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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Menon Pistons Ltd.

Mar 31, 2025

33. Contingent liabilities	2024-25	2023-24
(a) Claims against the Company not acknowledged as debt (b) Other money for which the company is contingently liable i) Disputed Service Tax Liability 2007-09 (Matter Subjudice) The company has filed Appeal in CCE (Appeals) Pune-II. ii) Disputed Service Tax Liability 2009-10 (Matter Subjudice) The company has filed Appeal in CCE (Appeals) Pune-II.	3.31 0.96	3.31 0.96
Total	4.27	4.27

Note 34: Commitments	2024-25	2023-24
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)	1,302.65	25.00
Total	1,302.65	25.00

j) General descriptions of defined plans:

Gratuity Plan:

The company has defined benefit gratuity plan in India (funded). The companyâs defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to separately administered fund. The fund is managed by trust which is governed by Board of Trustees. The Board of Trustees are responsible for the administration of plan assets and for the definition of the investment strategy.

k) Sensitivity analysis

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Present value of obligaion(PVO). Sensitivity analysis is done by varying (increasing/ decreasing) one parameter by 100 basis points (1%)

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel.

The above figures do not include provision for leave encashment and gratuity, as actuarial valuation of such provision for the Key Management Personnel is included in the total provision for Leave encashment & gratuity.

39. Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent by the Company as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof during the year is Rs. 57.50 Lakhs (Previous Year Rs. 45.00 Lakhs)

(b) Expenditure related to Corporate Social Responsibility is Rs. 29.20 Lakhs (Previous Year Rs. 46.40 Lakhs)

The fair value of the financial assets and liabilities are included at the amount at which the instrument that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date.

The carrying amounts of financial assets and liabilities measured at amortised cost are a reasonable approximation of their fair values.

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 the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level is given in Note no 32.18 of Material Accounting Policies.

40 A. Financial risk management policy and objectives

Companyâs principal financial liabilities, comprise loans and borrowings, trade and other payables, and other financial liabilities. The main purpose of these financial liabilities is to finance companyâs operations.Companyâs principal financial assets include trade and other receivables, security deposits, investments, cash and cash equivalents and other bank balances that are derived directly from its operations.

Company is exposed to certain risks which includes market risk, credit risk and liquidity risk.

Risk Management committee of the company oversees the management of these risks.

This committee is accountable to audit committee of the board.

This process provides assurance to the companyâs senior management that companyâs financial risk- taking activities are governed by the appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with companyâs policies and risk appetite.

The policies for managing these risks are summarised below.

1) Credit Risk

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

a) Trade receivable

Customer credit risk is managed through the companyâs established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. Trade receivables are non interest bearing and are generally on, 30 days to 75 days credit terms. The company has no concentration of risk as customer base in widely distributed both economically and geographically.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the companyâs finance department in accordance with companyâs policy. Investments of surplus funds are made only in fixed deposits and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment company adjust itâs exposure to various counterparties. Companyâs maximum exposure to credit risk for the components of statement of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet itâs present and future cash flow and collateral obligations without incurring unacceptable losses. Companyâs objective is to, at all time maintain optimum levels of liquidity to meet itâs cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from domestic banks at optimised cost.

The table summarises the maturity profile of companyâs financial liabilities based on contractual undiscounted payments

3) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Companyâs activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

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. Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure 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 Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities (when revenue or expense is denominated in a foreign currency). However, company manages its exposures towards export receivables by routing major sales through a export house wherein sales is denominated in a local currency. So, foreign currency exposure risk is restricted to minimum amount of need-based imports of consumables and Property, plant & Equipment.

41. Capital management

For the purpose of the companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves. The primary objective of the companyâs capital management is to maximise the shareholders value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is, net debt divided by total capital plus net debt. Companyâs policy is to keep the gearing ratio between 0% and 40%. The company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations. However, recently company has focused on becoming zero debt company in order to minimise interest burden and maximum profits.

42. Leases Company as lessee

The Company has entered into agreement in the nature of lease agreement with different lessors for the purpose of guest house/transit house to the employees of the Company.

Nature of leasing activity

The Company has leases for buildings. Certain lease contracts provide for payments to increase each year by inflation or and in others to be reset periodically to market rental rates. While other lease contracts comprise only fixed payments over the lease terms.

Extension and termination options

The use of extension and termination options gives the Company added flexibility in the event it has identified more suitable premises in terms of cost and/or location or determined that it is advantageous to remain in a location beyond the original lease term. An option is only exercised when consistent with the Companyâs regional markets strategy and the economic benefits of exercising the option exceeds the expected overall cost. Existing lease agreement do not have any extension option.

Operating lease commitments â Company as lessor

The company has entered into operating leases for land and non-factory building, with lease terms of ten years. The company has the option to lease the assets for additional terms. The lease rent is increased by 10% after 3 years. During the year, Income earned from lease rent amount to Rs. 198.33 lakhs (previous year Rs. 198.10 Lakhs). Future minimum rentals receivables under non-cancellable operating leases as at 31st March 2025 are as follows:

43. Segment Reporting

Company operates in single segment as business of Pistons, Pins, Auto Shafts (Auto Components).The executive management committee monitors the operating results of entire company as whole for the purpose of making decisions about resource allocation and performance assessment.

