1. There are contingent liabilities in respect of :
Rs. lacs Rs. lacs
i) Claims against the Company not
acknowledged as debts. 7,06.82 3,18.19
ii) Excise matters in dispute/under
Appeal amounting to 7,80.22 7,58.52
Rs 7,80.22 lacs, out of which
Rs Nil (2007-Nil) have been
deposited under protest.
iii)Sales Tax matters in dispute/under
Appeal amounting to 3.32 3.32
Rs 3.32 lacs, out of which Rs 1.21
lacs have been deposited under protest
(Assessment in respect of Sales Tax is
complete upto 2000-01. Additional
liability, if any, for pending
assessments and/or pending declaration
forms is not ascertainable).
iv) Industrial Relations matters under Appeal. 88.50 96.50
v) Counter Guarantees to Banks. 1,12.82 98.80
(Include guarantees in foreign currency
EUR 75,661 & US$ 65,272, 2007 - EUR 75,661).
vi) Bond executed in favour of Excise
Authorities. 1,00.00 1,00.00
vii) State Bank of India and ICICI Bank had set up financing limits for
Company dealers secured against personal guarantees of promoters /
directors / partners of the concerned dealer. However in case of
default, if any, concerned banks have a right to recover the amount
from the Company. Actual utilisation as on 31st March, 2008 was
Rs.11,29.60 lacs (2007 - Rs.51,72.49 lacs).
viii) Assessment of Income Tax is complete upto assessment year
2004-05, demand disputed in appeal being Rs 2,09.33 lacs (2007 - Rs.
2,09.33 lacs). For several earlier assessment years, tax authorities
have filed appeals at the Tribunal level which involves estimated tax
liability of Rs.8,58.98 Lacs(2007-Rs.8,58.98 lacs).
Payment of Advance Tax / Tax Deducted at Source and other payments have
been shown net of provisions under Advances Recoverable Schedule G.
2. Working Capital facilities from banks are secured by a first charge
on Companys inventory, receivables and other current assets and by a
second charge on Companys fixed assets, both present and future.
3. Earnings per share is calculated by dividing net profit for the
year attributable to equity shareholders by number of equity shares
outstanding during the year. As there is no change in the equity
capital during the period, the diluted earnings per share is same as
the basic earnings.
4. Related party disclosures as required under Accounting Standard -18
are given below:
(a) List of related parties:
i) Holding Company : Mahindra & Mahindra Limited (w.e.f. 6th July 2007)
ii) Fellow Subsidiaries : Mahindra Renault Pvt. Ltd
(w.e.f. 6th July, 2007 unless otherwise stated)
Mahindra Forgings Ltd. (w.e.f. 27th Dec, 2007)
First Choice Wheels Limited
Mahindra Consulting Engineers Limited.
Tech Mahindra Limited
Tech Mahindra GmbH
Tech Mahindra (Americas) Inc
Mahindra-BT Investment Company (Mauritius)Ltd.
Tech Mahindra (Singapore) Pte. Limited.
Tech Mahindra (Thailand) Limited.
Bristlecone India Limited.
Bristlecone Singapore Pte. Limited.
Mahindra (China) Tractor Company Limited.
Mahindra Engg & Chem Products Limited.
Mahindra Engineering Design & Development Company Limited.
Mahindra Europe s.r.l.
Mahindra Gujarat Tractor Limited.
Mahindra Holdings & Finance Limited.
Mahindra Holidays & Resorts India Limited.
Mahindra Holidays & Resorts (USA) Inc.
Mahindra Insurance Brokers Limited.
Mahindra Intertrade Limited.
Bristlecone UK Limited.
Mahindra International Limited.
Mahindra Logisoft Business Solutions Limited.
Mahindra Middleeast Electrical Steel Service Centre (FZE)
Mahindra & Mahindra Financial Services Limited.
Mahindra & Mahindra South Africa (Pty) Limited.
Mahindra Overseas Investment Company (Mauritius) Limited.
