Notes to Accounts of Yuken India Ltd.

Mar 31, 2025

(n) Provisions and contingencies
Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably
estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value
of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of
time is recognised as interest expense.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that

is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or it cannot be
measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the standalone
financial statements.

Contingent assets

Contingent assets are neither recognised nor disclosed. However, when realisation of income is virtually certain, related asset is recognised.

(o) Financial instruments
Financial assets
Classification

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through Other Comprehensive Income, or through Consolidated Statement
of Profit and Loss), and

- those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the
cash flows.

Initial recognition and measurement

The Company initially recognises financial assets when it becomes a party to the contractual provisions of the instrument. All financial
assets (excluding trade receivables) are measured at fair value on initial recognition. Transaction costs that are directly attributable to the
acquisition or issue of financial assets, that are not at fair value through profit or loss, are added to the fair value on initial recognition.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss. Regular
way of purchase and sale of financial assets are accounted for at trade date.

Trade Receivables -

At initial recognition, trade receivables are measured at their transaction price (as defined in Ind AS 115) if the trade receivables do
not contain a significant financing component in accordance with Ind AS 115 (or when the entity applies the practical expedient in
accordance with Para 63 of Ind AS 115).

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. 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 expected credit loss (''ECL'') at each reporting date, right from its initial recognition.

Expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and
changes in the forward-looking estimates are analysed.

Subsequent measurement

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

i. Debt instruments at amortised cost;

ii. Debt instruments at fair value through other comprehensive income (FVTOCI);

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

iv. Equity investments.

i. Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI)
on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured
at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category
generally applies to trade and other receivables.

ii. Debt instrument at FVTOCI

A debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets; and

b) The asset''s contractual cash flows represent SPPI."

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair
value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income,
impairment losses & reversals and foreign exchange gain or loss in the Statement of profit & loss. On derecognition of the asset,
cumulative gain or loss previously recognised in OCI is reclassified from the equity to Statement of profit & loss. Interest earned
whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

iii. Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as
at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ''accounting mismatch''). The Company has not designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of
Profit and Loss.

iv. Equity investments

All equity investments in scope of Ind AS 109 Financial Instruments, are measured at fair value. Equity instruments which are
held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 Business
Combinations, applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to
present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-
by- instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However,
the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of
Profit and Loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset ) is primarily derecognised (i.e. removed from the Company''s balance
sheet) when:

a The rights to receive cash flows from the asset have expired, or

b The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (i) the Company has transferred
substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the asset."

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially
all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to
the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Financial liabilities

Initial recognition and measurement

The Company recognises financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial liabilities
are recognised at fair value on initial recognition. Transaction costs that are directly attributable to the issue of financial liabilities, that
are not at a fair value through profit or loss, are reduced from the fair value on initial recognition. Transaction costs that are directly
attributable to the issue of financial liabilities at fair value through profit or loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

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

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or it is designated as at FVTPL. Financial liabilities
at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in the Statement of Profit or Loss.

Loans and borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized cost using the Effective Interest rate (EIR) method. Income and Expense are
recognized in the statement of profit or loss when the liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortization is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

Financial guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because
the specified party fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts
are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment
requirements of Ind AS 109 Financial Instruments and the amount recognised less cumulative amortisation.

Derecognition of financial liabilities

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, or the 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 and Loss.

Offsetting of financial instrument

Financial assets and financial liabilities are offset and the net amount is reported in the 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.

(p) Impairment of financial assets

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

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit
loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash
flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted
effective interest rate for purchased or originated credit-impaired financial assets). The Company estimates cash flows by considering all
contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of
that financial instrument.

For 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 Revenue from contracts with customers, the Company applies simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected life time losses to be recognized after initial recognition of receivables. For recognition of
impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in
the credit risk since initial recognition. If credit risk has not increased significantly, twelve months ECL is used to provide for impairment
loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing
impairment loss allowance based on twelve-months ECL.

(q) 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:

- In the principal market for the asset or liability, or

- 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 participant''s 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, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone 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:

Level 1 - Quoted (unadjusted) market prices in 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

(r) Cash and cash equivalents

Cash and cash equivalent in the statement of financial position comprises cash at banks and on hand, demand deposits, short-term
deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts
of cash, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

(s) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
Company is engaged in the business of manufacturing hydraulic pumps and power units, which constitutes its single reportable segment.

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and
management reporting structure. The operating segments are the segments for which separate financial information is available and for
which operating profit/loss amounts are evaluated regularly by the executive management in deciding how to allocate resources and
in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue,
segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the
operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis
have been included under "unallocated revenue / expenses / assets / liabilities.

(t) Earnings/ (Loss) per Share (EPS)

Basic EPS 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. Partly paid equity shares are treated as a fraction of an equity share to the
extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. 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 to existing shareholders, share split and reverse share split (consolidation of shares) that have changed the number of equity shares
outstanding, without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest
on the convertible preference shares, if any) by the weighted average number of equity shares outstanding during the year plus the
weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented.

(u) Earnings/ (Loss) per Share (EPS)

Cash flows are reported using the indirect method, whereby profit/ (loss) before 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. Cash flow for the year are classified by operating,
investing and financing activities.

(v) Statement of Cash Flows

"The 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.

Amended Accounting Standards (Ind AS) and interpretations effective during the period

The MCA has notified below new standards / amendments which were effective from 01 April 2024.

Amendments to Ind AS 116 - Lease liability in a sale and leaseback

The amendments require an entity to recognise lease liability including variable lease payments which are not linked to index or a rate
in a way it does not result into gain on Right of Use asset it retains.

Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard that prescribe, recognition, measurement and disclosure requirements, to avoid
diversities in practice for accounting insurance contracts and it applies to all companies i.e., to all "insurance contracts" regardless of the
issuer. However, Ind AS 117 is not applicable to the entities which are insurance companies registered with IRDAI.

The Company has reviewed the new pronouncements and based on its evaluation has determined that these amendments do not have
a significant impact on the Financial Statements.

Amendment effective for annual reporting periods beginning on or after April 01,2025
The MCA has notified below amendment which were effective from April 01,2025.

Amendment to Ind AS 21- "The Effects of Changes in Foreign Exchange Rates"

The amendment specifies how an entity should assess whether a currency is exchangeable and how it should determine a spot
exchange rate when exchangeability is lacking. The amendments also requires the disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect,
the entity''s financial performance, financial position and cash flows

When applying the amendment, an entity cannot restate comparative information.

The amendments will not have a material impact on the Company''s financial statements.

(w) Other Accounting policies
(i) Leases

Company as a lessee

The company''s lease asset classes primarily consist of leases for buildings. The Company assesses whether a contract contains a
lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

At the date of commencement of the lease, the company recognizes a right-of-use asset ("ROU") and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low
value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and
lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined
for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the
country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use
asset if the company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows.

Note: The Company pursuant to the Board meeting held on 23 May 2025, considered the issue of equity shares not exceeding 7,00,000
shares to Yuken Kogyo Company Limited, Japan, promoter of the Company at an issue price payable in cash, not less than the floor price
computed as on relevant date, as determined in accordance with Chapter V of the SEBI (ICDR) Regulations, 2018, on Preferential Basis
as per the provisions of SEBI (ICDR) Regulations, 2018, as amended subject to the approval of shareholders.

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each equity share is entitled to one vote per share.
The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting and shall be payable in Indian rupees. In the event of liquidation of the Company, the shareholders 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.

(c) The Board of Directors, in its meeting held on 28 May 2025, proposed a final dividend of 15% (H1.5 per equity share) for the financial year
ended 31 March 2025. The proposal is subject to the approval of shareholders at the upcoming Annual General Meeting and if approved
would result in a cash outflow of H195.

