M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED

317
DIRECTORS REPORT TO THE SHAREHOLDERS
Your D irectors present their First R eport together w ith the audited accounts of your C om pany for period ended 31st M arch, 2010.
The Company
The C om pany w as incorporated on 9th O ctober, 2009 w ith a paid up capital of R s.1,00,000.
The C om pany is a w holly ow ned subsidiary of M ahindra H oldings Lim ited w hich is in turn a subsidiary of M ahindra & M ahindra
Lim ited.
FINANCIAL RESULTS
Amount in Rupees
For the period
9th October, 2009
to 31st March, 2010
Incom e .................................................................................................................
Profit / (Loss) before D epreciation, A m ortisation, Interest, taxation .................. (25,451)
D epreciation & A m ortisation ...............................................................................
Profit / (Loss) before Interest, taxation ............................................................... (25,451)
Interest.................................................................................................................
Profit / (Loss) before taxation ............................................................................. (25,451)
Provision for taxation for the year .......................................................................
Profit / (Loss) for the year after taxation ............................................................. (25,451)
B alance carried forw ard to B alance Sheet......................................................... (25,451)
Operation
D uring the p eriod und er review , your C om p any has not
com m enced com m ercial operations.
Dividend
In view of the loss, your D irectors do not recom m end dividend
for the period under review .
Directors
M r. N arayan Shankar and M r. R oshan G andhi w ere nam ed in
the A rticles of A ssociation as the First D irectors of the C om pany.
M r. N arayan Shankar and M r. R oshan G andhi hold office upto
the date of first A nnual G eneral M eeting.
The C om pany has received N otice from a M em ber under section
257 of the C om panies A ct, 1956, signifying the intention to
propose M r. N arayan Shankar and M r. R oshan G andhi as
candidates for the office of D irector at the forthcom ing A nnual
G eneral M eeting.
Directors' Responsibility Statement
Pursuant to section 217(2A A ) of the C om panies A ct, 1956, your
D irectors, based on the representation received from the
O perating M anagem ent, and after due enquiry, confirm that:
(i) in the preparation of the annual accounts, the applicable
accounting standards have been follow ed;
(ii) they have, in the selection of the accounting policies,
consulted the Statutory A uditors and these have been
ap p lied consistently and reasonab le and p rud ent
judgem ents and estim ates have been m ade so as to give a
true and fair view of the state of affairs of the C om pany as
at 31st M arch, 2010 and of the Loss of the C om pany for the
period ended on that date;
(iii) p rop er and sufficient care has b een taken for the
m aintenance of ad eq uate accounting record s in
accordance w ith the provisions of the C om panies A ct, 1956
for safeguarding the assets of the C om pany and for
preventing and detecting fraud and other irregularities;
(iv) the annual accounts have been prepared on a going
concern basis.
Auditors
M /s. B . K .K hare & C o., C hartered A ccountants, the first A uditors
of the C om pany, w ho w ere appointed by the B oard of D irectors,
retire as A uditors of the C om pany at the ensuing A nnual G eneral
M eeting and have given their consent for re-appointm ent.
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
318
The m em bers are requested to appoint A uditors for the current
year and fix their rem uneration.
A s required under the provisions of section 224 (1B ) of the
C om panies A ct, 1956, the C om pany has obtained a w ritten
certificate from the above A uditors to the effect that their re-
appointm ent, if m ade, w ould be in conform ity w ith the lim its
specified in the said section.
Public Deposits and Loans/Advances
The C om pany has not accepted deposits from the public or its
em ployees during the period under review .
The C om pany has not m ade any loans/advances of the nature
w hich are otherw ise required to be disclosed in the annual
accounts of the C om pany pursuant to the Listing A greem ent of
the ultim ate parent com pany, - M ahindra & M ahindra Lim ited,
w ith the Stock Exchanges.
