47TH ANNUAL REPORT

2010-11
Regd. Office : 23, Kasturba Gandhi Marg, New Delhi 110 001 (India)
Tel: +91 11 2331 5941 Fax: +91 11 2331 1203 Website: www.shrirampistons.com
Celebrating the Commencement of Commercial Production
at Pathredi
Technology has always been our driving force. And our
biggest strength too. We are continuously innovating and
finding breakthrough solutions. This has helped us make
components that can withstand the toughest performance
standards. And the toughest of competition.
1
Board of Directors
Principal Executives
Advisor
Technical Collaborators
Bankers
Auditors
Registered Office
Works
Shri Pradeep Dinodia - Chairman
Shri Hari S. Bhartia
Shri Horst Binnig
Shri Shinji Kawano
Shri O.P. Khaitan
Shri Ravinder Narain
Shri C.Y. Pal
Shri M. Sekimoto
Shri Luv D. Shriram
Shri Inderdeep Singh
Shri A.K. Taneja - Managing Director & CEO
Shri R. Srinivasan - Joint Managing Director
Smt. Meenakshi S. Dass - Wholetime Director
Dr. Peter Neu - Alternate Director to Shri Horst Binnig
Shri N. Okano - Alternate Director to Shri M. Sekimoto
Shri A.K. Taneja - Managing Director & CEO
Shri R. Srinivasan - Joint Managing Director & Company Secretary
Shri Rajiv Sethi - Executive Director
Shri Anil Gadi - Executive Director
Shri V.K. Jayaswal - Executive Director
Shri P.S. Ladiwala - Dy. Executive Director & CFO
Shri Naveen Agarwal - Controller
Shri Subrata Neogy - Sr. General Manager
Shri S. Kumar
KS Kolbenschmidt GmbH, Germany
Riken Corporation, Japan
Honda Foundry Co. Ltd., Japan
Fuji Oozx Inc., Japan
UCO Bank
State Bank of Hyderabad
Corporation Bank
Axis Bank Ltd.
HDFC Bank Ltd.
IDBI Bank Ltd.
Citi Bank N.A.
M/s. Walker, Chandiok & Co., New Delhi
3rd Floor, Himalaya House,
23, Kasturba Gandhi Marg,
New Delhi - 110 001
Meerut Road, Ghaziabad (U.P.)
Industrial Area, Pathredi, District Alwar, Rajasthan
2
FINANCIAL HIGHLIGHTS
3
WORKING RESULTS AT A GLANCE
PARTICULARS UNIT YEAR ENDING MARCH
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
Paid-up Share Capital - Equity Mn/Rs. 224 224 224 224 224 224 224 224 224 224
- Pref. Mn/Rs. - - - - - - - - 67 100
Reserves & Surplus Mn/Rs. 3677 2964 2391 2166 1838 1494 1192 905 686 562
Net Worth Mn/Rs. 3901 3187 2615 2390 2062 1718 1416 1129 977 886
Gross Fixed Assets Mn/Rs. 8773 7466 7016 6099 5216 4330 3389 2814 2497 2270
Gross Profit Mn/Rs. 1758 1571 938 1073 965 814 748 654 451 313
Net Profit Mn/Rs. 827 689 302 413 409 366 347 303 167 103
Equity Dividend - Amount Mn/Rs. 91 78 52 65 64 64 57 51 29 25
- Rate % 35.0 30.0 20.0 25.0 25.0 25.0 22.5 20.0 11.5 11.0
Sales - Value - Total Mn/Rs. 9003 7781 6400 6038 5277 4333 3709 3060 2518 2126
- Export Mn/Rs. 1492 1373 1454 1224 859 668 517 349 311 298
- Qty. - Pistons Mn/Nos. 15.90 14.20 11.50 11.16 9.89 8.08 7.57 5.91 4.75 3.47
- Pins Mn/Nos. 13.93 12.61 10.08 9.89 9.27 7.89 7.01 5.85 4.64 3.48
- Rings Mn/Nos. 73.25 66.14 56.33 56.01 52.17 45.82 39.28 35.14 29.68 27.90
- Engine Valves Mn/Nos. 29.38 24.68 19.20 16.94 15.26 11.49 8.80 5.92 4.72 4.08
- Gears Mn/Nos. - - 0.01 0.47 0.08 0.0083 100 - - -
(Nos.)
Notes: 1. Reserves & Surplus includes Revaluation Reserve of Rs. 151.11 Million as on 31.3.2011.
2. Gross Fixed Assets is at cost, includes Revaluation Reserve.
3. Gross profit is after interest charges, but before depreciation/taxes.
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
06-07 07-08 08-09 09-10 10-11
1600
1400
1200
1000
800
600
400
200
0
06-07 07-08 08-09 09-10 10-11
06-07 07-08 08-09 09-10 10-11 06-07 07-08 08-09 09-10 10-11
9003
7781
6400
6038
5277
1492
1373
1454
1224
859
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1758
1571
938
1073
965
4500
4000
3500
3000
2500
2000
1500
1000
500
0
3901
3187
2615
2390
2062
2
FINANCIAL HIGHLIGHTS
3
WORKING RESULTS AT A GLANCE
PARTICULARS UNIT YEAR ENDING MARCH
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
Paid-up Share Capital - Equity Mn/Rs. 224 224 224 224 224 224 224 224 224 224
- Pref. Mn/Rs. - - - - - - - - 67 100
Reserves & Surplus Mn/Rs. 3677 2964 2391 2166 1838 1494 1192 905 686 562
Net Worth Mn/Rs. 3901 3187 2615 2390 2062 1718 1416 1129 977 886
Gross Fixed Assets Mn/Rs. 8773 7466 7016 6099 5216 4330 3389 2814 2497 2270
Gross Profit Mn/Rs. 1758 1571 938 1073 965 814 748 654 451 313
Net Profit Mn/Rs. 827 689 302 413 409 366 347 303 167 103
Equity Dividend - Amount Mn/Rs. 91 78 52 65 64 64 57 51 29 25
- Rate % 35.0 30.0 20.0 25.0 25.0 25.0 22.5 20.0 11.5 11.0
Sales - Value - Total Mn/Rs. 9003 7781 6400 6038 5277 4333 3709 3060 2518 2126
- Export Mn/Rs. 1492 1373 1454 1224 859 668 517 349 311 298
- Qty. - Pistons Mn/Nos. 15.90 14.20 11.50 11.16 9.89 8.08 7.57 5.91 4.75 3.47
- Pins Mn/Nos. 13.93 12.61 10.08 9.89 9.27 7.89 7.01 5.85 4.64 3.48
- Rings Mn/Nos. 73.25 66.14 56.33 56.01 52.17 45.82 39.28 35.14 29.68 27.90
- Engine Valves Mn/Nos. 29.38 24.68 19.20 16.94 15.26 11.49 8.80 5.92 4.72 4.08
- Gears Mn/Nos. - - 0.01 0.47 0.08 0.0083 100 - - -
(Nos.)
Notes: 1. Reserves & Surplus includes Revaluation Reserve of Rs. 151.11 Million as on 31.3.2011.
2. Gross Fixed Assets is at cost, includes Revaluation Reserve.
3. Gross profit is after interest charges, but before depreciation/taxes.
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
06-07 07-08 08-09 09-10 10-11
1600
1400
1200
1000
800
600
400
200
0
06-07 07-08 08-09 09-10 10-11
06-07 07-08 08-09 09-10 10-11 06-07 07-08 08-09 09-10 10-11
9003
7781
6400
6038
5277
1492
1373
1454
1224
859
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1758
1571
938
1073
965
4500
4000
3500
3000
2500
2000
1500
1000
500
0
3901
3187
2615
2390
2062
4
DIRECTORS' REPORT
th
The Directors have pleasure in presenting their 47 Annual Report along with the audited accounts of the Company for the
st
year ended 31 March, 2011.
The gross profit for the year, after all interest charges, but before depreciation and taxes, is Rs. 1758 Million against
Rs.1571 Million last year.
Profit after tax for the year is Rs. 827 Million against Rs. 689 Million last year.
The Directors recommend that equity shareholders be paid dividend of Rs. 3.50 per share for the year, inclusive of Rs.1.50
per share Interim dividend already paid. The equity dividend alongwith dividend tax would absorb Rs. 91.15 Million against
Rs. 78.4 Million last year.
An amount of Rs. 685.73 Million is being transferred to General Reserve Account.
The demand in domestic market was buoyant both from OEMs and in the After market. Accordingly, Companys production
and sales of all products increased during the year.
Net sales increased by 14% during the year from Rs. 7257 Million to Rs. 8270 Million. Gross profit increased by 12% over
the last year from Rs. 1571 Million to Rs. 1758 Million. This has been possible by focused management efforts on the
optimum utilization of production capacity, cost and waste reduction and higher productivity. However, the improvement in
performance was limited by the available production capacity, for Pistons and Engine Valves in particular.
Increase in raw material rates, more particularly Aluminium, Nickel, Silicon and Pig Iron, increase in power tariff by the
Government, considerable step up in own generation of power due to less power availability from State Government,
increased cost of generating own power due to hike in diesel prices and unfavourable exchange rate had an adverse impact
on the profitability of the Company.
In view of continuous upgradation of automotive engines and stricter emission norms, technology remains the key
differentiator for our products. The Company retained its leadership in offering latest technology products to OEMs with the
continued assistance and strong support from our Collaborators. The focus on using technology as a differentiator is being
increased with higher allocation of resources towards in-house design, development & testing infrastructure, and also
higher investment for the modernization of plant and equipment. The Company is fully geared to meet the latest technology
and quality standards, and revised emission norms.
During the year, the Company witnessed a growth in exports by 9% to Rs. 1492 million. A growth of 10%-12% over the last
year is expected in the current year, with the stabilization of European and Latin American markets. However, uncertainties
in the Middle East countries, including Egypt, would have an adverse impact on the overall exports.
The new plant at Pathredi, near Bhiwadi (Rajasthan) commenced production of Pistons and Steel Rings in March, 2011.
During the ensuing year, production will be gradually ramped up for Pistons and Rings. Engine Valves and Pins production
is expected to commence in May, 2011. Keeping in view strong growth in demand, the Company has undertaken second
phase of expansion and production would commence towards the end of current year.
The production in Ghaziabad plant was disrupted for seven working days during the year due to a Government order.
Operations restarted, after the Governments order was withdrawn, based on representation made by the Company.
Company has taken up various projects to benefit the local community in Ghaziabad, as a responsible corporate citizen,
including a project to improve and remediate ground water pollution in Ghaziabad, jointly with other industries and the local
Government.
5
Annual accounts of M/s. SPR International Auto Exports Limited, the subsidiary company and the related information are
not enclosed in the Annual Report as per exemption granted by Ministry of Corporate Affairs and hard copy of Annual
accounts would be made available to members seeking such information. Annual accounts of SPR International Auto
Exports Limited shall also be kept for inspection by any member in the Head office and Registered office.
In accordance with the Accounting Standard (AS - 21) on consolidated financial statements, the consolidated financial
statements are attached, which form part of the Annual Report.
The Directors confirm that: -
1. in the preparation of the annual accounts, the applicable accounting standards of the Institute of Chartered
Accountants of India have been followed.
2. appropriate accounting policies have been selected and applied consistently, and have made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at
st
31 March, 2011 and of the profit of the Company for the same year.
3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
4. the annual accounts have been prepared on a going concern basis.
Fixed Deposits amounting to Rs. 4.53 Million pertaining to 112 depositors remained unclaimed at the close of the year.
Following reports which form an integral part of Directors report are enclosed: -
1. Report on CORPORATE GOVERNANCE - as per annexure I.
2. Report on MANAGEMENT DISCUSSION AND ANALYSIS - as per annexure II.
3. Report on CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION and FOREIGN EXCHANGE
EARNING & OUTGO as per annexure - III.
4. Data of EMPLOYEES as per annexure IV.
IDBI appointed Shri Vijay Kumar Gupta as their Nominee Director w.e.f. 08.06.2010 in place of Shri Rajesh Malhotra. W.e.f.
29.10.2010, IDBI withdrew the nomination of Shri Vijay Kumar Gupta. The Board place on record their appreciation of
guidance provided to the Company by Shri Rajesh Malhotra and Shri Vijay Kumar Gupta during their respective tenure as
directors of the Company.
Shri Ravinder Narain, Shri C.Y. Pal, Shri Pradeep Dinodia and Shri M. Sekimoto, Directors, retire by rotation and being
eligible, offer themselves for re-appointment. The brief resume and other details, in relation to the aforesaid Directors are
given in the Notice of the Annual General Meeting.
The Directors place on record their appreciation of the support extended to the Company by the Collaborators, the Bankers,
its business associates, and their appreciation of the work of all ranks of companys personnel during the year.
On behalf of the Board
New Delhi (PRADEEP DINODIA)
th
04 May, 2011 CHAIRMAN

4
DIRECTORS' REPORT
th
The Directors have pleasure in presenting their 47 Annual Report along with the audited accounts of the Company for the
st
year ended 31 March, 2011.
The gross profit for the year, after all interest charges, but before depreciation and taxes, is Rs. 1758 Million against
Rs.1571 Million last year.
Profit after tax for the year is Rs. 827 Million against Rs. 689 Million last year.
The Directors recommend that equity shareholders be paid dividend of Rs. 3.50 per share for the year, inclusive of Rs.1.50
per share Interim dividend already paid. The equity dividend alongwith dividend tax would absorb Rs. 91.15 Million against
Rs. 78.4 Million last year.
An amount of Rs. 685.73 Million is being transferred to General Reserve Account.
The demand in domestic market was buoyant both from OEMs and in the After market. Accordingly, Companys production
and sales of all products increased during the year.
Net sales increased by 14% during the year from Rs. 7257 Million to Rs. 8270 Million. Gross profit increased by 12% over
the last year from Rs. 1571 Million to Rs. 1758 Million. This has been possible by focused management efforts on the
optimum utilization of production capacity, cost and waste reduction and higher productivity. However, the improvement in
performance was limited by the available production capacity, for Pistons and Engine Valves in particular.
Increase in raw material rates, more particularly Aluminium, Nickel, Silicon and Pig Iron, increase in power tariff by the
Government, considerable step up in own generation of power due to less power availability from State Government,
increased cost of generating own power due to hike in diesel prices and unfavourable exchange rate had an adverse impact
on the profitability of the Company.
In view of continuous upgradation of automotive engines and stricter emission norms, technology remains the key
differentiator for our products. The Company retained its leadership in offering latest technology products to OEMs with the
continued assistance and strong support from our Collaborators. The focus on using technology as a differentiator is being
increased with higher allocation of resources towards in-house design, development & testing infrastructure, and also
higher investment for the modernization of plant and equipment. The Company is fully geared to meet the latest technology
and quality standards, and revised emission norms.
During the year, the Company witnessed a growth in exports by 9% to Rs. 1492 million. A growth of 10%-12% over the last
year is expected in the current year, with the stabilization of European and Latin American markets. However, uncertainties
in the Middle East countries, including Egypt, would have an adverse impact on the overall exports.
The new plant at Pathredi, near Bhiwadi (Rajasthan) commenced production of Pistons and Steel Rings in March, 2011.
During the ensuing year, production will be gradually ramped up for Pistons and Rings. Engine Valves and Pins production
is expected to commence in May, 2011. Keeping in view strong growth in demand, the Company has undertaken second
phase of expansion and production would commence towards the end of current year.
The production in Ghaziabad plant was disrupted for seven working days during the year due to a Government order.
Operations restarted, after the Governments order was withdrawn, based on representation made by the Company.
Company has taken up various projects to benefit the local community in Ghaziabad, as a responsible corporate citizen,
including a project to improve and remediate ground water pollution in Ghaziabad, jointly with other industries and the local
Government.
5
Annual accounts of M/s. SPR International Auto Exports Limited, the subsidiary company and the related information are
not enclosed in the Annual Report as per exemption granted by Ministry of Corporate Affairs and hard copy of Annual
accounts would be made available to members seeking such information. Annual accounts of SPR International Auto
Exports Limited shall also be kept for inspection by any member in the Head office and Registered office.
In accordance with the Accounting Standard (AS - 21) on consolidated financial statements, the consolidated financial
statements are attached, which form part of the Annual Report.
The Directors confirm that: -
1. in the preparation of the annual accounts, the applicable accounting standards of the Institute of Chartered
Accountants of India have been followed.
2. appropriate accounting policies have been selected and applied consistently, and have made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at
st
31 March, 2011 and of the profit of the Company for the same year.
3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
4. the annual accounts have been prepared on a going concern basis.
Fixed Deposits amounting to Rs. 4.53 Million pertaining to 112 depositors remained unclaimed at the close of the year.
Following reports which form an integral part of Directors report are enclosed: -
1. Report on CORPORATE GOVERNANCE - as per annexure I.
2. Report on MANAGEMENT DISCUSSION AND ANALYSIS - as per annexure II.
3. Report on CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION and FOREIGN EXCHANGE
EARNING & OUTGO as per annexure - III.
4. Data of EMPLOYEES as per annexure IV.
IDBI appointed Shri Vijay Kumar Gupta as their Nominee Director w.e.f. 08.06.2010 in place of Shri Rajesh Malhotra. W.e.f.
29.10.2010, IDBI withdrew the nomination of Shri Vijay Kumar Gupta. The Board place on record their appreciation of
guidance provided to the Company by Shri Rajesh Malhotra and Shri Vijay Kumar Gupta during their respective tenure as
directors of the Company.
Shri Ravinder Narain, Shri C.Y. Pal, Shri Pradeep Dinodia and Shri M. Sekimoto, Directors, retire by rotation and being
eligible, offer themselves for re-appointment. The brief resume and other details, in relation to the aforesaid Directors are
given in the Notice of the Annual General Meeting.
The Directors place on record their appreciation of the support extended to the Company by the Collaborators, the Bankers,
its business associates, and their appreciation of the work of all ranks of companys personnel during the year.
On behalf of the Board
New Delhi (PRADEEP DINODIA)
th
04 May, 2011 CHAIRMAN

6
ANNEXURE I TO DIRECTORS' REPORT
"REPORT ON CORPORATE GOVERNANCE"
1.0) The Company has been following Good Corporate Governance practices. The corporate goals of the Company are to
optimize shareholders' value while ensuring operational accountability and total transparency in all its operations.
2.0) As on 31.03.2011, the Company had 3 Executive and 10 Non-Executive Directors. All Non-Executive Directors are
Independent Directors except Shri Luv D. Shriram.
2.1) During the year, 7 Board of Directors Meetings were held as under:-
th th
- 30 April, 2010 October
th th
- 26 June, 2010 - 28 January, 2011
th th
- 27 July, 2010 - 25 March, 2011
th
- 16 August, 2010
2.2) Data of Directors' attendance, Directorship in other Companies and membership in Board Committees is as under:-
Non-Executive Directors
Shri Pradeep Dinodia (Chairman) 7 Yes 8 2 4
Shri Hari S. Bhartia 1 No 13 4 2
Shri Horst Binnig 2 No NIL NIL NIL
Dr. Peter Neu - No NIL NIL NIL
(Alternate to Shri Horst Binnig)
Shri Prem Pandhi 1 - No - - -
Shri Rajesh Malhotra 2 1 - - - -
Shri Vijay Kumar Gupta 2 & 3 4 Yes - - -
Shri Shinji Kawano 4 No NIL NIL NIL
Shri O.P. Khaitan 6 Yes 7 5 3
Shri Ravinder Narain 4 No 4 3 1
Shri C.Y. Pal 7 Yes 3 NIL 3
Shri M. Sekimoto 2 Yes NIL NIL NIL
Shri Noritada Okano - - NIL NIL NIL
(Alternate to Shri M. Sekimoto)
Shri Luv D. Shriram 7 Yes 1 1 NIL
Shri Inderdeep Singh 7 Yes 3 NIL NIL
Executive Directors
Shri A.K.Taneja (Managing Director) 7 Yes 2 1 NIL
Shri R. Srinivasan (Jt. Managing Director) 4 7 Yes NIL NIL NIL
Smt. Meenakshi S. Dass (Wholetime Director) 7 Yes 4 NIL NIL
Notes:
1. Shri Prem Pandhi retired as the Director of the Company from the conclusion of Board Meeting of 26.06.2010 and did not opt to be re-
elected.
2. IDBI appointed Shri Vijay Kumar Gupta as their Nominee Director w.e.f. 08.06.2010 in place of Shri Rajesh Malhotra.
3. Shri Vijay Kumar Gupta ceased to be the Nominee Director of IDBI w.e.f. 29.10.2010 due to withdrawal of nomination by IDBI.
4. Shri R. Srinivasan was re-appointed as the Joint Managing Director of the Company for a period of 5 years w.e.f. 01.02.2011.
5. For calculating Board Committee membership/ chairmanship, only Audit Committee & Shareholders Grievance Committee
membership/ chairmanship has been considered.
- 26 , 2010
Attendance at Directorship Board Committee
other Indian Membership in other
Directors See Board Public Ltd. Cos. Indian Public Ltd.
Note Meetings Last as on 31.03.2011 Cos. as on 31.03.2011 as
during Y.E. AGM
March 2011 Member Chairman
in
2.3) Shareholding of Non-Executive Director
Shri Luv D. Shriram - 3334668 shares held jointly as 1st holder.
- 3334668 shares held jointly as 2nd holder.
(In capacity of Trustee shares belong to Deepak Shriram Family Benefit Trust)
3.0) The Company has an Audit Committee comprising of three Non-Executive Directors Shri O.P. Khaitan (Chairman),
Shri Pradeep Dinodia and Shri C.Y. Pal, all of whom are Independent Directors. Shri R. Srinivasan, the Company
Secretary is also the Secretary to the Audit Committee. Statutory Auditors and Internal Auditors are permanent
invitees to the Audit Committee meetings.
The role and powers of Companys Audit Committee are substantively as per the recommendations made by SEBI
and as per provisions of the Companies Act, 1956
3.1) During the year, 4 Meetings of the Audit Committee were held as under :-
th th
- 30 April, 2010 - 26 October, 2010
th th
- 27 July, 2010 - 28 January, 2011
3.2) Attendance at Audit Committee Meetings was as under:-
Directors Attendance
Shri O.P. Khaitan (Chairman) 4
Shri Pradeep Dinodia 4
Shri C.Y. Pal 4
Shri Prem Pandhi -
Notes:
1. Shri Pradeep Dinodia was Chairman of the meeting held on 30.04.2010
2. Shri Prem Pandhi resigned as Director in the Board Meeting held on 26.06.2010 and consequently, ceased to be Chairman of the
Audit Committee
3. Shri O.P.Khaitan was appointed as Chairman of the Committee in the Board Meeting held on 26.06.2010
4. Shri Pradeep Dinodia is a practicing Chartered Accountant and all other members of the Audit Committee have good exposure to
financial matters.
th
3.3) The last Annual General Meeting of the Company was held on 26 June, 2010 and was attended by Shri O.P.
Khaitan, the Chairman of the Audit Committee.
4.0) The Company has a remuneration committee to recommend for Boards consideration the remuneration of
Managing Director & Whole time Directors.
It comprises of 3 Directors - Shri Pradeep Dinodia (Chairman), Shri O.P. Khaitan and Shri C.Y. Pal, all being
Independent Directors.
th
During the year, meeting of the remuneration committee was held on 28 January, 2011 which was attended by all
members of the committee.
4.1) Remuneration of Non-Executive Directors is approved by the Board of Directors.
Non-Executive Directors were paid sitting fee of Rs.20,000 for every meeting of the Board and Rs. 15,000 for every
meeting of the Board Committee attended during the year.