Note:

The Company has provided guarantee in respect of the working capital loan taken by Kolben Hydraulics Limited from Sumitomo Mitsui
Banking Corporation (SMBC) in FY 2023-24.During the year, company has provided guarantee in respect of the Term Loan taken by Grotek
Enterprises Private Limited & AEPL Grotek Renewable Energy Private Limited from Sumitomo Mitsui Banking Corporation(SMBC).

Note 38 - Capital management

For the purpose of the Company''s capital management, capital includes issued capital, additional paid in capital and all other equity reserves
attributable to the equity shareholders of the Entity. The primary objective of the Company''s capital management is to maximise the
shareholder value.

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital
to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash.

Note 40

Defined benefit obligations

The Company has provided for the gratuity liability (defined benefit plan), as per actuarial valuation carried out by an independent actuary
on the Balance Sheet date.

Defined benefit contributions

The Company makes contributions to statutory provident fund as per the Employees Provident Fund and Miscellaneous Provision Act, 1952
and superannuation fund which are defined contribution plans as per Ind AS 19, Employee benefits. The Company recognised H261.84 (31
March 2024: H207.62) for provident fund contributions and H48.78 (31 March 2024: H42.92) for superannuation fund contributions in the
Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company has provided for gratuity liability, for its employees as per actuarial valuation carried out by an independent actuary on the
balance sheet date. The valuation has been carried out using the Projected Unit Credit Method as per Ind AS 19 to determine the present
value of defined benefit obligations and the related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time). Employees are entitled
to all the benefits enlisted under this act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime.
Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing
the above benefit and will thus result in an increase in the value of the liability as shown in financial statements.

Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash/
cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in future. Deviation in
the rate of interest in future for employees from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan''s liability.

Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual
experience turning out to be worse compared to the assumption.

Regulatory risk

Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from time to time). There is
a risk of change in regulations requiring higher gratuity payouts

Asset liability mismatching or market risk

The duration of the liability is longer compared to duration of assets, exposing the company to market risk for volatilities/fall in interest rate.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The management assessed that for amortised cost instruments, fair value approximate largely to the carrying amount.

(iii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair
value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: inputs other than quoted prices included within Level 1 which maximise the use of observable market data and rely on as little
as possible on the entity specific estimates for the asset or liability, either directly or indirectly.

Level 3: unobservable inputs for the asset or liability.

The Company does not have any financial instrument designated at FVTPL or FVOCI to be valued as per level 1, level 2, level 3, hence
this disclosure is not presented.

Note 42 - Financial risk management

The Company''s financial assets majorly comprise of trade receivables, investments, loans, cash and cash equivalents and Bank balances other
than cash. The Company''s financial liabilities majorly comprises of borrowings, trade payables and lease liabilities.

The Company is primarily exposed to market risk, credit risk and liquidity risk arising out of operations. The Company''s financial assets category
are summarised in Note 7 to 8, Note 11 - 13, and liabilities are summarised in Note 18 to 20 and Note 22.

The Company''s risk management is coordinated at its headquarters, in close cooperation with the board of directors, and focuses on actively
securing the Company''s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial
investments are managed to generate lasting returns. The Company''s risk management strategies focus on the unpredictability of these
elements and seek to minimise the potential adverse effects on its financial performance. The Company does not engage in the trading of
financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are
described below.

(A) Credit risk analysis

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company, resulting in a financial loss. The Company is
exposed to this risk for various financial instruments. The Company''s maximum exposure to credit risk is limited to the carrying amount
of financial assets, as summarised below:

A1 Trade and other receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk
has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company''s exposure
to customers is diversified and no single customer contributes to more than 10 percent of outstanding trade receivables. On account
of adoption of Ind AS 109, Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain.
The provision for expected credit loss takes into account available external and internal credit risk factors and Company''s historical
experience for customers.

Credit risk on trade receivables is limited due to the Company''s diversified customer base which includes public sector enterprises
and reputed private corporates. For trade receivables, the Company computes expected credit loss allowance based on provision
matrix which is prepared considering customer''s industry segment and historically observed overdue rate over expected life of trade
receivables , except for few customer where specific provisions is being created. The expected credit loss allowance is considered as a
percentage of net receivable position.

Note 42 - Financial risk management (contd.)

Financial assets that are past due but not impaired

There is no other class of financial assets that is past due but not impaired.

(B) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring
scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day
business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity
needs are monitored in various time bands, usually on a month on month basis. Long-term liquidity needs for a 360-day lookout period
are identified monthly. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any
shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

The Company''s objective is to maintain cash and marketable securities to meet its liquidity requirements for 30-day periods at a
minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate
amount of committed credit facilities and the ability to sell long-term financial assets.

The Company''s non-derivative financial liabilities have undiscounted contractual maturities (including interest payments where
applicable) as summarised below:

(C) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk and interest rate risk,
which result from both its operating and investing activities.

Foreign currency sensitivity

The Company operates internationally and a significant portion of the business is transacted in USD, JPY, GBP and EURO currencies and
consequently the Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in various foreign
currencies. The exchange rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate

Note 48 Other statutory information

1. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:

i) 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

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

2. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:

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

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

3. The Company has reviewed transactions to identify if there are any transactions with struck off companies. To the extent information is
available on struck off companies, there are no transactions with struck off companies.

4. There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax
Act, 1961, that has not been recorded in the books of account.

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

6. The creditors covered by Micro, Small and Medium Enterprises Development Act, 2006 ("the MSMED Act, 2006") have been identified on
the basis of information available with the Company.

7. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

8. The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

9. No charges or satisfaction yet to be registered with ROC beyond the statutory period.

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

Note 49 Previous period comparatives

Prior year amounts have been regrouped/reclassified wherever necessary, to conform to the current years'' presentation. The impact of such
reclassification/regrouping is not material to the financial statements.

Note 50 Management note on Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software
for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled.

The Company uses the accounting software SAP for maintaining its books of account. During the year ended March 31, 2025, the
Company had not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log
any direct data changes as it would impact database performance significantly. Audit trail (edit log) is enabled at the application
level as part of standard framework and the Company''s users have access to perform transactions only from the application level.
Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention where such feature
was enabled.

The accompanying notes form an integral part of these standalone financial statements

As per our report of even date attached

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Yuken India Limited

Chartered Accountants

Firm Registration No.: 001076N/N500013

Lokesh Khemka Parabrahman Tadimalla Kaleginanaoor Chandrashekhar Sharma C P Rangachar

Partner Director Director Managing Director

Membership No.: 067878 DIN: 01392252 DIN: 09505130 DIN: 00310893

H M Narasinga Rao Suchithra R A Venkatakrishnan

Bengaluru Chief Financial Officer Company Secretary Cheif Executive Officer

Wednesday, 28 May 2025 ACS : 70262

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Mar 31, 2023

The fair value of apartments included in investment property is H1,553.44 lakhs (31 March 2022: Nil) as against the cost amounting to H1,282.36 lakhs, and the same has been determined by an external independent registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value measurement for investment property has been categorised as Level 2 fair value based on the inputs to the valuation technique used. The valuation techniques used for determining the fair value of the property was based on the prevailing market price of similar property in the same locality. The above investment property includes an asset that has been sub-leased and rental income of H2.36 lakhs (31 March 2022: Nil) has been recognised in the Statement of Profit and Loss (rental income - Refer Note 24).

Fair value hierarchy disclosures for investment properties have been provided in Note 41(b).

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

(C) Evaluation of indicators for impairment of investment

The evaluation of applicability of indicators of impairment of investment requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the investment. In assessing impairment, management estimates the recoverable amount of the investment or cash generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each equity share is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and shall be payable in Indian rupees. In the event of liquidation of the Company, the shareholders 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.