Conservation of Energy and Technology Absorption and
Foreign Exchange Earnings and Outgo
The C om pany w as incorporated on 9th O ctober, 2009 and is yet
to com m ence com m ercial operations. H ence, the disclosure of
particulars as required under R ules 2A and 2B of the C om panies
(D isclosure of Particulars in the R eport of B oard of D irectors)
R ules, 1988, concerning conservation of energy and technology
absorption respectively are currently not applicable to the
C om pany.
There w ere no foreign exchange earnings and outgo during the
period under review .
Particulars of employees as required under section 217(2A)
of the Companies Act, 1956 and Rules framed thereunder
The C om p any had no em p loyee w ho w as in receip t of
rem uneration of not less than R s.24,00,000 during the period
ended 31st M arch, 2010 or not less than R s.2,00,000 per m onth
during any part of the said period.
For and on behalf of the B oard
Narayan Shankar Roshan Gandhi
D irector D irector
M um bai, 27th A pril, 2010
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
319
AUDITOR'S REPORT
TO THE MEMBERS
MAHINDRA PUNJAB TRACTORS PRIVATE LIMITED
1. W e have audited the attached B alance Sheet of M /s.
M ahindra Punjab Tractors Private Lim ited, as at 31st M arch,
2010 and also the Profit and Loss A ccount for the period
from 9th O ctober, 2009 (being the date of incorporation) to
31st M arch, 2010 annexed thereto. These financial
statem ents are the resp onsib ility of the C om p any's
m anagem ent. O ur responsibility is to express an opinion
on these financial statem ents based on our audit.
2. W e conducted our audit in accordance w ith auditing
standards generally accepted in India. Those Standards
require that w e plan and perform the audit to obtain
reasonab le assurance ab out w hether the financial
statem ents are free of m aterial m isstatem ent. A n audit
includes exam ining, on a test basis, evidence supporting
the am ounts and disclosures in the financial statem ents.
A n audit also includes assessing the accounting principles
used and significant estim ates m ade by m anagem ent, as
w ell as evaluating the overall financial statem ent
p resentation. W e b elieve that our aud it p rovid es a
reasonable basis for our opinion.
3. A s per para 1(2)(iv) to the C om panies (A uditor's R eport)
O rder, 2003, issued by the C entral G overnm ent of India in
term s of sub-section (4A ) of section 227 of the C om panies
A ct, 1956, the said O rder is not applicable to the C om pany
hence a statem ent on the m atter specified in paragraphs 4
and 5 there under is not furnished.
4. Further to our com m ents referred to in paragraph 3 above,
w e report that:
i. W e have obtained all the inform ation and explanations,
w hich to the best of our know ledge and belief w ere
necessary for the purpose of our audit;
ii. In our opinion, proper books of account as required
by law have been kept by the C om pany so far as
appears from our exam ination of those books;
iii. The B alance Sheet and Profit and Loss A ccount dealt
w ith by this report are in agreem ent w ith the books of
account;
iv. In our opinion, the B alance Sheet and Profit and Loss
A ccount dealt w ith by this report com ply w ith the
accounting standards referred to in sub-section (3C )
of section 211 of the C om panies A ct, 1956;
v. O n the basis of w ritten representations received from
the directors, as on 31st M arch, 2010, and taken on
record by the B oard of D irectors, w e report that none
of the directors is disqualified as on 31st M arch, 2010
from being appointed as a director in term s of clause
(g) of sub-section (1) of section 274 of the C om panies
A ct, 1956;
vi. In our opinion and to the best of our inform ation and
according to the explanations given to us, the said
accounts g ive the inform ation req uired b y the
C om panies A ct, 1956, in the m anner so required and
g ive a true and fair view in conform ity w ith the
accounting principles generally accepted in India:
(a) in the case of the B alance Sheet, of the state of
affairs of the C om pany as at 31st M arch, 2010;
(b) in the case of the Profit and Loss A ccount, of the
loss during the period ended on that date; and
(c) in the case of C ash Flow Statem ent, of the cash
flow s for the period ended as on that date.