7
6
ANNEXURE I TO DIRECTORS' REPORT
"REPORT ON CORPORATE GOVERNANCE"
1.0) The Company has been following Good Corporate Governance practices. The corporate goals of the Company are to
optimize shareholders' value while ensuring operational accountability and total transparency in all its operations.
2.0) As on 31.03.2011, the Company had 3 Executive and 10 Non-Executive Directors. All Non-Executive Directors are
Independent Directors except Shri Luv D. Shriram.
2.1) During the year, 7 Board of Directors Meetings were held as under:-
th th
- 30 April, 2010 October
th th
- 26 June, 2010 - 28 January, 2011
th th
- 27 July, 2010 - 25 March, 2011
th
- 16 August, 2010
2.2) Data of Directors' attendance, Directorship in other Companies and membership in Board Committees is as under:-
Non-Executive Directors
Shri Pradeep Dinodia (Chairman) 7 Yes 8 2 4
Shri Hari S. Bhartia 1 No 13 4 2
Shri Horst Binnig 2 No NIL NIL NIL
Dr. Peter Neu - No NIL NIL NIL
(Alternate to Shri Horst Binnig)
Shri Prem Pandhi 1 - No - - -
Shri Rajesh Malhotra 2 1 - - - -
Shri Vijay Kumar Gupta 2 & 3 4 Yes - - -
Shri Shinji Kawano 4 No NIL NIL NIL
Shri O.P. Khaitan 6 Yes 7 5 3
Shri Ravinder Narain 4 No 4 3 1
Shri C.Y. Pal 7 Yes 3 NIL 3
Shri M. Sekimoto 2 Yes NIL NIL NIL
Shri Noritada Okano - - NIL NIL NIL
(Alternate to Shri M. Sekimoto)
Shri Luv D. Shriram 7 Yes 1 1 NIL
Shri Inderdeep Singh 7 Yes 3 NIL NIL
Executive Directors
Shri A.K.Taneja (Managing Director) 7 Yes 2 1 NIL
Shri R. Srinivasan (Jt. Managing Director) 4 7 Yes NIL NIL NIL
Smt. Meenakshi S. Dass (Wholetime Director) 7 Yes 4 NIL NIL
Notes:
1. Shri Prem Pandhi retired as the Director of the Company from the conclusion of Board Meeting of 26.06.2010 and did not opt to be re-
elected.
2. IDBI appointed Shri Vijay Kumar Gupta as their Nominee Director w.e.f. 08.06.2010 in place of Shri Rajesh Malhotra.
3. Shri Vijay Kumar Gupta ceased to be the Nominee Director of IDBI w.e.f. 29.10.2010 due to withdrawal of nomination by IDBI.
4. Shri R. Srinivasan was re-appointed as the Joint Managing Director of the Company for a period of 5 years w.e.f. 01.02.2011.
5. For calculating Board Committee membership/ chairmanship, only Audit Committee & Shareholders Grievance Committee
membership/ chairmanship has been considered.
- 26 , 2010
Attendance at Directorship Board Committee
other Indian Membership in other
Directors See Board Public Ltd. Cos. Indian Public Ltd.
Note Meetings Last as on 31.03.2011 Cos. as on 31.03.2011 as
during Y.E. AGM
March 2011 Member Chairman
in
2.3) Shareholding of Non-Executive Director
Shri Luv D. Shriram - 3334668 shares held jointly as 1st holder.
- 3334668 shares held jointly as 2nd holder.
(In capacity of Trustee shares belong to Deepak Shriram Family Benefit Trust)
3.0) The Company has an Audit Committee comprising of three Non-Executive Directors Shri O.P. Khaitan (Chairman),
Shri Pradeep Dinodia and Shri C.Y. Pal, all of whom are Independent Directors. Shri R. Srinivasan, the Company
Secretary is also the Secretary to the Audit Committee. Statutory Auditors and Internal Auditors are permanent
invitees to the Audit Committee meetings.
The role and powers of Companys Audit Committee are substantively as per the recommendations made by SEBI
and as per provisions of the Companies Act, 1956
3.1) During the year, 4 Meetings of the Audit Committee were held as under :-
th th
- 30 April, 2010 - 26 October, 2010
th th
- 27 July, 2010 - 28 January, 2011
3.2) Attendance at Audit Committee Meetings was as under:-
Directors Attendance
Shri O.P. Khaitan (Chairman) 4
Shri Pradeep Dinodia 4
Shri C.Y. Pal 4
Shri Prem Pandhi -
Notes:
1. Shri Pradeep Dinodia was Chairman of the meeting held on 30.04.2010
2. Shri Prem Pandhi resigned as Director in the Board Meeting held on 26.06.2010 and consequently, ceased to be Chairman of the
Audit Committee
3. Shri O.P.Khaitan was appointed as Chairman of the Committee in the Board Meeting held on 26.06.2010
4. Shri Pradeep Dinodia is a practicing Chartered Accountant and all other members of the Audit Committee have good exposure to
financial matters.
th
3.3) The last Annual General Meeting of the Company was held on 26 June, 2010 and was attended by Shri O.P.
Khaitan, the Chairman of the Audit Committee.
4.0) The Company has a remuneration committee to recommend for Boards consideration the remuneration of
Managing Director & Whole time Directors.
It comprises of 3 Directors - Shri Pradeep Dinodia (Chairman), Shri O.P. Khaitan and Shri C.Y. Pal, all being
Independent Directors.
th
During the year, meeting of the remuneration committee was held on 28 January, 2011 which was attended by all
members of the committee.
4.1) Remuneration of Non-Executive Directors is approved by the Board of Directors.
Non-Executive Directors were paid sitting fee of Rs.20,000 for every meeting of the Board and Rs. 15,000 for every
meeting of the Board Committee attended during the year.

7
Commission of up to 1% of the Net Profits of the Company is paid to the Non-Executive Directors as determined by
th
the Board. This is as approved by shareholders in Annual General Meeting of 26 June, 2010. The fees and
st
commission paid/provided to Non-Executive Directors for the year ended 31 March, 2011 is as under:-
Shri Pradeep Dinodia (Chairman) 0.245 7.53
Shri Hari S. Bhartia 0.02 -
Shri Horst Binnig 0.04 -
Shri Prem Pandhi - -
Shri Rajesh Malhotra 0.02 -
Shri Vijay Kumar Gupta 0.08 0.45
Shri Shinji Kawano 0.08 0.45
Shri O.P. Khaitan 0.195 0.50
Shri Ravinder Narain 0.08 0.45
Shri C.Y. Pal 0.245 0.50
Shri M. Sekimoto 0.04 -
Shri Luv D. Shriram 0.17 0.45
Shri Inderdeep Singh 0.155 0.45
st
4.2) Remuneration paid / provided to Managing Director and Whole-time Directors for the year ended 31 March, 2011 is as
under: -
Salary Commission Company's Perquisites Total Contract
Contribution and Period
Directors to funds* allowances
Mn/Rs. Mn/Rs. Mn/Rs. Mn/Rs. Mn/Rs.
st
Shri A.K. Taneja 4.80 17.62 2.30 3.47 28.19 1 April, 2009
st
(Mg. Director) to 31 March,
2014
st
Shri R. Srinivasan 3.60 13.22 1.72 2.62 21.16 1 February, 2011
st
(Jt. Managing Director) to 31 January,
2016
th
Smt. Meenakshi S. Dass 5.08 14.97 0.75 2.18 22.98 5 May, 2009
th
(Whole Time Director) to 4 May, 2014
Notes :
1. The notice period is six months, on either side.
2. In the event of termination of appointment, compensation will be paid in accordance with the provisions of the Companies Act, 1956.
3. The Company does not have a scheme of stock options.
*4. Aggregate of the Company's contribution to Provident Fund, Superannuation Fund & Gratuity Fund.
5.0) The Company has a "Shareholders and Investors Grievance Committee". This Committee comprises of
Shri Inderdeep Singh (Chairman) and Shri Pradeep Dinodia, both being Independent Directors. Shri A.K. Taneja
and Shri R. Srinivasan are permanent invitees. Shri R. Srinivasan is also the Compliance Officer.

8
Sitting Fees for Board Commission
and Committee meetings
Directors paid during the year
Million/Rs. Million/Rs.
st
There were no requests pending for share transfers as on 31 March, 2011. No shareholder complaint was
received during the year. No shareholder complaint was pending at the beginning / close of the year.
6.0) Date, Venue and Time for the last three Annual General Meetings (AGM) is as under: -
FINANCIAL VENUE DATE TIME SPECIAL RESOLUTION PASSED
YEAR
2007-08 Hotel Intercontinental, New Delhi 26.07.2008 4.00 p.m. No Special Resolution was
passed during the year
2008-09 Hotel The Lalit, New Delhi 20.06.2009 4.00 p.m. No Special Resolution was
passed during the year
2009-10 Hotel The Lalit, New Delhi 26.06.2010 4.00 p.m. Payment of not more than 1%
of the net profits of the
Company to some or any of the
Non- Executive Directors.
6.1) No special resolution was passed last year through postal ballot.
6.2) No Special Resolution is proposed to be conducted through postal ballot.
7.0) DISCLOSURES
I) There were no transactions of the company of material nature with its promoters, directors or key
management personnel or relatives, which could be construed to have potential conflict of interest with the
company.
Disclosures on Related party transactions as per the Accounting Standard 18 have been made at Item 12 to
Schedule 11 on the "Notes to Financial Statements" forming part of the Annual Accounts.
II) There were no penalties or restrictions imposed on the Company by Stock Exchange or SEBI or any statutory
authority on any matter related to capital market during the last 3 years.
III) Mandatory requirements All requirements have been complied with.
IV) Adoption of Non Mandatory Requirements The Company has set up a Remuneration Committee of the
Board. The details of the same are given at Para 4.0 of this report.
8.0) Quarterly results are published in "Financial Express" and "Jansatta". The Quarterly results are also displayed on
Companys website viz www.shrirampistons.com.
The Management Discussion and Analysis Report forms part of Directors' Report.
9.0) General Information for Shareholders:-
th
(i) 47 Annual General Meeting
th st
The 47 Annual General Meeting of the Company will be held on Tuesday, 21 June, 2011 at 4:30 p.m. at Hotel
The Lalit, Barakhamba Avenue, Connaught Place, New Delhi.
(ii) Financial Year of the Company
The Financial Year of the Company is April 1 to March 31.
(iii) Date of book closure
th
The Register of Members and the Share Transfer Books of the Company will remain closed from 14 June,
st
2011 to 21 June, 2011 (both days inclusive).
(iv) Date of Dividend Payment
st
Dividend will be paid on or after 21 June , 2011. (Date of AGM)


9
Commission of up to 1% of the Net Profits of the Company is paid to the Non-Executive Directors as determined by
th
the Board. This is as approved by shareholders in Annual General Meeting of 26 June, 2010. The fees and
st
commission paid/provided to Non-Executive Directors for the year ended 31 March, 2011 is as under:-
Shri Pradeep Dinodia (Chairman) 0.245 7.53
Shri Hari S. Bhartia 0.02 -
Shri Horst Binnig 0.04 -
Shri Prem Pandhi - -
Shri Rajesh Malhotra 0.02 -
Shri Vijay Kumar Gupta 0.08 0.45
Shri Shinji Kawano 0.08 0.45
Shri O.P. Khaitan 0.195 0.50
Shri Ravinder Narain 0.08 0.45
Shri C.Y. Pal 0.245 0.50
Shri M. Sekimoto 0.04 -
Shri Luv D. Shriram 0.17 0.45
Shri Inderdeep Singh 0.155 0.45
st
4.2) Remuneration paid / provided to Managing Director and Whole-time Directors for the year ended 31 March, 2011 is as
under: -
Salary Commission Company's Perquisites Total Contract
Contribution and Period
Directors to funds* allowances
Mn/Rs. Mn/Rs. Mn/Rs. Mn/Rs. Mn/Rs.
st
Shri A.K. Taneja 4.80 17.62 2.30 3.47 28.19 1 April, 2009
st
(Mg. Director) to 31 March,
2014
st
Shri R. Srinivasan 3.60 13.22 1.72 2.62 21.16 1 February, 2011
st
(Jt. Managing Director) to 31 January,
2016
th
Smt. Meenakshi S. Dass 5.08 14.97 0.75 2.18 22.98 5 May, 2009
th
(Whole Time Director) to 4 May, 2014
Notes :
1. The notice period is six months, on either side.
2. In the event of termination of appointment, compensation will be paid in accordance with the provisions of the Companies Act, 1956.
3. The Company does not have a scheme of stock options.
*4. Aggregate of the Company's contribution to Provident Fund, Superannuation Fund & Gratuity Fund.
5.0) The Company has a "Shareholders and Investors Grievance Committee". This Committee comprises of
Shri Inderdeep Singh (Chairman) and Shri Pradeep Dinodia, both being Independent Directors. Shri A.K. Taneja
and Shri R. Srinivasan are permanent invitees. Shri R. Srinivasan is also the Compliance Officer.

8
Sitting Fees for Board Commission
and Committee meetings
Directors paid during the year
Million/Rs. Million/Rs.
st
There were no requests pending for share transfers as on 31 March, 2011. No shareholder complaint was
received during the year. No shareholder complaint was pending at the beginning / close of the year.
6.0) Date, Venue and Time for the last three Annual General Meetings (AGM) is as under: -
FINANCIAL VENUE DATE TIME SPECIAL RESOLUTION PASSED
YEAR
2007-08 Hotel Intercontinental, New Delhi 26.07.2008 4.00 p.m. No Special Resolution was
passed during the year
2008-09 Hotel The Lalit, New Delhi 20.06.2009 4.00 p.m. No Special Resolution was
passed during the year
2009-10 Hotel The Lalit, New Delhi 26.06.2010 4.00 p.m. Payment of not more than 1%
of the net profits of the
Company to some or any of the
Non- Executive Directors.
6.1) No special resolution was passed last year through postal ballot.
6.2) No Special Resolution is proposed to be conducted through postal ballot.
7.0) DISCLOSURES
I) There were no transactions of the company of material nature with its promoters, directors or key
management personnel or relatives, which could be construed to have potential conflict of interest with the
company.
Disclosures on Related party transactions as per the Accounting Standard 18 have been made at Item 12 to
Schedule 11 on the "Notes to Financial Statements" forming part of the Annual Accounts.
II) There were no penalties or restrictions imposed on the Company by Stock Exchange or SEBI or any statutory
authority on any matter related to capital market during the last 3 years.
III) Mandatory requirements All requirements have been complied with.
IV) Adoption of Non Mandatory Requirements The Company has set up a Remuneration Committee of the
Board. The details of the same are given at Para 4.0 of this report.
8.0) Quarterly results are published in "Financial Express" and "Jansatta". The Quarterly results are also displayed on
Companys website viz www.shrirampistons.com.
The Management Discussion and Analysis Report forms part of Directors' Report.
9.0) General Information for Shareholders:-
th
(i) 47 Annual General Meeting
th st
The 47 Annual General Meeting of the Company will be held on Tuesday, 21 June, 2011 at 4:30 p.m. at Hotel
The Lalit, Barakhamba Avenue, Connaught Place, New Delhi.
(ii) Financial Year of the Company
The Financial Year of the Company is April 1 to March 31.
(iii) Date of book closure
th
The Register of Members and the Share Transfer Books of the Company will remain closed from 14 June,
st
2011 to 21 June, 2011 (both days inclusive).
(iv) Date of Dividend Payment
st
Dividend will be paid on or after 21 June , 2011. (Date of AGM)


9
(v) Listing of Shares on Stock Exchange
The shares of the Company are listed at the Delhi Stock Exchange Association Ltd. The listing fee for the year
2011-12 has been paid.
(vi) Stock Code
The Stock Code is 19149.
(vii) Market Price Data
rd
The last transaction on Delhi Stock Exchange was undertaken at Rs. 31.55 on 03 July, 1997.
(viii) Performance in comparison to broad-based indices such as BSE Sensex, CRISIL index etc.
This is not applicable as the Company's shares are not actively traded on the Stock Exchange.
(ix) Registrar and Transfer agents
M/s. Alankit Assignments Ltd., having Corporate office at Alankit House, 2E/21 Jhandewalan Extension, New
Delhi 110 055, Telephone numbers 42541234, 23541234 and Fax numbers 42541967, 23552001 are
Registrar & Share Transfer Agents (RTA) of the Company who handle share transfer work in Physical and
Electronic mode.
(x) Share Transfer System
Securities lodged at the Registrar's address are normally processed within 30 days from the date of lodgment,
if documents are clear in all respects. All requests for dematerialization are processed and the confirmation is
given to the depositories within 21 days.
(xi) Distribution of Equity Shareholding as on 31.03.2011
Equity Shares Upto 501- 1001- 2001- 3001- 4001- 5001- 10001
Held 500 1000 2000 3000 4000 5000 10000 and TOTAL
above
Shareholders- 139 6 10 9 2 1 6 14 187
Nos.
Shareholding-% .03 .02 .06 .10 .03 .02 .23 99.51 100
(xii) Categories of Shareholders as on 31.03.2011
CATEGORY NO. OF SHARES HELD % SHAREHOLDING
Promoters
- Individuals 1241119 5.55
- Bodies Corporate 2778157 12.41
- Deepak Shriram Family Benefit Trust 6669336 29.81
(through Trustees)
- TOTAL (Promoters) 10688612 47.77
Banks, Financial Institutions, Insurance Cos. 2318758 10.36
Resident Individuals 200215 0.90
Resident Body Corporate 296 0.001
Non Resident Companies 9167031 40.97
TOTAL 22374912 100.00
(xiii) Dematerialization of shares and liquidity
Electronic Holding by members comprises 10.52% (previous year 10.50%) of the paid up share capital of the
st
Company as on 31 March, 2011 held through National Securities Depository Limited and Central Depository

10 11
AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE
To the Members of Shriram Pistons & Rings Ltd., New Delhi
We have examined the compliance of conditions of corporate governance by Shriram Pistons & Rings Ltd. for the year
st
ended on 31 March, 2011 as stipulated in clause 49 of the Listing Agreement of the said Company with the Delhi Stock
Exchange.
The compliance of conditions of corporate governance is the responsibility of the Management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions
of the corporate governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company
has complied with the conditions of corporate governance as stipulated in the above mentioned Listing Agreement.
As required by the Guidance Note issued by the Institute of Chartered Accountants of India, we have to state that no
investor grievance is pending for a period exceeding one month against the Company as per the records maintained by the
Shareholders and Investors Grievance Committee.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.
For Walker Chandiok & Co.
(Firm Registration No. 001076N)
Chartered Accountants
Place : New Delhi David Jones
Date : 30.04.2011 Partner
Membership No. 98113

Services (India) Ltd. Under the depository system, ISIN allotted to the Company's equity shares is
INE526E01018.
(xiv) Outstanding GDRs/ADRs/Warrants or any convertible instruments, conversion dates and likely
impact on equity
Company has not issued any warrants/ other instruments so far.
(xv) Plant Location
The company's plants are located at Meerut Road, Ghaziabad (U.P.) and Industrial Area, Pathredi,
District - Alwar (Rajasthan).
(xvi) Investors' correspondence may be addressed to:
The Company Secretary,
Shriram Pistons & Rings Ltd.
rd
3 Floor, Himalaya House,
23, Kasturba Gandhi Marg,
New Delhi - 110 001
Ph. 23315941, Fax: 23311203

(v) Listing of Shares on Stock Exchange
The shares of the Company are listed at the Delhi Stock Exchange Association Ltd. The listing fee for the year
2011-12 has been paid.
(vi) Stock Code
The Stock Code is 19149.
(vii) Market Price Data
rd
The last transaction on Delhi Stock Exchange was undertaken at Rs. 31.55 on 03 July, 1997.
(viii) Performance in comparison to broad-based indices such as BSE Sensex, CRISIL index etc.
This is not applicable as the Company's shares are not actively traded on the Stock Exchange.
(ix) Registrar and Transfer agents
M/s. Alankit Assignments Ltd., having Corporate office at Alankit House, 2E/21 Jhandewalan Extension, New
Delhi 110 055, Telephone numbers 42541234, 23541234 and Fax numbers 42541967, 23552001 are
Registrar & Share Transfer Agents (RTA) of the Company who handle share transfer work in Physical and
Electronic mode.
(x) Share Transfer System
Securities lodged at the Registrar's address are normally processed within 30 days from the date of lodgment,
if documents are clear in all respects. All requests for dematerialization are processed and the confirmation is
given to the depositories within 21 days.
(xi) Distribution of Equity Shareholding as on 31.03.2011
Equity Shares Upto 501- 1001- 2001- 3001- 4001- 5001- 10001
Held 500 1000 2000 3000 4000 5000 10000 and TOTAL
above
Shareholders- 139 6 10 9 2 1 6 14 187
Nos.
Shareholding-% .03 .02 .06 .10 .03 .02 .23 99.51 100
(xii) Categories of Shareholders as on 31.03.2011
CATEGORY NO. OF SHARES HELD % SHAREHOLDING
Promoters
- Individuals 1241119 5.55
- Bodies Corporate 2778157 12.41
- Deepak Shriram Family Benefit Trust 6669336 29.81
(through Trustees)
- TOTAL (Promoters) 10688612 47.77
Banks, Financial Institutions, Insurance Cos. 2318758 10.36
Resident Individuals 200215 0.90
Resident Body Corporate 296 0.001
Non Resident Companies 9167031 40.97
TOTAL 22374912 100.00
(xiii) Dematerialization of shares and liquidity
Electronic Holding by members comprises 10.52% (previous year 10.50%) of the paid up share capital of the
st
Company as on 31 March, 2011 held through National Securities Depository Limited and Central Depository

10 11
AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE
To the Members of Shriram Pistons & Rings Ltd., New Delhi
We have examined the compliance of conditions of corporate governance by Shriram Pistons & Rings Ltd. for the year
st
ended on 31 March, 2011 as stipulated in clause 49 of the Listing Agreement of the said Company with the Delhi Stock
Exchange.
The compliance of conditions of corporate governance is the responsibility of the Management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions
of the corporate governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company
has complied with the conditions of corporate governance as stipulated in the above mentioned Listing Agreement.
As required by the Guidance Note issued by the Institute of Chartered Accountants of India, we have to state that no
investor grievance is pending for a period exceeding one month against the Company as per the records maintained by the
Shareholders and Investors Grievance Committee.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.
For Walker Chandiok & Co.
(Firm Registration No. 001076N)
Chartered Accountants
Place : New Delhi David Jones
Date : 30.04.2011 Partner
Membership No. 98113

Services (India) Ltd. Under the depository system, ISIN allotted to the Company's equity shares is
INE526E01018.
(xiv) Outstanding GDRs/ADRs/Warrants or any convertible instruments, conversion dates and likely
impact on equity
Company has not issued any warrants/ other instruments so far.
(xv) Plant Location
The company's plants are located at Meerut Road, Ghaziabad (U.P.) and Industrial Area, Pathredi,
District - Alwar (Rajasthan).
(xvi) Investors' correspondence may be addressed to:
The Company Secretary,
Shriram Pistons & Rings Ltd.
rd
3 Floor, Himalaya House,
23, Kasturba Gandhi Marg,
New Delhi - 110 001
Ph. 23315941, Fax: 23311203

ANNEXURE II TO DIRECTORS REPORT
REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS
1. Industry Structure and Development
Production of all segments of vehicles registered significant growth during the year. Production of Heavy Commercial Vehicles grew by
38% and Light Commercial Vehicles by 29% during the year. Production of Cars and Motorcycles registered growth of 28% and 25%
respectively. The Tractor segment witnessed growth of 25% on the strength of good agricultural performance.
2. Opportunities & Threats
Opportunities
Production in all vehicle segments was the highest ever. Heavy Commercial Vehicles sales generally move in tandem with economic
growth in the country. Accordingly, production and sales of commercial vehicles increased by record 38% compared to other segments.
Easier access to loans, continuous economic growth, higher disposable income and wider choice of models are the main factors behind
28% growth in car sales, which is expected to further increase by 12-15% in 2011-12. Overall growth rate of about 14-15% is expected in
the automobile sector in India, during the financial year 2011-12.
Increase in interest subsidy on crop loans, continued focus on rural development and revision in wages is expected to have a positive
impact on sales of Two-Wheelers, Tractors and Stationary Engines.
The Company has presence in all market segments i.e. OEMs and After market, both in domestic and export markets. Further, the
Company has presence across all vehicle segments i.e. Commercial Vehicles, Cars, Two Wheelers, Tractors and Stationary engines.
Therefore the Company would be able to take advantage of growth in demand across various vehicle and customer segments.
The second plant at Pathredi, near Bhiwadi, (Rajasthan) has commenced production, supplementing capacity to meet the increasing
demand in all segments.
Threats
Increase in the selling price of vehicles to compensate for high commodity prices along with increase in the interest rates on loans for
passenger and commercial vehicles may affect the growth rate.
Trend of rising prices of raw materials particularly Aluminium, Nickel, Silicon and Alloy Steel is also a cause of concern for the Company,
as recovery from customers, particularly from OEMs, is very difficult. This is further compounded by the general inflationary pressure on
all costs, including personnel cost, consumables etc.
Concept of green motoring is taking off globally, with the adoption of hybrid and full electric vehicles. Such trend may eventually come to
India and impact the usage of Internal Combustion engines, possibly in the next seven to ten years.
Interest rates are firming up and could also affect the profits of the Company.
The Company is taking all possible steps to reduce costs, to offset the impact of increase in cost of Raw materials, Consumables etc.
3. Segment-wise performance
The Company deals principally in only one segment i.e. automotive components. Therefore, segment-wise performance is not applicable.
4. Outlook
Non availability of power and inadequate infrastructure continue to adversely impact the outlook of the industry.
Government intervention is required to improve infrastructure which would also help in becoming competitive for long term growth of
exports. Price of raw materials more particularly, Aluminium, Nickel, Silicon and Alloy Steel have started hardening and would have an
adverse impact on operating margins.
5. Risk & Concerns
In view of the inflationary trend and adverse exchange rate, the investment cost for capacity expansion in Pathredi Phase-II is likely to
be significantly higher.
Reduction in profits due to increase in cost of raw material, increase in power tariffs by the Government and increase in quantum of self-
generation of power due to non-availability of power from the Government as well as cost of own generation due to hike in diesel cost.
Customers, particularly OEMs continue to demand lower prices in spite of increasing costs; retaining current margin is a management
challenge.
6. Internal Control Systems & their adequacy
The Company has proper and adequate system of internal controls, which provide reasonable assurance regarding all financial and
operating functions and compliance with statutory provisions.
The Company has an internal audit section besides an external firm which is carrying out internal audits. The internal auditors reports are
regularly reviewed by Senior Management and Audit Committee of the Board for its implementation and effectiveness.
The Company endeavors to constantly upgrade internal controls and periodic evaluation of the same is being undertaken.
Company has in place a system to periodically assess various risks and its likelihood and an action plan to pro-actively mitigate the impact
of various risks.
7. Financial/Operational performance
st
Net sales of the Company during the year ended 31 March, 2011 were Rs. 8270 Million (growth of 14% over last year).
st
Net profit (PAT) of the Company during the year ended 31 March 2011 was Rs. 827 Million (increase of 20% over last year).
The improvement in profit is a result of continuous efforts to maximize utilization of production capacity and implementation of special
projects for cost reduction.
Earning per share increased from Rs. 30.80 to Rs. 36.96 in 2010-11.