(c) During the year ended 31 March 2019, the Company had issued 9,000,000 fully paid equity shares of face value H10 each pursuant to a bonus issue approved by the shareholders through e-voting and physical ballot. The bonus shares were issued by capitalization of profits transferred from its reserves. In the period of five years immediately preceding the Balance Sheet date, the Company has not bought back any shares.

(d) The Board of Directors, in its meeting held on 29 May 2023, proposed a final dividend of H0.80 per equity share. The proposal is subject to the approval of shareholders at the upcoming Annual General Meeting and if approved would result in a cash outflow of H96.

General reserve:

General reserve represents appropriation of profits.

Retained earnings:

All the profits made or losses incurred by the Company are transferred to Retained earnings from the Statement of Profit and Loss. Capital Reserve

Capital Reserve has been created on account of merger of Yuflow Engineering Private Limited in the current year (Refer Note 48).

Details of security given State Bank of India (SBI)

(i) Primary security : Hypothecation on stocks, receivables and other current assets- paripassu charge with HDFC Bank Limited

(ii) Collateral security details:

(a) Equitable mortgage on freehold rights on land and building- Doddanekundi industrial area, Mahadevapura, Bengaluru.

(b) Equitable mortgage of freehold rights on factory land and building located in Peenya, Bengaluru.

(c) Hypothecation of unencumbered fixed assets of the Company HDFC Bank Limited

(i) First pari pasu charge on stocks, book debts and other current assets with SBI Bank

(ii) First charge by way of extension of mortgage of factory land and building located in Hedegabanahalli Village, Malur.

(iii) Exclusive charge by way of equitable mortgage on land and building located in Koppathimmanahalli Village, Malur.

(iv) First charge on all movable fixed assets of the company - first paripassu charge with SBI Bank Sumitomo Mitsui Banking Corporation (SMBC)

(i) Corporate Guarantee given by Yuken Kogyo Co Limited amounting to H5,000.

Mizuho Bank Limited

(i) Corporate Guarantee given by Yuken Kogyo Co Limited amounting to H3,000.

Note:

The Company has filed quarterly statements of inventory and trade receivables with banks from whom borrowings have been obtained by pledging these assets. The Company has carried out a reconciliation between these statements filed with the books of account which did not result in any material discrepancy.

Sale of Company''s share of residential units:

During the year, the Company fulfilled its performance obligation with respect to the sale of certain Company''s share of residential units by registering the said units in the name of the unit owner due to which the control over these units were transferred to the unit owner. Accordingly the Company recorded the revenue from sale of such units in accordance with Ind AS 115. All the flats have been registered during the year and a gain to the extent of H238.57 has been recognized.

Others

The Hon''ble Supreme Court of India had passed a judgement relating to definition of wages under the Provident Fund Act, 1952 on 28 February 2019. However, considering that there are numerous interpretative issues related to the judgement and in the absence of reliable measurement of the provision for the earlier period, the Company had made provision for provident fund contribution from the date of order. The Company will evaluate its position and update provision, if required, after receiving further clarity in this regard.

Note 36: Dues to micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2023 has been made in the financial statement based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the Balance Sheet date.

Note 38: Capital management

For the purpose of the Company''s capital management, capital includes issued capital, additional paid in capital and all other equity reserves attributable to the equity shareholders of the Entity having significant influence. The primary objective of the Company''s capital management is to maximise the shareholder value.

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash.

Note 40: Defined benefit obligations

The Company has provided for the gratuity liability and leave encashment (defined benefit plan), as per actuarial valuation carried out by an independent actuary on the Balance Sheet date.

A Defined benefit contributions

The Company makes contributions to statutory provident fund as per the Employees Provident Fund and Miscellaneous Provision Act, 1952 and superannuation fund which are defined contribution plans as per Ind AS 19, Employee benefits. The Company recognised H229.61 (31 March 2022: H193.38) for provident fund contributions and H48.70 (31 March 2022: H42.07) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B Defined benefit plans

The Company has provided for gratuity and leave encashment liability, for its employees as per actuarial valuation carried out by an independent actuary on the balance sheet date. The valuation has been carried out using the Projected Unit Credit Method as per Ind AS 19 to determine the present value of defined benefit obligations and the related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time). Employees are entitled to all the benefits enlisted under this act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

a Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability as shown in financial statements.

b Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash/ cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

c Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in future. Deviation in the rate of interest in future for employees from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

d Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

e Regulatory risk

Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts

f Asset liability mismatching or market risk

The duration of the liability is longer compared to duration of assets, exposing the company to market risk for volatilities/fall in interest rate.

g Investment risk

The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

b Details of fund assets which are managed by an insurance company have not been disclosed since the details have not been provided by them.

c The assumptions were developed by management with the assistance of independent actuaries. Discount factors are determined close to each year-end by reference to market yields of government bonds that have terms to maturity approximating to the terms of the gratuity obligation. Other assumptions are based on current actuarial benchmarks and management''s historical experience.

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

There is no change in the method of valuation for the prior periods.

Effect of plan on entity''s future cash flows

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company. The weighted average duration of the plan is estimated to be 9 years. Following is a maturity profile of the defined benefit obligation:

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables, working capital loans and other financial liabilities approximate the carrying amount largely due to short-term maturity of this instruments.

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

(ii) Fair value of financial assets and liabilities measured at amortised cost

The management assessed that for amortised cost instruments, fair value approximate largely to the carrying amount.

(iii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: the fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

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

Note 42: Financial risk management

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it''s financial performance. The primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

The Company''s risk management activity focuses on actively securing the Company''s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below.

(A) Credit risk analysis

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company, resulting in a financial loss. The Company is exposed to this risk for various financial instruments. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets, as summarised below:

A1 Trade and other receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company''s exposure to customers is diversified and no single customer contributes to more than 10 percent of outstanding trade receivables. On account of adoption of Ind AS 109, Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain. The provision for expected credit loss takes into account available external and internal credit risk factors and Company''s historical experience for customers.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on atual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

A2 Cash and cash equivalents

The credit risk for cash and cash equivalents, and derivative financial instruments is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, advances recoverable, loans and advances to employees, security deposit and other financial assets are neither past due nor impaired.

Financial assets that are past due but not impaired

There is no other class of financial assets that is past due but not impaired.

(B) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, usually on a month on month basis. Long-term liquidity needs for a 360-day lookout period are identified monthly. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

The Company''s objective is to maintain cash and marketable securities to meet its liquidity requirements for 30-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability to sell long-term financial assets.

The Company''s non-derivative financial liabilities have contractual maturities (including interest payments where applicable) as summarised

below:

(C) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk and interest rate risk, which result from both its operating and investing activities.

Foreign currency sensitivity

The Company operates internationally and a significant portion of the business is transacted in USD, JPY, GBP and EURO currencies and consequently the Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

Sensitivity

The following table details the Company''s sensitivity to a 1% increase and decrease in the H against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where H strengthens 1% against the relevant currency. For a 1% weakening of H against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Interest rate risk Liabilities

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31 March 2023, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.

Trade Receivables- The credit period on sale of goods ranges from 45 to 120 days with or without security (dealer deposits).

Contract liabilities include advances received from customers. The outstanding balances of these accounts has increased primarily on account of satisfaction of performance obligation subsequent to year-end against which the advances were received.

Contract liabilities - Advance from customers include the advances received from customers on the booking of residential units.

iii) Performance obligation

Information about the Company''s performance obligations are summarised below:

Sale of goods

The performance obligation is satisfied upon shipment of the goods and transfer of control. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price is allocated.

Sale of services

The performance obligation is satisfied over-time or point in time based on the nature of services and payment is generally due upon completion of services.

Sale of residential units

The performance obligation is satisfied at a point in time when the obligation of transferring the control of residential units is fulfilled.