For B. K. Khare & Co.
C hartered A ccountants
Padmini Khare Kaicker
Partner
M um bai, 27th A pril, 2010 M em bership N o. 44784
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
320
BALANCE SHEET AS AT 31ST MARCH 2010
Schedule Amount (in Rs.)
I. SOURCES OF FUNDS
Share Holders' Funds
Share C apital................................................................................................ I 100,000
R eserves and Surplus..................................................................................
Loan Funds ..................................................................................................
D eferred Tax liability ....................................................................................
Sources of Funds 100,000
II. APPLICATION OF FUNDS
Fixed Assets .................................................................................................
Investments ..................................................................................................
Current Assets, Loans & Advances
Cash & Bank Balances ................................................................................ II 100,000
Loans and Advances ...................................................................................
Sub-Total ...................................................................................................... 100,000
Less: Current Liabilities & Provisions III
C urrent Liabilities ......................................................................................... 25,451
Sub-Total ...................................................................................................... 25,451
A s per our report attached For and on behalf of the B oard of D irectors
For B.K. Khare & Co.
C hartered A ccountants Narayan Shankar D irectors
Roshanlal Gandhi
Padmini Khare Kaicker
Partner
M . N o. 44784
M um bai, A pril 27, 2010 M um bai, A pril 27, 2010
}
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
321
A s per our report attached For and on behalf of the B oard of D irectors
For B.K. Khare & Co.
C hartered A ccountants Narayan Shankar D irectors
Roshanlal Gandhi
Partner
M . N o. 44784
M um bai, A pril 27, 2010 M um bai, A pril 27, 2010
}
PROFIT & LOSS ACCOUNT FOR THE PERIOD FROM 9TH OCTOBER, 2009 TO 31ST MARCH, 2010
Schedule Amount (in Rs.)
I. INCOME
Income from Operations..........................................................................................
TO TA L (A )................................................................................................................
II. EXPENDITURE
R egistration & Filing Fees ....................................................................................... 14,421
A udit Fees ............................................................................................................... 11,030
TO TA L (B )................................................................................................................ 25,451
Net Profit/(Loss) before Taxes ................................................................................. (25,451)
Less : Provision for C urrent Tax ..............................................................................
Less : Provision for Taxation - FB T ..........................................................................
A dd : Provision for D eferred Taxes .........................................................................
N et Profit/ (Loss) after taxation ............................................................................... (25,451)
A dd : B alance brought forw ard from previous year...............................................
Balance transferred to balance sheet ..................................................................... (25,451)
Earnings per share (refer note 4 to Schedule IV):
B asic and diluted (in R s.)........................................................................................ (3.47)
Face value of share (in R s.).................................................................................... 10.00
Significant Accounting Policies & Notes to Accounts ............................................. IV
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
322
Cashflow Statement for the period from 9th October, 2009 to 31st March, 2010
2010
Rs Rs
A. CASH FLOW FROM OPERATING ACTIVITIES:
N et Profit/(Loss) before taxation ................................................................. (25,451)
O perating Profit before W orking C apital changes ..................................... (25,451)
C hanges in:
Trade and other receivables .......................................................................
Trade and other payables ........................................................................... 25,451
25,451
C ash G enerated from O perations ..............................................................
N ET C A SH FR O M O PER ATIN G A C TIVITIES ..............................................
B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of fixed assets .............................................................................
Sale of fixed assets .....................................................................................
Purchase of Investm ents.............................................................................
NET CASH USED IN INVESTING ACTIVITIES.........................................
C. CASH FLOW FROM FINANCING ACTIVITIES:
Issue of Share C apital................................................................................. 100,000
N ET C A SH U SED IN FIN A N C IN G A C TIVITIES .......................................... 100,000
N ET IN C R EA SE/(D EC R EA SE) IN C A SH A N D C A SH EQ U IVA LEN TS ....... 100,000
CASH AND CASH EQUIVALENTS
O pening B alance ........................................................................................
