 (previous year Rs. 2.00).

* 450,446 shares (11.66%) out of an aggregate of 724,671 shares (18.7 5%) have been transferred/sold to JPM Farms Private Limited (3.30%), Consortium Vyapaar Ltd. (5.50%), Rajesh Kumar Seth ( 1 . 94 %) and Ishwar Lal Agarwal (0. 92%) by these shareholders but share transfer deed in relation to the same has not been yet registered and accordingly the register of shareholders has not been updated by the Company yet. Further, these does not include the shares held by relatives or other companies in which these shareholders have substantial interest as individually these are less than 5 %.

(d) No shares have been, allotted as fully paid up, pursuant to any contract(s), without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years.

a) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and carries interest linked to Bank base rate 3.25%. The loan is repayable in 18 equal quarterly installments with a moratorium of 2 quarters. The loan is secured by first pari-passu charge on all existing and future movable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Second pari-passu charge on all existing and future current assets of the company in sharing with other lenders. Exclusive charge on property located at Plot No. 4, Sector -3 Manesar, Gurgaon, Haryana and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda and Mr. Ashwani Minda.

Foreign Currency Term Loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 and 2015-16 is repayable in 60 monthly installments. The FCTL carries interest Libor 400 bps . The loan is secured by way of Equitable Mortgage on Immovable Property situated at Plot No. 150, Sector 44, Gurgaon, Haryana and exclusive hypothecation charge on all existing and future movable assets of the Company finance/to be financed out of the facility of Term Loan sanctioned by the bank and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Term loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 is repayable in 60 monthly installments. The Term loan carries interest based on Bank base rate 2%. The loan is secured by way of Second Pari passu hypothecation charge on all existing and future assets of the company and first pari passu charge on all existing and future movable assets of the Company (excluding movable fixed assets pertaining to Kolar Plant) finance/to be financed out of the facility of Term Loan sanctioned by the bank and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Term Loan from Tata Capital Financial services Limited .The loan is repayable in 54 quarterly installments with a moratorium of 6 months. The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69 & 70(part) Narasapura Industrial area, Kolar District and personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

b) Vehicle loans are secured by hypothecation of vehicles financed.

*Represents Income Tax demand raised pending in appeals. Based on the interpretation of the provisions of Income tax act with regard to demand raised, the management is of the opinion that the ultimate outcome of the proceeding will not have material adverse effect on the Company financial position and results of operations.

1. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 “Employee Benefits” calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees’ state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

The Company has recognized the following amounts in the Statement of profit and loss for the year:

* Included in Contribution to Provident and other funds under Employee benefit expenses (note 25)

# Included in Salaries, wages, bonus and allowances under Employee benefit expenses (note 25)

B. Defined benefits plans Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company’s policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

2. Segment reporting

The Company has identified one reportable business segment as primary segment, namely manufacturing and sale of automobile components. The segment has been identified and reported taking into account the nature of products, the deferring risks and returns, the organization structure and the internal financial reporting systems.

The Company has identified its geographical segments as secondary segments. As the Company sells its products outside India, the secondary segment is based on location of its customers. Information on geographic segments is as follows:

Unallocable assets and liabilities represent the assets and liabilities that relates to the Company as a whole and that cannot be readily allocated to segments.

3. Leases

A. As lessee

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors . The lease rent expense recognized during the year amounts to Rs.368.51 Lacs (Previous year Rs. 352.55 Lacs)

B. As Lessor

The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating leaseRs.1325.06 Lacs (previous year Rs. 1055.07 Lacs).

* Note :

The significant influence of Key Managerial personnel as director ceased as under:

- Mr. Jaideo Prasad Minda w.e.f. September 29, 2015;

- Mr. Anil Minda w.e.f. May 28, 2015;

- Mr. Ashwani Minda w.e.f. September 29, 2015)

b. Included in the financial statements are the following amounts relating to transactions with related parties read with note 36(a):

4. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the net increase in deferred tax liability of Rs.40.16 lacs (Previous year Rs.4.01 lacs) has been recognized as expenditure in the Statement of Profit and Loss. The effect of significant timing difference as at March 31, 201 6 that reverse in one or more subsequent years give rise to the following net deferred tax liability:

5. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46a of the Accounting Standard-11 “The Effects of Changes in Foreign Exchange Rates” with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortized w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs Nil(previous year Rs. 10.67 lacs) during the year ended March 31, 2016 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs Nil(Previous year Rs. 0.33 lacs) to capital work in progress.

6. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

7. Previous year figures have been rearranged/regrouped wherever necessary. As per our report of even date

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Mar 31, 2015

(a) Rights, preferences and restriction attached to equity shares

- The Company has only one class of equity shares with a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, 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, 2015, the amount of per share dividend recognized for distributions to equity shareholders is Rs. 2.00 (previous year Rs. 2.50).

* 450,446 shares (11.66%) out of an aggregate of 724,671 shares (18.75%) have been transferred/sold to JPM Farms Private Limited (3.30%), Consortium Vapor Ltd. (5.50%), Rajesh Kumar Seth (1.94%) and Ishwar Lai Agarwal (0.92%) by these shareholders but share transfer deed in relation to the same has not been yet registered and accordingly the register of shareholders has not been updated by the Company yet. Further, these does not include the shares held by relatives or other companies in which these shareholders have substantial interest as individually these are less than 5 %.

(b) No shares have been, allotted as fully paid up, pursuant to any contract(s), without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years.