Note 45: Segment information

The Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108-Operating Segments. The CODM evaluates the Company performance and allocates resources based on Single Segment - Hydraulics

Notes

1 Reasons for variance has been provided for ratios that have a % change of more than 25%

2 Net profits after taxes considered is after including other comprehensive income/loss

3 Equity Share Capital and Other Equity has been used to derive Average Shareholder''s Equity

4 Average Shareholder''s Equity, Average Inventory, Average Trade Receivable and Average Trade Payables for the year ended 31 March 2023 have been arrived at using the average values as at 31 March 2023 and 31 March 2022 and for 31 March 2022 have been arrived at using the restated average values as at 31 March 2022 and 31 March 2021.

5 Ratios that are Nil or Not applicable have not been disclosed

Note 48: Scheme of Amalgamation of Yuflow Engineering Private Limited with the Company

Pursuant to Scheme of Amalgamation (the "scheme") u/s 230 to 232 of the Companies Act 2013, duly approved by the Honourable National Company Law Tribunal, Bengaluru Bench via order dated 28 February 2023, erstwhile wholly owned subsidiary company, Yuflow Engineering Private limited (''the Transferor Company'') has been merged with the Company. Accordingly all the assets, liabilities and reserves of Yuflow Engineering Private Limited were transferred to and vested in the Company on a going concern basis with effect from 01 April 2021 being appointed Date ("Appointed Date").

Note 50: Other statutory information

1. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i) 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

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

2. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

3. The Company has reviewed transactions to identify if there are any transactions with struck off companies. To the extent information is available on struck off companies, there are no transactions with struck off companies.

4. There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

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

6. The creditors covered by Micro, Small and Medium Enterprises Development Act, 2006 ("the MSMED Act, 2006") have been identified on the basis of information available with the Company.

7. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

8. The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

9. No charges or satisfaction yet to be registered with ROC beyond the statutory period.

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

Note 51: Previous period comparatives

Prior year amounts have been regrouped/reclassified wherever necessary, to conform to the current years'' presentation. The impact of such reclassification/regrouping is not material to the financial statements.

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Mar 31, 2018

Note 1

General Information

Yuken India Limited was established in 1976 in technical and financial collaboration with Yuken Kogyo Co. Limited, Japan. The Company''s manufacturing units are located in Malur, Kolar(dt),Peenya Indl Area, Bangalore and New Delhi. Sales and distribution network is spread across India. The Company is amongst the most preferred source of supply by most of the original equipment manufacturers in India. The Company manufactures a wide range of vane pumps, piston pumps, gear pumps, pressure controls, flow controls, directional controls, modular control valves, servo valves, custom built/standard hydraulic systems and chip compactor.

Note:2

(a) Deemed carrying cost

For property, plant and equipment existing as on the date of transition to Ind AS, i.e., 1 April 2016, the Company has used carrying value as at 1 April 2016 as deemed cost.

(b) Contractual obligations

There are no contractual commitments for the acquisition of property, plant and equipment.

(c) Capitalised borrowing cost

There is no borrowing costs capitalised during theyearended 31 March 2018 (31 March 2017: Rs.22.25 lakhs).

(d) Property, plant and equipment pledged as security

Details of properties pledged are as per note 17.

Note:3

Fair value of investment property

Fair value of investment property as on 31 March 2018 is Rs.12,212.82 lakhs

The Company has obtained an independent valuation for its investment property during the year ended 31 March 2018. The best evidence of fair value is current prices in an active market for similar properties.

Where such information is not available, the independent valuer consider information from a variety of sources including:

a) In case of valuation of land, current prices in an active market for similar properties of the same area and localities have been taken. The rates of which are based on verbal enquiries from the property dealers of the areas and localities;

b) In case of constructed building, rates derived from CPWD/CWC PARS as on 01-10-2010-12/1997 have been taken as the basis of valuation.

These rates have further been modified to bring them at par with the present day price index and as per specifications found at site. Necessary depreciation for age and life of the structure has been taken into account. Where the work is not covered under any of the standard specifications the rates have been assessed as on the date of valuations

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each equity share is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and shall be payable in indian rupees. In the event of liquidation of the Company, the shareholders 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.

(d) In the period of five years immediately preceding the balance sheet date, the Company has not issued any bonus shares or has bought back any shares.

(e) The Board of Directors, in its meeting held on 30 May 2018, proposed a final dividend of Rs. 2 per equity share. The proposal is subject to the approval of shareholders at the upcoming Annual General Meeting and if approved would result in a cash outflow of Rs. 60 lakhs, excluding corporate dividend tax.

(i) Term loan amounting to Rs.1,695.25 lakhs from HDFC Bank Limited has been transferred to Mizuho Bank Limited during the current year

(ii) Security Details for the term loans taken from HDFC Bank Limited:

a Exclusive Charge on the Factory Land and Bulding of the company located at No. 52 Khatha No 84/171,85/172, Hedegabanahalli Village, Malur Taluk,Kolar District ,Karnataka

(iii) Security Details for the term loan taken from Mizuho Bank Limited:

a Corporate Guarantee given by Yuken Kogyo Co Limited amounting to H1,900 lakhs

Notes 4

Details of security given SBI Bank Limited

(i) Primary security : Hypothecation on stocks, receivables and other current assets.

(ii) Collateral security details:

(a) Equitable mortgage on freehold rights on land and building- Doddanekundi industrial area, Mahadevapura, Bengaluru.

(b) Equitable mortgage of freehold rights on factory land and building located in Peenya, Bengaluru.

(c) Hypothecation of unencumbered fixed assets of the Company

HDFC Bank Limited

(i) First pari pasu charge on stocks, book debts and other current assets.

(ii) First charge by way of extension of mortgage of factory land and building located in Hedegabanahalli Village, Malur

(iii) Exclusive charge by way of equitable mortgage on land and building located in Koppathimmanahalli Village, Malur

(iv) First charge on all movable fixed assets of the company - first paripassu charge with SBI.

The company had considered an accelerated depreciation of Rs. 366.36 lakhs during the previous year due to change in the estimated useful life of the buildings at Whitefield, Bengaluru since the Company had shifted its factory from Whitefield to Malur.

Note 5 Dues to micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2018 has been made in the financial statement based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

Note 6 - Capital management

For the purpose of the Company''s capital management, capital includes issued capital, additional paid in capital and all other equity reserves attributable to the equity shareholders of the Entity having significant influence. The primary objective of the Company''s capital management is to maximise the shareholder value.

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash.

Note 7 - Defined benefit obligations

The Company has provided for the gratuity liability and leave encashment (defined benefit plan), as per actuarial valuation carried out by an independent actuary on the Balance Sheet date.

A Defined benefit contributions

The Company makes contributions to statutory provident fund as per the Employees Provident Fund and Miscellaneous Provision Act, 1952 and superannuation fund which are defined contribution plans as per Ind AS 19, Employee benefits. The Company recognised Rs. 120.80 lakhs (31 March 2017: Rs. 121.84 lakhs) for provident fund contributions and Rs. 95.59 lakhs (31 March 2017: Rs. 101.93 lakhs) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B Defined benefit plans

The Company has provided for gratuity and leave encashment liability, for its employees as per actuarial valuation carried out by an independent actuary on the balance sheet date. The valuation has been carried out using the Project Unit Credit Method as per Ind AS 19 to determine the present value of defined benefit obligations and the related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time). Employees are entitled to all the benefits enlisted under this act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

a Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability as shown in financial statements.

b Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity payouts.This may arise due to non availabilty of enough cash/ cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

c Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in future. Deviation in the rate of interest in future for employees from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

d Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

e Regulatory risk

Gratuity benefitis are paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts

f Asset liability mismatching or market risk

The duration of the liabilty is longer compared to duration of assets, exposing the company to market risk for volatilities/fall in interest rate.

g Investment risk

The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Note 8

a The Company is estimated to contribute Rs. 146.55 lakhs (March 2017: Rs. 130.55 lakhs) towards gratuity funds during the next year.

b Details of fund assets which are managed by an insurance company have not been disclosed since the details have not been provided by them.

c The assumptions were developed by management with the assistance of independent actuaries. Discount factors are determined close to each year-end by reference to market yields of government bonds that have terms to maturity approximating to the terms of the gratuity obligation. Other assumptions are based on current actuarial benchmarks and management''s historical experience.