46. Note on Undisclosed Income If any

The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Also none of the previously unrecorded income and related assets have been recorded in the books of account during the year.

47. Disclosure related to reporting under rule 11(e) of the companies (audit and auditors) rules, 2014, as ammended.

1) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the compaany to or any other person or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2) No funds have been received by the Company from any person or entity, including foreign entities (âFunding

Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48. The company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with companies (Restriction on number of layers) Rules, 2017.

49. Previous years figures are rearranged and regrouped wherever necessary.

Mar 31, 2024

32.15.Provisions

A Provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources is expected to settle the obligation, in respect of which a reliable estimate can be made.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liability is disclosed in case of:

a) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

b) present obligation arising from past events, when no reliable estimate is possible

c) a possible obligation arising from past events where the probability of outflow of resources is remote.

Contingent assets are disclosed where inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

32.16. Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

As a Lessee

A lessee is required to recognise assets and liabilities for all leases and to recognise depreciation of leased assets separately from interest on lease liabilities in the statement of Profit and Loss. The Company uses the practical expedient to apply the requirements of this standard to a portfolio of leases with similar characteristics if the effect on the financial statements of applying to the portfolio does not differ materially from applying the requirement to the individual leases within that portfolio.

However, when the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty the Company considers that lease to be no longer enforceable. Also, according to Ind AS 116, for leases with a lease term of 12 months or less (short-term leases) and for leases for which the underlying asset is of low value, the lessee is not required to recognize right-of-use asset and a lease liability. The Company applies both recognition exemptions. The lease payments associated with those leases are generally recognized as an expense on a straight-line basis over the lease term or another systematic basis if appropriate.

Right-of-use assets:

Right-of-use assets, which are included under property, plant and equipment, are measured at cost less any accumulated depreciation and, if necessary, any accumulated impairment. The cost of a right-of-use asset comprises the present value of the outstanding lease payments plus any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs and an estimate of costs to be incurred in dismantling or removing the underlying asset. In this context, the Company also applies the practical expedient that the payments for non-lease components are generally recognized as lease payments. If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the right-of-use asset is depreciated to the end of the useful life of the underlying asset. Otherwise, the right-of-use asset is depreciated to the end of the lease term.

Lease Liability:

Lease liabilities, which are assigned to financing liabilities, are measured initially at the present value of the lease payments. Subsequent measurement of a lease liability includes the increase of the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease payments made.

As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

Transition to Ind AS 116

Ministry of Corporate Affairs (âMCAâ) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.

The Company has adopted Ind AS 116, effective annual reporting period beginning April 1,2019 and applied the standard to all lease contracts existing on April 1,2019 using the modified retrospective method and has taken the cumulative adjustments to retained earnings on the date of initial application. Consequently, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount as if the standard had been applied since the commencement date of the lease, but discounted at the lesseeâs incremental borrowing rate at the date of initial application.

32.17.Impairment of non-financial assets

The company assesses at each balance sheet date whether there is any indication that an asset or cash generating unit (CGU) may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. The recoverable amount is the higher of an assetâs or CGUâs net selling price or its value in use. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount and the reduction is treated as impairment loss and recognized in profit and loss account. If at any subsequent balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the profit and loss account.

32.18.Fair value measurement

The Company measures financial instruments such as Investments at fair value at each balance sheet date.

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:

â¢ In the principal market for the asset or liability OR

â¢ 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.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized 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:

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

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

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

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Companyâs management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value.

External valuation experts are involved for valuation of significant assets and liabilities. Involvement of external valuation experts is decided upon annually by the management.

32.19.Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

1) Debt instruments at amortised cost

2) Debt instruments at fair value through other comprehensive income (FVTOCI)

3) Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

4) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retain substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

Impairment of financial asset

Company applies expected credit loss (ECL) model for measurement and recognitionof impairment loss on the following financial assets and credit risk exposure:

a. Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance

b. Financial assets that are debt instruments and are measured as at FVTOCI

c. Lease receivables

d. Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115

e. Loan commitments which are not measured as at FVTPL

f. Financial guarantee contracts which are not measured as at FVTPL

The company follows âsimplified approachâ for recognition of impairment loss allowance on:

a. Trade receivables or contract revenue receivables; and

b. All lease receivables resulting from transactions within the scope of Ind AS 116

The application of simplified approach does not require the company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. For recognition of impairment loss on other financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

Financial liabilities

Initial recognition and measurement

The company initially recognises loans and advances anddepositson the date on which they are originated. All other financial instruments (including regular-way purchases and sales of financial assets) are recognised on thetrade date, which is the date on which the company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is measured initially at fair value, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, orthe terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

32.20. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period as reduced by number of shares bought back, if any. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split(consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

32.21. Borrowing

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

32.22. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Qualifying assets are the assets that necessarily take a substantial period of time to get ready for their intended use or sale.

j) General descriptions of defined plans:

Gratuity Plan:

k) Sensitivity analysis

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Present value of obligaion (PVO). Sensitivity analysis is done by varying (increasing/ decresing) one parameter by 100 basis points (1%)

Fair value hierarchy

40 A. Financial risk management policy and objectives

Companyâs principal financial liabilities, comprise loans and borrowings, trade and other payables, and other financial liabilities. The main purpose of these financial liabilities is to finance companyâs operations. Companyâs principal financial assets include trade and other receivables, security deposits, investments, cash and cash equivalents and other bank balances that are derived directly from its operations.