*No default as on the balance sheet date in terms of repayment of loans and interest.

a) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and carries interest linked to Bank base rate 3.25%. The loan is repayable in 18 equal quarterly installments with a moratorium of 2 quarters. The loan is secured by first pari-passu charge on all existing and future movable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Second pari-passu charge on all existing and future current assets of the company in sharing with other lenders. Exclusive charge on property located at Plot No. 4, Sector -3 Manesar, Gurgaon, Haryana and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda and Mr. Ashwani Minda.

Term loan and Foreign Currency Term Loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 and is repayable in 60 monthly installments. The Term loan carries interest based on Bank base rate 2% and FCTL carries interest Libor 400 bps . The loan is secured by way of Equitable Mortgage on Immovable Property situated at Plot No. 150 admeasuring 2135 Sq. Mire., Sector 44, Gurgaon, Haryana and exclusive hypothecation charge on all existing and future movable assets of the Company finance/to be financed out of the facility of Term Loan sanctioned by the bank and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Term loan from Standard Chartered Bank carries interest rate 13.00% p.a.. The loan is repayable in 18 quarterly installment starting from August, 2009 with a moratorium of 6 month. Secured by way of First pari passu charge on all existing & future movable fixed assets & second pari passu charge on all existing and future current assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with Kotak Mahindra Bank Ltd. and Yes Bank Limited a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOTs Industrial Park at Sriperumbudur. the same has been repaid during the year and is also secured byway of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda and Mr. Ashwani Minda.

Term Loan from Tata Capital Financial services Limited carries interest rate 13.00% p.a.The loan is repayable in 54 quarterly installments with a moratorium of 6 months. The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69 & 70(part) Narasapura Industrial area, Kolar District and personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

b) External Commercial Borrowings (ECB) taken from Standard Chartered Bank carries fixed rate of interest 6 months Libor 300 bps p.a.. The Loan was repayable half yearly in 8 equivalent installments with a moratorium of 18 months from the first draw down date i.e. August 31, 2010 and October 13, 2010. The loan was secured by way of first charge over movable & immovable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) and second pari passu charge over current assets and further additionally secured by equitable mortgage over company immovable property at Plot No. 150, Urban Estate, Sector-44, Gurgaon, Haryana and the same has been repaid during the year. The loan was secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda, Mr. Ashwani Minda & Mrs. Vandana Minda.

c) Vehicle loans are secured by hypothecation of vehicles financed.

*No default as on the balance sheet date in terms of repayment of loans and interest.

Short term borrowings have been facilitated by followings banks which are secured as mentioned below:

Bank Security

ICICI Bank Limited (overall limit Rs. First pari-passu charge on the current assets of the Company. 60,000,000) Second pari-passu charge over all present and future moveable

1 Purchase Order/Sales Invoice assets of the company sharing with other bankers except

2 Cash Credit/ Overdraft Karnataka movable fixed assets and further secured by second 3' Foreign Currency Buyers Credit parri-passu charge over the property at Plot No.4, Sector -3, IMT-

Manesar. The borrowings are further secured by the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Kotak Mahindra Bank Limited First pari-passu charge on the current assets of the Company.

(overall limit Rs. 370,000,000) Second pari-passu charge over all present and future moveable

1 Purchase Order/Sales Invoice assets of the company sharing with other bankers, second parri-

2 Letter of credit/Foreign Currency passu hypothecation charge on all existing and future movable Buyers Credit assets of the Company (excluding Karnataka movable fixed assets) and further secured by second pari-passu equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot's Industrial Park at Sriperumbudur. The borrowings are further secured by the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Standard Chartered Bank First pari-passu charge on the current assets of the Company.

(overall limit Rs. 130,000,000)* Second pari-passu charge over all present and future moveable

1. Purchase Order assets including land and building at Gurgaon, Manesar and

2. Cash Credit/ Overdraft Sriperumbudur. The same has been re-paid during the year.

Yes Bank Limited (overall limit Rs.First pari-passu charge on the current assets of the Company.

150,000,000) Second pari-passu charge over all present and future moveable

1 Purchase Order/Sales Invoice assets (exclusively charged to other bankers of the company

2 Cash Credit/ Overdraft sharing with other bankers. The borrowings are further secured by 3' Foreign Currency Buyers Credit the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

Tangible assets, are subject to first pari passu charge to secure the company's long term borrowings referred in note 5 as secured term loans from bank.

- Land has been acquired by the company under a lease agreement from State Industries Promotion Corporation of Tamil Nadu Limited, Chennai (6.68 acres commencing from October 10, 2005), Rajasthan State Industrial Development and Investment Corporation Limited, Bhiwadi (4.70 acres commencing from September 13, 2011) and Karnataka Industrial Areas Development Board, Bangalore (7.00 acres commencing from January 12, 2012) for a lease period of 99 years, 99 years and 10 years respectively. The premium paid and other expenses incidental to the acquisition are amortize over the period of the lease.

™ The estimated useful lives of certain fixed assets have been revised in accordance with Schedule II to the Companies Act 2013, with effect from April 1, 2014. Pursuant to the above mentioned changes in useful lives, the depreciation expense of current year is higher by Rs. 146.88 Lacs and for the assets whose revised useful lives have expired prior to

# fnclud3es following assets which have been leased out under an operating lease agreement

Note : Additions to fixed assets includes capital expenditure & Depreciation on Research & Development amounting to Rs.10.63 Lacs and Rs. 28.30 Lacs respectively (Previous year Rs. 15.73 Lacs and Rs. 12.37 Lacs) (refer note 48)

* There is no amount due and outstanding to be credited to Investor Education and Protection Fund.

'Represents Central Excise/Service tax demands pending in appeal/show cause notice. The Company has deposited Rs. 10.00 Lacs under protest against such demands/show cause notices. Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demand raised, the managements of the opinion that the ultimate outcome of these proceeding will not have a material adverse effect on the company's financial position and results of operations.