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

There is no change in the method of valuation for the prior periods.

Effect of plan on entity''s future cash flows

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company. The weighted average duration of the plan is estimated to be 10 years. Following is a maturity profile of the defined benefit obligation:

The discount rate is based on the prevailing market yields of government of India securities as at the balance sheet date for the estimated term of the obligations.

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

Note 9 First time adoption of Ind AS

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

Accordingly, the Company has prepared financial statements for the comparative period data as at and for the year ended 31 March 2017 that comply with the Ind AS applicable, as described in the summary of significant accounting policies. In preparing these comparative financial statements, the Company''s opening Balance Sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements, including the Balance Sheet as at 1 April 2016 and the comparative financial statements as at and for the year ended 31 March 2017.

(A) Ind AS optional exemptions

A1 Deemed cost for property, plant and equipment, investment property and intangible assets

Ind AS 101, First-time adoption of Indian Accounting Standards, permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as on the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the company has elected to measure all of its property, plant and equipment at their carrying value as at the transition date and use that as deemed cost as on the date of transition. The company has elected to measure its intangible assets at their previous GAAP carrying value.

A2 Deemed cost for investments in subsidiaries and associates

Ind AS 101, First-time adoption of Indian Accounting Standards, permits a first-time adopter to elect to continue with the carrying value for investments in subsidiaries and associates as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure its investments in subsidiaries and associates in the standalone financial statements at their previous GAAP carrying value.

A3 Lease

Appendix C to Ind AS 17, Leases, requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, Leases, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101, First-time adoption of Indian Accounting Standards, provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

(B) Ind AS mandatory exemptions B1 Estimates

In accordance with Ind AS, as at the date of transition to Ind AS an entity''s estimates shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except for impairment of financial assets based on Expected credit loss in accordance with Ind AS on the date of transition as this was not required as per previous GAAP.

B2 Classification and measurement of financial assets and liabilities

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109, Financial Instruments are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

a) The effects of the retrospective application or retrospective restatement are not determinable; or

b) The retrospective application or restatement requires assumptions about what management''s intent would have been in that period; or

c) The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

B3 De-recognition of financial assets and liabilities

Ind AS 101, First-time Adoption of Indian Accounting Standards, requires a first-time adopter to apply the de-recognition provisions of Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101, First-time Adoption of Indian Accounting Standards, allows a first-time adopter to apply the de-recognition requirements in Ind AS 109, Financial Instruments, retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109, Financial Instruments, to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109, Financial Instruments, prospectively from the date of transition to Ind AS.

(C) Reconciliations between previous GAAP and Ind AS

Ind AS 101, First-time Adoption of Indian Accounting Standards, requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS as at the periods specified below.

C1 Reconciliation of other equity

The Company has also prepared a reconciliation of equity as at 31 March 2017 and 1 April 2016 under the previous GAAP with the equity as reported in these financial statements under Ind AS, that reflect the impact of Ind AS on the components of statement of Balance Sheet which is presented below:

Notes 10 Deferred tax

Under the Previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under Ind AS 12, Income Tax, deferred taxes are recognized following the Balance Sheet approach on the temporary differences between the carrying amount of asset or liability in the Balance Sheet and its tax base.

11 Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as ''other comprehensive income'' includes re-measurements of defined benefit plans, effective portion of gains and losses on cash flow hedging instruments and fair value gains or (losses) on FVTOCI equity instruments. The concept of other comprehensive income did not exist under the Previous GAAP.

12 Defined benefit obligation

Both under the Previous GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognized immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost is reduced by such amount with a corresponding adjustment on defined benefit plans has been recognized in the OCI net of tax.

13 Excise duty

Under the Previous GAAP, revenue from sale of goods was presented net of excise duty whereas under Ind AS the revenue from sale of goods is presented inclusive of excise duty. Accordingly, the excise duty has been included in revenue and other expenses respectively.

14 Forward contracts

Under previous GAAP, the premium paid on forward contracts which are not intended for speculation or trading purposes are recognised over the life of the contract. The forward contracts are subsequently measured at closing exchange rate prevailing on the reporting date. As per Ind AS, the forward contracts are marked to market at the reporting date and resulting gain/(loss) arising on it is recognised in Statement of Profit and Loss.

15 Proposed dividend

Under the Previous GAAP, dividends proposed by the board of directors after the Balance Sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend included under provisions has been reversed with corresponding adjustment to retained earnings.

16 Measurement of investments at fair value through OCI

Under the Previous GAAP, the Company accounted for long term investments in quoted and unquoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments as FVTOCI investments. Ind AS requires FVTOCI investments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments fair value and Indian GAAP carrying amount has been recognised as a separate component of equity, in the FVTOCI reserve, net of related deferred taxes.

17 Financial guarantee

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified subsidiary fails to make a payment when due in accordance with the terms of a debt instrument. Under the Previous GAAP, there was no requirement to account for financial guarantees given by the Company. Under Ind AS, financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109, ''Financial Instruments'' and the amount recognized less cumulative amortization.

18 Measurement of financial liabilities

Under Previous GAAP, all financial liabilites are carried at cost. Under Ind AS, financial liabilities are required to be recognised at fair value. Accordingly, the Company has recognised such financial liabilites at fair value and subsequently measured them at amortised cost using effective interest rate method.

19 Other equity

Adjustments to retained earnings and other comprehensive income has been made in accordance with Ind AS, for the above mentioned line items.

Note 20 - Discontinued operations

Business transfer agreement

Consequent to the approvals received from Board of Directors on 21 September 2016 and from the shareholders on 4 January 2017, the company has executed a Business Transfer Agreement on 5 January 2017 and has sold/transferred business operations of foundry effective from 1 October 2016 on a going concern basis for a consideration of H2,375 lakhs by way of slump sale to Grotek Enterprises Private Limited, a wholly owned subsidiary of the Company.

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables, working capital loans and other financial liabilities approximate the carrying amount largely due to short-term maturity of this instruments.

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

(ii) Fair value of financial assets and liabilities measured at amortised cost

The management assessed that for amortised cost instruments, fair value approximate largely to the carrying amount.

(iii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: the fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

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

Note 21- Financial risk management

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it''s financial performance. The primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

The Company''s risk management activity focuses on actively securing the Company''s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below.

(A) Credit risk analysis

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company, resulting in a financial loss. The Company is exposed to this risk for various financial instruments. The Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets, as summarised below:

A1 Trade and other receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company''s exposure to customers is diversified and no single customer contributes to more than 10 percent of outstanding trade receivables. On account of adoption of Ind AS 109, Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain. The provision for expected credit loss takes into account available external and internal credit risk factors and Company''s historical experience for customers.

A2 Cash and cash equivalents

The credit risk for cash and cash equivalents, and derivative financial instruments is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, advances recoverable, loans and advances to employees, security deposit and other financial assets are neither past due nor impaired.

Financial assets that are past due but not impaired

There is no other class of financial assets that is past due but not impaired.

(B) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, usually on a month on month basis. Long-term liquidity needs for a 360-day lookout period are identified monthly. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

The Company''s objective is to maintain cash and marketable securities to meet its liquidity requirements for 30-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability to sell long-term financial assets.

(C) Market risk

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk and interest rate risk, which result from both its operating and investing activities.