12
8. Human Resources / Industrial Relations
The Management considers people as its key resource and provides development opportunities through various training and welfare
programs for employees and their families.
Continuous steps are undertaken for maintaining excellent industrial relations.
Dignity, fairness and respect are the key values in dealing with fellow employees in our Company.
9. Cautionary Statement
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may
be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others,
economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company
operates, changes in the Government regulations, tax laws and other statutes and incidental factors.
ANNEXURE III TO DIRECTORS REPORT
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN
THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988
A. Conservation of Energy
1. Energy conservation is an environmentally sustainable and economically viable process and has been a priority focus area for the
Company. Following energy conservation measures were taken in Ghaziabad works during the year 2010-11
i) Installation of Jaw crusher in Cast Iron Foundry, reducing the power consumption per ton of molten metal
ii) Replacement of old mist extraction units in EV machine shops with larger and more efficient units
iii) Change of design in Sealed Quench Furnace charge fixture in Pin Plant, reducing power cost of heat treatment
iv) Installation of multiple cavity dies casting machines
v) Change of basket design in continuous Heat treatment furnaces in Aluminium Foundry resulting in reduction of energy
consumption
2. Additional investments for reduction of consumption of energy:-
i) Installation of transformer with in-built on load, stepless rolling contact type online HT - AVRs
ii) Manufacturing process change in Pin Plant Heat treatment which is more energy efficient
3. Impact of the above measures:
These measures have resulted in improvement in the efficiency of energy use and reduction in cost of production of company
products.
4. Energy consumption details: -
This is not applicable, since the company is not covered under the list of industries specified in schedule under Rule 2.
B. Form B for Disclosure of Particulars with respect to Technology Absorption :
: Research and Development (R&D)
1. Specific areas in which R&D is carried out by the Company
Design Validation Facilities:-
- up gradation of all engine test cells to meet the test cycles of Euro-IV compliant engines
- Developed capability to measure piston temperature at critical zones for design input
Pistons:-
- Acquired capability to design piston through dedicated finite element analysis (FEA) software
- Prediction & remedial measures for foundry defects by virtual pouring of molten metal by dedicated casting simulation software
- Prediction of tool life to enable preventive tool change, to eliminate potential defect due to debonding
- Developed special skirt coating using nano particles, to reduce friction losses & ensure longer life of engine
Rings:-
- Developed in house capability to predict ring motion & effect on performance through ring dynamics software
- Commissioned Multi-layered chromium plating film coated piston rings (for inlaid/ semi-inlaid asymmetrically barreled
rings) technology
- Development of high strength / high wear resistant special alloy cast iron for highly loaded engines
- Developed asymmetrically barreled PVD coated top ring
- Developed thin steel oil ring for heavy duty application
- Developed low tension ring pack to improve engine fuel efficiency.
Engine Valves:-
- Reduction in stellite consumption through design & process improvement
General:-
- Established a completely new model development system to achieve the following benefits through simultaneous
engineering & cross functional approach :
improved product / customer service
reduced development time & cost
13
ANNEXURE II TO DIRECTORS REPORT
REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS
1. Industry Structure and Development
Production of all segments of vehicles registered significant growth during the year. Production of Heavy Commercial Vehicles grew by
38% and Light Commercial Vehicles by 29% during the year. Production of Cars and Motorcycles registered growth of 28% and 25%
respectively. The Tractor segment witnessed growth of 25% on the strength of good agricultural performance.
2. Opportunities & Threats
Opportunities
Production in all vehicle segments was the highest ever. Heavy Commercial Vehicles sales generally move in tandem with economic
growth in the country. Accordingly, production and sales of commercial vehicles increased by record 38% compared to other segments.
Easier access to loans, continuous economic growth, higher disposable income and wider choice of models are the main factors behind
28% growth in car sales, which is expected to further increase by 12-15% in 2011-12. Overall growth rate of about 14-15% is expected in
the automobile sector in India, during the financial year 2011-12.
Increase in interest subsidy on crop loans, continued focus on rural development and revision in wages is expected to have a positive
impact on sales of Two-Wheelers, Tractors and Stationary Engines.
The Company has presence in all market segments i.e. OEMs and After market, both in domestic and export markets. Further, the
Company has presence across all vehicle segments i.e. Commercial Vehicles, Cars, Two Wheelers, Tractors and Stationary engines.
Therefore the Company would be able to take advantage of growth in demand across various vehicle and customer segments.
The second plant at Pathredi, near Bhiwadi, (Rajasthan) has commenced production, supplementing capacity to meet the increasing
demand in all segments.
Threats
Increase in the selling price of vehicles to compensate for high commodity prices along with increase in the interest rates on loans for
passenger and commercial vehicles may affect the growth rate.
Trend of rising prices of raw materials particularly Aluminium, Nickel, Silicon and Alloy Steel is also a cause of concern for the Company,
as recovery from customers, particularly from OEMs, is very difficult. This is further compounded by the general inflationary pressure on
all costs, including personnel cost, consumables etc.
Concept of green motoring is taking off globally, with the adoption of hybrid and full electric vehicles. Such trend may eventually come to
India and impact the usage of Internal Combustion engines, possibly in the next seven to ten years.
Interest rates are firming up and could also affect the profits of the Company.
The Company is taking all possible steps to reduce costs, to offset the impact of increase in cost of Raw materials, Consumables etc.
3. Segment-wise performance
The Company deals principally in only one segment i.e. automotive components. Therefore, segment-wise performance is not applicable.
4. Outlook
Non availability of power and inadequate infrastructure continue to adversely impact the outlook of the industry.
Government intervention is required to improve infrastructure which would also help in becoming competitive for long term growth of
exports. Price of raw materials more particularly, Aluminium, Nickel, Silicon and Alloy Steel have started hardening and would have an
adverse impact on operating margins.
5. Risk & Concerns
In view of the inflationary trend and adverse exchange rate, the investment cost for capacity expansion in Pathredi Phase-II is likely to
be significantly higher.
Reduction in profits due to increase in cost of raw material, increase in power tariffs by the Government and increase in quantum of self-
generation of power due to non-availability of power from the Government as well as cost of own generation due to hike in diesel cost.
Customers, particularly OEMs continue to demand lower prices in spite of increasing costs; retaining current margin is a management
challenge.
6. Internal Control Systems & their adequacy
The Company has proper and adequate system of internal controls, which provide reasonable assurance regarding all financial and
operating functions and compliance with statutory provisions.
The Company has an internal audit section besides an external firm which is carrying out internal audits. The internal auditors reports are
regularly reviewed by Senior Management and Audit Committee of the Board for its implementation and effectiveness.
The Company endeavors to constantly upgrade internal controls and periodic evaluation of the same is being undertaken.
Company has in place a system to periodically assess various risks and its likelihood and an action plan to pro-actively mitigate the impact
of various risks.
7. Financial/Operational performance
st
Net sales of the Company during the year ended 31 March, 2011 were Rs. 8270 Million (growth of 14% over last year).
st
Net profit (PAT) of the Company during the year ended 31 March 2011 was Rs. 827 Million (increase of 20% over last year).
The improvement in profit is a result of continuous efforts to maximize utilization of production capacity and implementation of special
projects for cost reduction.
Earning per share increased from Rs. 30.80 to Rs. 36.96 in 2010-11.