1. Borrowing cost capitalized during the year

As per Accounting Standard 16 - Accounting, "Borrowing Cost", the Company has capitalized Rs. Nil (Previous year Rs. NIL) to various fixed assets including capital work in progress in the year ended March 31,2015.

2. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 "Employee Benefits" calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

* Included in Contribution to Provident and other funds under Employee benefit expenses (note 25)

# Included in Salaries, wages, bonus and allowances under Employee benefit expenses (note 25)

B. Defined benefits plans

Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits

Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company's policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

3. Earnings per share

The calculation of Earnings per share has been made in accordance with Accounting Standard (AS) - 20. Statement on calculation of Basic and Diluted EPS is as under:

Unallowable assets and liabilities represent the assets and liabilities that relates to the Company as a whole and not allocable to any segment.

4. Segment reporting

The Company has identified one reportable business segment as primary segment, namely manufacturing and sale of automobile components. The segment has been identified and reported taking into account the nature of products, the deferring risks and returns, the organization structure and the internal financial reporting systems.

5. Leases

A. As lessee

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognized during the year amounts to Rs.352.55 Lacs (previous year Rs. 327.73 Lacs).

B. As Less or

The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating lease Rs.1055.07 Lacs (previous year Rs. 963.14 Lacs).

6. Related party disclosure

The disclosures as required by the Accounting Standard-18 (Related Party Disclosure) are given below : a. Names of related parties

(i) Joint Venture Company U-shin Ltd., Japan

(ii) Key Management Personnel ("KMP") and Mr. Jaideo Prasad Minda their relatives Mr. Anil Minda

Mr. Ashwani Minda

Mrs. Vandana Minda (Director and Relative)

(iii) Enterprise over which Key Managerial Jay FE Cylinders Limited

Personnel and their relatives are able to JNS Instruments Limited exercise significant influence Modern Engineering Works

Jushin Enterprises Jay Auto components Limited JPM Tools Limited JPM Automobiles Limited Brillaint Jewels Private Limited JNJ Electronics Limited

7. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the net decrease in deferred tax liability of Rs. 4.01 Lacs (Previous year Rs.25.24 Lacs) has been recognized as benefit in the Statement of Profit and Loss. The effect of significant timing difference as at March 31, 2015 that reverse in one or more subsequent years give rise to the following net deferred tax liability:

8. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46A of the Accounting Standard-11 "The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortized w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs. 10.67 Lacs (previous year Rs. 1.91 Lacs) during the year ended March 31, 2015 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs. 0.33 Lacs (Previous year Rs. 0.06 Lacs) to capital work in progress.

9. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

10. Previous year figures have been rearrange/regrouped wherever necessary.

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Mar 31, 2014

1. BACKGROUND

Jay Ushin Limited (CIN No.L52110DL1986PLC025118) was established in 1986. The Company started commercial production in 1989 in Joint Venture and technical collaboration with U-shin Limited, Japan. The Company is primarily in the business of manufacturing and sale of automotive components of Automobiles for two wheeler and four wheeler. The Company is listed on Bombay stock exchange.

The financial statements reflects the results of the activities undertaken by the Company during the year April 1, 2013 to March 31,2014.

(a) Terms/ rights attached to equity shares

* The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case where interim dividend is distributed.

* During the year ended March 31,2014, the amount of per share dividend recognised for distributions to equity shareholders is Rs. 2.50 (previous year Rs. 2.00).

* In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* 450,446 shares (11.66%) out of an aggregate of 724,671 shares (18.75%) have been transferred/sold to JPM Farms Private Limited (3.30%), Consortium Vyapaar Ltd. (5.50%), Rajesh Kumar Seth (1.94%) and Ishwar Lal Agarwal (0.92%) by these shareholders but share transfer deed in relation to the same has not been yet registered and accordingly the register of shareholders has not been updated by the Company yet. Further, these does not include the shares held by relatives or other companies in which these shareholders have substantial interest as individually these are less than 5 %.

(b) No shares have been, alloted as fully paid up, pursuant to any contract(s) without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back.

*No default as on the balance sheet date in terms of repayment of loans and interest.

c) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and carries interest linked to Bank base rate 3.25%. The loan is repayable in 18 equal quarterly instalments with a moratorium of 2 quarters. The loan is secured by first pari-passu charge on all existing and future movable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Second pari-passu charge on all existing and future current assets of the company in sharing with other lenders. Exclusive charge on property located at Plot No. 4, Sector -3 Manesar, Gurgaon, Haryana.

Term loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2007-08 and is repayable in 60 monthly instalments with a moratorium of 6 months. The loan carries interest based on 12 months Benchmark Prime Lending Rate (PLR) of KMBL less 4.75% p.a.. The loan is secured by way of First pari passu charge on all existing & future movable fixed assets & second pari passu charge on all existing and future current assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with Standard Chartered Bank (SCB) and Yes Bank Limited (YBL) ( a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOT''s Industrial Park at Sriperumbudur).Term loan from Standard Chartered Bank carries interest rate 13.00% p.a.. The loan is repayable in 18 quarterly instalment starting from August, 2009 with a moratorium of 6 month. Secured by way of First pari passu charge on all existing & future movable fixed assets & second pari passu charge on all existing and future current assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with Kotak Mahindra Bank Ltd. and Yes Bank Limited a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOT''s Industrial Park at Sriperumbudur.

(All above loans are secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda & Mr. Ashwani Minda).