Foreign currency sensitivity

The Company operates internationally and a significant portion of the business is transacted in USD, JPY, GBP and EURO currencies and consequently the Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

Foreign currency denominated financial assets and liabilities which expose the Company to currency risk are disclosed below. These include outstanding derivatives contracts entered into by the Company and unhedged foreign currency exposures.

Sensitivity

The following table details the Company''s sensitivity to a 1% increase and decrease in the Rs. against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where Rs. strengthens 1% against the relevant currency. For a 1% weakening of Rs. against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or in directly observable in the marketplace.

Interest rate risk Liabilities

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31 March 2018, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.

Note 22 Segment information

The Managing Director of the Company has been identified as the Chief Operating Decision Maker(CODM) as defined by Ind AS 108-Operating Segments. The CODM evaluates the Company performance and allocates resources based on hydraulic business performance and other business performance. Accordingly the segment information has been presented.

The Company has identified business segments as its primary segment. India is the only major geographical segment, constituting over 95% of the Company''s revenues for the reporting period. Hence geographical segment is not reported. Business segments are primarily hydraulic business segment and other business segment. Hydraulic business segment consists of hydraulic pumps, valves and hydraulic systems. Other business segment consists of cast iron castings. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Note:23

Assets and liabilities used in the Company''s hydraulic business are not identified to any of the operating segments, as they can be used interchangeably between segments.

Note 24 Operating leases

The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognised in the Statement of Profit and Loss for the year against these agreements are Rs.158.58 lakhs (31 March 2017: Rs.159.79 lakhs) which has been grouped under ''Rent'' under note 31. There are no contingent rents payable.

Note 25 - Previous period comparatives

Prior year amounts have been regrouped/reclassified wherever necessary, to conform to the current years'' presentation.

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Mar 31, 2017

Note:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off /written back or provided for during the year.

d) Figures in brackets relates to the previous year.

NOTE 1

The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognized in the Statement of Profit and Loss for the year against these agreements are Rs. 159.79 Lakhs (Previous year - Rs.135.57 Lakhs) which has been grouped under ''Rent'' under note 26. There are no contingent rents payable.

NOTE 2 -

Details With Regards to Specified Bank Notes held and Transacted during the period from 8th November to 30th Dec, 2016

As per Notification No. GSR 308(E) [F.NO.17/62/2015-CL-V-(VOL.I)l, dated 30-3-2017, below are the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016.

*''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

NOTE 3 - NOTE ON ACCELERATED DEPRECIATION

The company had considered an accelerated depreciation of Rs 366.36 lakhs during the year due to change in the estimated useful life of the buildings at Whitefield, Bangalore.

NOTE 4

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

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Mar 31, 2016

(iii) Right, preferences and restrictions attached to shares

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

(i) Details of terms of repayment for long-term borrowings and security provided

(i)HDFC Bank Ltd Term Loan (a) First charge on the movable fixed assets of Malur Foundry Plant of the Company located at Hedegabanahalli,Malur Taluk,Kolar district. (b) First Charge on the Factory Land and Building of the Malur Foundry Plant of the company located at Hedegabanahalli,Malur Taluk,Kolar district. (c) First Exclusive charge on assets financed by the term loan at Malur Foundry Plant of the Company located at Hedgabanahalli,Malur Taluk,Kolar district (d) Exclusive Charge by way of Equitable mortgage on the Factory Land & Building at Koppathimmanahalli village,Malur Taluk,Kolar District Repayable in 18 quarterly instalments at an interest rate of 10.10%

Details of security for the short-term borrowing

(i) SBI Cash Credit - Secured by pari-passu charge on inventory, receivables and other current assets of the Company (both existing and future) and equitable mortgage of Factory Land and Building at Doddanekkundi ,Bangalore and Factory Land and Building at Peenya,Bangalore and charge on unencumbered fixed assets of the company .

(ii) HDFC Bank Limited Overdraft - (a) First charge on the movable Fixed Assets of Malur Foundry plant of the Company.

(b) First charge on Land and Building at Malur Foundry Plant of the Company.

(c) Exclusive Charge on Plant & Machinery at Malur Foundry Plant.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 1. Disclosures under Accounting Standards Employee benefit plans

2. Defined contribution plan

The Company makes provident fund and superannuation fund contributions which are defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.124.46 lakhs (Year ended 31st March, 2015 Rs.115.47 lakhs) for provident fund contributions and Rs.105.92 lakhs (Year ended 31st March, 2015 Rs.95.76 lakhs) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3. Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity (included as part of (b) in Note 24 Employee benefits expense)

(ii) Long-term compensated absences (included as part of (a) in Note 24 Employee benefits expense)

The following table sets out the funded status of gratuity and the amount recognised in the financial statements:

The Company is estimated to contribute Rs.90.96 lakhs (Previous year - Rs.66.27 lakhs) towards gratuity funds during the next year.

The estimate of future salary increases considered takes into account the inflation, seniority, promotion, increments and other relevant factors.

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

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

4. Segment information

The Company has identified business segments as its primary segment. India is the only major geographical segment, constituting over 95% of the company’s revenues for the reporting period. Hence geographical segment is not reported. Business segments are primarily Hydraulic Business segment and Other Business segment. Hydraulic Business segment consists of hydraulic pumps, valves and hydraulic systems. Other business segment consists of Cast iron castings. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallowable expenses.

Notes:

5. Segment wise bifurcation of Assets & Liabilities for Hydraulic Business and Other Business are shown to the extent identifiable, other assets and liabilities jointly used by all segments are shown as unallocated.

6.Figures in brackets relate to previous year.

Note 30 Disclosures under Accounting Standards Related party transactions Details of related parties:

Description of relationship Names of related parties

Subsidiaries 1. Yuflow Engineering Pvt Ltd

2. Coretec Engineering India Pvt Ltd

Associates 1. Sai India Ltd

2. Bourton Consulting (India) Pvt Ltd

3. Kolben Hydraulics Ltd

Key Management Personnel (KMP) C P Rangachar - Managing Director

Relatives of KMP Vidya Rangachar

Madhuri Rangachar

Entity having significant influence Yuken Kogyo Co Ltd

Note:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) The above transactions are compiled from the date on which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off /written back or provided for during the year.

d) Figures in brackets relates to the previous year.

Note 7 to 35 Disclosures under Accounting Standards

8. The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognised in the Statement of Profit and Loss for the year against these agreements is Rs. 135.57 Lakhs ( Previous year -Rs.119.72 Lakhs) which has been grouped under ‘Rent’ under note 26. There are no contingent rents payable.

9. During the previous year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs.14.95 lakhs (net of deferred tax of Rs. 6.68 lakhs) against the opening Surplus balance in the Statement of Profit and Loss of previous year under Reserves and Surplus. The depreciation expense in the Statement of Profit and loss for the previous year is higher by Rs. 17.28 lakhs consequent to the change in the useful life of the assets.

10. (a) Provision for taxes on income

The Company has book profit u/s 115JB of the Income Tax Act 1961 ( the “Act”) and the minimum alternate tax ( MAT) there on is higher than the tax liability under the normal provisions of the Act. Thus, the provision towards tax liabilities has been made based on MAT. Correspondingly, the Company has also recognised credit for MAT under section 115JAA of the said Act, which is disclosed as MAT credit entitlement in the Statement of Profit and Loss.

11. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

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Mar 31, 2015

(i) Right, preferences and restrictions attached to shares

The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by Board of Directors is subject to approval by the share holders at the ensuing Annual General Meeting.

(ii) Details of terms of repayment for long-term borrowings and security provided Mizuho Bank Ltd loan - Secured by exclusive first charge on hypothecation of company's movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs.62.50/- lakhs each at an interest of 10.15%.