12
8. Human Resources / Industrial Relations
The Management considers people as its key resource and provides development opportunities through various training and welfare
programs for employees and their families.
Continuous steps are undertaken for maintaining excellent industrial relations.
Dignity, fairness and respect are the key values in dealing with fellow employees in our Company.
9. Cautionary Statement
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may
be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others,
economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company
operates, changes in the Government regulations, tax laws and other statutes and incidental factors.
ANNEXURE III TO DIRECTORS REPORT
PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN
THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988
A. Conservation of Energy
1. Energy conservation is an environmentally sustainable and economically viable process and has been a priority focus area for the
Company. Following energy conservation measures were taken in Ghaziabad works during the year 2010-11
i) Installation of Jaw crusher in Cast Iron Foundry, reducing the power consumption per ton of molten metal
ii) Replacement of old mist extraction units in EV machine shops with larger and more efficient units
iii) Change of design in Sealed Quench Furnace charge fixture in Pin Plant, reducing power cost of heat treatment
iv) Installation of multiple cavity dies casting machines
v) Change of basket design in continuous Heat treatment furnaces in Aluminium Foundry resulting in reduction of energy
consumption
2. Additional investments for reduction of consumption of energy:-
i) Installation of transformer with in-built on load, stepless rolling contact type online HT - AVRs
ii) Manufacturing process change in Pin Plant Heat treatment which is more energy efficient
3. Impact of the above measures:
These measures have resulted in improvement in the efficiency of energy use and reduction in cost of production of company
products.
4. Energy consumption details: -
This is not applicable, since the company is not covered under the list of industries specified in schedule under Rule 2.
B. Form B for Disclosure of Particulars with respect to Technology Absorption :
: Research and Development (R&D)
1. Specific areas in which R&D is carried out by the Company
Design Validation Facilities:-
- up gradation of all engine test cells to meet the test cycles of Euro-IV compliant engines
- Developed capability to measure piston temperature at critical zones for design input
Pistons:-
- Acquired capability to design piston through dedicated finite element analysis (FEA) software
- Prediction & remedial measures for foundry defects by virtual pouring of molten metal by dedicated casting simulation software
- Prediction of tool life to enable preventive tool change, to eliminate potential defect due to debonding
- Developed special skirt coating using nano particles, to reduce friction losses & ensure longer life of engine
Rings:-
- Developed in house capability to predict ring motion & effect on performance through ring dynamics software
- Commissioned Multi-layered chromium plating film coated piston rings (for inlaid/ semi-inlaid asymmetrically barreled
rings) technology
- Development of high strength / high wear resistant special alloy cast iron for highly loaded engines
- Developed asymmetrically barreled PVD coated top ring
- Developed thin steel oil ring for heavy duty application
- Developed low tension ring pack to improve engine fuel efficiency.
Engine Valves:-
- Reduction in stellite consumption through design & process improvement
General:-
- Established a completely new model development system to achieve the following benefits through simultaneous
engineering & cross functional approach :
improved product / customer service
reduced development time & cost
13
14 15
DECLARATION ON COMPLIANCE OF CODE OF CONDUCT
The Board of Directors have laid down a Code of Conduct to be observed and implemented by all Directors and Senior Management
personnel of the company in their official day to day activities, as required under Clause 49 of the Listing Agreement with Delhi Stock
Exchange.
All Board members and Senior Management personnel of the Company have affirmed to the Company that they have complied and
st
implemented the Company's Code of Conduct in discharging their official day-to-day activities for the F.Y.E 31 March, 2011.
New Delhi (A.K. TANEJA)
April 30, 2011 MANAGING DIRECTOR & CEO
ANNEXURE IV TO DIRECTORS' REPORT
PARTICULARS OF EMPLOYEES
UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956
Name Designation/ Remuneration Qualification Experience Commencement Age Last Employment
Duties (Rs.) (Years) of Employment (Years) Held
Meenakshi S. Dass@* Wholetime Director 2,29,83,029 Degree in Textile 22 May. 09 47 Director, Pearey Lall &
Designing Sons (E.P.) Ltd., Delhi
Anil Gadi Executive Director 1,01,03,084 B.E., PGDM 34 Mar. 06 58 Managing Director,
Energiser Lanka Ltd.,
Srilanka
V.K. Jayaswal Executive Director 98,95,887 B. Sc. (Engg.), 33 Oct. 08 56 Director, JV Relationship,
PGDBM Tata Cummins Ltd.,
Jamshedpur
Sudhir Kumar# Executive Director 36,05,050 B.E. 45 Mar. 83 68 Works Manager,
Shalimar Wires &
Inds. Ltd., Calcutta
Rajiv Sethi Executive Director 99,16,498 B.Com(H) 40 Aug. 73 59 Officer, Usha Sales
Pvt. Ltd., Delhi
R. Srinivasan * Joint Managing 2,11,61,932 B.Com(H), LLB, 38 Feb. 74 59 ET, Usha Sales Pvt. Ltd,
Director & Company FICWA, FCS, Delhi
Secretary AMP (Harvard)
A.K. Taneja * Managing Director 2,81,86,925 B.Tech 39 Apr. 78 60 Dy. Mktg. Manager, Usha
& CEO Sales Pvt. Ltd., Delhi
Notes:
1. Year of experience include experience prior to joining the Company.
2. All employees are on regular employment.
3. Remuneration includes payment of Salaries, allowances, expenses on perquisites and contribution to provident fund, gratuity fund & superannuation fund
& other benefits on payment basis.
4. # Worked for part of the year
5. @ Smt. Meenakshi S. Dass is a relative of Shri Luv D. Shriram, Director of the company.
6. * Employees on Contract.
2. Benefits derived as a result of the above R&D:-
- Prediction & countermeasure of foundry & machining rejection by means of dedicated design software
- Optimum piston design for being 'first time right' through dedicated software
- Performance assessment in design stage itself
- Unique piston / ring design to create product differentiator
- Improved product life
- Improved fuel efficiency
- Cost reduction
- Ability to undertake trial of engines with tighter emission norms
- Technology assimilated in products to meet latest Euro norms
- Winning new business & widening customer base
3. Future Plan of action:-
- Separate facility for piston 'prototype' development
- Set up of most modern product analysis laboratory
- On line (during engine running) piston temperature measurement facility
- Dedicated software for piston dynamic simulation
- Development of 'DLC' coated pins
- 'Tribology' coated valve for CNG application
- Upgrade test beds for Euro V compliant Engines
4. Expenditure on R & D:-
- Capital / intangible : Rs. 24.95 Million
- Recurring : Rs. 74.16 Million
- Total : Rs. 99.11 Million
- Total R&D expenditure as percentage of total turnover is 1.18%
: Technology Absorption, Adaptation and Innovation
1. Efforts, in brief, made towards technology absorption, adaptation and innovation:-
- Continuous interaction with Collaborators for upgrading design & quality of products manufactured and to enhance
technical expertise for in-house design and development.
- Visit of our engineers to Collaborators' plants and visit of Collaborators' engineers to our Plant for transfer of technology and
latest production processes as per Collaborators' practice.
- Visit of key R&D personnel of Collaborators to OEMs for technical presentation & support.
2. Benefits derived as a result of the above effort:-
- Product design & quality improvement and cost reduction were achieved through improved design / process capability and
better utilization of Plant.
- Building trust & long term business relation with customers to emerge as 'most preferred supplier'.
3. Imported technology:-
- Technology is being continuously received from Technical Collaborators viz. M/s. KS Kolbenschmidt GmbH, Germany,
M/s.Honda Foundry, Japan, M/s. Riken Corporation, Japan and M/s.Fuji Oozx, Japan under subsisting Technical
Collaboration Agreements for manufacture of Pistons, Piston Rings and Engine Valves.
- Development of new markets for export of companys products continues to remain a focus area. New models have been
added to the product range both for on-going and new markets developed by the company.
C. Foreign Exchange Earnings & Outgo
1. Exports:-
- Exports continue to remain focus area for the Company. The company made exports worth Rs. 1492 Million in the year as
compared to Rs. 1373 Million in the previous year witnessing a growth of about 9% over the last year.
- Although, companys exports were higher in the year, the uncertainties in the Middle East and Africa, mainly Egypt would have an
adverse effect on the overall exports. The European and Latin American Markets have stabilized and this would foster higher
sales of the company.
- Several initiatives are being taken to increase Companys export to global OEMs and in the aftermarket, in close coordination
with our Collaborators. Concurrently, a second plant of the company at Pathredi, near Bhiwadi, (Rajasthan) has been made
operational to meet the growth in demand.
- Development of new markets for export of companys products continues to remain a focus area.
- 18% of our turnover accrued from exports and it is expected to increase further as production in second plant at Pathredi begins
to operate at full capacity.
2. Foreign Exchange earned - Rs. 1495 Million
Foreign Exchange utilized - Rs. 1619 Million
14 15
DECLARATION ON COMPLIANCE OF CODE OF CONDUCT
The Board of Directors have laid down a Code of Conduct to be observed and implemented by all Directors and Senior Management
personnel of the company in their official day to day activities, as required under Clause 49 of the Listing Agreement with Delhi Stock
Exchange.
All Board members and Senior Management personnel of the Company have affirmed to the Company that they have complied and
st
implemented the Company's Code of Conduct in discharging their official day-to-day activities for the F.Y.E 31 March, 2011.
New Delhi (A.K. TANEJA)
April 30, 2011 MANAGING DIRECTOR & CEO
ANNEXURE IV TO DIRECTORS' REPORT
PARTICULARS OF EMPLOYEES
UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956
Name Designation/ Remuneration Qualification Experience Commencement Age Last Employment
Duties (Rs.) (Years) of Employment (Years) Held
Meenakshi S. Dass@* Wholetime Director 2,29,83,029 Degree in Textile 22 May. 09 47 Director, Pearey Lall &
Designing Sons (E.P.) Ltd., Delhi
Anil Gadi Executive Director 1,01,03,084 B.E., PGDM 34 Mar. 06 58 Managing Director,
Energiser Lanka Ltd.,
Srilanka
V.K. Jayaswal Executive Director 98,95,887 B. Sc. (Engg.), 33 Oct. 08 56 Director, JV Relationship,
PGDBM Tata Cummins Ltd.,
Jamshedpur
Sudhir Kumar# Executive Director 36,05,050 B.E. 45 Mar. 83 68 Works Manager,
Shalimar Wires &
Inds. Ltd., Calcutta
Rajiv Sethi Executive Director 99,16,498 B.Com(H) 40 Aug. 73 59 Officer, Usha Sales
Pvt. Ltd., Delhi
R. Srinivasan * Joint Managing 2,11,61,932 B.Com(H), LLB, 38 Feb. 74 59 ET, Usha Sales Pvt. Ltd,
Director & Company FICWA, FCS, Delhi
Secretary AMP (Harvard)
A.K. Taneja * Managing Director 2,81,86,925 B.Tech 39 Apr. 78 60 Dy. Mktg. Manager, Usha
& CEO Sales Pvt. Ltd., Delhi
Notes:
1. Year of experience include experience prior to joining the Company.
2. All employees are on regular employment.
3. Remuneration includes payment of Salaries, allowances, expenses on perquisites and contribution to provident fund, gratuity fund & superannuation fund
& other benefits on payment basis.
4. # Worked for part of the year
5. @ Smt. Meenakshi S. Dass is a relative of Shri Luv D. Shriram, Director of the company.
6. * Employees on Contract.
2. Benefits derived as a result of the above R&D:-
- Prediction & countermeasure of foundry & machining rejection by means of dedicated design software
- Optimum piston design for being 'first time right' through dedicated software
- Performance assessment in design stage itself
- Unique piston / ring design to create product differentiator
- Improved product life
- Improved fuel efficiency
- Cost reduction
- Ability to undertake trial of engines with tighter emission norms
- Technology assimilated in products to meet latest Euro norms
- Winning new business & widening customer base
3. Future Plan of action:-
- Separate facility for piston 'prototype' development
- Set up of most modern product analysis laboratory
- On line (during engine running) piston temperature measurement facility
- Dedicated software for piston dynamic simulation
- Development of 'DLC' coated pins
- 'Tribology' coated valve for CNG application
- Upgrade test beds for Euro V compliant Engines
4. Expenditure on R & D:-
- Capital / intangible : Rs. 24.95 Million
- Recurring : Rs. 74.16 Million
- Total : Rs. 99.11 Million
- Total R&D expenditure as percentage of total turnover is 1.18%
: Technology Absorption, Adaptation and Innovation
1. Efforts, in brief, made towards technology absorption, adaptation and innovation:-
- Continuous interaction with Collaborators for upgrading design & quality of products manufactured and to enhance
technical expertise for in-house design and development.
- Visit of our engineers to Collaborators' plants and visit of Collaborators' engineers to our Plant for transfer of technology and
latest production processes as per Collaborators' practice.
- Visit of key R&D personnel of Collaborators to OEMs for technical presentation & support.
2. Benefits derived as a result of the above effort:-
- Product design & quality improvement and cost reduction were achieved through improved design / process capability and
better utilization of Plant.
- Building trust & long term business relation with customers to emerge as 'most preferred supplier'.
3. Imported technology:-
- Technology is being continuously received from Technical Collaborators viz. M/s. KS Kolbenschmidt GmbH, Germany,
M/s.Honda Foundry, Japan, M/s. Riken Corporation, Japan and M/s.Fuji Oozx, Japan under subsisting Technical
Collaboration Agreements for manufacture of Pistons, Piston Rings and Engine Valves.
- Development of new markets for export of companys products continues to remain a focus area. New models have been
added to the product range both for on-going and new markets developed by the company.
C. Foreign Exchange Earnings & Outgo
1. Exports:-
- Exports continue to remain focus area for the Company. The company made exports worth Rs. 1492 Million in the year as
compared to Rs. 1373 Million in the previous year witnessing a growth of about 9% over the last year.
- Although, companys exports were higher in the year, the uncertainties in the Middle East and Africa, mainly Egypt would have an
adverse effect on the overall exports. The European and Latin American Markets have stabilized and this would foster higher
sales of the company.
- Several initiatives are being taken to increase Companys export to global OEMs and in the aftermarket, in close coordination
with our Collaborators. Concurrently, a second plant of the company at Pathredi, near Bhiwadi, (Rajasthan) has been made
operational to meet the growth in demand.
- Development of new markets for export of companys products continues to remain a focus area.
- 18% of our turnover accrued from exports and it is expected to increase further as production in second plant at Pathredi begins
to operate at full capacity.
2. Foreign Exchange earned - Rs. 1495 Million
Foreign Exchange utilized - Rs. 1619 Million
16
AUDITORS REPORT
To,
The Members of Shriram Pistons & Rings Limited
1. We have audited the attached Balance Sheet of Shriram Pistons & Rings Limited, (the Company) as at March 31,
2011, and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed
thereto (collectively referred as the financial statements). These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (the Order) (as amended), issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to above, we report that:
a. We have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books;
c. The financial statements dealt with by this report are in agreement with the books of account;
d. On the basis of written representations received from the directors, as on March 31, 2011 and taken on record by
the Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being
appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act;
e. In our opinion and to the best of our information and according to the explanations given to us, the financial
statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Act and the Rules framed there under and give the information required by the Act, in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted
in India, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at March 31, 2011;
ii) the Profit and Loss Account, of the profit for the period ended on that date; and
iii) the Cash Flow Statement, of the cash flows for the period ended on that date.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per David Jones
Partner
Membership No.98113
Place: New Delhi
Date: April 30, 2011
B
the Company and taking into consideration the information and explanations given to us and the books of account and
other records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are
verified on an annual basis. In our opinion, this periodicity of physical verification is reasonable having regard
to the size of the Company and the nature of its assets. No material discrepancies were noticed on such
verification.
(b) In our opinion, a substantial part of fixed assets has not been disposed off during the year.
(ii) (a) Physical verification of inventory (except stock in transit) has been carried out at reasonable intervals. In our
opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on
physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered
in the register maintained under section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(b) to (d) of
the Order are not applicable.
(e) The Company has taken unsecured loans from parties covered in the register maintained under section 301
of the Act. The maximum amount outstanding during the year was Rs. 129.5 million and the year end
balance was Rs. 105.34 million.
(f) In our opinion, the rate of interest and other terms and conditions for such loans are not, prima facie,
prejudicial to the interest of the Company.
(g) In respect of loans taken, repayment of principal amount is as stipulated and payment of interest has been
regular.
(iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets and for the sale of goods.
(v) (a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register
maintained under section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the
value of rupees five lacs in respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant time.
(vi) In our opinion, the Company has complied with the provisions of sections 58A and 58AA and other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted
from the public. No Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the
Central Government under section 209 (1)(d) of the Act for the maintenance of cost records in respect of
Companys products and are of the opinion that, prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
ased on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of
17
Annexure to the Auditors Report of even date to the members of Shriram Pistons & Rings
Limited, on the financial statements for the period ended March 31, 2011
16
AUDITORS REPORT
To,
The Members of Shriram Pistons & Rings Limited
1. We have audited the attached Balance Sheet of Shriram Pistons & Rings Limited, (the Company) as at March 31,
2011, and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed
thereto (collectively referred as the financial statements). These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (the Order) (as amended), issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to above, we report that:
a. We have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears
from our examination of those books;
c. The financial statements dealt with by this report are in agreement with the books of account;
d. On the basis of written representations received from the directors, as on March 31, 2011 and taken on record by
the Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being
appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act;
e. In our opinion and to the best of our information and according to the explanations given to us, the financial
statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of
section 211 of the Act and the Rules framed there under and give the information required by the Act, in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted
in India, in the case of:
i) the Balance Sheet, of the state of affairs of the Company as at March 31, 2011;
ii) the Profit and Loss Account, of the profit for the period ended on that date; and
iii) the Cash Flow Statement, of the cash flows for the period ended on that date.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per David Jones
Partner
Membership No.98113
Place: New Delhi
Date: April 30, 2011
B
the Company and taking into consideration the information and explanations given to us and the books of account and
other records examined by us in the normal course of audit, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are
verified on an annual basis. In our opinion, this periodicity of physical verification is reasonable having regard
to the size of the Company and the nature of its assets. No material discrepancies were noticed on such
verification.
(b) In our opinion, a substantial part of fixed assets has not been disposed off during the year.
(ii) (a) Physical verification of inventory (except stock in transit) has been carried out at reasonable intervals. In our
opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on
physical verification.
(iii) (a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered
in the register maintained under section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(b) to (d) of
the Order are not applicable.
(e) The Company has taken unsecured loans from parties covered in the register maintained under section 301
of the Act. The maximum amount outstanding during the year was Rs. 129.5 million and the year end
balance was Rs. 105.34 million.
(f) In our opinion, the rate of interest and other terms and conditions for such loans are not, prima facie,
prejudicial to the interest of the Company.
(g) In respect of loans taken, repayment of principal amount is as stipulated and payment of interest has been
regular.
(iv) In our opinion, there is an adequate internal control system commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets and for the sale of goods.
(v) (a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register
maintained under section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the
value of rupees five lacs in respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant time.
(vi) In our opinion, the Company has complied with the provisions of sections 58A and 58AA and other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted
from the public. No Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the
Central Government under section 209 (1)(d) of the Act for the maintenance of cost records in respect of
Companys products and are of the opinion that, prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
ased on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of
17
Annexure to the Auditors Report of even date to the members of Shriram Pistons & Rings
Limited, on the financial statements for the period ended March 31, 2011
18 19
(ix) (a) The Company is regular in depositing the undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax,
custom duty, excise duty, cess and other material statutory dues, as applicable, with the appropriate
authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year end for
a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of sales tax, income tax, custom duty, wealth tax, excise duty, cess on
account of any dispute, are as follows:
Name of
the Statute of (Rs. in paid under which the dispute is
dues Million) protest (Rs. amount pending
in Million) relates
Income Tax Income Tax 10.24 10.24 A.Y 2003-04 Commissioner of Income
Act, 1961 Demand Tax (Appeals), Delhi
Income Tax Income Tax 0.33 0.33 A.Y.2000-2001, Income Tax Appellate
Act, 1961 Demand 2004-05 Tribunal (ITAT), Delhi
Income Tax Income Tax 1.12 0.82 A.Y. 2003-04 Deputy Commissioner,
Act, 1961 Demand Income Tax, Delhi
Wealth Tax Wealth Tax 0.28 - A.Y. 1997-1998, A.Y Income Tax Appellate
Act,1957 Demand 1998-1999, 2005-06 Tribunal (ITAT), Delhi
Wealth Tax Wealth Tax 0.13 0.06 A.Y. 1997-1998, Deputy Commissioner,
Act,1957 Demand 1998-1999, 2005-06 Income Tax, Delhi
Central Excise Excise 73.26 - 2007-08 and 2008-09 CESTAT, Delhi
Act,1944 demand
Service Tax Service Tax 225.36 - 2004-05 to 2008-09 CESTAT, Delhi
Act, 1994 Demand
Service Tax Service Tax 33.61 - 2000-01 to 2004-05 CESTAT, Delhi
Act, 1994 Demand
U.P. Trade Sales Tax 0.036 0.024 2003-04 Dy. Commissioner,
Tax Act, 2008 Demand Ghaziabad
U.P. Trade Sales Tax 4.57 0.68 2005-06 Trade Tax Tribunal,
Tax Act, 2008 Demand Ghaziabad
U.P. Trade Sales Tax 2.08 - 2007-08 Additional Commissioner
Tax Act, 2008 Demand (Appeal),Ghaziabad
U.P. Trade Sales Tax 0.17 - 2007-08 Trade Tax Tribunal,
Tax Act, 2008 Demand Ghaziabad
Rajasthan, Sales Sales Tax 0.029 - 2004-05 and 2005-06 Asst. Commissioner,
Tax Act, 1954 Demand CTO V, Jaipur
Kerala General Sales Tax 0.061 0.017 2004-05 D.C. Appeal, Cochin
Sales Tax Act, Demand
1963
Nature Amount Amount Period to Forum where
M.P. General
Sales Tax Act, Demand 2005-06 Appellate Board, Bhopal
1958
West Bengal Sales Tax 0.029 - 2005-06 W.B. Commercial Tax
VAT Act, 2003 Demand Appellate and Revisional
Board, Kolkatta
(x) In our opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash
losses in the current and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues to a financial institution or a bank. There were
no outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares,
debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, the provisions of
clause 4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.
(xv) The Company has given guarantee for the loans taken by others from banks or financial institutions, the terms and
conditions whereof in our opinion are not prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has applied the term loans for the purpose for which the loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register