Company is exposed to certain risks which includes market risk, credit risk and liquidity risk.

Risk Management committee of the company oversees the management of these risks. This committee is accountable to audit committee of the board. This process provides assurance to the companyâs senior management that companyâs financial risk- taking activities are governed by the appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with companyâs policies and risk appetite.

The policies for managing these risks are summarised below.

1) Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits, foreign exchange transactions and other financial instruments. Company uses expected credit loss model for assessing and providing for credit risk.

a) Trade receivable

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the companyâs finance department in accordance with companyâs policy. Investments of surplus funds are made only in fixed deposits and within credit limits assigned to each counter party. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment company adjust itâs exposure to various counter parties. Companyâs maximum exposure to credit risk for the components of statement of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet itâs present and future cash flow and collateral

3) Market Risk

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.

Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure Risk

41. Capital management

For the purpose of the companyâs capital management, capital includes issued equity capital , share premium and all other equity reserves. The primary objective of the companyâs capital management is to maximise the shareholders value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is, net debt divided by total capital plus net debt. Companyâs policy is to keep the gearing ratio between 0% and 40%. The company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations.However, recently company has focused on becoming zero debt company in order to minimise interest burden and maximum profits.

Nature of leasing activity

Extension and termination options

46. Note on Undisclosed Income If any

47. Disclosure related to reporting under rule 11(e) of the companies (audit and auditors) rules, 2014, as ammended.

2) No funds have been received by the Company from any person or entity, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether,

directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48. Previous Years figures are rearranged and regrouped wherever necessary

As per our report of even date For and on behalf of the Board of Directors of

P G BHAGWAT LLP Menon Pistons Limited

Chartered Accountants FRN : 101118W/W100682

Mr. Akshay B. Kotkar Mr. Sachin Menon Mr. R. D. Dixit

Partner Chairman & Managing Director Director

Membership No. 140581 DIN : 00134488 DIN : 00626827

Place: Kolhapur Mr. S. B. P. Kulkarni Mr. Pramod Suryavanshi

Date : 29th May 2024 CFO & Associate Vice President Company Secretary

Mar 31, 2019

Notes to Financial Account

38. Details of provisions and movements in each class of provisions.

(Rs. in Lakhs)
Particulars	Compensated Absences
Carrying amount as at April 1, 2017	80.68
Add: Provision during the year 2017-18	10.30
Add: Unwinding of discounts	-
Less: Amount utilized during the year 2017-18	4.78
Less: Amount reversed during the year 2017-18	-
Carrying amount as at March 31, 2018	86.20

Add: Provision during the year 2018-19	3.72
Add: Unwinding of discounts	-
Less: Amount utilized during the year 2018-19	0.18
Less: Amount reversed during the year 2018-19	-
Carrying amount as at March 31, 2019	89.73

39. Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent by the Company as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof during the year is Rs. 19.44 Lakhs (Previous Year Rs. 16.54 Lakhs)

(b) Expenditure related to Corporate Social Responsibility is Rs. 20.60 Lakhs (Previous Year Rs. 16.64 Lakhs)

Details of Amount spent towards CSR is given below:

(Rs. in Lakhs)
Particulars	2018-19	2017-18
Education	3.80	6.51
Health	0.36	1.32
Sports For Development	0.10	7.10
Arts, Culture and Heritage	13.44	0.20
Environment, animal welfare	2.90	1.50
Total	20.60	16.64

40. Fair Value of financial assets and liabilities

a) Set out below, is the fair value of the company''s financial instruments that are recognized in the financial statements

(Rs. in Lakhs)

Sr. No.	Particulars	Fair Value
Sr. No.	Particulars	As at March 31, 2019	As at March 31, 2018
	Financial Assets
a)	Carried at amortized cost
	Non Current Loans-Security Deposits	144.60	140.55
	Trade receivable	4,368.56	4,104.01
	Current loans	-	562.87
	Other financial assets	8.68	11.41
	Cash and cash equivalent	137.67	192.95
	Other bank balances	47.91	69.90
		4,707.41	5,081.68
b)	Carried at FVTOCI
	Investments - Non Current	0.37	0.37
		0.37	0.37
	Financial Liabilities
a)	Carried at amortized cost
	Non Current Borrowings (Incl Current maturities)	-	13.22
	Current borrowings at fixed rate of interest	244.83	816.58
	Trade payable	1,099.79	1,041.98
	Other current financial liabilities (Current)	602.87	572.67
		1,947.50	2,444.46

The carrying amounts of financial assets and liabilities measured at amortised cost are a reasonable approximation of their fair values.