HDFC Bank Ltd Loan - Paripassu First Charge on the Movable Fixed Assets of Malur plant with Mizuho Bank Ltd, first Charge on the Factory Land and Building at Malur, first Exclusive charge on assets financed by the term Loan at Whitefield plant and repayable in quarterly installments at an interest of 11%

Details of security for the short-term borrowings

(i) SBI Cash Credit - Secured by first pari-passu charge on inventory,receivables and the entire other current assets of the Company (both existing and future) and first charge on unencumbered fixed assets.

(ii) HDFC Bank Limited Overdraft -(a) Pari Parsu First charge on the movable Fixed Assets of Malur plant of the Company with Mizuho Bank Ltd, Bangalore, (b) First charge on Land and Building of Malur Plant of the Company.

Mizuho Bank Ltd loan - Secured by exclusive first charge on hypothecation of company's movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs.62.50/- lakhs each at an interest of 10.15%.

HDFC Bank Ltd Loan - Paripassu First Charge on the Movable Fixed Assets of Malur plant with Mizuho Bank Ltd, first Charge on the Factory Land and Building at Malur, first Exclusive charge on assets financed by the term Loan at Whitefield plant and repayable in quarterly installments at an interest of 11%

As at 31 March, As at 31 March, Particulars 2015 2014 Rs In lakhs Rs In lakhs

2.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Corporate guarantee given by the Company on behalf of subsidiaries. 461.00 359.00

(b) Bills discounted outstanding as at the year end - 45.46

(ii) Commitments

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

Tangible assets 41.41 9.74

Employee benefit plans

2.2 Defined contribution plan

The Company makes provident fund and superannuation fund contributions which are defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 115.47 lakhs (Year ended 31 March, 2014 Rs.107.93 lakhs) for provident fund contributions and Rs.95.76 lakhs (Year ended 31 March, 2014 Rs.88.34 lakhs) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.3 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity (included as part of (b) in Note 24 Employee benefits expense)

(ii) Long-term compensated absences (included as part of (a) in Note 24 Employee benefits expense)

The following table sets out the funded status of gratuity and the amount recognised in the financial statements:

3.1 Segment information

The Company has identified business segments as its primary segment. India is the only major geographical segment, constituting over 95% of the company's revenues for the reporting period. Hence geographical segment is not reported. Business segments are primarily Hydraulic Business segment and Other Business segment. Hydraulic Business segment consists of hydraulic pumps, valves and hydraulic systems. Other business segment consists of Cast iron castings. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Notes:

a. There is no segmentwise bifurcation of Assets & Liabilities for Hydraulic Business and Other Business. Assets & Liabilities of the Company are jointly used by all segments.

b. The segment information is being presented in the manner above, for the first year by the Company, accordingly comparable information relating to the corresponding previous year were not available and hence not presented.

Note:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off /written back or provided for during the year.

d) Figures in brackets relates to the previous year.

4 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs.14.93 lakhs (net of deferred tax of Rs. 6.68 lakhs) against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus. The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 17.28 lakhs consequent to the change in the useful life of the assets.

5 (a) Provision for taxes on income

The Company has book profit u/s 115JB of the Income Tax Act 1961 (the "Act") and the minimum alternate tax ( MAT) there on is higher than the tax liability under the normal provisions of the Act. Thus, the provision towards tax liabilities has been made based on MAT. Correspondingly, the Company has also recognised credit for MAT under section 115JAA of the said Act, which is disclosed as MAT credit entitlement in the Statement of Profit and Loss.

6 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2014

Share capital

Right, preferences and restrictions attached to shares

The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by Board of Directors is subject to approval by the share holders at the ensuing Annual General Meeting.

Short-term borrowings

Details of security for the short-term borrowings

This loan is secured by first pari-passu charge on inventory, receivables and the entire other current assets of the Company (both existing and future) and first charge on unencumbered fixed assets.

Current maturities of long-term debt

This loan is secured by exclusive first charge by hypothecation of Company''s movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs.62.50 Lakhs each at an interest rate of 10.15%.

Current investments

Note - During the previous year, the Company entered in to a joint memorandum of compromise before the Company Law Board dated 4 January,2013 with the minority shareholders of Prism Hydraulics Private Limited, a subsidiary,to transfer its entire investment holding of 60% to the minority shareholders at a consideration of Rs.225 Lakhs on or before 31 December,2013 subject to compliance of certain terms and conditions, which has been realised in full.

Contigent Liabilities

Particulars As at As at 31 March, 2014 31 March, 2013 Rs In lakhs Rs In lakhs

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Corporate guarantee given by the Company on behalf of subsidiaries 359.00 386.05

(b) Bills discounted outstanding as at the year end 45.46 155.42

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets 9.74 3.38

Disclosure as per Clause 32 of the Listing agreements with the Stock Exchanges

During the year the Company has not given any Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties. (PY:Nil)

The Company had entered into an arrangement during FY 2010-11 for services with a Private Limited Company in which a Director is interested and paid an advance of Rs.393,116/-. The Company has applied for requisite approval under Section 297 of the Companies Act, 1956 to the appropriate Authority, approval is awaited.

Disclosures under Accounting Standards

Employee benefit plans

Defined contribution plan

The Company makes provident fund and superannuation fund contributions to defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.107.93 lakhs (Year ended 31 March, 2013 Rs.95.03 lakhs) for provident fund contributions and Rs.88.34 lakhs (Year ended 31 March, 2013 Rs.76.73 lakhs) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity (included as part of (b) in Note 25 Employee benefits expense)

(ii) Long-term compensated absences (included as part of (a) in Note 25 Employee benefits expense)

Disclosures under Accounting Standards

Note:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off/written back or provided for during the year.

d) Figures in brackets relates to the previous year.

Segment reporting

The Company''s predominant risks and returns are from the segment of Motion, Control and power transmission business, which constituted over 95% of the Company''s revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2014 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company''s revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

* The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognised in the Statement of Profit and Loss for the year against these agreements is Rs. 103.43 Lakhs (Rs.89.69 Lakhs) which has been grouped under ''Rent'' under note 27. There are no contingent rents payable.

Provision for taxes on income

The Company has book profit u/s 115JB of the Income Tax Act 1961 (the "Act") and the minimum alternate tax ( MAT) there on is higher than the tax liability under the normal provisions of the Act. Thus, the provision towards tax liabilities has been made based on MAT. Correspondingly, the Company has also recognised credit for MAT under section 115JAA of the said Act, which is disclosed as MAT credit entitlement in the Statement of Profit and Loss.

* Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

1. Corporate Information

Yuken India Limited (YIL) was established in 1976 in technical and financial collaboration with Yuken Kogyo Company Limited, Japan. The registered office and the manufacturing units of the Company are located in Bangalore and the sales and distribution network is spread across India. YIL manufactures wide range of vane pumps, piston pumps, gear pumps, pressure controls, directional controls, modular control valves, servo valves, custom built/standard hy- draulic systems and chip compactor. YIL established the foundry division in 1984 to cater to entities in the hydraulics, automobile, machine tools, textile machinery, earth moving, agriculture and material handling industries.

2.1 The Company had entered into an arrangement during FY 2010-11 for services with a Private Limited Company in which a Director is interested and paid an advance of Rs.393,116/-. The Company has applied for requisite approval under Section 297 of the Companies Act, 1956 to the appropriate Authority, approval is awaited.

3 As per the requirements of AS 16:" Borrowing Cost", the Company has capitalised the borrowing cost incurred during the year to the tune of Rs.Nil ( Rs.74.20 Lakhs/-) to the fixed assets / capital work-in-progress.

4 Segment reporting

The Company''s predominant risks and returns are from the segment of Motion,Control and power transmission business, which constituted over 95% of the Company''s revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2013 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company''s revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

5 The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognised in the Statement of Profit and Loss for the year against these agreements is Rs. 89.69 Lakhs ( Rs.91.22 Lakhs) which has been grouped under ''Rent'' under note 27. There are no contingent rents payable.