maintained under section 301 of the Act. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures during the year. Accordingly, the provisions
of clause 4(xix) of the Order are not applicable.
(xx) The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause
4(xx) of the Order are not applicable.
(xxi) No fraud on or by the Company has been noticed or reported during the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per David Jones
Partner
Membership No.98113
Place: New Delhi
Date: April 30, 2011
Sales Tax 0.75 0.21 2003-04, 2004-05, Commercial tax,
Annexure to the Auditors Report of even date to the members of Shriram Pistons & Rings
Limited, on the financial statements for the period ended March 31, 2011
Annexure to the Auditors Report of even date to the members of Shriram Pistons & Rings
Limited, on the financial statements for the period ended March 31, 2011
Name of Nature Amount Amount Period to Forum where
the Statute of (Rs. in paid under which the dispute is
dues Million) protest (Rs. amount pending
in Million) relates
18 19
(ix) (a) The Company is regular in depositing the undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax,
custom duty, excise duty, cess and other material statutory dues, as applicable, with the appropriate
authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year end for
a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of sales tax, income tax, custom duty, wealth tax, excise duty, cess on
account of any dispute, are as follows:
Name of
the Statute of (Rs. in paid under which the dispute is
dues Million) protest (Rs. amount pending
in Million) relates
Income Tax Income Tax 10.24 10.24 A.Y 2003-04 Commissioner of Income
Act, 1961 Demand Tax (Appeals), Delhi
Income Tax Income Tax 0.33 0.33 A.Y.2000-2001, Income Tax Appellate
Act, 1961 Demand 2004-05 Tribunal (ITAT), Delhi
Income Tax Income Tax 1.12 0.82 A.Y. 2003-04 Deputy Commissioner,
Act, 1961 Demand Income Tax, Delhi
Wealth Tax Wealth Tax 0.28 - A.Y. 1997-1998, A.Y Income Tax Appellate
Act,1957 Demand 1998-1999, 2005-06 Tribunal (ITAT), Delhi
Wealth Tax Wealth Tax 0.13 0.06 A.Y. 1997-1998, Deputy Commissioner,
Act,1957 Demand 1998-1999, 2005-06 Income Tax, Delhi
Central Excise Excise 73.26 - 2007-08 and 2008-09 CESTAT, Delhi
Act,1944 demand
Service Tax Service Tax 225.36 - 2004-05 to 2008-09 CESTAT, Delhi
Act, 1994 Demand
Service Tax Service Tax 33.61 - 2000-01 to 2004-05 CESTAT, Delhi
Act, 1994 Demand
U.P. Trade Sales Tax 0.036 0.024 2003-04 Dy. Commissioner,
Tax Act, 2008 Demand Ghaziabad
U.P. Trade Sales Tax 4.57 0.68 2005-06 Trade Tax Tribunal,
Tax Act, 2008 Demand Ghaziabad
U.P. Trade Sales Tax 2.08 - 2007-08 Additional Commissioner
Tax Act, 2008 Demand (Appeal),Ghaziabad
U.P. Trade Sales Tax 0.17 - 2007-08 Trade Tax Tribunal,
Tax Act, 2008 Demand Ghaziabad
Rajasthan, Sales Sales Tax 0.029 - 2004-05 and 2005-06 Asst. Commissioner,
Tax Act, 1954 Demand CTO V, Jaipur
Kerala General Sales Tax 0.061 0.017 2004-05 D.C. Appeal, Cochin
Sales Tax Act, Demand
1963
Nature Amount Amount Period to Forum where
M.P. General
Sales Tax Act, Demand 2005-06 Appellate Board, Bhopal
1958
West Bengal Sales Tax 0.029 - 2005-06 W.B. Commercial Tax
VAT Act, 2003 Demand Appellate and Revisional
Board, Kolkatta
(x) In our opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash
losses in the current and the immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues to a financial institution or a bank. There were
no outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares,
debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, the provisions of
clause 4(xiii) of the Order are not applicable.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.
(xv) The Company has given guarantee for the loans taken by others from banks or financial institutions, the terms and
conditions whereof in our opinion are not prejudicial to the interest of the Company.
(xvi) In our opinion, the Company has applied the term loans for the purpose for which the loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register
maintained under section 301 of the Act. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures during the year. Accordingly, the provisions
of clause 4(xix) of the Order are not applicable.
(xx) The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause
4(xx) of the Order are not applicable.
(xxi) No fraud on or by the Company has been noticed or reported during the period covered by our audit.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per David Jones
Partner
Membership No.98113
Place: New Delhi
Date: April 30, 2011
Sales Tax 0.75 0.21 2003-04, 2004-05, Commercial tax,
Annexure to the Auditors Report of even date to the members of Shriram Pistons & Rings
Limited, on the financial statements for the period ended March 31, 2011
Annexure to the Auditors Report of even date to the members of Shriram Pistons & Rings
Limited, on the financial statements for the period ended March 31, 2011
Name of Nature Amount Amount Period to Forum where
the Statute of (Rs. in paid under which the dispute is
dues Million) protest (Rs. amount pending
in Million) relates
SHRIRAM PISTONS & RINGS LIMITED 20 SHRIRAM PISTONS & RINGS LIMITED 21
SOURCES OF FUNDS
Shareholder's fund
Share capital 1 223.75 223.75
Reserve and surplus 2 3,676.77 2,963.67
3,900.52 3,187.42
Loan funds 3
Secured 1,836.43 1,512.22
Unsecured 389.98 494.74
2,226.41 2,006.96
Deferred tax liability (net) 249.26 267.23
6,376.19 5,461.61
APPLICATION OF FUNDS
Fixed assets 4
Gross block 8,371.50 7,250.24
Less : Accumulated depreciation and amortisation 3,805.72 3,271.24
Net block 4,565.78 3,979.00
Capital work in progress 401.81 215.95
4,967.59 4,194.95
Investment 5 0.50 0.50
Foreign currency monetary items - 24.66
translation difference
Current assets, loans and advances 6
Inventories 1,307.00 929.57
Sundry debtors 1,152.27 1,120.41
Cash and bank balances 415.23 334.66
Other current assets 8.81 3.38
Loans and advances 316.83 268.49
3,200.14 2,656.51
Less :
Current liabilities and provisions 7
Current liabilities 1,460.89 1,136.72
Provisions 331.15 278.29
1,792.04 1,415.01
Net current assets 1,408.10 1,241.50
6,376.19 5,461.61
Significant accounting policies 10
Notes to the financial statements 11
The schedules referred to above form an integral part of the financial statements
This is the Balance Sheet referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
INCOME
Sales - Gross 9,003.10 7,780.74
- Less : Excise duty on sale of goods 733.05 523.40
- Net sales 8,270.05 7,257.34
Other income 8 133.35 91.35
8,403.40 7,348.69
EXPENDITURE 9
Manufacturing and other expenses 6,468.42 5,586.03
Interest 176.98 191.49
Depreciation 587.42 541.18
Profit before tax 1,170.58 1,029.99
Less: Income tax 343.70 340.83
Profit after tax 826.88 689.16
Add: Balance brought forward from previous year 250.00 200.00
Amount available for appropriation 1,076.88 889.16
APPROPRIATION
Transfer to general reserve 685.73 560.76
Dividend - Interim 33.56 33.56
- Final proposed 44.75 33.56
Corporate dividend tax 12.84 11.28
Balance carried forward to Balance Sheet 300.00 250.00
1,076.88 889.16
Earning per share (basic/diluted) (Rs.) 11 36.96 30.80
Significant accounting policies 10
Notes to the financial statements 11
Balance Sheet as at 31 March 2011
(Rs. in million)
Schedule As at As at
31 March 2011 31 March 2010
Profit and Loss Account for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
This is the Profit and Loss Account referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED 20 SHRIRAM PISTONS & RINGS LIMITED 21
SOURCES OF FUNDS
Shareholder's fund
Share capital 1 223.75 223.75
Reserve and surplus 2 3,676.77 2,963.67
3,900.52 3,187.42
Loan funds 3
Secured 1,836.43 1,512.22
Unsecured 389.98 494.74
2,226.41 2,006.96
Deferred tax liability (net) 249.26 267.23
6,376.19 5,461.61
APPLICATION OF FUNDS
Fixed assets 4
Gross block 8,371.50 7,250.24
Less : Accumulated depreciation and amortisation 3,805.72 3,271.24
Net block 4,565.78 3,979.00
Capital work in progress 401.81 215.95
4,967.59 4,194.95
Investment 5 0.50 0.50
Foreign currency monetary items - 24.66
translation difference
Current assets, loans and advances 6
Inventories 1,307.00 929.57
Sundry debtors 1,152.27 1,120.41
Cash and bank balances 415.23 334.66
Other current assets 8.81 3.38
Loans and advances 316.83 268.49
3,200.14 2,656.51
Less :
Current liabilities and provisions 7
Current liabilities 1,460.89 1,136.72
Provisions 331.15 278.29
1,792.04 1,415.01
Net current assets 1,408.10 1,241.50
6,376.19 5,461.61
Significant accounting policies 10
Notes to the financial statements 11
The schedules referred to above form an integral part of the financial statements
This is the Balance Sheet referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
INCOME
Sales - Gross 9,003.10 7,780.74
- Less : Excise duty on sale of goods 733.05 523.40
- Net sales 8,270.05 7,257.34
Other income 8 133.35 91.35
8,403.40 7,348.69
EXPENDITURE 9
Manufacturing and other expenses 6,468.42 5,586.03
Interest 176.98 191.49
Depreciation 587.42 541.18
Profit before tax 1,170.58 1,029.99
Less: Income tax 343.70 340.83
Profit after tax 826.88 689.16
Add: Balance brought forward from previous year 250.00 200.00
Amount available for appropriation 1,076.88 889.16
APPROPRIATION
Transfer to general reserve 685.73 560.76
Dividend - Interim 33.56 33.56
- Final proposed 44.75 33.56
Corporate dividend tax 12.84 11.28
Balance carried forward to Balance Sheet 300.00 250.00
1,076.88 889.16
Earning per share (basic/diluted) (Rs.) 11 36.96 30.80
Significant accounting policies 10
Notes to the financial statements 11
Balance Sheet as at 31 March 2011
(Rs. in million)
Schedule As at As at
31 March 2011 31 March 2010
Profit and Loss Account for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
This is the Profit and Loss Account referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED 22 SHRIRAM PISTONS & RINGS LIMITED 23
A. Cash flow from operating activities
Profit - Net profit after income tax 826.88 689.16
- Add: income tax 343.70 340.83
- Net Profit before income tax 1,170.58 1,029.99
- Add: Depreciation 587.42 541.18
- Gross profit 1,758.00 1,571.17
Adjustment for - Interest cost and finance charges 179.93 199.85
- Interest earned (24.24) (8.92)
- Loss on sale/writing off of fixed assets 7.43 1.86
- Unrealised exchange differences 3.10 1.04
- Provision for doubtful debts & advances (2.82) 4.54
Operating profit before working capital changes 1,921.40 1,769.54
Adjustment for - Trade and other receivables (80.43) (212.53)
- Inventories (377.43) (72.32)
- Trade and other payables 144.62 376.88
Cash generated from operations 1,608.16 1,861.57
Income tax paid (378.30) (374.97)
1,229.86 1,486.60
B. Cash flow from investment activities
Purchase of fixed assets (1,098.55) (781.74)
Sale of fixed assets 8.67 29.10
Short term deposits with banks (33.06) (8.65)
Purchase of intangible assets (26.10) (14.16)
Interest received 18.81 7.74
(1,130.23) (767.71)
C. Cash flow from financing activities
Proceeds from long term borrowings 798.69 250.00
Repayment of long term borrowings (574.38) (549.16)
Proceeds from public deposits 181.34 404.93
Repayment of public deposits (283.90) (90.35)
Short term loans from banks 99.91 (148.94)
Interest and finance charges paid (195.55) (185.39)
Dividend paid (67.08) (78.25)
Tax on dividend (11.15) (13.31)
(52.12) (410.47)
D. Net cash flow 47.51 308.42
E. Reconciliation with cash and cash equivalents
Opening balance 315.57 7.15
Closing balance 363.08 315.57
47.51 308.42
Cash and cash equivalent is arrived at after deducting Rs. 52.16 million (Rs. 19.10 million) from cash and bank
balance being the amount not available for free use.
Notes to the financial statement 11
Share Capital
Authorised
Equity Shares 50,000,000 (previous year 50,000,000) of Rs.10 each 500.00 500.00
Preference Shares 3,000,000 (previous year 3,000,000) of Rs.100 each 300.00 300.00
800.00 800.00
Issued, subscribed and paid-up
Equity Shares - 22,374,912 (previous year 22,374,912 ) of Rs.10 each 223.75 223.75
223.75 223.75
Schedules forming part of the financial statements
SCHEDULE-1
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Cash Flow Statement for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
A. Revaluation reserve
Balance at the beginning of the year 173.74 212.32
Less: Deduction during the year 22.63 38.58
151.11 173.74
B. Preference share redemption reserve 100.00 100.00
C. General reserve
Balance at the beginning of the year 2,439.93 1,879.17
Add: Transfer from profit and loss account 685.73 560.76
3,125.66 2,439.93
D. Surplus in profit and loss account 300.00 250.00
3,676.77 2,963.67
Schedules forming part of the financial statements
SCHEDULE-2
(Rs. in million)
As at As at
31 March 2011 31 March 2010
This is the Cash Flow Statement referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED 22 SHRIRAM PISTONS & RINGS LIMITED 23
A. Cash flow from operating activities
Profit - Net profit after income tax 826.88 689.16
- Add: income tax 343.70 340.83
- Net Profit before income tax 1,170.58 1,029.99
- Add: Depreciation 587.42 541.18
- Gross profit 1,758.00 1,571.17
Adjustment for - Interest cost and finance charges 179.93 199.85
- Interest earned (24.24) (8.92)
- Loss on sale/writing off of fixed assets 7.43 1.86
- Unrealised exchange differences 3.10 1.04
- Provision for doubtful debts & advances (2.82) 4.54
Operating profit before working capital changes 1,921.40 1,769.54
Adjustment for - Trade and other receivables (80.43) (212.53)
- Inventories (377.43) (72.32)
- Trade and other payables 144.62 376.88
Cash generated from operations 1,608.16 1,861.57
Income tax paid (378.30) (374.97)
1,229.86 1,486.60
B. Cash flow from investment activities
Purchase of fixed assets (1,098.55) (781.74)
Sale of fixed assets 8.67 29.10
Short term deposits with banks (33.06) (8.65)
Purchase of intangible assets (26.10) (14.16)
Interest received 18.81 7.74
(1,130.23) (767.71)
C. Cash flow from financing activities
Proceeds from long term borrowings 798.69 250.00
Repayment of long term borrowings (574.38) (549.16)
Proceeds from public deposits 181.34 404.93
Repayment of public deposits (283.90) (90.35)
Short term loans from banks 99.91 (148.94)
Interest and finance charges paid (195.55) (185.39)
Dividend paid (67.08) (78.25)
Tax on dividend (11.15) (13.31)
(52.12) (410.47)
D. Net cash flow 47.51 308.42
E. Reconciliation with cash and cash equivalents
Opening balance 315.57 7.15
Closing balance 363.08 315.57
47.51 308.42
Cash and cash equivalent is arrived at after deducting Rs. 52.16 million (Rs. 19.10 million) from cash and bank
balance being the amount not available for free use.
Notes to the financial statement 11
Share Capital
Authorised
Equity Shares 50,000,000 (previous year 50,000,000) of Rs.10 each 500.00 500.00
Preference Shares 3,000,000 (previous year 3,000,000) of Rs.100 each 300.00 300.00
800.00 800.00
Issued, subscribed and paid-up
Equity Shares - 22,374,912 (previous year 22,374,912 ) of Rs.10 each 223.75 223.75
223.75 223.75
Schedules forming part of the financial statements
SCHEDULE-1
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Cash Flow Statement for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
A. Revaluation reserve
Balance at the beginning of the year 173.74 212.32
Less: Deduction during the year 22.63 38.58
151.11 173.74
B. Preference share redemption reserve 100.00 100.00
C. General reserve
Balance at the beginning of the year 2,439.93 1,879.17
Add: Transfer from profit and loss account 685.73 560.76
3,125.66 2,439.93
D. Surplus in profit and loss account 300.00 250.00
3,676.77 2,963.67
Schedules forming part of the financial statements
SCHEDULE-2
(Rs. in million)
As at As at
31 March 2011 31 March 2010
This is the Cash Flow Statement referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED 24
C
P a r t i c u l a r s As at During the year As at As at For the Upto As at As at
Deductions
1 April 2010 Additions Deductions 31 March 2011 1 April 2010 Year 31 March 2011 31 March 2011 31 March 2010
A. Tangible
Land - Leasehold 360.42 - - 360.42 14.44 3.69 - 18.13 342.29 345.98
Building 537.05 202.29 - 739.34 122.21 17.50 - 139.71 599.63 414.84
Plant and machinery 5,833.51 886.87 46.77 6,673.61 2,745.34 499.52 40.95 3,203.91 3,469.70 3,088.17
Dies 105.98 21.80 8.77 119.01 69.73 19.75 7.70 81.78 37.23 36.25
Furniture, fixture, 212.45 48.88 13.89 247.44 180.44 36.86 12.22 205.08 42.36 32.01
computer and office
equipment
Vehicles 98.47 21.15 16.40 103.22 49.59 16.21 12.79 53.01 50.21 48.88
B. Intangible
Computer software 62.37 21.31 - 83.68 54.65 13.01 - 67.66 16.02 7.72
Product design & 39.99 4.79 - 44.78 34.84 1.60 - 36.44 8.34 5.15
development
Total 7,250.24 1,207.09 85.83 8,371.50 3,271.24 608.14 73.66 3,805.72 4,565.78 3,979.00
Total as at
31 March 2010 6,935.21 502.33 187.30 7,250.24 2,848.85 572.49 150.10 3,271.24
Add: Capital work in progress 401.81 215.95
Total 4,967.59 4,194.95
ost Depreciation / amortisation Net value
SHRIRAM PISTONS & RINGS LIMITED 25
Current assets, loans and advances
Current assets
Inventories - Raw materials 255.10 216.12
- Loose tools 26.35 13.28
- Stores and spares 94.88 61.19
- Stock in process 368.90 317.65
- Finished goods 561.77 321.33
1,307.00 929.57
Sundry debtors (unsecured)
Over six months - Good 9.74 4.53
- Doubtful 7.83 12.08
Others - Good 1,142.53 1,115.88
- Doubtful 2.30 -
1,162.40 1,132.49
Less : Provision for doubtful debts 10.13 12.08
1,152.27 1,120.41
Cash and bank
Cash in hand 0.30 0.65
Cheques in hand - 0.02
With scheduled banks - Fixed deposit accounts 402.82 277.20
- Current accounts 11.77 56.49
- Dividend accounts 0.34 0.30
415.23 334.66
Other current assets
Interest accrued but not due 8.81 3.38
Loans and advances
Secured
Housing loans - Good 2.27 3.34
Unsecured
Advances recoverable in cash or in kind or for
value to be received - Good 236.86 222.05
- Doubtful 6.32 7.19
Balance with excise department 29.60 6.46
Deposits with government departments 48.10 36.64
323.15 275.68
Less : Provision for doubtful advances 6.32 7.19
316.83 268.49
3,200.14 2,656.51
Loans
Secured
From banks - working capital 195.02 95.12
- term loan 1,621.47 1,386.57
Interest free trade tax loan 18.70 28.51
Vehicle loan 1.24 2.02
1,836.43 1,512.22
Unsecured
Public deposits 389.98 494.74
389.98 494.74
2,226.41 2,006.96
Investments
Long term trade investment in a subsidiary company (unquoted)
50,000 Equity Shares (previous year 50,000) of Rs.10 each 0.50 0.50
fully paid up of SPR International Auto Exports Limited
0.50 0.50
Schedules forming part of the financial statements
SCHEDULE-3
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the financial statements
SCHEDULE-4
Fixed assets (Rs. in million)
Schedules forming part of the financial statements
SCHEDULE-5
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the financial statements
SCHEDULE-6
(Rs. in million)
As at As at
31 March 2011 31 March 2010
SHRIRAM PISTONS & RINGS LIMITED 24
C
P a r t i c u l a r s As at During the year As at As at For the Upto As at As at
Deductions
1 April 2010 Additions Deductions 31 March 2011 1 April 2010 Year 31 March 2011 31 March 2011 31 March 2010
A. Tangible
Land - Leasehold 360.42 - - 360.42 14.44 3.69 - 18.13 342.29 345.98
Building 537.05 202.29 - 739.34 122.21 17.50 - 139.71 599.63 414.84
Plant and machinery 5,833.51 886.87 46.77 6,673.61 2,745.34 499.52 40.95 3,203.91 3,469.70 3,088.17
Dies 105.98 21.80 8.77 119.01 69.73 19.75 7.70 81.78 37.23 36.25
Furniture, fixture, 212.45 48.88 13.89 247.44 180.44 36.86 12.22 205.08 42.36 32.01
computer and office
equipment
Vehicles 98.47 21.15 16.40 103.22 49.59 16.21 12.79 53.01 50.21 48.88
B. Intangible
Computer software 62.37 21.31 - 83.68 54.65 13.01 - 67.66 16.02 7.72
Product design & 39.99 4.79 - 44.78 34.84 1.60 - 36.44 8.34 5.15
development
Total 7,250.24 1,207.09 85.83 8,371.50 3,271.24 608.14 73.66 3,805.72 4,565.78 3,979.00
Total as at
31 March 2010 6,935.21 502.33 187.30 7,250.24 2,848.85 572.49 150.10 3,271.24
Add: Capital work in progress 401.81 215.95
Total 4,967.59 4,194.95
ost Depreciation / amortisation Net value
SHRIRAM PISTONS & RINGS LIMITED 25
Current assets, loans and advances
Current assets
Inventories - Raw materials 255.10 216.12
- Loose tools 26.35 13.28
- Stores and spares 94.88 61.19
- Stock in process 368.90 317.65
- Finished goods 561.77 321.33
1,307.00 929.57
Sundry debtors (unsecured)
Over six months - Good 9.74 4.53
- Doubtful 7.83 12.08
Others - Good 1,142.53 1,115.88
- Doubtful 2.30 -
1,162.40 1,132.49
Less : Provision for doubtful debts 10.13 12.08
1,152.27 1,120.41
Cash and bank
Cash in hand 0.30 0.65
Cheques in hand - 0.02
With scheduled banks - Fixed deposit accounts 402.82 277.20
- Current accounts 11.77 56.49
- Dividend accounts 0.34 0.30
415.23 334.66
Other current assets
Interest accrued but not due 8.81 3.38
Loans and advances
Secured
Housing loans - Good 2.27 3.34
Unsecured
Advances recoverable in cash or in kind or for
value to be received - Good 236.86 222.05
- Doubtful 6.32 7.19
Balance with excise department 29.60 6.46
Deposits with government departments 48.10 36.64
323.15 275.68
Less : Provision for doubtful advances 6.32 7.19
316.83 268.49
3,200.14 2,656.51
Loans
Secured
From banks - working capital 195.02 95.12
- term loan 1,621.47 1,386.57
Interest free trade tax loan 18.70 28.51
Vehicle loan 1.24 2.02
1,836.43 1,512.22
Unsecured
Public deposits 389.98 494.74
389.98 494.74
2,226.41 2,006.96
Investments
Long term trade investment in a subsidiary company (unquoted)
50,000 Equity Shares (previous year 50,000) of Rs.10 each 0.50 0.50
fully paid up of SPR International Auto Exports Limited
0.50 0.50
Schedules forming part of the financial statements
SCHEDULE-3
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the financial statements
SCHEDULE-4
Fixed assets (Rs. in million)
Schedules forming part of the financial statements
SCHEDULE-5
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the financial statements
SCHEDULE-6
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Other income
Export benefits 53.71 38.25
Interest income 24.24 8.92
Profit on sale of assets 3.75 6.58
Provision for doubtful debts / advances written back 2.82 -
Liabilities and provisions no longer required written back 19.25 11.75
Miscellaneous income 29.58 25.85
133.35 91.35
SHRIRAM PISTONS & RINGS LIMITED 26 SHRIRAM PISTONS & RINGS LIMITED 27
Current liabilities & provisions
Current liabilities
Sundry creditors
- Dues to micro and small enterprises - 0.53
(Refer note no. 5 of schedule no. 11)
- Others 776.18 500.35
Advances from customers 32.37 16.12
Investor education and protection fund:*
- Unclaimed dividend 0.34 0.30
- Unclaimed fixed deposits 4.53 2.33
- Interest on unclaimed fixed deposits 0.83 0.38
Other liabilities 614.80 589.54
Interest accrued but not due 31.84 27.17
1,460.89 1,136.72
*Not due for deposit
Provisions
Employee benefits 270.43 213.82
Income tax 8.71 25.33
Proposed dividend 44.75 33.56
Dividend tax on proposed dividend 7.26 5.58
331.15 278.29
1,792.04 1,415.01
Expenditure
Manufacturing and other expenses
Purchases and stock variation
Opening stock - Process 317.66 250.29
- Finished 321.33 346.22
Add: Purchase of products for assembly 400.51 390.67
1,039.50 987.18
Less: Closing stock - Process 368.90 317.66
- Finished 561.77 321.33
Increase in excise duty on finished goods 34.94 12.07
143.77 360.26
Raw material consumed 2,084.03 1,685.00
Stores and spares consumed 1,100.37 956.64
Power and fuel 617.07 468.67
Royalty 149.30 128.34
Repairs - Machinery 53.05 38.79
- Building 39.51 25.42
- Others 18.39 20.11
Manufacturing expenses 312.14 265.84
Salaries, wages and bonus 1,154.02 982.98
Provident fund and other funds 75.11 64.56
Staff welfare expenses 96.73 78.33
Selling, distribution and promotion expenses 233.38 202.15
Bad debts and advances written off 0.70 0.67
Provision for doubtful debts and advances - 4.54
Rent 28.30 29.78
Rates and taxes 6.09 5.65
Insurance 10.36 9.95
Loss on sale / writing off of assets 11.18 8.44
Directors' fees 1.37 1.45
Auditors remuneration 0.89 0.60
Miscellaneous expenses 332.66 247.86
6,468.42 5,586.03
Interest
Term loans 120.52 141.16
Public deposits 51.23 39.76
Others 5.23 10.57
176.98 191.49
Depreciation
For the year 608.14 572.49
Less: Transferred from revaluation reserve 20.72 31.31
587.42 541.18
Income tax
Current tax 361.67 370.32
Deferred tax credit (17.97) (29.49)
343.70 340.83
Schedules forming part of the financial statements
SCHEDULE-7
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the financial statements
SCHEDULE-8
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
Schedules forming part of the financial statements
SCHEDULE-9
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
Other income
Export benefits 53.71 38.25
Interest income 24.24 8.92
Profit on sale of assets 3.75 6.58
Provision for doubtful debts / advances written back 2.82 -
Liabilities and provisions no longer required written back 19.25 11.75
Miscellaneous income 29.58 25.85
133.35 91.35
SHRIRAM PISTONS & RINGS LIMITED 26 SHRIRAM PISTONS & RINGS LIMITED 27
Current liabilities & provisions
Current liabilities
Sundry creditors
- Dues to micro and small enterprises - 0.53
(Refer note no. 5 of schedule no. 11)
- Others 776.18 500.35
Advances from customers 32.37 16.12
Investor education and protection fund:*
- Unclaimed dividend 0.34 0.30
- Unclaimed fixed deposits 4.53 2.33
- Interest on unclaimed fixed deposits 0.83 0.38
Other liabilities 614.80 589.54
Interest accrued but not due 31.84 27.17
1,460.89 1,136.72
*Not due for deposit
Provisions
Employee benefits 270.43 213.82
Income tax 8.71 25.33
Proposed dividend 44.75 33.56
Dividend tax on proposed dividend 7.26 5.58
331.15 278.29
1,792.04 1,415.01
Expenditure
Manufacturing and other expenses
Purchases and stock variation
Opening stock - Process 317.66 250.29
- Finished 321.33 346.22
Add: Purchase of products for assembly 400.51 390.67
1,039.50 987.18
Less: Closing stock - Process 368.90 317.66
- Finished 561.77 321.33
Increase in excise duty on finished goods 34.94 12.07
143.77 360.26
Raw material consumed 2,084.03 1,685.00
Stores and spares consumed 1,100.37 956.64
Power and fuel 617.07 468.67
Royalty 149.30 128.34
Repairs - Machinery 53.05 38.79
- Building 39.51 25.42
- Others 18.39 20.11
Manufacturing expenses 312.14 265.84
Salaries, wages and bonus 1,154.02 982.98
Provident fund and other funds 75.11 64.56
Staff welfare expenses 96.73 78.33
Selling, distribution and promotion expenses 233.38 202.15
Bad debts and advances written off 0.70 0.67
Provision for doubtful debts and advances - 4.54
Rent 28.30 29.78
Rates and taxes 6.09 5.65
Insurance 10.36 9.95
Loss on sale / writing off of assets 11.18 8.44
Directors' fees 1.37 1.45
Auditors remuneration 0.89 0.60
Miscellaneous expenses 332.66 247.86
6,468.42 5,586.03
Interest
Term loans 120.52 141.16
Public deposits 51.23 39.76
Others 5.23 10.57
176.98 191.49
Depreciation