Fair value hierarchy

b) Financial assets and liabilities for which fair value is disclosed

(Rs. in Lakhs)

Particulars	Level 1	Level 2	Level 3
Non current investments -Carried at FVTOCI
March 31, 2019	-	-	0.37
March 31, 2018	-	-	0.37

41 A. Financial risk management policy and objectives

Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables, and other financial liabilities. The main purpose of these financial liabilities is to finance company''s operations. Company''s principal financial assets include trade and other receivables, security deposits, investments, cash and cash equivalents and other bank balances that derive directly from its operations. Company is exposed to certain risks which includes market risk, credit risk and liquidity risk. Risk Management committee of the company oversees the management of these risks. This committee is accountable to audit committee of the board. This process provides assurance to the company''s senior management that company''s financial risk- taking activities are governed by the appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with company''s policies and risk appetite. The policies for managing these risks are summarised below.

1) Credit Risk

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

a) Trade receivable

Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating score card and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. Trade receivables are non interest bearing and are generally on 30 days to 75 days credit terms. The company has no concentration of risk as customer base in widely distributed both economically and geographically.

i) Ageing analysis of trade receivable as on reporting date

(Rs. in Lakhs)

Particulars	Not Due	Less than 1 year	More than 1 year	Total
March 31, 2019	2,982.54	1,0858.61	297.41	4,368.56
March 31, 2018	3,664.13	419.71	20.17	4,104.01

ii) Movement of impairment Allowance (allowance for bad and doubtful debts)

Particulars	Total
Loss Allowance as at April 1 2017	-
Provided during the year	-
Amounts written off	-
Amount written back	-
Loss Allowance as at 31 March 2018	-
Provided during the year	-
Amounts written off	-
Amount written back	-
Loss Allowance as at 31 March 2019	-

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the company''s treasury department in accordance with company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment company adjust it''s exposure to various counterparties. Company''s maximum exposure to credit risk for the components of statement of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet it''s present and future cash flow and collateral obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain optimum levels of liquidity to meet it''s cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from domestic banks at optimised cost.

The table summarises the maturity profile of company''s financial liabilities based on contractual undiscounted payments

(Rs. in Lakhs)

Particulars	On demand	Less than 1 year	More than 1 year	Total
a) Trade Payables
March 31, 2019	-	1,099.79		1,099.79
March 31, 2018	-	1,041.98	-	1,041.98
b) Borrowings
March 31, 2019	244.83	_		244.83
March 31, 2018	816.58	13.22	-	829.80
c) Other Financial Liabilities
March 31, 2019	17.67	585.20		602.87
March 31, 2018	22.55	550.13	-	572.67

The company has access to following undrawn facilities at the end of the reporting period

Particulars	Floating Rate
Particulars	Expiring within 1 Year	Expiring beyond 1 Year
March 31, 2019	MCLR 0.90	-
March 31, 2018	MCLR 0.90	-

3) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Company''s activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

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. Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.The company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure Risk

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

41B. Impairment of financial assets: Expected credit loss Provision for expected credit loss

Internal rating	Category	Description of category	Basis of recording expected credit loss
			Loans and deposits	Trade receivables
A	High quality asset, negligible credit risk	Assets where the counter party has strong capacity to meet obligations and where risk is negligible or nil.	12 months expected credit losses	Life- time expected credit losses -simplified approach
B	Standard asset, moderate credit risk	Assets where there is moderate risk of default and where there has been low frequency of defaults in past.
C	Low quality asset, High credit risk	Assets where there is high probability of default. In general, assets where contractual payments are more than year past due are categorised as low quality asset. Also includes where credit risk of counter party has increased significantly through payments may not be more than a year past due.	Life- time expected credit losses
D	Doubtful asset- credit impaired	Assets are written off, when there is no reasonable expectations of recovery. Where loans and receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognised in profit or loss.	Asset is written off

As at 31st March 2019

1) Expected credit loss for loans, security deposits and investments

(Rs. in Lakhs)

Particulars		Asset group	Internal rating	Estimated gross carrying amount of default	Expected probability of default	Expected credit losses	Carrying amount net of impairment provision
Loss allowance measured at 12 months expected credit losses	Financial assets for which credit risk has not increased significantly from inception	Loans Fixed Deposits	A A	144.60 32.66			144.60 32.60
Loss allowance measured at life time expected credit losses	Financial assets for which credit risk has increased significantly and not credit impaired	Nil
	Financial assets for which credit risk has increased significantly and credit impaired	Nil

2) Expected credit loss for trade receivables under simplified approach

(Rs. in Lakhs)

Particulars	Not due	Past due but not impaired		Total
Particulars	Not due	Less than 1 year	More than 1 year	Total
Gross carrying amount	2,982.54	1,088.61	297.41	4,368.56
Expected loss rate	-	-	-	-
Expected credit losses (Loss allowance provision	-	-	-	-
Carrying amount of trade receivable (Net of impairment)	2,982.54	1,088.61	297.41	4,368.56

As at 31st March 2018

1) Expected credit loss for loans, security deposits and investments

(Rs. in Lakhs)

Particulars		Asset group	Internal rating	Estimated gross carrying amount of default	Expected probability of default	Expected credit losses	Carrying amount net of impairment provision
Loss allowance measured at 12 months expected credit losses	Financial assets for which credit risk has not increased significantly from inception	Loans Fixed Deposits	A A	703.42	55.97	55.97	703.42
Loss allowance measured at life time expected credit losses	Financial assets for which credit risk has increased significantly and not credit impaired	Nil
	Financial assets for which credit risk has increased significantly and credit impaired	Nil