Term Loan from Tata Capital Financial services Limited carries interest rate 13.00% p.a..The loan is repayable in 54 quarterly installments with a moratorium of 6 months.The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69 & 70(part) Narasapura Industrial area, Kolar District and personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.

d) External Commercial Borrowings (ECB) taken from a bank carries fixed rate of interest 6 months Libor 300 bps p.a.. The Loan is repayable half yearly in 8 equivalent instalments with a moratorium of 18 months from the first draw down date i.e. August 31, 2010 and October 13, 2010. The loan is secured by way of first charge over movable & immovable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) and second pari passu charge over current assets and further additionally secured by equitable mortgage over company immovable property at Plot No. 150, Urban Estate, Sector-44, Gurgaon, Haryana.

The above loans are secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Anil Minda & Mr. Ashwani Minda.

c) Vehicle loans are secured by hypothecation of vehicles financed.

2. Commitments and contingent liabilities

(Amount in Rs.)

Particulars March 31, 2014 March 31,2013

i. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances) 25,300,566 104,242,546



ii. Contingent liabilities

a. Claim against the Company not acknowledged as debts*

b. Guarantees issued on behalf of the Company outstanding at the end of the year 5,629,983 4,866,000



*Represents Central Excise/Service tax demands pending in appeal/show cause notice. The Company has deposited Rs.1,000,000 under protest against such demands/show cause notices. Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demand raised, the managementis of the opinion that the ultimate outcome of these proceeding will not have a material adverse effect on the company"s financial position and results of operations.

There are no other material commitments.

3. Borrowing cost capitalized during the year

As per Accounting Standard 16-"Borrowing Cost", the Company has capitalized Rs. Nil (Previous year Rs.15,853,656) to various fixed assets including capital work in progress in the year ended March 31,2014.

4. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 "Employee Benefits" calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees" state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

B. Defined benefits plans

Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits

Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company''s policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

5. Segment reporting

The Company has identified one reportable business segment as primary segment, namely manufacturing and sale of automobile components. The segment has been identified and reported taking into account the nature of products, the deferring risks and returns, the organisation structure and the internal financial reporting systems.

6. Leases

A. As lessee

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognised during the year amounts toRs.32,773,286/-(previous year Rs. 29,888,275).

B. As Lessor

The Company has given office space and plant and machinery on cancellable lease terms.Other income includes income from operating leaseRs.96,313,674/-(previous year Rs. 87,804,808).

7. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46A of the Accounting Standard-11 "The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortised w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs. 197,129 (previous year Rs. Nil) during the year ended March 31, 2014 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs. Nil (Previous year Rs.Nil) to capital work in progress.

8. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

9. Previous year figures have been reclassified/regrouped wherever necessary.

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Mar 31, 2013

1. BACKGROUND

Jay Ushin Limited was established in 1986. The Company started commercial production in 1989 in Joint Venture and technical collaboration with U-shin Limited, Japan. The Company is primarily in the business of manufacturing and sale of automotive components of Automobiles for two wheeler and four wheeler. The Company is listed on Bombay stock exchange.

The financial statements reflect the results of the activities undertaken by the Company during the year April 1, 2012 to March 31, 2013.

2. Leases

A. As lessee:

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognised during the year amounts to Rs.29,888,275(previous year Rs. 10,966,284).

B. As Lessor:

The Company has given office space and plant and machineryon cancellable lease terms.Other income includes income from operating lease Rs.87,804,808(previous year Rs. 72,086,518).

3. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the net decrease in deferred tax liability of Rs.7,589,039 (Previous year Rs. 8,638,811)has been recognized as benefit in the Statement of Profit and Loss. The effect of significant timing difference as at March 31, 2013 that reverse in one or more subsequent years give rise to the following net deferred tax liability.

4. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company dopted the option given in paragraph 46A of the Accounting Standard-11 ''The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortised w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) ofRs. Nil(previous year Rs. 21,281,448) during the year ended March 31, 2013 to depreciable capital assetsand foreign exchange fluctuation loss (net) of Rs.Nil(Previous year Rs. 5,976,743 to capital work in progress.

5. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.

6. The expenditure incurred by in-house R&D center located at Plot No- 282, Phase-6, Sectof-37, Gurgaon and approved by Ministry of Science & Technology (Department of Scientific and Industrial Research) vide letter No. TU-IV/RD/3558/2012 dated December 31, 2012 are as under:

7. Previous year figures have been recast/regrouped wherever necessary.

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Mar 31, 2012

1. BACKGROUND

Jay Ushin Limited was established in 1986. The company started commercial production in 1989 in Joint Venture and technical collaboration with U-shin Limited, Japan. The Company is primarily in the business of manufacturing and sale of automotive components of Automobiles for two wheeler and four wheeler. The Company is listed on Bombay stock exchange.

The financial statements reflect the results of the activities undertaken by the Company during the year April 1, 2011 to March 31, 2012.

2. Commitments and contingent liabilities

(A mount in Rs.)

March 31, March 31, 2012 2011

i. Estimated amount of contracts remaining to be executed on capital account and not provided for 83,707,190 14,726,679 (net of capital advances)

ii. Contingent liabilities

a. Claim against the Company not acknowledged as debts* 19,913,199 11,560,417

b. Guarantees issues on behalf of the Company 20,000 20,000 outstanding at the end of the year

*Represents Central Excise/Service tax demands pending in appeal/show cause notice. The Company has deposited Rs. 1,000,000 under protest against such demands/show cause notices. Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demand raised, the management is of the opinion that the ultimate outcome of these proceeding will not have a material adverse effect on the company's financial position and results of operations.

There are no other material commitments.

3. Borrowing cost capitalized during the year

As per Accounting Standard 16 - Accounting, "Borrowing Cost", the Company has capitalized Rs. 11,962,744 (Previous year Rs. 4,112,443) to various fixed assets including capital work in progress in the year ended March 31, 2012.