For the year 608.14 572.49
Less: Transferred from revaluation reserve 20.72 31.31
587.42 541.18
Income tax
Current tax 361.67 370.32
Deferred tax credit (17.97) (29.49)
343.70 340.83
Schedules forming part of the financial statements
SCHEDULE-7
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the financial statements
SCHEDULE-8
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
Schedules forming part of the financial statements
SCHEDULE-9
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
SHRIRAM PISTONS & RINGS LIMITED 28 SHRIRAM PISTONS & RINGS LIMITED 29
1. Basis of preparation
The financial statements are prepared on accrual basis under the historical cost convention as supplemented by the
revaluation of certain assets, in accordance with the generally accepted accounting principles in India and to comply
with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 including the
Rules framed there under.
2. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported balances of assets and liabilities and the
disclosure relating to contingent liabilities as at the date of financial statements and reported amount of income and
expenses during the period. Difference between the actual results and estimates are recognised in the year in which
the results are known or materialized.
3. Revenue recognition
Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of the goods are
transferred to the customer and is stated inclusive of excise duty and net of trade discounts, sales return and sales tax /
VAT, wherever applicable.
Other revenues are recognised on accrual basis, except where there are uncertainties in the determination /
realisation of income, the same is not accounted for.
4. Fixed assets
Fixed Assets are stated at their original cost (net of cenvat availed) including taxes and other incidental expenses
related to acquisition/ installation including interest on loan taken for the acquisition of qualifying assets upto the date
of commissioning of assets. Wherever assets are revalued, cost is adjusted by the amount added on revaluation
based on Govt. approved valuers report and disclosed separately as required under the Companies Act, 1956.
5. Depreciation and amortisation
Depreciation is provided on Fixed Assets over their estimated useful lives or lives based on the rates specified in
Schedule XIV to the Companies Act, 1956, whichever is lower, on the following basis :
i) Furniture, fixtures, computers and - W.D.V. method
office equipments
ii) Other assets - Straight line method
Lease money paid for leasehold land is amortised over the lease period.
Where assets are revalued, depreciation is charged on the revalued amount based on remaining useful life of the
asset specified by the valuer provided depreciation on such block of assets is not lower than depreciation chargeable
on historical cost as per the Companies Act, 1956.
Where there is a revision of the estimated useful life of asset, the unamortised depreciable amount is charged over the
revised remaining useful life.
Depreciation on assets acquired/sold/discarded during the year is charged on pro-rata basis except for Furniture,
Fixtures, Equipments and Computer where full years depreciation is computed in the year of acquisition and no
depreciation is provided in the year of sale.
Assets costing upto Rs. 5,000/- is fully depreciated in the year of acquisition.
Intangible assets are amortised on straight-line basis
6. Investments
Long term investments are stated at cost. Any diminution in the value of Long term Investments, other than temporary,
is provided for in the books of account. Current investments are stated at lower of the cost or fair value.
7. Inventories
Inventories are valued on the following basis :
i) Raw materials, loose tools, stores and spares - at lower of cost determined on weighted average basis or net
realisable value.
ii) Stock in process at lower of cost or net realisable value.
iii) Finished goods stock - at lower of cost including excise duty or net realisable value.
Cost of finished goods and stock-in-process includes cost of material, labour and related overheads.
8. Foreign currency transactions
Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing on or closely
approximating to the date of transaction.
Monetary items denominated in foreign currency and covered by forward exchange contracts are translated at the
rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward
rate and exchange rate on the date of transaction, such difference having been recognized in the Profit & Loss
Account over the life of the contract.
Other monetary items are translated at the year end rates and exchange rate difference on such translation is
recognised in profit & loss account.
Forward exchange contracts entered to hedge the foreign currency risk of highly probable forecast transactions and
firm commitments are marked to market at the balance sheet date. Exchange loss on marked to market basis is
recognised in the profit & loss account and gain, if any, is ignored.
9. Employee benefits
Contribution towards Provident Fund and Superannuation fund is paid as per the statutory provisions/company
scheme. These benefits are considered as defined contribution plan and contributions are charged to Profit & Loss
account of the year when it becomes due.
Retirement benefit in the form of Gratuity is considered as defined benefit plan and liability is provided for on the basis
of an actuarial valuation.
Company provides for the encashment of leave as per the company scheme and employees are entitled to
accumulate leave subject to certain limits, for future encashment/availment. The liability is provided for unutilized
leave at the year end on the basis of an actuarial valuation.
10. Research and development
Revenue expenditure on research and development, inclusive of dies for model development, is charged as expense
in the year in which incurred. Capital expenditure is included in fixed assets.
11. Leases
Lease rentals in respect of assets taken on operating lease are charged to the profit and loss account on a straight-line
basis over the term of lease.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-10
Significant Accounting Policies
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-10
Significant Accounting Policies (contd.)
SHRIRAM PISTONS & RINGS LIMITED 28 SHRIRAM PISTONS & RINGS LIMITED 29
1. Basis of preparation
The financial statements are prepared on accrual basis under the historical cost convention as supplemented by the
revaluation of certain assets, in accordance with the generally accepted accounting principles in India and to comply
with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 including the
Rules framed there under.
2. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported balances of assets and liabilities and the
disclosure relating to contingent liabilities as at the date of financial statements and reported amount of income and
expenses during the period. Difference between the actual results and estimates are recognised in the year in which
the results are known or materialized.
3. Revenue recognition
Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of the goods are
transferred to the customer and is stated inclusive of excise duty and net of trade discounts, sales return and sales tax /
VAT, wherever applicable.
Other revenues are recognised on accrual basis, except where there are uncertainties in the determination /
realisation of income, the same is not accounted for.
4. Fixed assets
Fixed Assets are stated at their original cost (net of cenvat availed) including taxes and other incidental expenses
related to acquisition/ installation including interest on loan taken for the acquisition of qualifying assets upto the date
of commissioning of assets. Wherever assets are revalued, cost is adjusted by the amount added on revaluation
based on Govt. approved valuers report and disclosed separately as required under the Companies Act, 1956.
5. Depreciation and amortisation
Depreciation is provided on Fixed Assets over their estimated useful lives or lives based on the rates specified in
Schedule XIV to the Companies Act, 1956, whichever is lower, on the following basis :
i) Furniture, fixtures, computers and - W.D.V. method
office equipments
ii) Other assets - Straight line method
Lease money paid for leasehold land is amortised over the lease period.
Where assets are revalued, depreciation is charged on the revalued amount based on remaining useful life of the
asset specified by the valuer provided depreciation on such block of assets is not lower than depreciation chargeable
on historical cost as per the Companies Act, 1956.
Where there is a revision of the estimated useful life of asset, the unamortised depreciable amount is charged over the
revised remaining useful life.
Depreciation on assets acquired/sold/discarded during the year is charged on pro-rata basis except for Furniture,
Fixtures, Equipments and Computer where full years depreciation is computed in the year of acquisition and no
depreciation is provided in the year of sale.
Assets costing upto Rs. 5,000/- is fully depreciated in the year of acquisition.
Intangible assets are amortised on straight-line basis
6. Investments
Long term investments are stated at cost. Any diminution in the value of Long term Investments, other than temporary,
is provided for in the books of account. Current investments are stated at lower of the cost or fair value.
7. Inventories
Inventories are valued on the following basis :
i) Raw materials, loose tools, stores and spares - at lower of cost determined on weighted average basis or net
realisable value.
ii) Stock in process at lower of cost or net realisable value.
iii) Finished goods stock - at lower of cost including excise duty or net realisable value.
Cost of finished goods and stock-in-process includes cost of material, labour and related overheads.
8. Foreign currency transactions
Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing on or closely
approximating to the date of transaction.
Monetary items denominated in foreign currency and covered by forward exchange contracts are translated at the
rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward
rate and exchange rate on the date of transaction, such difference having been recognized in the Profit & Loss
Account over the life of the contract.
Other monetary items are translated at the year end rates and exchange rate difference on such translation is
recognised in profit & loss account.
Forward exchange contracts entered to hedge the foreign currency risk of highly probable forecast transactions and
firm commitments are marked to market at the balance sheet date. Exchange loss on marked to market basis is
recognised in the profit & loss account and gain, if any, is ignored.
9. Employee benefits
Contribution towards Provident Fund and Superannuation fund is paid as per the statutory provisions/company
scheme. These benefits are considered as defined contribution plan and contributions are charged to Profit & Loss
account of the year when it becomes due.
Retirement benefit in the form of Gratuity is considered as defined benefit plan and liability is provided for on the basis
of an actuarial valuation.
Company provides for the encashment of leave as per the company scheme and employees are entitled to
accumulate leave subject to certain limits, for future encashment/availment. The liability is provided for unutilized
leave at the year end on the basis of an actuarial valuation.
10. Research and development
Revenue expenditure on research and development, inclusive of dies for model development, is charged as expense
in the year in which incurred. Capital expenditure is included in fixed assets.
11. Leases
Lease rentals in respect of assets taken on operating lease are charged to the profit and loss account on a straight-line
basis over the term of lease.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-10
Significant Accounting Policies
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-10
Significant Accounting Policies (contd.)
SHRIRAM PISTONS & RINGS LIMITED 30 SHRIRAM PISTONS & RINGS LIMITED 31
Assets acquired on finance lease which transfer risk and rewards of ownership to the Company are capitalised as
assets by the Company at the lower of fair value of the leased property or the present value of the related lease
payments or where applicable, estimated fair value of such assets. Amortisation of capitalised leased assets is
computed on the straight line method over the useful life of the assets. Lease rental payable is apportioned between
principal and finance charge using the internal rate of return method. The finance charge is allocated over the lease
term so as to produce a constant periodic rate of interest on the remaining balance of liability.
12. Taxes on income
Tax expense comprises current income tax and deferred income tax.
Current tax is determined as the amount of tax payable in respect of taxable income for the year, in accordance with
the Income Tax Act, 1961.
Deferred income tax reflects the impact of current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates
and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only
to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
13. Earnings per share
Basic earnings per share is calculated by dividing net profit or loss for the year attributable to equity shareholders by
weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events of bonus issue, share split and any new equity issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
14. Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount
of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the profit and loss account. If at the balance sheet date there is an indication that previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of depreciated historical cost.
15. Contingent liabilities and provisions
The company recognizes a provision when there is a present obligation as a result of past events and it is probable that
an outflow of resources would be required to settle the obligation and a reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation but probably
will not require an outflow of resources.
When there is a possible obligation or a present obligation in respect of which the likelyhood on outflow of resources is
remote, no provision or disclosure is made.
1. Share capital
i) 34,660 Equity shares were allotted as fully paid up, pursuant to contracts, for consideration other than cash.
ii) 2,19,08,768 Equity shares were allotted as fully paid up bonus shares by capitalizing :-
- Preference capital redemption reserve - Rs.1.62 million
- General reserve - Rs.217.47 million
2. Reserves and surplus
Deduction from revaluation reserve includes Rs. 1.91 million (Rs. 7.27 million) representing adjustment on sale and
writing off of revalued assets by transferring to the respective asset account.
3. Deferred tax
Elements of deferred tax liability created for tax effect of timing differences are as under:
(Rs. in million)
2011 2010
Liability - Depreciation 352.56 352.79
Assets - Liabilities on payment basis
u/s 43 B of Income Tax Act, 1961 97.96 79.01
- Provision for doubtful debts/advances 5.34 6.55
103.30 85.56
Net Liability 249.26 267.23
4. Loans
a) Working capital loans of Rs. 195.02 million (Rs. 95.12 million) are secured as under:-
i) Secured by way of first pari-passu charge on stocks and book debts of the company and
ii) Second pari-passu charge on all present & future fixed assets of the company.
b) Term loans from banks amounting to Rs. 1,621.47 million (Rs. 1,386.57 million) are secured as under:-
i) Rs. Nil (Rs. 80.00 million) is secured by way of first pari-passu charge on all present & future fixed assets of
the Company.
ii) Rs. Nil (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets and hypothecation of all movable assets, present and future subject to prior charge as
per note 4 (a)(i) .
iii) Rs. 415.63 million (Rs. 571.92 million) are secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the company and hypothecation of all movable assets, present and
future, subject to prior charge as per note 4 (a)(i).
iv) Rs. 209.65 million (Rs. 334.65 million) is secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the company and hypothecation of all movable assets, present and
future, subject to prior charge as per note 4 (a)(i).
v) Rs. 297.50 million (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all
present & future movable and immovable fixed assets of the company.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-10
Significant Accounting Policies (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements
SHRIRAM PISTONS & RINGS LIMITED 30 SHRIRAM PISTONS & RINGS LIMITED 31
Assets acquired on finance lease which transfer risk and rewards of ownership to the Company are capitalised as
assets by the Company at the lower of fair value of the leased property or the present value of the related lease
payments or where applicable, estimated fair value of such assets. Amortisation of capitalised leased assets is
computed on the straight line method over the useful life of the assets. Lease rental payable is apportioned between
principal and finance charge using the internal rate of return method. The finance charge is allocated over the lease
term so as to produce a constant periodic rate of interest on the remaining balance of liability.
12. Taxes on income
Tax expense comprises current income tax and deferred income tax.
Current tax is determined as the amount of tax payable in respect of taxable income for the year, in accordance with
the Income Tax Act, 1961.
Deferred income tax reflects the impact of current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates
and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only
to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
13. Earnings per share
Basic earnings per share is calculated by dividing net profit or loss for the year attributable to equity shareholders by
weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events of bonus issue, share split and any new equity issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
14. Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount
of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the profit and loss account. If at the balance sheet date there is an indication that previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of depreciated historical cost.
15. Contingent liabilities and provisions
The company recognizes a provision when there is a present obligation as a result of past events and it is probable that
an outflow of resources would be required to settle the obligation and a reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation but probably
will not require an outflow of resources.
When there is a possible obligation or a present obligation in respect of which the likelyhood on outflow of resources is
remote, no provision or disclosure is made.
1. Share capital
i) 34,660 Equity shares were allotted as fully paid up, pursuant to contracts, for consideration other than cash.
ii) 2,19,08,768 Equity shares were allotted as fully paid up bonus shares by capitalizing :-
- Preference capital redemption reserve - Rs.1.62 million
- General reserve - Rs.217.47 million
2. Reserves and surplus
Deduction from revaluation reserve includes Rs. 1.91 million (Rs. 7.27 million) representing adjustment on sale and
writing off of revalued assets by transferring to the respective asset account.
3. Deferred tax
Elements of deferred tax liability created for tax effect of timing differences are as under:
(Rs. in million)
2011 2010
Liability - Depreciation 352.56 352.79
Assets - Liabilities on payment basis
u/s 43 B of Income Tax Act, 1961 97.96 79.01
- Provision for doubtful debts/advances 5.34 6.55
103.30 85.56
Net Liability 249.26 267.23
4. Loans
a) Working capital loans of Rs. 195.02 million (Rs. 95.12 million) are secured as under:-
i) Secured by way of first pari-passu charge on stocks and book debts of the company and
ii) Second pari-passu charge on all present & future fixed assets of the company.
b) Term loans from banks amounting to Rs. 1,621.47 million (Rs. 1,386.57 million) are secured as under:-
i) Rs. Nil (Rs. 80.00 million) is secured by way of first pari-passu charge on all present & future fixed assets of
the Company.
ii) Rs. Nil (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets and hypothecation of all movable assets, present and future subject to prior charge as
per note 4 (a)(i) .
iii) Rs. 415.63 million (Rs. 571.92 million) are secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the company and hypothecation of all movable assets, present and
future, subject to prior charge as per note 4 (a)(i).
iv) Rs. 209.65 million (Rs. 334.65 million) is secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the company and hypothecation of all movable assets, present and
future, subject to prior charge as per note 4 (a)(i).
v) Rs. 297.50 million (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all
present & future movable and immovable fixed assets of the company.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-10
Significant Accounting Policies (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements
SHRIRAM PISTONS & RINGS LIMITED 32 SHRIRAM PISTONS & RINGS LIMITED 33
vi) Rs. 327.81 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
movable and immovable fixed assets of the company.
vii) Rs. 370.88 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets of the company and hypothecation of all movable assets, present and future, subject to
prior charge as per note 4 (a) (i).
c) Interest free trade tax loan of Rs. 18.70 million (Rs. 28.51 million) is secured by way of pari-passu second charge
on all assets of the Company, subject to prior charge as per note 4 (a)(i).
d) Vehicle loan of Rs.1.24 million (Rs. 2.02 million) is secured against hypothecation of vehicles purchased out of
this loan.
e) Public deposits include Rs. 51.29 million (Rs. 46.93 million) received from directors of the company.
f) Loans include due within a year: -
- Secured - Rs. 439.75 million (Rs. 495.30 million)
- Unsecured - Rs. 159.30 million (Rs. 249.94 million)
5. Current liabilities
Status of vendors under Micro, Small and Medium Enterprises is based on certificate submitted by vendors about
their coverage under the provisions of MSMED Act 2006. Sundry creditors are net of Rs. 0.15 million (Rs. 0.53 million
payable) recoverable from such parties at the year end including interest payable Rs. 0.03 million (Rs.0.03 million).
The company has not received any claim for interest from any party covered under the said Act.
6. Fixed assets
i) Addition in fixed assets is net of Rs. 0.07 million (Rs. 1.19 million), being increase in cost of assets capitalized in
previous years.
ii) Deduction in fixed assets include of Rs. 5.33 million (Rs. 0.61 million), being decrease in cost of assets
capitalized in previous year.
iii) Addition to fixed assets includes Rs. 20.36 million (Nil) towards capitalization of expenses and Rs. 20.28 million
(Nil) towards interest.
iv) Management estimates the useful life at 3 years for dies and 5 years for Furniture, Fixture, Equipment, Computer
and Vehicles. For all other assets, useful lives are based on rates specified in schedule XIV of Companies Act,
1956. Intangible assets are amortized over a period of 3 years.
As a result, depreciation charged in books is higher than depreciation chargeable under section 350 of the
Companies Act 1956.
v) Furniture, Fixtures, Office Equipments and Computer include assets of Rs. 44.67 million (Rs. 35.36 million)
provided to employees as perquisites. Confirmations have been obtained from such respective employees.
vi) Certain items of plant & machinery having WDV of Rs. 7.86 million (Rs. 1.91 million) are not in active use. A
provision of Rs. 7.59 million (Rs. 1.74 million) has been made towards diminution in the value.
7. Current assets, loans and advances
i) Inventories include transit stock of Rs. 178.61 million (Rs. 35.49 million).
ii) Inventories are as certified by the management.
iii) Fixed deposit receipts, amounting to Rs. 51.79 million (Rs. 18.77 million) have been lodged as security with banks.
iv) Housing loans are secured by the documents of the properties financed.
8. Profit & loss account
a) Income
i) Sales are net of discounts of Rs. 238.82 million (Rs. 271.40 million).
ii) On interest income primarily on fixed deposits, tax of Rs. 1.82 million (Rs. 0.92 million) has been deducted
at source.
iii) Miscellaneous income includes income from mutual fund investments (non-trade) of Rs. 1.38 million (Nil).
During the year Company has purchased and sold units of mutual fund as under:-
Name of Mutual Fund Face Value Units
(Rs.) Purchased Sold
(Nos.) (Nos.)
HDFC Cash Management Fund - 10.0315 5,985,870 6,014,581
Treasury Advantage Plan - Daily Dividend
LIC MF Income Plus - Daily Dividend Plan 10.0000 4,000,000 4,041,433
SBI - Ultra Short Term Fund - Daily Dividend Plan 10.0060 5,996,770 6,018,886
Tata Floater Fund - Daily Dividend Plan 10.0356 5,978,716 6,019,094
b) Expenditure
i) Payment to Statutory Auditors (excluding service tax)
(Rs. in million)
2011 2010
- As Audit Fee 0.55 0.39
- As Certification Fee 0.23 * 0.14
- Out of pocket expenses 0.07 * 0.02
* Includes Rs. 0.03 million and Rs. 0.02 million towards payment to previous auditors for certification and out of
pocket expenses respectively.
ii) Expenditure on rent is net of amount grouped in salaries - Rs. 5.56 million (Rs. 5.81 million).
iii) Rs. Nil (Rs. 0.03 million) is towards net prior period adjustments.
iv) Includes net exchange rate variation of Rs. 26.51 million (Rs. 1.64 million).
c) R & D Expenditure
R&D facility of the company is recognized by Ministry of Science & Technology, Department of Scientific &
Industrial Research (DSIR).
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 32 SHRIRAM PISTONS & RINGS LIMITED 33
vi) Rs. 327.81 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
movable and immovable fixed assets of the company.
vii) Rs. 370.88 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets of the company and hypothecation of all movable assets, present and future, subject to
prior charge as per note 4 (a) (i).
c) Interest free trade tax loan of Rs. 18.70 million (Rs. 28.51 million) is secured by way of pari-passu second charge
on all assets of the Company, subject to prior charge as per note 4 (a)(i).
d) Vehicle loan of Rs.1.24 million (Rs. 2.02 million) is secured against hypothecation of vehicles purchased out of
this loan.
e) Public deposits include Rs. 51.29 million (Rs. 46.93 million) received from directors of the company.
f) Loans include due within a year: -
- Secured - Rs. 439.75 million (Rs. 495.30 million)
- Unsecured - Rs. 159.30 million (Rs. 249.94 million)
5. Current liabilities