2) Expected credit loss for trade receivables under simplified approach

(Rs. in Lakhs)

Particulars	Not due	Past due but not impaired		Total
Particulars	Not due	Less than 1 year	More than 1 year	Total
Gross carrying amount	3,664.13	419.71	20.17	4,104.01
Expected loss rate	-	-	-	-
Expected credit losses (Loss allowance provision)	-	-	-	-
Carrying amount of trade receivable (Net of impairment)	3,664.13	419.71	20.17	4,104.01

42. Capital management

For the purpose of the company''s capital management, capital includes issued equity capital , share premium and all other equity reserves. The primary objective of the company''s capitaI management is to maximise the shareholders value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is, net debt divided by total capital plus net debt. Company''s policy is to keep the gearing ratio between 20% and 40%. The company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations. However, recently company has focused on becoming zero debt company in order to minimise interest burden and maximum profits.

Particulars	As at March 31, 2019	As at March 31, 2018
Loans and borrowings (including Current maturities)	244.83	829.80
Less: Cash and Bank Balance	185.58	262.84
Net debt	59.25	566.96
Equity	7,771.61	7,147.59
Capital and net debt	7,830.86	7,714.55
Gearing %	0.76%	7.35%

43. Leases

Operating lease commitments â Company as lessor

The company has entered into operating leases for land and non-factory building, with lease terms of ten years. The company has the option to lease the assets for additional terms. The lease rent is increased by 10% after 3 years. Future minimum rentals payable under non-cancellable operating leases as at March 31,2019 are as follows:

Particulars	As at March 31, 2019	As at March 31, 2018
Within one year	4.24	1.56
After one year but not more than 5 years	18.00	-
More than five year	20.52	-
Total	42.76	1.56

44. Segment Reporting

Company operates in single segment as business of Pistons, Pins and Auto Shafts (Auto Components). The Executive Management Committee monitors the operating results of entire company as whole for the purpose of making decisions about resource allocation and performance assessment.

45. Previous Years figures are rearranged and regrouped wherever necessary

As per our report of even date	For and on behalf of the Board of Directors of
M/s. P. G. Bhagwat	Menon Pistons Limited
Chartered Accountants
FRN:101118W
Mr. Akshay B. Kotkar	Mr. Sachin Menon	Mr. R. D. Dixit
Partner	Chairman & Managing Director	Director
Membership No. 140581	DIN:00134488	DIN:00626827

Place : Kolhapur	Mr. S.B.P. Kulkarni	Mr. Pramod Suryavanshi
Date : 10.05.2019	CFO & Associate Vice President	Company Secretary

Mar 31, 2018

Notes to Accounts

Note 1: Property, Plant and Equipment

(Rs. in Lakhs)

Particulars	Tangible Assets										Intangible asset					Grand Total
Particulars	Land Free hold	Land Lease hold	Building	Plant & Equipment	Compu ter	Electrical Installation	Furniture & Fixtures	Office Equipments	Vehicles	Total	Goodwill	Softwares	Technical Know-how	R&D	Total	Grand Total
Gross Block As at 1 April 2016 Additions Disposals Impairment of asset As at 31 March 2017 Additions Disposals Impairment of asset As at 31 March 2018 Depreciation/Amortisation As at 1 April 2016 Charge for the year Depreciation on disposal As at 31 March 2017 Charge for the year Depreciation on disposal As at 31 March 2018 Net block At 31 March 2018 At 31 March 2017 At 1 April 2016
	3.76	4.76	1,175.55	6,617.50	113.72	626.23	130.22	99.89	149.21	8,920.83	0.71	47.38	2.89	0.09	51.07	8,971.90
	-	-	14.85	197.24 33.77	5.73	5.30	9.72	3.73 0.25	32.45 83.16	269.01 117.18	-	2.92	-	-	2.92	271.93 117.18
	3.76	4.76	1,190.39	6,780.97	119.45	631.53	139.94	103.36	98.50	9,072.66	0.71	50.30	2.89	0.09	53.99	9,126.65
	-	-	6.52	153.25	8.82	0.48	19.61	18.82	-	207.49	0.71	16.58	-	-	16.58 0.71	224.07 0.71
	3.76	4.76	1,196.91	6,934.22	128.27	632.00	159.55	122.18	98.50	9,280.16	-	66.88	2.89	0.09	69.86	9,350.02

	-	0.15	406.95	4,632.28	91.35	389.68	83.74	76.27	88.42	5,768.85	-	43.43	2.89	0.09	46.42	5,815.26
	-	0.01	45.02	318.72 9.83	8.91	40.63	7.92	5.00 0.21	10.38 54.74	436.58 64.79	-	1.36	-	-	1.36	437.94 64.79
	-	0.16	451.98	4,941.17	100.27	430.31	91.65	81.06	44.05	6,140.64	-	44.79	2.89	0.09	47.77	6,188.42
	-	0.01	44.90	324.02	8.57	36.73	8.80	6.13	7.73	436.88	-	3.98	;	-	3.98	440.86
	-	0.16	496.88	5,265.18	108.84	467.04	100.45	87.19	51.78	6,577.53	-	48.76	2.89	0.09	51.75	6,629.27

	3.76	4.60	700.04	1,669.03	19.43	164.96	59.10	34.99	46.72	2,702.63	-	18.11	-	-	18.11	2,720.74
	3.76	4.60	738.42	1,839.80	19.18	201.22	48.29	22.31	54.45	2,932.02	0.71	5.51	-	-	6.22	2,938.24
	3.76	4.61	768.59	1,985.22	22.36	236.55	46.48	23.62	60.79	3,151.98	0.71	3.94	-	-	4.65	3,156.64

Notes:

1) Contractual obligations -Refer note no 33 for estimated amount of contract remaining to be executed on capital account

2) For Depreciation and amortisation refer accounting policy (Note 31.8).