6 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

Notes:

(i) Balances with banks include margin monies amounting to Rs. 6.91 Lakhs (As at 31 March, 2011 Rs.13.08 Lakhs) which have an original maturity of more than 12 months.

Note 1 Additional information to the financial statements

As at 31 March, As at 31 March,

Particulars 2012 2011 Rs In lakhs Rs In lakhs

1.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Corporate Guarantee on behalf of Subsidiary Company given by the 359.00 350.00

Company.

(ii) Commitments

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

Tangible assets 174.06 201.40

1.2 Details on derivatives instruments and unheeded foreign currency exposures

(a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2012 27.10 The Company had entered into an arrangement during FY2010-11 for services with a Private Limited Company in which a Director is interested and paid an advance of Rs.393,116/-. The Company has applied for requisite approval under section 297 of the Companies Act, 1956 to the appropriate Authority, Approval is awaited.

Note 2 Disclosures under Accounting Standards

Employee benefit plans

2.1 Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.87.34 lakhs (Year ended 31 March, 2011 Rs.78.03 lakhs) for Provident Fund contributions and Rs.69.66 lakhs (Year ended 31 March, 2011 Rs. 56.99 lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.2 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity

(ii) long-term compensated absences

Note:

@ Payment made to relative of Key Management Personnel

a) The related party relationships are as identified by the Company, on the basis of information available with the company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off / back or provided for during the year.

d) Figures in bracket relates to the previous year.

3 The company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognized in the statement of profit and loss account for the year against these agreements is Rs. 80.16 Lakhs ( Rs.61.60 Lakhs) which has been grouped under 'Rent' under note 26.There are no contingent rents payable.

4 Segment reporting

The company's predominant risks and returns are from the segment of Motion, Control & power transmission business, which constituted over 95% of the company's revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2012 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company's revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed

5 As per the requirements of AS 16: Borrowing Cost, the company has capitalized the borrowing cost incurred during the year to the tune of Rs.74.20 Lakhs ( Rs. 15.77 Lakhs/-) to the fixed assets / capital work-in-progress.

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

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account [net of advances Rs.20,140,257/- (Rs. 1,609,838/-).] and not provided for is Rs. Nil (Rs. 1,599,196/-).

2. Corporate Guarantee give by the Company to Bankers for Yuflow Engineering Pvt Ltd towards Cash Credit limit of Rs. 15,000,000/-, and Non fund based limit of Rs.2,500,000/-. For Coretec Engineering India Pvt Ltd towards Term Loan of Rs. 15,000,000/- and Cash Credit limit of Rs. 2,500,000/-.

3. Employee Benefits :

The company has classified various benefits provided to employees as under :- Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers' Contribution to Employee's State Insurance

ii Employers' Contribution to Employee's Pension Scheme, 1995.

II Defined Benefit Plan

a) Contribution to Gratuity Fund

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

4. RELATED PARTY DISCLOSURE

a) Names of Related Parties and description of relationship:

i Subsidiaries -1 YuFlow Engineering Pvt. Ltd

-2 Coretec Engineering India Pvt Ltd.

-3 Prism Hydraulics Pvt Ltd

ii Associates -1 Sai India Limited

-2 Bourton consulting (India) Pvt Ltd

iii Entity having significant - Yuken Kogyo Company Ltd influence

iv. Key Management Personnel - Managing Director - C P Rangachar and Relative of Key Management Wife of Managing Director - Vidya personnel Rangachar Whole time Director - S Yamanoi

5. The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognized in the statement of profit and loss account for the year against these agreements is Rs. 6,160,313 /- (Rs.5,202,463/-) which has been grouped under 'Rent' under Schedule-11. There are no contingent rents payable.

6. Segment Report:

The company's predominant risks and returns are from the segment of Motion, Control & power transmission business, which constituted over 95% of the company's revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31,2011 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company's revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

7. Unclaimed Dividend: The unclaimed dividend of Rs.783,344/- (Rs.725,185/-) represents Rs. 63,1957-relating to the year 2004, Rs.96,250/- relating to the year 2005, Rs.116,699/- relating to the year 2006, Rs.179,305/- relating to the year 2007, Rs. 200,3537- relating to the year 2008, and Rs.127,542/- relating to the year 2010. No part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring a transfer to the Investor Education and Protection Fund.

8. Sale of mobile Hydraulics business:

The Company has entered into a shareholders' agreement dated January 20, 2010 with a party, for sale of its mobile hydraulics business. As a consideration for this transfer the company received a total amount of Rs. 9,413,300, out of which Rs. 7,000,000 is towards transfer of Know-how, IP rights, cus tomer/vendor contracts etc. (goodwill) and balance of Rs. 2,413,300 towards book value of fixed assets sold. The total purchase consideration receivable has been shown under "Sundry Debtors" in Schedule 6 and the amount receivable towards goodwill has been shown under "Miscellaneous Income" in Sched ule 9 of the financial statements in the previous year. This year company has been allotted 941,330 shares of Rs.10 each at par.

The mobile Hydraulics activity does not constitute a major line of business of the Company.

9. The Company has entered into an arrangement for services with a Private Limited Company in which a Director is interested and paid, an advance of Rs.393,116/-. The Company has applied for requisite approval to the appropriate Authority.

10. Figures relating to previous year have been reclassified wherever necessary to conform to current year classification. Figures in brackets relate to previous year.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account [net of advances Rs. 1,609,838/- (Rs. 986.327/-).] and not provided for is Rs. 1,599,196/- (Rs. 1,371,791/-).

2. RELATED PARTY DISCLOSURE

a) Names of Related Parties and description of relationship:

i Subsidiaries -1 YuFbw Engineering Pvt LB -2 Coretsc Engineering India Pvt Ltd. ¦3 Prism Hydraulics Pvt LB

ii Associates -1 Sailndia Limited

-2 Bourton consulting (India) Pvt LB

iii Entity having significant influence - Yuken Kogyo Company Ltd

iv. Key Management Personnel

Wife of Managing Director - Vidya Rangachar Relative of KeyManagement personnel y^e Time Director- S Yamanoi

3. Segment Report:

The companys predominant risks and returns are from the segment of Motion, Control & power transmis- sion business, which constituted over 95% of the companys revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2010 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the companys revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

4. Unclaimed Dividend

The unclaimed dividend of Rs.725,185/- (Rs.754,311/-) represents Rs.59,078/- relating to the year 2003, Rs.63,435/-, relating to the year 2004, Rs.96,610/- relating to the year 2005, Rs. 123,159/- relating to the year 2006, Rs.180,555/- relating to the year 2007 and Rs. 202,348/- relating to the year 2008. No part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring a transfer to the Investor Education and Protection Fund.

5. Sale of mobile Hydraulics business:

The Company has entered into a shareholders agreement dated January 20, 2010 with a party, for sale of its mobile hydraulics business. As a consideration for this transfer the company would be receiving a total amount of Rs. 9,413,300, out of which Rs. 7,000,000 is towards transfer of Know-how, IP rights, customer/vendor contracts etc. (goodwill) and balance of Rs. 2,413,300 towards book value of fixed assets sold. The total purchase consid- eration receivable has been shown under "Sundry Debtors" in Schedule 6 and the amount receivable towards goodwill has been shown under "Miscellaneous Income" in Schedule 9 of the financial statements. This amount of receivable shall be settled by way of allotment of 941,330 shares at par value of Rs. 10/- each.

The mobile Hydraulics business does not constitute a major line of business of the Company. 27.Figures relating to previous year have been reclassified wherever necessary to conform to current year classification. Figures in brackets relate to previous year.