Closing Balance .......................................................................................... 100,000
A s per our report attached For and on behalf of the B oard of D irectors
For B.K. Khare & Co.
C hartered A ccountants Narayan Shankar D irectors
Roshanlal Gandhi
Padmini Khare Kaicker
Partner
M . N o. 44784
M um bai, A pril 27, 2010 M um bai, A pril 27, 2010
}
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
323
Amount (in Rs)
Schedule I
Shar Shar Shar Shar Share C apital e C apital e C apital e C apital e C apital
A uthorised A uthorised A uthorised A uthorised A uthorised
10,000 Equity shares of R s.10 each ............................. 100,000
Issued, Subscribed and Paid - up Issued, Subscribed and Paid - up Issued, Subscribed and Paid - up Issued, Subscribed and Paid - up Issued, Subscribed and Paid - up
10,000 Equity Shares of R s.10 each fully paid ............. 100,000
(A ll shares are held by M ahindra H oldings Ltd.,
holding com pany.
Including shares held w ith nom inee)
Total............................................................................... 100,000
Schedule II
C ash & B ank B alances C ash & B ank B alances C ash & B ank B alances C ash & B ank B alances C ash & B ank B alances
C ash ..............................................................................
B alance w ith Schedule B ank ........................................ 100,000
Total............................................................................... 100,000
Schedule III
C ur C ur C ur C ur C urr rr rrent Liabilities ent Liabilities ent Liabilities ent Liabilities ent Liabilities
D ues to M icro and Sm all Enterprises ...........................
Sundry C reditors - O thers ............................................. (25,451)
Total............................................................................... (25,451)
Schedules for Schedules for Schedules for Schedules for Schedules form ing par m ing par m ing par m ing par m ing part of B alance Sheet t of B alance Sheet t of B alance Sheet t of B alance Sheet t of B alance Sheet
Schedule IV
Significant Accounting Policies and Notes to Accounts for the period from 9
th
October
2009 to 31st March 2010.
1. Significant A ccounting Policies Significant A ccounting Policies Significant A ccounting Policies Significant A ccounting Policies Significant A ccounting Policies:
a. B asis for pr B asis for pr B asis for pr B asis for pr B asis for preparation eparation eparation eparation eparation:
A ccounts have been prepared in accordance w ith historical cost
convention and on accrual basis, applicable A ccounting Standards issued
by the Institute of C hartered A ccountants of India and relevant provisions
of the C om panies A ct, 1956.
b. R evenue r R evenue r R evenue r R evenue r R evenue recognition ecognition ecognition ecognition ecognition:
A ll incom es and expenses are accounted on the accrual basis and
provision is m ade for all know n losses and liabilities.
c. Ear Ear Ear Ear Earnings Per shar nings Per shar nings Per shar nings Per shar nings Per share ee ee:
The C om pany reports basic and diluted Earnings Per Share (EPS) in
accordance w ith A ccounting Standard 20 on Earning Per Share.
B asic EPS is com puted by dividing the net profit or loss for the period by
the w eighted average num ber of Equity Shares outstanding during the
period.
d. Incom e T Incom e T Incom e T Incom e T Incom e Tax ax ax ax ax:
Incom e taxes are accounted for in accordance w ith the A ccounting
Standard 22 on A ccounting for Taxes on Incom e. Taxes com prises of
current tax, deferred tax and fringe benefit tax.
C urrent tax is determ ined as the am ount of tax payable in respect of taxable
incom e for the period using the applicable tax rates and tax law s.
D eferred tax assets and liabilities are recognised, subject to consideration
of prudence, on tim ing differences, being the difference betw een
taxable incom e and accounting incom e, that originate in one period and
are capable of reversal in one or m ore subsequent periods and
are m easured using tax rates enacted or substantively enacted as at
the balance sheet date. D eferred tax assets arising from tim ing difference
are recognised only to the extent that there is virtual certainty supported
by convincing evidence that sufficient future tax incom e w ill be available
against w hich such deferred tax assets can be realised and are
review ed for the appropriateness of their respective carrying values
at each balance sheet date.