3) Refer Note 42 on first time adoption

4) No Provision for Impairment loss is made during the year.

5) Company has Hypothecated Property, Plant and Equipments- Vehicles & Land and Building situated at 182, Shiroli, Kolhapur & at H1,MIDC, Kupwad, Sangli, against the Borrowings from HDFC Bank & IDBI Bank.

Notes to the Financial Statements

Note 2 : Non-current investments	Par Value/ Face Value Per Unit Rs.	As at March 31, 2018		As at March 31, 2017		As at April 1, 2016
Note 2 : Non-current investments	Par Value/ Face Value Per Unit Rs.
(1) At Fair value through
Other Comprehensive
Income (FVTOCI) Investment	10.00	3,675.00	0.37	3,675.00	0.37	3,675.00	0.37
In Unquoted Equity
Instruments
Total			0.37		0.37		0.37

1. Aggregate amount of Unquoted Investments	0.37	0.37	0.37
2. Face value per unit in Rupees unless otherwise stated.
3. Refer Note 39 for Financial assets at fair value through Other Comprehensive Income - unquoted equity instruments
4. Refer Note 40A on risk management objectives and policies for financial instruments.

Rsin Lakhs
Note 3 : Loans (Non current)	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
Unsecured Deposits	140.55	130.06	127.24
TOTAL	140.55	130.06	127.24

Deposits are measured at amortised cost.

Rs in Lakhs
Note 4 : Other non-current assets	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
Capital advances	208.14	19.89	15.68
Sales Tax recoverable	26.00	26.00	26.00
Tax paid in advance (net of provision)	162.52	154.80	154.67
Other Non Current assets	2.02	6.32	6.23
TOTAL	398.68	207.01	202.58
Advance to Directors or to firm / Private company where Director is interested	103.58	16.00

Rs in Lakhs
Note 5 :	As at March 31,	As at March 31,	As at April 1,
Inventories	2018	2017	2016
Raw materials
Raw materials and components	297.37	346.37	350.02
Raw materials in transit	-	-	-
Work-in-progress	296.87	326.61	236.67
Finished goods
Finished goods	594.32	661.48	698.56
Finished goods in transit	18.44	-	-
Stores and spares	379.10	358.59	366.92
TOTAL	1,586.10	1,693.05	1,652.15

Amount Recognized in Profit and Loss Account:

Write-Down of Inventory to net realizable value amounts to Rs. Nil (31st March 2017 Rs. Nil, 31st March 2016 Rs. Nil). These were recognized as expenses during the yea rand included in raw material consumptions.

Rsin Lakhs

Note 6 :	As at March 31,	As at March 31,	As at April 1,
Trade receivables	2018	2017	2016
Unsecured
Considered Good	4,104.01	3,156.73	2,794.99
From Related Parties	941.44	441.84	617.00
From Others	3,162.57	2,714.89	2,177.99
Considered Doubtful	-	-	-
Break-up for security details:	4,104.01	3,156.73	2,794.99
Secured, considered good	-	-	-
Unsecured, considered good	4,104.01	3,156.73	2,794.99
Doubtful	-	-	-
Impairment Allowance (allowance for bad	-	-	-
anddoubtful debts)
TOTAL	4,104.01	3,156.73	2,794.99

1. Trade receivables are measured at amortised cost.

2. No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person.

3. Trade or other receivables due from firms or private companies respectively in which any director is a partner, a director or a member Rs. 941.44 (March 31, 2017 : Rs. 441.84 lakhs, April 1, 2016 : Rs. 617.00 lakhs).

4. Trade receivables are non-interest bearing and are generally on terms of 30 to 75 days

5. Movement of impairment Allowance (allowance for bad and doubtful debts)

Particulars	Rs in Lakhs
At April 1, 2016 Provided during the year Amounts written off Amount written back	-
At March 31, 2017	-
Provided during the year Amounts written off Amount written back	-
At March 31, 2018	-

6. Refer Note 40A & 40B on credit risk of trade receivables, which explains how the Company manages and measures credit quality of trade receivables that are neither past due nor impaired.

Rs in Lakhs
Note 7a : Cash and cash equivalents	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
Cash on hand	2.50	5.48	6.58
Balance with Bank
Current accounts and debit balance in
cash credit accounts	190.45	111.66	234.86
Deposits with bank	_	_	_
TOTAL	192.95	117.14	241.44

Rs in Lakhs
Note 7b : Other bank balances	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
Unpaid dividend accounts	13.93	13.06	19.55
Deposits with original maturity of more than three months but less than 12 months	55.97	723.95	317.47
TOTAL	69.90	737.01	337.02

Refer Note 40A on risk management objectives and policies for financial instruments.