4. Employee benefit obligations

The Company has in accordance with Accounting Standard-15 "Employee Benefits" calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident Fund

ii. Employee state insurance plan

The provident fund and the employees' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

* Included in Contribution to Provident and other funds under Employee benefit expenses (note 26)

# Included in Salaries, wages, bonus and allowances under Employee benefit expenses (note 26)

B. Defined benefits plans

Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits

Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company's policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

5. Leases

A. As lessee :

The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors. The lease rent expense recognised during the year amounts to Rs. 10,966,284 (previous year Rs. 2,779,637).

B. As Lessor :

The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating lease Rs. 72,086,518 (previous year Rs. 62,610,79 8).

6. Related party disclosure

The disclosures as required by the Accounting Standard-18 (Related Party Disclosure) are given below:-

a. Names of related parties

Relationship Name of related party

(i) Joint Venturer Company : U-shin Limited, Japan

(ii) Key Management Personnel : Mr. Jaideo Prasad Minda (Chairman) ('KMP') and their relatives Mr. Anil Minda (Whole Time Director) Mr. Ashwani Minda (Managing Director)

Mr. Satoru Gokuda (Whole Time Director)

(iii) Enterprise over which Key Managerial : Jay FE Cylinders Limited Personnel and their relatives are able to JNS Instruments Limited exercise significant influence Modern Jushin Enterprises Engineering Works Jaycon Engineers

Kaashvi Industries

Jay Autocomponents Limited

7. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46A of the Accounting Standard-11 "The Effects of Changes in Foreign Exchange Rates" with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortised w.e.f. April 1, 2011 over its tenor till maturity.

Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs. 21,281,448 (previous year nil) during the year ended March 31, 2012 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs. 5,976,743 to capital work in progress.

Had the Company continued with the earlier policy of charging exchange difference on long term borrowings, the impact of the same on the current year financial statements would be as follows:

a) The foreign exchange fluctuation loss, net would have been higher by Rs. 27,258,191

b) Depreciation for the year would have been lower by Rs. 1,894,996

c) Current tax would have been lower by Rs. 3,539,544

d) Deferred tax benefit would have been higher by Rs. 970,266

e) Profit after tax would have been lower by Rs. 20,853,385

8. The financial statements for the year ended March 31, 2012 had been prepared as per the applicable, pre-revised Schedule VI to the Companies Act, 1956 ('the Act'). During the year, the revised Schedule VI notified under the Act has become applicable to the Company. Accordingly, the Company has reclassified previous year figures to conform to the current year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principle followed for preparation of financial statements. However, it has a significant impact on presentation and disclosures made in the financial statements.

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Mar 31, 2011

1. Commitments & Contingencies

March 31, March 31, 2011 2010 (Rs.) (Rs.)

ii. Contingent Liabilities

a) Claims made against Company not acknowledged as NIL 587,966 debts.

b) Guarantees issued on behalf of the Company 20,000 1,233,183 outstanding at the end of the year.

c) Central Excise/Service tax demands pending in appeals/ 11,560,417 9,150,715 show cause notice (The Company has deposited Rs. 1,000,000 (Previous Year Rs. 1,000,000) under protest against such demands/ show cause notice).

Based on the interpretations of the provisions of Excise Act and provisions of Service Tax Act with regard to demands as referred to in serial no (c), the company has been advised that the above demands are likely to be deleted or substantially reduced and accordingly no provision has been made.

2. Securities against Loan

The facilities (P.O. Discounting, Overdraft, Guarantee, Term Loan, Issue of Letter of Credit , ECB Loan, Buyers Credit, Short Term Revolving Loan, Working Capital Demand Loan) provided by Kotak Mahindra Bank Limited, Standard Chartered Bank and Yes Bank Limited are secured under the multiple banking arrangement by:

Bank Security

Kotak Mahindra Bank - First pari passu charge on all existing Limited (Term Loan) and future movable fixed assets of the company in sharing with Standard Chartered Bank.

- Equitable mortgage by way of first pari passu charge over following properties owned by the company a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOT’s Industrial Park at Sriperumbudur.

- Second Pari Passu charge on all existing & future current assets of the company in sharing with Standard Chartered Bank.

- Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

Standard Chartered - First charge on all movable fixed assets Bank (Term Loan) including plant & machinery both present & future of the company.

- Second pari passu charge over all current assets of the company stored or to be stored at the company’s godowns or premises or wherever else the same may be.

- Equitable mortgage and first pari passu charge on land & building at Gurgaon and Chennai.

- Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda,Directors of the Company.

Standard Chartered - First equitable mortgage, by depositing Bank (ECB Loan) of original title deeds of the immovable property of the company together with all the buildings, structures thereon, to be constructed thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future, lying, being and situated at Plot no. 150, Sector-44, Gurgaon, Haryana.

- First equitable mortgage, on a pari passu basis, by depositing of original title deeds of the immovable property of the company together with all the buildings, structures thereon, to be constructed thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future, lying, being and situated at Plot no. GP -14, Sector -18, Gurgaon,Haryana.

- Second pari passu hypothecation charge over all current assets both present and future now stored at or being stored or at present installed at or or which may be brought into or stored at or will be installed at the factory premises of the company or wherever else situated.

- First pari passu hypothecation charge over all movable plant and machinery including all movable assets both present and future now stored at or being stored or at present installed at or which may be brought into or stored at or will be installed at the factory premises of the company or wherever else situated.