Fringe benefit tax is payable under the provisions of Section 115W C of
the Incom e Tax A ct, 1961 is in accordance w ith the G uidance N ote on
A ccounting for Fringe benefit tax issued by the Institute of C hartered
A ccountants of India regarded as an additional incom e tax and considered
in determ ining of the profit for the year.
e. Preliminary Expenses:
Prelim inary expenses are charged to the Profit and Loss A ccount in the
year of incurrence.
Notes to Accounts:
2. Auditors remuneration is as follows:
For the period
ended 2010
Amount (in Rs.)
A udit fees 10,000
Service tax 1,030
Total 11,030
3. Related party Transactions:
List of R elated Parties:
H olding C om pany M ahindra H oldings Lim ited
U ltim ate H olding C om pany M ahindra & M ahindra Lim ited
Transactions w ith related parties :
Nature of Transaction Holding Company
Subscription of Equity Shares R s. 99,990/-
4. Earnings per share :
Particulars U nit For the
period ended
31
st
March 2010
N et profit / (loss) after taxation
(am ount used as num erator) R s. (25,451)
W eighted A verage num ber of equity shares
for B asic Earnings per share N os. 5,370
N om inal value of Equity Shares R s. 10.00
B asic and diluted Earnings Per Equity shares R s. (3.47)
5. The C om pany w as incorporated on 9
th
O ctober, 2009. C onsequently the
accounts reported herein pertain to the period from 9
th
O ctober, 2009 to 31
st
M arch, 2010 and there are no corresponding figures for previous year.
6. A dditional inform ation pertaining to part II of Schedule VI to the C om panies
A ct, 1956 has not been furnished as the sam e is nil or not applicable.
A s per our report attached For and on behalf of the B oard of D irectors
For B.K. Khare & Co.
C hartered A ccountants Narayan Shankar D irectors
Roshanlal Gandhi
Padmini Khare Kaicker
Partner
M . N o. 44784
M um bai, A pril 27, 2010 M um bai, A pril 27, 2010
}
Signatures to Schedules I to IV
M A H IN D R A PU N JA B TR A C TO R S PR IVATE LIM ITED
324
BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE
(or in the case the first return at any time since the incorporation of the company)
I. R egistration D etails
R egistration N o. 1 1 - 1 9 6 3 6 5 State C ode 1 1
B alance Sheet D ate 3 1 0 3 2 0 1 0
D ate M onth Year
II. Capital Raised during the year (Amount in Rs. Thousands)
Public Issue R ights Issue
N I L N I L
B onus Issue Private Placem ent
N I L N I L
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities Total A ssets
1 0 0 1 0 0
Sources of Funds
Paid-up C apital R eserves & Surplus
1 0 0 N I L
Secured Loans U nsecured Loans
N I L N I L
Application of Funds
N et Fixed A ssets Investm ents
N I L 6 7 1
N et C urrent A ssets M iscellaneous Expenditure
7 5 N I L
A ccum ulated Losses
2 5
IV. Performance of Company (Amount in Rs. Thousands)
Turnover Total Expenditure
N I L 2 5
+ Profit/Loss B efore Tax Profit/Loss A fter Tax
( 2 5 ) ( 2 5 )
Earning per share in R s. D ividend R ate %
( 3 . 4 7 ) N I L
V. Generic Names of Three Principal Products/Services of Company (as per monetary terms)
Item C ode N o. (ITC C ode)
Product D escription
Item C ode N o. (ITC C ode)
Product D escription
Item C ode N o. (ITC C ode)
Product D escription
Narayan Shankar D irectors
Roshanlal Gandhi
M um bai, A pril 27, 2010
}