			Rs in Lakhs
Note 8 : Loans (Current)	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
Advances to Related Parties Unsecured, considered good Doubtful Less : Provision for doubtful advances	562.87	940.00	1,188.74
TOTAL	562.87	940.00	1,188.74

1. Loans are measured at amortised cost.

2. Loans are non-derivative financial assets carried at amortised cost which generate a fixed or variable interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

			Rs in Lakhs
Note 9: Other financial assets (Current )	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
Others: Interest receivable on Bank Deposits	11.41	7.24	9.59
TOTAL	11.41	7.24	9.59

1. Other financial assets are measured at amortised cost.

2. Refer Note 40A on risk management objectives and policies for financial instruments.

Rs in Lakhs
Note 10 :	As at March 31,	As at March 31,	As at April 1,
Other current assets	2018	2017	2016
Advances to Suppliers & others	25.35	31.39	18.42
Unsecured, Considered Good
Related Parties	5.81	-	-
Others	19.54	31.39	18.42
Claims receivable	17.73	105.11	110.69
Deposits and receivables from excise	-	70.33	84.83
Sales tax / VAT / service tax receivable (net)	17.73	34.78	25.86
Prepaid Expenses	67.52	32.67	32.49
Advances to Staff	1.62	1.58	1.49
Employee Benfit Obligation- Gratuity	109.12	135.80	156.77
( Refer Note 36)
Other Current Asset	17.13	15.30	9.50
TOTAL	238.47	321.85	329.36

Note 11 : Share capital	No. of shares	Rs in Lakhs
Authorised share capital As at April 1, 2016 lncrease/(decrease) during the year (Note (b) below)	5,500,000	49,500,000
As at March 31, 2017	55,000,000	550.00
lncrease/(decrease) during the year	-	-
As at March 31, 2018	55,000,000	550.00
Issued share capital As at April 1, 2016 lncrease/(decrease) during the year (Note (b) below)	5,100,000 45,900,000	510.00
As at March 31, 2017	51,000,000	510.00
lncrease/(decrease) during the year		-
As at March 31, 2018	51,000,000	510.00
Subscribed and fully paid up As at April 1, 2016	5,100,000	510.00
lncrease/(decrease) during the year (Note (b) below)	45,900,000
As at March 31, 2017	51,000,000	510.00
lncrease/(decrease) during the year		-
As at March 31, 2018	51,000,000	510.00

1. Terms/Rights attached to the equity shares

a. The Company has only one class of equity shares having a par value of Re.I/- each. Each equity shareholder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders. The Company declares and pays dividend in Indian Rupees.

b. During the financial year 2016-2017,the Share Capital of the Company was sub-divided from share of Rs. 10/-each to Re. I/-each which has resulted into change in number of shares.

Mar 31, 2016

a. There is no change during the year in number of shares.

b. The company has only one class of equity shares having par value of Rs. 10 per" share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.

c. Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held.

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

1) Contingent Liability: Contingent Liabilities are not provided for in respect of:

a) Guarantees:

ID BI Bank Ltd. has issued Guarantees on behalf of the Company for Rs 33.47 lakhs (previous year Rs. 30.58 Lakhs) and Letters of Credit for Rs. NIL (previous year Rs. 97.70 lakhs).

b) The Income Tax Assessments are completed up to the Assessment year 2013-14 (Relevant to Accounting year ended 31.03.2013). Company has gone into appeal against the assessment order for A.Y. 2013-14. Liability, if any, in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

c) VAT and Central Sales Tax:

VAT and C.S.T. assessments are completed up to the accounting year 2006-2007 and 2009-10. MVAT Audit Report for the year 2014-2015 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of ''C'' Forms and'' F¹ Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes:

a) Previous year figures are regrouped wherever necessary.

b) Paises are rounded off to the nearest rupee.

d) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs. 135.97 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

e) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable.

i) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.

Mar 31, 2015

1) Contingent Liability: Contingent Liabilities are not provided for in respect of :

1) Guarantees:

IDBI Bank Ltd. has issued Guarantees on behalf of the Company for Rs 30.58 lakhs (previous year Rs. 43.08 Lakhs) and Letters of Credit for Rs. 97.70 Lakhs (previous year Rs. 697.61 lakhs).

2) The Income Tax Assessments: are completed up to the Assessment year 2012-13 (Relevant to Accounting year ended 31.03.2012). Liability, if any, in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax: C.S.T. assessments are completed up to the accounting year 2005-2006. MVAT Audit Report for the year 2013-2014 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of 'C' Forms and ' F' Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes

2.1 Previous year figures are regrouped wherever necessary.

2.2 Paises are rounded off to the nearest rupee.

2.3 Auditors remuneration :

2.4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs. 105.31 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

2.5) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable.

2.6) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.

Mar 31, 2014

1) M/s. Menon Exports: This is a partnership firm and an Export House. Menon Exports purchases goods from M/s. Menon Pistons Ltd. and other outside parties for the purpose of export outside India. Two of the Partners of the firm are Directors of Menon Pistons Ltd. The balance amount receivable from the firm is considered as good.

2) M/s. Menon Engineering Services: This is a partnership firm. Menon Engineering Services supplies goods to Menon Pistons Ltd. One of the Partner of the firm is Director of Menon Pistons Ltd.