Kotak Mahindra Bank - First pari passu charge over all present Limited (Working and future current assets of the company Capital Loan/ PO in sharing with Standard Chartered Bank Discounting/ Over (SCB) and Yes Bank Limited (YBL). draft)

- Second pari passu charge over all present & future movable fixed assets of the company in sharing with SCB and YBL.

- Equitable mortgage by way of second pari passu charge over following properties owned by the company sharing with SCB and YBL a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOT’s Industrial Park at Sriperumbudur.

- Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

Standard Chartered - First pari passu charge on the current Bank assets of the Company. (Working Capital Loan) - Second pari passu charge over the whole of the fixed assets including land & building of the Company Situated at Gurgaon, Manesar & Chennai, including its Movable Plant & Machinery, M/Spares, Tools & Access & other movables both Present & Future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or open or shall hereafter from time to time.

- Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

YES Bank Limited - First Pari Passu charge on current (Working Capital assets both present & future of the company. Loan/ PO Discounting/ Buyers Credit) - Second Pari Passu charge on movable fixed assets (excluding those exclusively charged to other bankers) both present & future of the company.

- Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

ICICI Bank Ltd. Vehicle Loan - First Charge on Vehicle under finance

Kotak Mahindra Prime Vehicle Loan

Bank Security

Limited - First Charge on Vehicle under finance

HDFC Bank Ltd. Vehicle Loan - First Charge on Vehicle under finance

Others Vehicle Loan - Hypothecation on Vehicle under finance

3. Sundry Creditors include

a) Rs. Nil/- due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME); and

b) Rs. Nil/- is payable for interest during the year to Micro, Small and Medium Enterprises.

c) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of creditors.

4. Certain Balances under Sundry Debtors, Loans and advances, and Creditors are subject to confirmation/ reconciliation and consequential adjustment thereof, if any.

5. In the opinion of the Board, sundry debtors, loans and advances and other current assets are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount.

7. The Company has provided excise duty on finished goods amounting to Rs.3,225,098 (Previous year Rs. 2,542,300) in respect of goods remaining unsold at the year end.

9. The Company has in accordance with the Accounting Standard 15 on Employee Benefits has calculated the various benefits provided to employees as under:

(A) Defined contribution plans

a. Provident Fund

b. Employers’ Contribution to Employees’ State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner & Regional director of ESIC respectively.

(B) Defined Benefit Plans

a) Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the company’s policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of Earned leaves at the credit of employee’s at the end of the year.

b) Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

10. Borrowing cost amounting to Rs.4,112,443 (Previous Year Rs. 2,453,861) attributable to the Fixed Assets under construction and shown in capital work in progress has been capitalized as per Accounting Standard 16. Other borrowing costs are recognized as an expense in the period in which they are incurred.

11 . Segment Information

The disclosures as required by Accounting Standard 17 on Segment Reporting has not been provided as the Company deals in one business segment, namely manufacturing of automobile components. Currently there are no reportable Geographic segments.

12. Related Parties

In the normal course of business, the company enters into transactions with various affiliated companies. The names of related parties of the company as required to be disclosed under Accounting Standard 18 are as follows:

Joint Venturer Company U-shin Limited, Japan

Enterprises over which key Anu Industries Limited management Personnel and their JNS Instruments Limited relatives exercise significant JPM Tools Limited influence JPM Automobiles Limited Jay Autocomponents Limited JNJ Electronics Limited Janasis Infotech Limited Jay Iron & Steels Limited Jay Fe Cylinders Limited Jay Nikki Industries Limited Jay Smelter Limited Nalhati Food Products Pvt. Limited JPM Farms Pvt. Limited Brilliant Jewels Pvt. Limited Anu Auto Industries, Delhi Moulder & Fabricators, Delhi Modern Engg. Works, Delhi Jushin Enterprises Jaycon Engineers Kaashvi Industries

Key Management Personnel and Mr.J.P.Minda their Relatives Mr. Anil Minda Mr. Ashwani Minda Mr. Satoru Gokuda

Disclosure in respect of transaction which are more than 10% of the total transactions under same head as referred above with related parties during the year.

I. Purchase of Raw material, components, consumables & fixed assets during the year includes Rs. 772,167,620 from JPM Automobiles Limited, Rs. 512,871,311 from Jay Autocomponents Limited (Previous Year Rs. 616,769,554 from JPM Automobiles Limited, Rs. 390,538,106 from Jay Autocomponents Limited).

II. Job work during the year includes Rs. 32,926,498 from JPM Automobiles Limited, Rs. 35,634,204 from Modern Engg. Works and Rs. 20,286,960 from Jay Autocomponents Limited (Previous Year Rs. 37,353,498 from JPM Automobiles Limited and Rs. 30,974,148 from Modern Engg. Works and Rs. 17,713,953 from Jay Autocomponents Limited).

III. Sales during the year includes Rs. 2,704,777 to U-shin Limited, Japan, Rs. 97,144,560 to Jay Autocomponents Limited & Rs. 17,727,217 to JNJ Electronics Limited (Previous Year Rs. 1,383,640 to U-shin Limited, Japan & Rs. 102,958,659 to Jay Autocomponents Limited).

IV. Sales of fixed assets & others during the year include Rs.19,455,429 to Ushn Limited, Rs.19,902,766 to Jay Autocomponents Limited & Rs. 1,162,360 to JPM Automobiles Limited (Previous Year Rs. 23,029 to Jay Autocomponents Limited & Rs.43,574 to JPM Automobiles Limited).

V. Payment of technical fees & expenses during the year includes Rs.13,374,710 to U-shin Limited, Japan (Previous Year Rs. 20,638,915 to U-shin Limited, Japan).

VI. Payment of Royalty during the year includes Rs.22,467,084 to U-shin Limited, Japan (Previous Year Rs. 22,394,789 to U-shin Limited, Japan).