Mahindra Steel Service Centre Limited.
Mahindra Shubhlabh Services Limited.
Mahindra SAR Transmission Pvt Limited.
Mahindra USA Inc.
Mahindra Ugine Steel Company Limited.
NBS International Limited.
Tech Mahindra (R&D Services) Limited.
Tech Mahindra (R&D Services) Inc
Stokes Group Limited
Stokes Forgings Dudley Limited
Stokes Forgings Limited
Plexion Technologies (UK) Limited
Plexion Technologies GmbH
Plexion Technologies Incorporated
Tech Mahindra Foundation
PT Tech Mahindra Indonesia
CanvasM Technologies Limited
Mahindra Forgings International Limited.
Mahindra Forgings Global Limited
Gesenkschmiede Schneider GmbH
Falkenroth Umformtechnik GmbH
Mahindra Forgings Europe AG
Mahindra Hinoday Industries Limited
Schoneweiss & Co. GmbH
Policy Networks Private Limited
CanvasM (Americas) Inc
Mahindra Life Space Developers Limited
Mahindra Infrastructure Developers Limited
Mahindra World City (Jaipur) Limited
Mahindra Integrated Township Limited
Mahindra World City Developers Limited
Mahindra World City (Maharashtra) Limited
MHR Hotel Management GmbH
Bristlecone (Malaysia) SDN. BHD
Mahindra Automotive Limited
Mahindra Castings Private Limited (w.e.f. 30th Aug 07)
Mahindra Hotels and Residences India Limited
Mahindra Holdings Limited (w.e.f. 2nd Nov 07)
Mahindra Logistics Limited (w.e.f. 12th Dec 07)
Mahindra Rural Housing Finance Limited
Mahindra Retail Private Limited (w.e.f. 3rd Sep 07)
Mahindra Technology Park Limited (w.e.f. 28th Sep 07)
Tech Mahindra (Beijing) IT Services Limited (w.e.f. 21st Dec 07)
Tech Mahindra (Malaysia) SDN. BHD
Mahindra Residential Developers Limited (w.e.f. 1s Feb 08)
Mahindra Aerospace Pvt Limited (w.e.f. 28th Feb 08)
Heritage Bird (M)
Bhd (w.e.f. 3rd Mar 08)
Mahindra First Choice Services Limited (w.e.f. 24th Mar 08)
Mahindra Graphic Research Design srl (w.e.f. 20th Feb 08)
Mahindra Navistar Engines Private Limited (w.e.f. 24th Mar 08)
iii) Associate Companies : Swaraj Engines Limited
(Enterprises where Company Swaraj Automotives Limited
has substantial interest)
iv) Significant influence entities : CDC - PTL Holdings Limited and its
associate companies (upto 5th July, 2007)
v) Key Management Personnel
Whole time Directors
Mr. Bishwambhar Mishra (w.e.f 14th July, 2007)
Mr. P.Sivaram (Upto 14th July, 2007)
5. The Companys principal business activity falls within a single
primary business segment viz tractors, self propelled harvester
combines and rice transplanters. Hence Segment Reporting, under AS 17
issued by the Institute of Chartered Accountants of India is not
6. Excise Duty shown in Profit & Loss Account includes provision on
finished goods lying at plants Rs. 2,11.83 lacs (2007 - Rs. 2,57.58
7. Estimated amount of contracts remaining to be executed on capital
account and not provided for is Rs.2,40.58 lacs net of advances (2007 -
Rs. 68.75 lacs).
8. While letters of confirmation of balance of sundry creditors,
sundry debtors and material lying with vendors have been sent, some
have been received back, rest are subject to confirmation.
9. Based on the information available with the Company, the balance
due to Micro & Small Enterprises as defined under the MSMED Act, 2006
is Rs. Nil. Further, no interest during the year has been paid or
payable under the terms of the MSMED Act, 2006.
10. Previous year figures have been regrouped wherever necessary so as
to correspond with those of the current year.