Status of vendors under Micro, Small and Medium Enterprises is based on certificate submitted by vendors about
their coverage under the provisions of MSMED Act 2006. Sundry creditors are net of Rs. 0.15 million (Rs. 0.53 million
payable) recoverable from such parties at the year end including interest payable Rs. 0.03 million (Rs.0.03 million).
The company has not received any claim for interest from any party covered under the said Act.
6. Fixed assets
i) Addition in fixed assets is net of Rs. 0.07 million (Rs. 1.19 million), being increase in cost of assets capitalized in
previous years.
ii) Deduction in fixed assets include of Rs. 5.33 million (Rs. 0.61 million), being decrease in cost of assets
capitalized in previous year.
iii) Addition to fixed assets includes Rs. 20.36 million (Nil) towards capitalization of expenses and Rs. 20.28 million
(Nil) towards interest.
iv) Management estimates the useful life at 3 years for dies and 5 years for Furniture, Fixture, Equipment, Computer
and Vehicles. For all other assets, useful lives are based on rates specified in schedule XIV of Companies Act,
1956. Intangible assets are amortized over a period of 3 years.
As a result, depreciation charged in books is higher than depreciation chargeable under section 350 of the
Companies Act 1956.
v) Furniture, Fixtures, Office Equipments and Computer include assets of Rs. 44.67 million (Rs. 35.36 million)
provided to employees as perquisites. Confirmations have been obtained from such respective employees.
vi) Certain items of plant & machinery having WDV of Rs. 7.86 million (Rs. 1.91 million) are not in active use. A
provision of Rs. 7.59 million (Rs. 1.74 million) has been made towards diminution in the value.
7. Current assets, loans and advances
i) Inventories include transit stock of Rs. 178.61 million (Rs. 35.49 million).
ii) Inventories are as certified by the management.
iii) Fixed deposit receipts, amounting to Rs. 51.79 million (Rs. 18.77 million) have been lodged as security with banks.
iv) Housing loans are secured by the documents of the properties financed.
8. Profit & loss account
a) Income
i) Sales are net of discounts of Rs. 238.82 million (Rs. 271.40 million).
ii) On interest income primarily on fixed deposits, tax of Rs. 1.82 million (Rs. 0.92 million) has been deducted
at source.
iii) Miscellaneous income includes income from mutual fund investments (non-trade) of Rs. 1.38 million (Nil).
During the year Company has purchased and sold units of mutual fund as under:-
Name of Mutual Fund Face Value Units
(Rs.) Purchased Sold
(Nos.) (Nos.)
HDFC Cash Management Fund - 10.0315 5,985,870 6,014,581
Treasury Advantage Plan - Daily Dividend
LIC MF Income Plus - Daily Dividend Plan 10.0000 4,000,000 4,041,433
SBI - Ultra Short Term Fund - Daily Dividend Plan 10.0060 5,996,770 6,018,886
Tata Floater Fund - Daily Dividend Plan 10.0356 5,978,716 6,019,094
b) Expenditure
i) Payment to Statutory Auditors (excluding service tax)
(Rs. in million)
2011 2010
- As Audit Fee 0.55 0.39
- As Certification Fee 0.23 * 0.14
- Out of pocket expenses 0.07 * 0.02
* Includes Rs. 0.03 million and Rs. 0.02 million towards payment to previous auditors for certification and out of
pocket expenses respectively.
ii) Expenditure on rent is net of amount grouped in salaries - Rs. 5.56 million (Rs. 5.81 million).
iii) Rs. Nil (Rs. 0.03 million) is towards net prior period adjustments.
iv) Includes net exchange rate variation of Rs. 26.51 million (Rs. 1.64 million).
c) R & D Expenditure
R&D facility of the company is recognized by Ministry of Science & Technology, Department of Scientific &
Industrial Research (DSIR).
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 34 SHRIRAM PISTONS & RINGS LIMITED 35
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Expenses recognized during the year
a) Current services cost 39.36 28.73 55.15 40.72
b) Interest cost 27.90 21.61 5.96 4.38
c) Expected return on plan assets (20.71) (16.25) - -
d) Actuarial (gain)/loss 38.53 35.83 (32.72) (17.47)
85.08 69.92 28.39 27.63
Assumptions
a) Discount rate (% p.a.) 8.5 8.5 8.5 8.5
b) Estimated rate of return on plan assets (% p.a.) 9.25 9.0 - -
c) Salary rise (% p.a) 12.0 11.0 12.0 11.0
Estimate of the future salary increase is based on factors such as inflation, seniority, promotions,
demand and supply in employment market.
The gratuity fund is managed by independent Board of Trustees through LIC and SBI Life Insurance.
ii) Expenditure recognized in respect of defined contribution plan is as under:
(Rs. in million)
2011 2010
a) Provident fund 59.85 52.25
b) Superannuation fund 11.26 8.87
c) State insurance fund 24.87 18.88
95.98 80.00
9. Managerial remuneration
(Rs. in million)
2011 2010
i) Remuneration
a) To managing/whole time directors - Salary 13.48 13.01
- Commission 45.81 40.85
- Contribution to funds 4.77 4.21
- Value of perquisites 8.27 8.02
72.33 66.09
b) To non whole-time directors - Commission 10.78 9.40
- Sitting fees 1.37 1.45
12.15 10.85
84.48 76.94
The details of research and development expenditure are as under:-
i) Capital expenditure
(Rs. in million)
2011 2010
- Tangible assets 15.24 0.13
- Intangible assets 9.71 -
Total ( a ) 24.95 0.13
ii) Revenue expenditure
- Salary and wages 28.09 22.26
- Materials, consumables and spares 40.04 42.32
- Other expenditure 6.03 3.21
Total ( b ) 74.16 67.79
d) Employee benefits
i) Gratuity and leave liability has been recognized as defined benefit plan as under:-
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Reconciliation of obligation
i) Opening obligation 334.86 260.59 84.44 64.33
ii) Current service cost 39.36 28.73 55.15 40.72
iii) Interest cost 27.90 21.61 5.96 4.38
iv) Actuarial (gain)/loss 38.15 36.55 (32.72) (17.47)
v) Benefits paid (13.18) (12.62) (6.73) (7.52)
vi) Closing obligation 427.09 334.86 106.10 84.44
Change in plan assets
a) Opening fair value of plan assets 205.48 172.66 - -
b) Expected return of plan assets 20.71 16.25 - -
c) Actuarial gain/(loss) (0.38) 0.73 - -
d) Contribution 38.57 28.46 - -
e) Benefits paid (1.62) (12.62) (6.73) (7.52)
f) Closing fair value of plan assets 262.76 205.48 - -
Reconciliation of fair value of assets and obligation
a) Closing present value of obligation 427.09 334.86 106.10 84.44
b) Closing present value of plan assets 262.76 205.48 - -
c) Unfunded amount recognized in the balance sheet 164.33 129.38 106.10 84.44
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 34 SHRIRAM PISTONS & RINGS LIMITED 35
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Expenses recognized during the year
a) Current services cost 39.36 28.73 55.15 40.72
b) Interest cost 27.90 21.61 5.96 4.38
c) Expected return on plan assets (20.71) (16.25) - -
d) Actuarial (gain)/loss 38.53 35.83 (32.72) (17.47)
85.08 69.92 28.39 27.63
Assumptions
a) Discount rate (% p.a.) 8.5 8.5 8.5 8.5
b) Estimated rate of return on plan assets (% p.a.) 9.25 9.0 - -
c) Salary rise (% p.a) 12.0 11.0 12.0 11.0
Estimate of the future salary increase is based on factors such as inflation, seniority, promotions,
demand and supply in employment market.
The gratuity fund is managed by independent Board of Trustees through LIC and SBI Life Insurance.
ii) Expenditure recognized in respect of defined contribution plan is as under:
(Rs. in million)
2011 2010
a) Provident fund 59.85 52.25
b) Superannuation fund 11.26 8.87
c) State insurance fund 24.87 18.88
95.98 80.00
9. Managerial remuneration
(Rs. in million)
2011 2010
i) Remuneration
a) To managing/whole time directors - Salary 13.48 13.01
- Commission 45.81 40.85
- Contribution to funds 4.77 4.21
- Value of perquisites 8.27 8.02
72.33 66.09
b) To non whole-time directors - Commission 10.78 9.40
- Sitting fees 1.37 1.45
12.15 10.85
84.48 76.94
The details of research and development expenditure are as under:-
i) Capital expenditure
(Rs. in million)
2011 2010
- Tangible assets 15.24 0.13
- Intangible assets 9.71 -
Total ( a ) 24.95 0.13
ii) Revenue expenditure
- Salary and wages 28.09 22.26
- Materials, consumables and spares 40.04 42.32
- Other expenditure 6.03 3.21
Total ( b ) 74.16 67.79
d) Employee benefits
i) Gratuity and leave liability has been recognized as defined benefit plan as under:-
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Reconciliation of obligation
i) Opening obligation 334.86 260.59 84.44 64.33
ii) Current service cost 39.36 28.73 55.15 40.72
iii) Interest cost 27.90 21.61 5.96 4.38
iv) Actuarial (gain)/loss 38.15 36.55 (32.72) (17.47)
v) Benefits paid (13.18) (12.62) (6.73) (7.52)
vi) Closing obligation 427.09 334.86 106.10 84.44
Change in plan assets
a) Opening fair value of plan assets 205.48 172.66 - -
b) Expected return of plan assets 20.71 16.25 - -
c) Actuarial gain/(loss) (0.38) 0.73 - -
d) Contribution 38.57 28.46 - -
e) Benefits paid (1.62) (12.62) (6.73) (7.52)
f) Closing fair value of plan assets 262.76 205.48 - -
Reconciliation of fair value of assets and obligation
a) Closing present value of obligation 427.09 334.86 106.10 84.44
b) Closing present value of plan assets 262.76 205.48 - -
c) Unfunded amount recognized in the balance sheet 164.33 129.38 106.10 84.44
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 36 SHRIRAM PISTONS & RINGS LIMITED 37
iii) Relatives of key management
personnel of (ii) (b) above - Smt. Usha Srinivasan
(ii)(c) above - Shri. Deepak C. Shriram
- Shri Arjun D. Shriram
- Shri Luv D. Shriram
- Shri Kush D. Shriram
- Ms Nandishi Shriram
iv) Enterprises over which there is significant influence of
(ii) (c) and her relatives above - Shriram Automotive Products Ltd.
- Shriram Alpine Sales Pvt. Ltd.
- Shriram Veritech Solutions Pvt. Ltd.
- Sera Com Pvt. Ltd.
- Manisha Commercial Pvt. Ltd
- Sarva Commercial Pvt. Ltd.
- Charat Ram Shriram Pvt. Ltd.
- Pearey Lall & Sons (E.P.) Ltd.
B. Related party transactions
(Rs in million)
S. No. Items Party 2011 2010
A) Key Management Personnel (KMP)
1 Remuneration Mr. A.K.Taneja 28.19 26.03
Mr. R Srinivasan 21.16 19.59
Mrs. Meenakshi Dass 22.98 20.47
2 Rent Paid Mrs. Meenakshi Dass 0.24 -
3 Interest on Fixed deposits Mr. R Srinivasan 1.45 1.03
Mrs. Meenakshi Dass 0.83 0.24
4 Dividend Paid Mr. A K Taneja 0.0001 0.0001
Mrs. Meenakshi Dass 13.72 1.86
5 Public Deposit taken during the year Mr. A K Taneja - 1.50
Mr. R Srinivasan 7.65 2.64
Mrs. Meenakshi Dass 10.00 7.00
6 Outstanding at the year end
- Fixed Deposit Mr. R Srinivasan 12.69 8.53
Mrs. Meenakshi Dass 9.00 3.00
- Interest accrued but not due Mr. R Srinivasan 1.76 1.62
Mrs. Meenakshi Dass 0.57 0.21
- Amount payable Mr. A K Taneja 17.61 15.71
Mr. R Srinivasan 13.20 11.78
Mrs. Meenakshi Dass 14.96 13.36
ii) Computation of net profit as per section 349 of the Companies Act, 1956
Net Profit before tax as per Profit & Loss Account 1,170.58 1,029.99
Add: - Managing/whole-time directors remuneration 72.33 66.09
- Commission to non whole-time directors 10.78 9.40
- Directors sitting fees 1.37 1.45
1255.06 1106.93
10. Contingent liabilities
i) Disputed - Excise duty Rs. 73.26 million (Rs.69.25 million)
- Income tax Rs. 11.69 million (Rs. 7.22 million)
- Wealth tax Rs. 0.41 million (Rs. 0.41 million)
- VAT/Sales tax Rs. 7.19 million (Rs. 10.34 million)
- Service tax Rs. 258.97 million (Rs. 32.16 million)
ii) Bank guarantees - Rs. 72.18 million (Rs. 31.90 million)
iii) Claims not acknowledged as debts Rs. 16.32 million (Rs. 16.88 million)
iv) Bills discounted from banks Rs.13.78 million (Rs. 54.08 million).
v) Company has given guarantee for repayment of loan liabilities for vehicles purchased by its
employees/vendors/customers. Outstanding loan amount at the year end is Rs. 12.34 million (Rs. 18.64 million)
and there is no default till date.
vi) Company has imported some machines under the EPCG scheme undertaking export obligation of company
products. The outstanding export obligation of Rs. 5097.58 million (Rs. 5028.74 million) is to be fulfilled over a
period of next 7 years.
11. Segment reporting
As the companys business activity falls within a single business segment viz automotive components and a single
geographical segment, disclosure requirements of accounting standard (AS 17), specified in the companies
(accounting standard) rules, 2006 are not applicable.
12. Related party disclosure
As per AS 18, issued by the Institute of Chartered Accountants of India, the companys related parties and
transactions with them are disclosed below :
A. List of related parties
i) Subsidiary company - SPR International Auto Exports Ltd.
ii) Key management personnel a) Shri A.K Taneja
Managing Director
b) Shri R. Srinivasan
Jt. Managing Director
c) Smt. Meenakshi S. Dass
Whole Time Director
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 36 SHRIRAM PISTONS & RINGS LIMITED 37
iii) Relatives of key management
personnel of (ii) (b) above - Smt. Usha Srinivasan
(ii)(c) above - Shri. Deepak C. Shriram
- Shri Arjun D. Shriram
- Shri Luv D. Shriram
- Shri Kush D. Shriram
- Ms Nandishi Shriram
iv) Enterprises over which there is significant influence of
(ii) (c) and her relatives above - Shriram Automotive Products Ltd.
- Shriram Alpine Sales Pvt. Ltd.
- Shriram Veritech Solutions Pvt. Ltd.
- Sera Com Pvt. Ltd.
- Manisha Commercial Pvt. Ltd
- Sarva Commercial Pvt. Ltd.
- Charat Ram Shriram Pvt. Ltd.
- Pearey Lall & Sons (E.P.) Ltd.
B. Related party transactions
(Rs in million)
S. No. Items Party 2011 2010
A) Key Management Personnel (KMP)
1 Remuneration Mr. A.K.Taneja 28.19 26.03
Mr. R Srinivasan 21.16 19.59
Mrs. Meenakshi Dass 22.98 20.47
2 Rent Paid Mrs. Meenakshi Dass 0.24 -
3 Interest on Fixed deposits Mr. R Srinivasan 1.45 1.03
Mrs. Meenakshi Dass 0.83 0.24
4 Dividend Paid Mr. A K Taneja 0.0001 0.0001
Mrs. Meenakshi Dass 13.72 1.86
5 Public Deposit taken during the year Mr. A K Taneja - 1.50
Mr. R Srinivasan 7.65 2.64
Mrs. Meenakshi Dass 10.00 7.00
6 Outstanding at the year end
- Fixed Deposit Mr. R Srinivasan 12.69 8.53
Mrs. Meenakshi Dass 9.00 3.00
- Interest accrued but not due Mr. R Srinivasan 1.76 1.62
Mrs. Meenakshi Dass 0.57 0.21
- Amount payable Mr. A K Taneja 17.61 15.71
Mr. R Srinivasan 13.20 11.78
Mrs. Meenakshi Dass 14.96 13.36
ii) Computation of net profit as per section 349 of the Companies Act, 1956
Net Profit before tax as per Profit & Loss Account 1,170.58 1,029.99
Add: - Managing/whole-time directors remuneration 72.33 66.09
- Commission to non whole-time directors 10.78 9.40
- Directors sitting fees 1.37 1.45
1255.06 1106.93
10. Contingent liabilities
i) Disputed - Excise duty Rs. 73.26 million (Rs.69.25 million)
- Income tax Rs. 11.69 million (Rs. 7.22 million)
- Wealth tax Rs. 0.41 million (Rs. 0.41 million)
- VAT/Sales tax Rs. 7.19 million (Rs. 10.34 million)
- Service tax Rs. 258.97 million (Rs. 32.16 million)
ii) Bank guarantees - Rs. 72.18 million (Rs. 31.90 million)
iii) Claims not acknowledged as debts Rs. 16.32 million (Rs. 16.88 million)
iv) Bills discounted from banks Rs.13.78 million (Rs. 54.08 million).
v) Company has given guarantee for repayment of loan liabilities for vehicles purchased by its
employees/vendors/customers. Outstanding loan amount at the year end is Rs. 12.34 million (Rs. 18.64 million)
and there is no default till date.
vi) Company has imported some machines under the EPCG scheme undertaking export obligation of company
products. The outstanding export obligation of Rs. 5097.58 million (Rs. 5028.74 million) is to be fulfilled over a
period of next 7 years.
11. Segment reporting
As the companys business activity falls within a single business segment viz automotive components and a single
geographical segment, disclosure requirements of accounting standard (AS 17), specified in the companies
(accounting standard) rules, 2006 are not applicable.
12. Related party disclosure
As per AS 18, issued by the Institute of Chartered Accountants of India, the companys related parties and
transactions with them are disclosed below :
A. List of related parties
i) Subsidiary company - SPR International Auto Exports Ltd.
ii) Key management personnel a) Shri A.K Taneja
Managing Director
b) Shri R. Srinivasan
Jt. Managing Director
c) Smt. Meenakshi S. Dass
Whole Time Director
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 39 SHRIRAM PISTONS & RINGS LIMITED 38
B) Relatives of KMP
1 Rent Paid Mrs. Usha Srinivasan 0.14 0.12
2 Interest on Fixed deposits Mr. Luv D Shriram 0.17 -
Mrs. Usha Srinivasan 0.62 0.45
Mr. Deepak C Shriram 0.20 0.26
Mr. Kush D Shriram 0.84 0.73
Mr. Arjun D Shriram 0.58 0.58
Ms. Nandishi Shriram 0.91 0.95
3 Directors Sitting Fee Mr. Luv D Shriram 0.15 0.15
4 Dividend Paid Mrs. Usha Srinivasan 0.01 0.011
Mr. Deepak C Shriram 0.003 0.003
Mr. Luv D Shriram 10.00 -
5 Public Deposit taken during the year Mrs. Usha Srinivasan 0.46 4.29
Mr. Luv D Shriram 4.50 -
Mr. Deepak C Shriram - 2.00
Mr. Kush D Shriram - 2.50
6 Outstanding at the year end
- Fixed Deposit Mr. Luv D Shriram 1.00 -
Mrs. Usha Srinivasan 4.85 4.74
Mr. Deepak C Shriram 0.50 2.50
Mr. Kush D Shriram 7.50 7.50
Mr. Arjun D Shriram 5.50 5.50
Ms Nandishi Shriram 8.50 9.00
- Interest accrued but not due Mr. Luv D Shriram 0.04 -
Mrs. Usha Srinivasan 0.91 0.46
Mr. Deepak C Shriram 0.15 0.28
Mr. Kush D Shriram 0.47 0.19
C) Enterprises over which KMP has significant influence or control
1 Licence fee earned Shriram Automotive Products Ltd. 0.08 0.08
2 Purchase of material / Stores Shriram Veritech Solutions Pvt. Ltd. 4.32 -
Pearey Lall & Sons (E.P.) Ltd. 0.002 0.03
Shriram Holographics Pvt. Ltd. - 4.50
3 Purchase of Products for Assembly Shriram Automotive Products Ltd. 154.64 70.87
Shriram Alpine Sales Pvt. Ltd. 21.67 19.12
(Rs in million)
S. No. Items Party 2011 2010
(Rs in million)
S. No. Items Party 2011 2010
4 Rent Paid Sera Com Pvt. Ltd. 1.53 1.33
Manisha Commercial Pvt. Ltd. 0.33 0.32
5 Interest on Fixed deposits Pearey Lall & Sons (E.P.) Ltd. 3.47 2.82
Charat Ram Shriram Pvt. Ltd. 0.27 -
6 Dividend Paid Sarva Commercial Pvt. Ltd. 3.19 3.72
Charat Ram Shriram Pvt. Ltd. 0.006 0.008
7 Sale of Assets Shriram Automotive Products Ltd. - 1.15
8 Common Share of activity Shriram Automotive Products Ltd. 1.04 0.63
Shriram Alpine Sales Pvt. Ltd. 0.31 0.25
9 Public Deposit taken during the year Pearey Lall & Sons (E.P.) Ltd. 39.60 40.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
10 Outstanding at the year end
- Fixed Deposit Pearey Lall & Sons (E.P.) Ltd. 23.00 39.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
- Interest accrued but not due Pearey Lall & Sons (E.P.) Ltd. - 2.54
- Amount payable Sera Com Pvt. Ltd. 0.11 -
Manisha Commercial Pvt. Ltd. 0.02 -
Shriram Veritech Solutions Pvt. Ltd. 0.10 -
Shriram Alpine Sales Pvt. Ltd. 3.18 2.33
Shriram Automotive Products Ltd. 0.51 -
- Advance recoverable Shriram Automotive Products Ltd. 1.26 1.32
Pearey Lall & Sons (E.P.) Ltd. 0.003 0.005
Shriram Alpine Sales Pvt. Ltd. 0.64 -
Note: Particulars of relatives / enterprises with whom transactions has taken place during the year only have been given.
13. Earnings per share
(Rs. in million)
Unit 2011 2010
i) Net profit attributable to equity shareholders Rs. 826.88 689.16
ii) Weighted average number of equity shares Nos. 22,374,912 22,374,912
iii) Earning per share (basic/diluted) Rs. 36.96 30.80
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 39 SHRIRAM PISTONS & RINGS LIMITED 38
B) Relatives of KMP
1 Rent Paid Mrs. Usha Srinivasan 0.14 0.12
2 Interest on Fixed deposits Mr. Luv D Shriram 0.17 -
Mrs. Usha Srinivasan 0.62 0.45
Mr. Deepak C Shriram 0.20 0.26
Mr. Kush D Shriram 0.84 0.73
Mr. Arjun D Shriram 0.58 0.58
Ms. Nandishi Shriram 0.91 0.95
3 Directors Sitting Fee Mr. Luv D Shriram 0.15 0.15
4 Dividend Paid Mrs. Usha Srinivasan 0.01 0.011
Mr. Deepak C Shriram 0.003 0.003
Mr. Luv D Shriram 10.00 -
5 Public Deposit taken during the year Mrs. Usha Srinivasan 0.46 4.29
Mr. Luv D Shriram 4.50 -
Mr. Deepak C Shriram - 2.00
Mr. Kush D Shriram - 2.50
6 Outstanding at the year end
- Fixed Deposit Mr. Luv D Shriram 1.00 -
Mrs. Usha Srinivasan 4.85 4.74
Mr. Deepak C Shriram 0.50 2.50
Mr. Kush D Shriram 7.50 7.50
Mr. Arjun D Shriram 5.50 5.50
Ms Nandishi Shriram 8.50 9.00
- Interest accrued but not due Mr. Luv D Shriram 0.04 -
Mrs. Usha Srinivasan 0.91 0.46
Mr. Deepak C Shriram 0.15 0.28
Mr. Kush D Shriram 0.47 0.19
C) Enterprises over which KMP has significant influence or control
1 Licence fee earned Shriram Automotive Products Ltd. 0.08 0.08
2 Purchase of material / Stores Shriram Veritech Solutions Pvt. Ltd. 4.32 -
Pearey Lall & Sons (E.P.) Ltd. 0.002 0.03
Shriram Holographics Pvt. Ltd. - 4.50
3 Purchase of Products for Assembly Shriram Automotive Products Ltd. 154.64 70.87
Shriram Alpine Sales Pvt. Ltd. 21.67 19.12
(Rs in million)
S. No. Items Party 2011 2010
(Rs in million)
S. No. Items Party 2011 2010
4 Rent Paid Sera Com Pvt. Ltd. 1.53 1.33
Manisha Commercial Pvt. Ltd. 0.33 0.32
5 Interest on Fixed deposits Pearey Lall & Sons (E.P.) Ltd. 3.47 2.82
Charat Ram Shriram Pvt. Ltd. 0.27 -
6 Dividend Paid Sarva Commercial Pvt. Ltd. 3.19 3.72
Charat Ram Shriram Pvt. Ltd. 0.006 0.008
7 Sale of Assets Shriram Automotive Products Ltd. - 1.15
8 Common Share of activity Shriram Automotive Products Ltd. 1.04 0.63
Shriram Alpine Sales Pvt. Ltd. 0.31 0.25
9 Public Deposit taken during the year Pearey Lall & Sons (E.P.) Ltd. 39.60 40.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
10 Outstanding at the year end
- Fixed Deposit Pearey Lall & Sons (E.P.) Ltd. 23.00 39.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
- Interest accrued but not due Pearey Lall & Sons (E.P.) Ltd. - 2.54
- Amount payable Sera Com Pvt. Ltd. 0.11 -
Manisha Commercial Pvt. Ltd. 0.02 -
Shriram Veritech Solutions Pvt. Ltd. 0.10 -
Shriram Alpine Sales Pvt. Ltd. 3.18 2.33
Shriram Automotive Products Ltd. 0.51 -
- Advance recoverable Shriram Automotive Products Ltd. 1.26 1.32
Pearey Lall & Sons (E.P.) Ltd. 0.003 0.005
Shriram Alpine Sales Pvt. Ltd. 0.64 -
Note: Particulars of relatives / enterprises with whom transactions has taken place during the year only have been given.
13. Earnings per share
(Rs. in million)
Unit 2011 2010
i) Net profit attributable to equity shareholders Rs. 826.88 689.16
ii) Weighted average number of equity shares Nos. 22,374,912 22,374,912
iii) Earning per share (basic/diluted) Rs. 36.96 30.80
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 40 SHRIRAM PISTONS & RINGS LIMITED 41
14. Forex exposure
Details of outstanding forex exposure as on 31 March 2011 are as under:-
(figures in million)
PARTICULARS USD/INR JPY/USD Euro/USD GBP/USD SGD/USD
1. Hedged exposure
- Inflow - forward
contracts 1.16 - 0.80 - -
- Outflow - currency &
interest swap 20.47 538.11 - - 9.82
2. Un-hedged exposure
- Inflow 3.60 25.54 1.27 0.22 -
- Outflow 9.75 769.13 0.08 0.003 -
15. Statement of additional information
(i) Quantitative details of goods manufactured & purchase of finished goods
(Figures in million)
Purchases For Assembly
Products Installed Capacity as on Production
2011 2010
31.03.2011 31.03.2010 2011 2010 Qty. Value Qty. Value
Nos. Nos. Nos. Nos. Nos. Rs. Nos. Rs.
Pistons 17.06 14.46 15.14 13.41 1.00 89.18 0.79 75.54
Pins 11.86 11.86 14.12 12.52 0.03 1.06 0.19 8.34
Piston Rings 83.78 74.18 76.06 66.72 - - - -
Cylinder liners - - - - 0.43 142.90 0.45 136.20
Conrod - - - - 0.95 161.01 0.98 166.99
Engine Valves 31.03 24.56 30.33 24.10 0.39 6.36 0.25 3.60
Total 400.51 390.67
Note: Installed capacity is as certified by the management.
ii) Stocks of finished goods and sales
(Figures in million)
Products Stocks as on Sales
31.03.2010 31.3.2011 2011 2010
Qty. Value Qty. Value Qty. Value Qty. Value
Nos. Rs. Nos. Rs. Nos. Rs. Nos. Rs.
Pistons 0.90 122.69 1.14 181.00 15.90 14.20
Pins 0.87 27.75 1.09 43.79 13.93 12.61
Piston Rings 5.31 116.65 8.12 207.95 73.25 7291.72 66.14 6430.91
Cylinder liners 0.04 9.72 0.06 18.77 0.41 0.43
Conrod 0.01 1.52 0.02 3.06 0.94 0.99
Engine Valves 1.03 43.00 2.37 106.32 29.38 1623.96 24.68 1292.79
Others 0.01 0.88 87.42 57.04
Total 321.33 561.77 9003.10 7780.74
Notes : 1. Pistons/Pins/Piston Rings/Cylinder Liner/Conrods are sold as individual components as well as
composite units. Hence composite value has been shown.
2. Sales quantity include issue of goods as samples/replacements and remelting.
iii) Raw material consumed
(Figures in million)
2011 2010
Items Quantity Value Quantity Value
Tons Rs. Tons Rs.
Aluminium /Alloy 5297.34 611.75 5000.47 486.79
Silicon 766.47 96.39 768.76 78.65
Pig Iron 2458.55 71.17 2387.75 60.99
Steel Bars 3190.73 321.07 3053.51 269.23
Steel Wire / Tube 117.54 148.05 107.90 127.14
Valve Steel 1689.81 435.92 1367.00 342.10
Others 399.68 320.10
Total 2084.03 1685.00
iv) Consumption of raw materials, stores & spares
(Figures in million)
Items 2011 2010
Rs. %Age Rs. %Age
Raw Materials - Imported 724.55 35 592.72 35
- Indigenous 1359.48 65 1092.28 65
- Total : 2084.03 100 1685.00 100
Stores & Spares - Imported 180.77 16 139.44 15
- Indigenous 919.60 84 817.20 85
- Total : 1100.37 100 956.64 100
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 40 SHRIRAM PISTONS & RINGS LIMITED 41
14. Forex exposure
Details of outstanding forex exposure as on 31 March 2011 are as under:-
(figures in million)
PARTICULARS USD/INR JPY/USD Euro/USD GBP/USD SGD/USD
1. Hedged exposure
- Inflow - forward
contracts 1.16 - 0.80 - -
- Outflow - currency &
interest swap 20.47 538.11 - - 9.82
2. Un-hedged exposure
- Inflow 3.60 25.54 1.27 0.22 -
- Outflow 9.75 769.13 0.08 0.003 -
15. Statement of additional information
(i) Quantitative details of goods manufactured & purchase of finished goods
(Figures in million)
Purchases For Assembly
Products Installed Capacity as on Production
2011 2010
31.03.2011 31.03.2010 2011 2010 Qty. Value Qty. Value
Nos. Nos. Nos. Nos. Nos. Rs. Nos. Rs.
Pistons 17.06 14.46 15.14 13.41 1.00 89.18 0.79 75.54
Pins 11.86 11.86 14.12 12.52 0.03 1.06 0.19 8.34
Piston Rings 83.78 74.18 76.06 66.72 - - - -
Cylinder liners - - - - 0.43 142.90 0.45 136.20
Conrod - - - - 0.95 161.01 0.98 166.99
Engine Valves 31.03 24.56 30.33 24.10 0.39 6.36 0.25 3.60
Total 400.51 390.67
Note: Installed capacity is as certified by the management.
ii) Stocks of finished goods and sales
(Figures in million)
Products Stocks as on Sales
31.03.2010 31.3.2011 2011 2010
Qty. Value Qty. Value Qty. Value Qty. Value
Nos. Rs. Nos. Rs. Nos. Rs. Nos. Rs.
Pistons 0.90 122.69 1.14 181.00 15.90 14.20
Pins 0.87 27.75 1.09 43.79 13.93 12.61
Piston Rings 5.31 116.65 8.12 207.95 73.25 7291.72 66.14 6430.91
Cylinder liners 0.04 9.72 0.06 18.77 0.41 0.43
Conrod 0.01 1.52 0.02 3.06 0.94 0.99
Engine Valves 1.03 43.00 2.37 106.32 29.38 1623.96 24.68 1292.79
Others 0.01 0.88 87.42 57.04
Total 321.33 561.77 9003.10 7780.74
Notes : 1. Pistons/Pins/Piston Rings/Cylinder Liner/Conrods are sold as individual components as well as
composite units. Hence composite value has been shown.
2. Sales quantity include issue of goods as samples/replacements and remelting.
iii) Raw material consumed
(Figures in million)
2011 2010
Items Quantity Value Quantity Value
Tons Rs. Tons Rs.
Aluminium /Alloy 5297.34 611.75 5000.47 486.79