VII. Rent received during the year includes Rs. 58,777,462 from JNS Instruments Limited. (Previous Year Rs. 47,067,899 from JNS Instruments Limited.)

VIII. Lease rent received during the year includes Rs. 1,029,912 from JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited (Previous Ye ar Rs. 1,029,912 from JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited).

IX. Rent paid during the year includes Rs. 300,000 to Anu Industries Limited (Previous Year Rs. 300,000 to Anu Industries Limited and Rs.600,000 to J A Builders Limited).

X. Other Includes Rs. 4,791,900 to JNS Instruments Limited & Rs.721,095 to JPM Automobiles Limited (Previous Year Rs.13,23,977 to JNS Instruments Limited).

15. Leases

A. Operating Lease

i. The company has entered into cancellable operating lease transactions for office space and residential accommodations for company directors. Lease rental expenses recognized in the profit and loss account for the year in respect of such leases is Rs.2,779,637 (previous year Rs.2,963,977).

ii. The company has given office space and plant & machinery to enterprises over which key management personal and their relatives exercise significant influence on cancellable lease terms.

Other Income includes income from operating lease Rs.62, 610,798 (previous year Rs.50, 699,795).

B. Finance Lease

In compliance of the Accounting Standard AS19, during the current year the interest on lease financing and depreciation on these assets amounting to Rs.Nil (Previous Year Rs. Nil) and Rs. 566,086 (Previous Year Rs.2,389,067) respectively have been charged to Profit & Loss Account.

18. In compliance with the Accounting Standard AS 28-Impairment of Assets, based on the internal and external sources of information available with the Company, there are no indicators that any of the fixed assets are impaired. The Company has considered its Fixed Assets at cost of acquisition / cost of construction, less depreciation as per policy adopted by the Company and none of the assets have been revalued.

19. The raw material & components inventory includes inventory lying with third party belonging to the Company amounting to Rs.20,835,404 (Previous year Rs. 23,021,028).

20. Term loan re-payable within one year amounted to Rs.76,654,562 (Previous year Rs. 75,717,644).

21. Previous year’s figures have been regrouped and/or re-arranged wherever necessary to conform to the current year’s groupings and classifications and the figures in brackets are those in respect of the previous year.

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Mar 31, 2010

1. Commitments & Contingencies March 31, 2010 March 3 1,2009

(Rs.) (Rs.)

ii. Contingent Liabilities

a) Claims made against Company not acknowledged as debts (suits 587,966 1,497,966 filed against the company).

b) Letters of credit issued by bank on behalf of the Company outstanding. 34,458,503 27,339,789 at the end of the year.

c) Guarantees issued on behalf of the Company outstanding at the end 1,233,183 - of the year.

d) Central Excise/Service tax deman pending in appeals/ show cause 9,150,715 11,670,644 notice (The Company has deposited Rs. 1,000,000 under protest against such demands/ show cause notice)

2. Securities against Loan

a) The facilities (P.O. Discounting, Overdraft, Guarantee, Term Loan, Issue of Letter of Credit) provided by Kotak Mahindra Bank Limited and Standard Chartered Bank are secured under the multiple banking arrangement by:

Bank Security

Kotak Mahindra Bank Limited (Term Loan) . Equitable mortgage by way of first pari passu charge over companys immovable property i.e. plot no. D-l/2, in the SIPCOT Industrial Park at Sriperumbudur within the village limits of Irungulam taluk of Sriperumbudur, sub Ragn.district of Chengalpattu of Kancheepuram in revenue district admeasuring 6.35 acres together with all buildings, structures and plant & machinery if any, affixed to the earth.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

Standard Chartered Bank (Term Loan) . First pari passu charge on movable fixed assets including plant & machinery both present & future and of the company.

. Second pari passu charge over all current assets of the company stored or to be stored at the companys godowns or premises or wherever else the same may be.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

Kotak Mahindra Bank Limited (Working Capital Loan/ PO Discounting/ Overdraft) . First pari passu charge over all present and future current assets ofthe company.

. Second pari passu charge over all present & future fixed assets.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.



Bank` Security

Standard Chartered Bank (Working Capital Loan) . First pari passu charge on the current assets of the Company.

. Second pari passu charge over the whole of the fixed assets of the Company Situated at Gurgaon, Manesar & Chennai, including its Movable Plant & Machinery, M/Spares, Tools & Access & other movables both Present & Future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or open or shall hereafter from time to time.

. Personal guarantee of Mr. J.P. Minda, Mr. Anil Minda and Mr. Ashwani Minda, Directors of the Company.

IC1C1 Bank Ltd. Vehicle Loan

. First Charge on Vehicle under finance

Kotak Mahindra prime Limited Vehicle Loan

. First Charge on Vehicle under finance

HDFC Bank Ltd. Vehicle Loan

. First Charge on Vehicle under finance

Others

Vehicle Loan

. Hypothecation on Vehicle under finance

3. Sundry Creditors include

a) Rs. Nil/- due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME); and

b) Rs. Nil/- is payable for interest during the year to Micro, Small and Medium Enterprises.

c) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of creditors.

4. Certain balances under Sundry Debtors, Loans and advances, and Creditors are subject to confirmation/ reconciliation and consequential adjustment thereof, if any.

5. In the opinion of the Board, sundry debtors, loans and advances and other current assets are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount.

6. The Company has in accordance with the Accounting Standard 15 on Employee Benefits has calculated the various benefits provided to employees as under:

(A) Defined contribution plans

a. Provident Fund.

b. Employers Contribution to Employees State Insurance.

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner & Regional director of ESIC respectively.