Apart from the above Director , all other Directors are Non Executive directors. The Company has not entered into any transactions with them. They are paid sitting fees from the company for the Board Meetings attended by them.

3) M/s. Menon Bearings Ltd: is a public limited listed company, having Mr. Ram Menon, as Chairman, Mr. R. D. Dixit as Vice Chairman & Managing Director, Mr. Nitin Menon as Jt.Managing Director and Mr. Sachin Menon as Director. There are no transactions.

Note: There are no write offs/write backs of any amount for any of the above Parties during the Year 2013-2014

4) Other Parties: Apart from the above-mentioned parties, following parties are also related parties of the Company. However, no transactions have taken place with these parties in the year 2013-14.

1. Menon Metals and Alloys P. Ltd.

2. Menon Automobiles

Note: There are no write off / write backs of any amount for any of the above Parties during the Year 2013-14.

n) Lease accounting as per Accounting Standard 19 is not applicable to the Company since no Lease transaction during the year 2013-14.

p) Consolidated Financial Statements as per Accounting Standard 21 is not applicable to the company, as the Company does not have any subsidiary.

a. There is no change during the year in number of shares.

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

c. Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held.

Mar 31, 2013

1) Contingent Liability: Contingent Liabilities are not provided for in respect of:

1) Guarantees: ! D B I Bank Ltd, has issued Guarantees on behalf of the Company for Rs 39.73 lacs (previous year Rs. 67.49 Lacs) and Letters of Credit for Rs. 376.25 Lacs (previous year Rs. 676.60 lacs).

2) The Income Tax Assessments: are completed up to the Assessment year 2010-11 (Relevant to Accounting year ended 31.03.2010). Liability, if any in respect of the pending assessments, or appeals underthe Income-Tax Act, 1961 is unascertainable.

3} VAT and Central Sales Tax: C.S.T. assessments are completed up to the accounting year 2005-2006. MVAT Audit Report for the year 2011-2012 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of ''C Forms and '' F'' Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes

2.1 Previousyearfigures are regrouped wherever necessary.

2.2 Raises are rounded off to the nearest rupee.

2.3 Auditors remuneration:

2.4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs 102.34 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

2.5) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest underthe Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission

2.6) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.

Mar 31, 2012

1) Contingent Liability: Contingent Liabilities are not provided for in respect of :

1) Guarantees: I D B I Bank Ltd. has issued Guarantees on behalf of the Company for Rs 67.49 lacs (previous year Rs. 47.78 Lacs) and Letters of Credit for Rs. 676.60 Lacs (previous year Rs. 608.96 lacs).

2) The Income Tax Assessments: are completed up to the Assessment year 2009-10 (Relevant to Accounting year ended 31.03.2009). Liability, if any, in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax: C.S.T. assessments are completed up to the accounting year 2004-2005. MVAT Audit Report for the year 2010-2011 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of 'C' Forms and ' F' Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes

2.1 Previous year figures are regrouped wherever necessary.

2.2 Paises are rounded off to the nearest rupee.

2.3 Auditors remuneration :

2.4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs 82.58 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

2.5) Micro, Small and Medium Enterprises :

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission

2.6) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.

Mar 31, 2011

A) Contingent Liability: Contingent Liabilities are not provided for in respect of:

1) Guarantees: I D BI Bank Ltd. have issued Guarantees on behalf of the Company for?. 47.78 lacs (previous year Rs. 44.47Lacs) and Letters of Credit for?. 608.96 Lacs (previous year?. 377.35 lacs).

2) The Income Tax Assessments : are completed up to the Assessment year 2008-09 (Relevant to Accounting year ended 31.03.2008). Liability, if any in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax: Sales Tax & C.S.T. assessments are completed up to the accounting year 2004- 2005. MVAT Audit Report for the year 2009-2010 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of 'C Forms and ' F' Forms, which Company expects to receive in near future, hence not provided for.

4) EPCG Obligation is pending amounting to Rs. 1.18 crores, which will be fulfilled within the prescribed time limit. Custom duty of?. 19.69 Lacs against this obligation is contingent, and not provided for.

5) Excise Duty The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at ?. 71.78 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

6) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission

Mar 31, 2010

A) Contingent Liability: Contingent Liabilities are not provided for in respect of :

1) Guarantees : I D B I Bank Ltd. have issued Guarantees on behalf of the Company for Rs 44.47 lacs (previous year Rs. 36.88 Lacs) and Letters of Credit for Rs. 377.35 Lacs (previous year Rs. 280.09 lacs).

2) The Income Tax Assessments : are completed up to the Assessment year 2007-08 (Relevant to Accounting year ended 31.03.2007). Tax demand of Rs. 1.90 lacs was raised. These dues are paid. However, the Company has preferred appeal against the same. Liability, if any, in respect of the pending assessments or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax : Sales Tax & C.S.T. assessments are completed up to the accounting year 2004- 2005. MVAT Audit Report for the year 2008-2009 was considered while finalizing the accounts. Liability reported is not final and the same is against non Ãreceipt of C Forms and F Forms, which Company expects to receive in near future, hence not provided for.

4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs 26.18 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

5) Sundry Creditors

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission.

6) Employee Benefit

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.

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