The Company has recognized the following amounts in the Profit and Loss Account for the year:

(B) Defined Benefit Plans

a) Leave Encashment

Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the companys policy. Liability has been accounted for on the basis of Actuarial valuation certificate for the balance of Earned leaves at the credit of employees at the end of the year.

7. Segment Information

The disclosures as required by Accounting Standard 17 on Segment Reporting has not been provided as the Company deals in one business segment, namely manufacturing of automobile components. Currently there are no reportable Geographic segments.

8. Related Parties

In the normal course of business, the company enters into transactions with various affiliated companies. The names of related parties of the company as required to be disclosed under Accounting Standard 18 is as follows:



Joint Venturer Company : U-shin Limited, Japan

Enterprises over which key management Personnel and their relatives exercise significant influence : Anu Industries Limited

JNS Instruments Limited

JPM Tools Limited

JPM Automobiles Limited

Jay Autocomponents Limited

JNJ Electronics Limited

Janasis Infotech Limited

Jay Iron & Steels Limited

J A Builders Limited

Jay FE Cylinders Limited

Jay Nikki Industries Limited

Jay Smelter Limited

Nalhati Food Products Pvt. Limited

JPM Farms Pvt. Limited

Brilliant Jewels Pvt. Limited

Anu Auto Industries, Delhi

Moulder & Fabricators, Delhi

Modern Engg. Works, Delhi

Jushin Enterprises

Jaycon Engineers

Kaashvi Industries



Key Management Personnel Mr. J. P. Minda

Mr. Anil Minda

Mr. Ashwani Minda

Mr. Satoru Gokuda

a) Disclosure in respect of transaction which are more than 10% of the total transactions of the same type with a related party during the year.

I. Purchase of Raw material, components, consumables & fixed assets during the year includes Rs. 616,769,554 from JPM Automobiles Limited, Rs. 390,538,106 from Jay Autocomponents Limited (Previous Year Rs. 465,071,130 from JPM Automobiles Limited, Rs. 197,679,992 from Jay Autocomponents Limited).

II. Job work during the year includes Rs.37,353,498 from JPM Automobiles Limited, Rs.30,974,148 from Modern Engg. Works and Rs. 17,713,953 from Jay Autocomponents Limited (Previous Year Rs.42,121,035 from JPM Automobiles Limited and Rs. 24,510,715 from Modern Engg. Works and Rs. 14,052,000 from Jay Autocomponents Limited).

III. Sales during the year includes Rs. 1,383,640 to U-shin Limited, Japan & Rs. 102,958,659 to Jay Autocomponents Limited (Previous Year Rs. 8,546,055 to U-shin Limited, Japan & Rs. 75,649,178 to Jay Autocomponents Limited).

IV. Sales of fixed assets, goods & others during the year include Rs. 23,029 to Jay Autocomponents Limited & Rs.43,574 to JPM Automobiles Limited (Previous Year Rs.75,649,178 to Jay Autocomponents Limited).

V. Payment of technical fees & expenses during the year includes Rs. 20,638,915 to U-shin Limited, Japan (Previous Year Rs. 16,696,986 to U-shin Limited, Japan).

VI. Payment of Royalty during the year includes Rs. 22,394,789 to U-shin Limited, Japan (Previous Year Rs. 8,050,096 to U-shin Limited, Japan).

VII. Payment of dividend during the year includes Rs. 1,506,968 to U-shin Limited, Japan, Rs. 321,039 to Mr. J.P. Minda, Rs. 319,569 to Mr. Anil Minda and Rs. 373,638 to Mr. Ashwani Minda. (Previous Year Rs. 2,009,290 to U-shin Limited, Japan Rs.428,052 to Mr. J.P. Minda, Rs.426,092 to Mr. Anil Minda and Rs. 498,184 to Mr. Ashwani Minda).

VIII. Rent received during the year includes Rs. 47,067,899 from JNS Instruments Limited. (Previous Year Rs. 30,234,822 from JNS Instruments Limited).

IX. Lease rent received during the year includes Rs. 1,029,912 from JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited (Previous Year Rs. 1,029,912 from JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited).

X. Rent paid during the year includes Rs. 300,000 to Anu Industries Limited and Rs.600,000 to J A Builders Limited (Previous Year Rs. 300,000 to Anu Industries Limited and Rs.600,000 to J A Builders Limited).

XI. Other Includes Rs.13,23,977 to JNS Instruments Limited (Previous Year Rs.599,662 to Jay Autocomponents Limited and Rs.73,621 to JPM Automobiles Limited).

9. Leases

In compliance of the Accounting Standard AS-19, during the current year the interest on lease financing and depreciation on these assets amounting to Rs. Nil (Rs. Nil) and Rs.2,389,067 (Previous Year Rs.2,389,067) respectively have been charged to Profit & Loss Account.

10. Fringe Benefit tax provision includes additional demand of Fringe Benefit tax amounting to Rs. NIL (Previous year Rs. 356,000) pertaining to earlier years.

11. In compliance with the Accounting Standard AS-28-Impairment of Assets, based on the internal and external sources of information available with the Company, there are no indicators that any of the fixed assets are impaired. The Company has considered its Fixed Assets at cost of acquisition / cost of construction, less depreciation as per policy adopted by the Company and none of the assets have been revalued.

12. The material lying with third party belonging to the Company amounting to Rs. 23,021,028 (Rs. 19,456,852).

13. Secured loan re-payable within one year amoun to Rs. 75,717,644 (Previous year Rs.68,674,396)

14. Previous years figures have been regrouped and/or re-arranged wherever necessary to conform to the current years groupings and classifications and the figures in brackets are those in respect of the previous year.