Silicon 766.47 96.39 768.76 78.65
Pig Iron 2458.55 71.17 2387.75 60.99
Steel Bars 3190.73 321.07 3053.51 269.23
Steel Wire / Tube 117.54 148.05 107.90 127.14
Valve Steel 1689.81 435.92 1367.00 342.10
Others 399.68 320.10
Total 2084.03 1685.00
iv) Consumption of raw materials, stores & spares
(Figures in million)
Items 2011 2010
Rs. %Age Rs. %Age
Raw Materials - Imported 724.55 35 592.72 35
- Indigenous 1359.48 65 1092.28 65
- Total : 2084.03 100 1685.00 100
Stores & Spares - Imported 180.77 16 139.44 15
- Indigenous 919.60 84 817.20 85
- Total : 1100.37 100 956.64 100
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 42 SHRIRAM PISTONS & RINGS LIMITED 43
v) Imports (CIF) (excluding the value of goods in transit and those acquired through canalised agencies)
(Figures in million)
Items 2011 2010
Rs. Rs.
Raw Materials 665.22 554.92
Stores & Spares 178.33 130.98
Capital Goods 385.72 209.58
Finished Goods 70.19 50.06
Total 1299.46 945.54
vi) Expenditure in foreign currency (net of taxes) (including provisions)
(Figures in million)
Particulars 2011 2010
Rs. Rs.
Royalty 128.26 110.53
Interest 77.40 63.38
Others 86.26 65.71
Total 291.92 239.62
vii) Equity dividend remittances in foreign currency
(Figures in million)
Particulars 2011 2010
Year of which dividend paid 2009-10 2008-09
Number of non-resident shareholders 2 2
Number of equity shares held (million/no.) 9.17 9.17
Dividend (million/Rs.) 13.75 18.33
Year of which dividend paid 2010-11 2009-10
Number of non-resident shareholders 2 2
Number of equity shares held (million/no.) 9.17 9.17
Interim dividend (million/Rs.) 13.75 13.75
viii) Earnings in foreign exchange
(Figures in million)
Particulars 2011 2010
Exports (FOB) (million/Rs.) 1491.99 1372.66
Development cost recovery (million/Rs.) 2.71 15.98
16. SPR International Auto Exports Ltd. is 100% subsidiary of the company. The annual accounts and related detailed
information of the subsidiary company are available for inspection by the share holders in head office of the company
and subsidiary company. Hard copy of the annual accounts will be made available to the shareholders of holding and
subsidiary company on demand.
17. Others
i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided
for is Rs. 769.91 million (Rs. 522.06 million).
ii) Previous year figures have been re-grouped / reclassified, wherever necessary to confirm to current years
classification. Figures in brackets denote previous year figures.
Previous year figures have been audited by another firm of chartered accountants.
On behalf of the Board
Pradeep Dinodia
Chairman
DIN 00027995
O.P. Khaitan
Director
DIN 00027798
A.K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Secretary
DIN 00124760
Place : New Delhi P.S. Ladiwala Meenakshi S Dass
Date : April 30, 2011 Dy. Executive Director & C.F.O Whole - Time Director
DIN 00524865
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 42 SHRIRAM PISTONS & RINGS LIMITED 43
v) Imports (CIF) (excluding the value of goods in transit and those acquired through canalised agencies)
(Figures in million)
Items 2011 2010
Rs. Rs.
Raw Materials 665.22 554.92
Stores & Spares 178.33 130.98
Capital Goods 385.72 209.58
Finished Goods 70.19 50.06
Total 1299.46 945.54
vi) Expenditure in foreign currency (net of taxes) (including provisions)
(Figures in million)
Particulars 2011 2010
Rs. Rs.
Royalty 128.26 110.53
Interest 77.40 63.38
Others 86.26 65.71
Total 291.92 239.62
vii) Equity dividend remittances in foreign currency
(Figures in million)
Particulars 2011 2010
Year of which dividend paid 2009-10 2008-09
Number of non-resident shareholders 2 2
Number of equity shares held (million/no.) 9.17 9.17
Dividend (million/Rs.) 13.75 18.33
Year of which dividend paid 2010-11 2009-10
Number of non-resident shareholders 2 2
Number of equity shares held (million/no.) 9.17 9.17
Interim dividend (million/Rs.) 13.75 13.75
viii) Earnings in foreign exchange
(Figures in million)
Particulars 2011 2010
Exports (FOB) (million/Rs.) 1491.99 1372.66
Development cost recovery (million/Rs.) 2.71 15.98
16. SPR International Auto Exports Ltd. is 100% subsidiary of the company. The annual accounts and related detailed
information of the subsidiary company are available for inspection by the share holders in head office of the company
and subsidiary company. Hard copy of the annual accounts will be made available to the shareholders of holding and
subsidiary company on demand.
17. Others
i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided
for is Rs. 769.91 million (Rs. 522.06 million).
ii) Previous year figures have been re-grouped / reclassified, wherever necessary to confirm to current years
classification. Figures in brackets denote previous year figures.
Previous year figures have been audited by another firm of chartered accountants.
On behalf of the Board
Pradeep Dinodia
Chairman
DIN 00027995
O.P. Khaitan
Director
DIN 00027798
A.K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Secretary
DIN 00124760
Place : New Delhi P.S. Ladiwala Meenakshi S Dass
Date : April 30, 2011 Dy. Executive Director & C.F.O Whole - Time Director
DIN 00524865
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-11
Notes to the Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 44
Information pursuant to Part IV of Schedule VI of the Company
i) Registration Details State Code
II) Capital Raised during the year (Amount Thousand/Rs.)
III) Position of Mobilisation and Deployment of Funds (Amount Thousand/Rs.)
Sources of Funds
Application of Funds
IV) Performance of Company (Amount Thousand/Rs.)
V) Generic Names of Three Principal Product/Services of Company (as per monetary terms)
Registration No.
L 2 9 1 1 2 D L 1 9 6 3 P L C 0 0 4 0 8 4 5 5
Balance Sheet 3 1 0 3 2 0 1 1 . .
Public Issue Right Issue
I N L I N L
Bonus Issue Private Placement
I N L I N L
Total Liabilities Total Assets
6 3 7 6 1 8 8 6 3 7 6 1 8 8
Paid-up Capital Reserves & Surplus
2 2 3 7 4 9 3 6 7 6 7 7 1
Secured Loans Unsecured Loans
3 8 9 9 7 7 1 8 3 6 4 3 3
Deferred Tax Liability
2 4 9 2 5 8
Net Fixed Assets Investments
4 9 6 7 5 9 0 0 0 5
Net Current Assets
1 4 0 8 0 9 8
Turnover Total Expenditure
8 4 0 3 3 9 0 7 2 3 2 8 1 2
Profit Before Tax Profit After Tax
1 1 7 0 5 7 8 8 2 6 8 7 5
Earnings Per share in Rs. Dividend %
5 3 3 6 . 9 6
Item Code No.(ITC Code) 0 9 9 1 8 4
Product Description N I I . C . E G N E S T R A P
SHRIRAM PISTONS & RINGS LIMITED 45
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT,
1956 RELATING TO SUBSIDIARY COMPANIES
NAME OF THE SUBSIDIARY SPR INTERNATIONAL
AUTO EXPORTS LTD.
1. Financial year of the subsidiary : March 31, 2011
2. Extent of holding company's interest in the subsidiary
- Number of shares : 50000
- % holding (equity) : 100%
- % holding (preference) : -
3. Net aggregate amount of subsidiary's Profit / (losses) so far as they concern members
of the holding company and not dealt with in the holding company's accounts.
i) For subsidiary's financial year : Rs.0.01 Million
ii) For subsidiary's previous financial years since it became subsidiary : Rs.( 0.12) Million
4. Net aggregate amount of subsidiary's profits/losses so far as they concern members of
the holding company and dealt with in the holding company's accounts
i) For subsidiary's financial year -
ii) For subsidiary's previous financial years since it became subsidiary -
5. Change in the interest of holding company between the end of subsidiary's financial year
and the end of holding company's financial year.
6. Material changes between the end of subsidiary's financial year and the end of holding
company's financial year.
i) Fixed assets -
ii) Investments disposed off -
iii) Monies lent by the subsidiary -
iv) Monies borrowed by the subsidiary other than for meeting current liabilities. -
On behalf of the Board
PRADEEP DINODIA
Chairman
DIN 00027995
O.P. Khaitan
Director
DIN 00027798
A.K. TANEJA
Managing Director & CEO
DIN 00124814
R. SRINIVASAN
Jt.Managing Director & Secretary
DIN 00124760
P.S. LADIWALA MEENAKSHI S DASS
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
On behalf of the Board
PRADEEP DINODIA
Chairman
DIN 00027995
O.P. Khaitan
Director
DIN 00027798
A.K. TANEJA
Managing Director & CEO
DIN 00124814
R. SRINIVASAN
Jt.Managing Director & Secretary
DIN 00124760
P.S. LADIWALA MEENAKSHI S DASS
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED 44
Information pursuant to Part IV of Schedule VI of the Company
i) Registration Details State Code
II) Capital Raised during the year (Amount Thousand/Rs.)
III) Position of Mobilisation and Deployment of Funds (Amount Thousand/Rs.)
Sources of Funds
Application of Funds
IV) Performance of Company (Amount Thousand/Rs.)
V) Generic Names of Three Principal Product/Services of Company (as per monetary terms)
Registration No.
L 2 9 1 1 2 D L 1 9 6 3 P L C 0 0 4 0 8 4 5 5
Balance Sheet 3 1 0 3 2 0 1 1 . .
Public Issue Right Issue
I N L I N L
Bonus Issue Private Placement
I N L I N L
Total Liabilities Total Assets
6 3 7 6 1 8 8 6 3 7 6 1 8 8
Paid-up Capital Reserves & Surplus
2 2 3 7 4 9 3 6 7 6 7 7 1
Secured Loans Unsecured Loans
3 8 9 9 7 7 1 8 3 6 4 3 3
Deferred Tax Liability
2 4 9 2 5 8
Net Fixed Assets Investments
4 9 6 7 5 9 0 0 0 5
Net Current Assets
1 4 0 8 0 9 8
Turnover Total Expenditure
8 4 0 3 3 9 0 7 2 3 2 8 1 2
Profit Before Tax Profit After Tax
1 1 7 0 5 7 8 8 2 6 8 7 5
Earnings Per share in Rs. Dividend %
5 3 3 6 . 9 6
Item Code No.(ITC Code) 0 9 9 1 8 4
Product Description N I I . C . E G N E S T R A P
SHRIRAM PISTONS & RINGS LIMITED 45
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT,
1956 RELATING TO SUBSIDIARY COMPANIES
NAME OF THE SUBSIDIARY SPR INTERNATIONAL
AUTO EXPORTS LTD.
1. Financial year of the subsidiary : March 31, 2011
2. Extent of holding company's interest in the subsidiary
- Number of shares : 50000
- % holding (equity) : 100%
- % holding (preference) : -
3. Net aggregate amount of subsidiary's Profit / (losses) so far as they concern members
of the holding company and not dealt with in the holding company's accounts.
i) For subsidiary's financial year : Rs.0.01 Million
ii) For subsidiary's previous financial years since it became subsidiary : Rs.( 0.12) Million
4. Net aggregate amount of subsidiary's profits/losses so far as they concern members of
the holding company and dealt with in the holding company's accounts
i) For subsidiary's financial year -
ii) For subsidiary's previous financial years since it became subsidiary -
5. Change in the interest of holding company between the end of subsidiary's financial year
and the end of holding company's financial year.
6. Material changes between the end of subsidiary's financial year and the end of holding
company's financial year.
i) Fixed assets -
ii) Investments disposed off -
iii) Monies lent by the subsidiary -
iv) Monies borrowed by the subsidiary other than for meeting current liabilities. -
On behalf of the Board
PRADEEP DINODIA
Chairman
DIN 00027995
O.P. Khaitan
Director
DIN 00027798
A.K. TANEJA
Managing Director & CEO
DIN 00124814
R. SRINIVASAN
Jt.Managing Director & Secretary
DIN 00124760
P.S. LADIWALA MEENAKSHI S DASS
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
On behalf of the Board
PRADEEP DINODIA
Chairman
DIN 00027995
O.P. Khaitan
Director
DIN 00027798
A.K. TANEJA
Managing Director & CEO
DIN 00124814
R. SRINIVASAN
Jt.Managing Director & Secretary
DIN 00124760
P.S. LADIWALA MEENAKSHI S DASS
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SPR INTERNATIONAL AUTO EXPORTS LIMITED 46 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 47
CONSOLIDATED FINANCIAL STATEMENTS SHRIRAM PISTONS & RINGS LTD.
AUDITORS REPORT
To,
The Board of Directors of Shriram Pistons & Rings Limited
1. We have audited the attached consolidated balance sheet of Shriram Pistons & Rings Limited (the Company) and its
subsidiary collectively referred to as the SPRL Group as at 31 March 2011, the consolidated profit and loss account
and also the consolidated cash flow statement for the year ended on that date annexed thereto. These financial
statements are the responsibility of the management of the SPRL Group and have been prepared by the management
on the basis of separate financial statements and other financial information regarding components. Our responsibility
is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall consolidated
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of the subsidiary, whose financial statements reflect total assets of Rs 0.39
million as at 31 March 2011, the total revenue of Rs 0.025 million and cash in flows amounting to Rs 0.015 million for
the year then ended. These financial statements and other financial information have been audited by other auditors
whose reports have been furnished to us, and our opinion is based solely on the reports of other auditors.
4. We report that the consolidated financial statements have been prepared by SPRL Groups management in
accordance with the requirements of Accounting Standard 21, Consolidated Financial Statements, prescribed by the
Companies (Accounting Standard) Rules, 2006.
5. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other
financial information of the subsidiary, and to the best of our information and according to the explanations given to us,
we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the
accounting principles generally accepted in India; in case of:
(a) the Consolidated Balance Sheet, of the state of affairs of the SPRL Group as at 31 March 2011;
(b) the Consolidated Profit and Loss Account, of the profit for the year ended on that date; and
(c) the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per David Jones
Partner
Membership No. 98113
Place: New Delhi
Date: April 30, 2011
SUBSIDIARY COMPANY SPR INTERNATIONAL AUTO EXPORT LTD.
DIRECTORS' REPORT
The Directors have pleasure in presenting 6th Annual Report of the company for the year ended on March 31, 2011.
Profit in the year is Rs. 11 Th. as against loss of Rs. 55 Th. last year. No Dividend is being recommended. Further, no amount
is being transferred to General Reserve Account.
Business transactions could not commence during the year.
The Directors confirm that:-
1. In the preparation of the annual accounts, the applicable accounting standards have been followed.
2. Appropriate accounting policies have been selected and applied consistently, and have made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at
March 31, 2011.
3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
4. The annual accounts have been prepared on a going concern basis.
There is nothing to report with respect to conservation of energy, technology absorption, foreign exchange earnings and
outgo as required by Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 as the
company has not undertaken any manufacturing or trading activity during the year.
There are no particulars to be given under Section 217(2A) of the Companies Act, 1956.
During the year, Shri Prem Pandhi, Chairman of the Board, passed away on July 14th, 2010. The Directors wish to place on
record their appreciation of the invaluable guidance provided to the company from time to time by Shri Prem Pandhi. The
casual vacancy caused due to his death was filled in by Smt. Meenakshi S. Dass.
Shri A.K. Taneja, Director retires by rotation and being eligible offers himself for re-election. The brief resume and other
details, in relation to, aforesaid Director are given in the Notice of the Annual General Meeting.
On behalf of the Board
New Delhi (PRADEEP DINODIA)
May 06, 2011 CHAIRMAN
SPR INTERNATIONAL AUTO EXPORTS LIMITED 46 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 47
CONSOLIDATED FINANCIAL STATEMENTS SHRIRAM PISTONS & RINGS LTD.
AUDITORS REPORT
To,
The Board of Directors of Shriram Pistons & Rings Limited
1. We have audited the attached consolidated balance sheet of Shriram Pistons & Rings Limited (the Company) and its
subsidiary collectively referred to as the SPRL Group as at 31 March 2011, the consolidated profit and loss account
and also the consolidated cash flow statement for the year ended on that date annexed thereto. These financial
statements are the responsibility of the management of the SPRL Group and have been prepared by the management
on the basis of separate financial statements and other financial information regarding components. Our responsibility
is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall consolidated
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of the subsidiary, whose financial statements reflect total assets of Rs 0.39
million as at 31 March 2011, the total revenue of Rs 0.025 million and cash in flows amounting to Rs 0.015 million for
the year then ended. These financial statements and other financial information have been audited by other auditors
whose reports have been furnished to us, and our opinion is based solely on the reports of other auditors.
4. We report that the consolidated financial statements have been prepared by SPRL Groups management in
accordance with the requirements of Accounting Standard 21, Consolidated Financial Statements, prescribed by the
Companies (Accounting Standard) Rules, 2006.
5. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other
financial information of the subsidiary, and to the best of our information and according to the explanations given to us,
we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the
accounting principles generally accepted in India; in case of:
(a) the Consolidated Balance Sheet, of the state of affairs of the SPRL Group as at 31 March 2011;
(b) the Consolidated Profit and Loss Account, of the profit for the year ended on that date; and
(c) the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date.
For Walker, Chandiok & Co
Chartered Accountants
Firm Registration No: 001076N
per David Jones
Partner
Membership No. 98113
Place: New Delhi
Date: April 30, 2011
SUBSIDIARY COMPANY SPR INTERNATIONAL AUTO EXPORT LTD.
DIRECTORS' REPORT
The Directors have pleasure in presenting 6th Annual Report of the company for the year ended on March 31, 2011.
Profit in the year is Rs. 11 Th. as against loss of Rs. 55 Th. last year. No Dividend is being recommended. Further, no amount
is being transferred to General Reserve Account.
Business transactions could not commence during the year.
The Directors confirm that:-
1. In the preparation of the annual accounts, the applicable accounting standards have been followed.
2. Appropriate accounting policies have been selected and applied consistently, and have made judgments and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at
March 31, 2011.
3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
4. The annual accounts have been prepared on a going concern basis.
There is nothing to report with respect to conservation of energy, technology absorption, foreign exchange earnings and
outgo as required by Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 as the
company has not undertaken any manufacturing or trading activity during the year.
There are no particulars to be given under Section 217(2A) of the Companies Act, 1956.
During the year, Shri Prem Pandhi, Chairman of the Board, passed away on July 14th, 2010. The Directors wish to place on
record their appreciation of the invaluable guidance provided to the company from time to time by Shri Prem Pandhi. The
casual vacancy caused due to his death was filled in by Smt. Meenakshi S. Dass.
Shri A.K. Taneja, Director retires by rotation and being eligible offers himself for re-election. The brief resume and other
details, in relation to, aforesaid Director are given in the Notice of the Annual General Meeting.
On behalf of the Board
New Delhi (PRADEEP DINODIA)
May 06, 2011 CHAIRMAN
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 48 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 49
INCOME
Sales - Gross 9,003.10 7,780.74
- Less : Excise duty on sale of goods 733.05 523.40
- Net sales 8,270.05 7,257.34
Other income 7 133.37 91.38
8,403.42 7,348.72
EXPENDITURE 8
Manufacturing and other expenses 6,468.43 5,586.11
Interest 176.98 191.49
Depreciation 587.42 541.18
Profit before tax 1,170.59 1,029.94
Less: Income tax 343.70 340.84
Profit after tax 826.89 689.10
Add: Balance brought forward from previous year 250.00 200.00
Amount available for appropriation 1,076.89 889.10
APPROPRIATION
Transfer to general reserve 685.74 560.76
Dividend - Interim 33.56 33.56
- Final proposed 44.75 33.56
Corporate dividend tax 12.84 11.28
Balance carried forward to Balance Sheet 300.00 250.00
1,076.89 889.16
Earning per share (basic/diluted) (Rs.) 10 36.96 30.80
Significant accounting policies 9
Notes to the financial statements 10
Consolidated Profit and Loss Account for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
SOURCES OF FUNDS
Shareholder's fund
Share capital 1 223.75 223.75
Reserve and surplus 2 3,676.66 2,963.55
3,900.41 3,187.30
Loan funds 3
Secured 1,836.43 1,512.22
Unsecured 389.98 494.74
2,226.41 2,006.96
Deferred tax liability (net) 249.26 267.23
6,376.08 5,461.49
APPLICATION OF FUNDS
Fixed assets 4
Gross block 8,371.50 7,250.24
Less : Accumulated depreciation and amortisation 3,805.72 3,271.24
Net block 4,565.78 3,979.00
Capital work in progress 401.81 215.95
4,967.59 4,194.95
Foreign currency monetory items - 24.66
translation difference
Current assets, loans and advances 5
Inventories 1,307.00 929.57
Sundry debtors 1,152.27 1,120.41
Cash and bank balances 415.61 335.03
Other current assets 8.81 3.38
Loans and advances 316.85 268.51
3,200.54 2,656.90
Less :
Current liabilities and provisions 6
Current liabilities 1,460.90 1,136.72
Provisions 331.15 278.30
1,792.05 1,415.02
Net current assets 1,408.49 1,241.88
6,376.08 5,461.49
Significant accounting policies 9
Notes to the financial statements 10
The schedules referred to above form an integral part of the financial statements
Consolidated Balance Sheet as at 31 March 2011
(Rs. in million)
Schedule As at As at
31 March 2011 31 March 2010
This is the Balance Sheet referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
This is the Profit and Loss Account referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 48 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 49
INCOME
Sales - Gross 9,003.10 7,780.74
- Less : Excise duty on sale of goods 733.05 523.40
- Net sales 8,270.05 7,257.34
Other income 7 133.37 91.38
8,403.42 7,348.72
EXPENDITURE 8
Manufacturing and other expenses 6,468.43 5,586.11
Interest 176.98 191.49
Depreciation 587.42 541.18
Profit before tax 1,170.59 1,029.94
Less: Income tax 343.70 340.84
Profit after tax 826.89 689.10
Add: Balance brought forward from previous year 250.00 200.00
Amount available for appropriation 1,076.89 889.10
APPROPRIATION
Transfer to general reserve 685.74 560.76
Dividend - Interim 33.56 33.56
- Final proposed 44.75 33.56
Corporate dividend tax 12.84 11.28
Balance carried forward to Balance Sheet 300.00 250.00
1,076.89 889.16
Earning per share (basic/diluted) (Rs.) 10 36.96 30.80
Significant accounting policies 9
Notes to the financial statements 10
Consolidated Profit and Loss Account for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
SOURCES OF FUNDS
Shareholder's fund
Share capital 1 223.75 223.75
Reserve and surplus 2 3,676.66 2,963.55
3,900.41 3,187.30
Loan funds 3
Secured 1,836.43 1,512.22
Unsecured 389.98 494.74
2,226.41 2,006.96
Deferred tax liability (net) 249.26 267.23
6,376.08 5,461.49
APPLICATION OF FUNDS
Fixed assets 4
Gross block 8,371.50 7,250.24
Less : Accumulated depreciation and amortisation 3,805.72 3,271.24
Net block 4,565.78 3,979.00
Capital work in progress 401.81 215.95
4,967.59 4,194.95
Foreign currency monetory items - 24.66
translation difference
Current assets, loans and advances 5
Inventories 1,307.00 929.57
Sundry debtors 1,152.27 1,120.41
Cash and bank balances 415.61 335.03
Other current assets 8.81 3.38
Loans and advances 316.85 268.51
3,200.54 2,656.90
Less :
Current liabilities and provisions 6
Current liabilities 1,460.90 1,136.72
Provisions 331.15 278.30
1,792.05 1,415.02
Net current assets 1,408.49 1,241.88
6,376.08 5,461.49
Significant accounting policies 9
Notes to the financial statements 10
The schedules referred to above form an integral part of the financial statements
Consolidated Balance Sheet as at 31 March 2011
(Rs. in million)
Schedule As at As at
31 March 2011 31 March 2010
This is the Balance Sheet referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
This is the Profit and Loss Account referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 50 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 51
Share Capital
Authorised
Equity Shares 50,000,000 (previous year 50,000,000) of Rs.10 each 500.00 500.00
Preference Shares 3,000,000 (previous year 3,000,000) of Rs.100 each 300.00 300.00
800.00 800.00
Issued, subscribed and paid-up
Equity Shares - 22,374,912 (previous year 22,374,912 ) of Rs.10 each 223.75 223.75
223.75 223.75
Schedules forming part of the consolidated financial statements
SCHEDULE-1
(Rs. in million)
As at As at
31 March 2011 31 March 2010
A. Revaluation reserve
Balance at the beginning of the year 173.74 212.32
Less: Deduction during the year 22.63 38.58
151.11 173.74
B. Preference share redemption reserve 100.00 100.00
C. General reserve
Balance at the beginning of the year 2,439.81 1,879.11
Add: Transfer from profit and loss account 685.74 560.70
3,125.55 2,439.81
D. Surplus in profit and loss account 300.00 250.00
3,676.66 2,963.55
Schedules forming part of the consolidated financial statements
SCHEDULE-2
(Rs. in million)
As at As at
31 March 2011 31 March 2010
A. Cash flow from operating activities
Profit - Net profit after income tax 826.89 689.10
- Add: income tax 343.70 340.84
- Net profit before income tax 1,170.59 1,029.94
- Add: Depreciation 587.42 541.18
- Add: Preliminary expenses written off 0.00 0.07
- Gross profit 1,758.01 1,571.19
Adjustment for - Interest cost and finance charges 179.93 199.85
- Interest earned (24.26) (8.95)
- Loss on sale/writing off of fixed assets 7.43 1.86
- Unrealised exchange differences 3.10 1.04
- Provision for doubtful debts & advances (2.82) 4.54
Operating profit before working capital changes 1,921.39 1,769.53
Adjustment for - Trade and other receivables (80.43) (212.52)
- Inventories (377.43) (72.32)
- Trade and other payables 144.63 376.88
Cash generated from operations 1,608.16 1,861.57
Income tax paid (378.30) (374.98)
1,229.86 1,486.59
B. Cash flow from investment activities
Purchase of fixed assets (1,098.55) (781.74)
Sale of fixed assets 8.67 29.10
Short term deposits with banks (33.06) (8.65)
Purchase of intangible assets (26.10) (14.16)
Interest received 18.83 7.77
(1,130.21) (767.68)
C. Cash flow from financing activities
Proceeds from long term borrowings 798.69 250.00
Repayment of long term borrowings (574.38) (549.16)
Proceeds from public deposits 181.34 404.93
Repayment of public deposits (283.90) (90.35)
Short term loans from banks 99.91 (148.94)
Interest and finance charges paid (195.56) (185.39)
Dividend paid (67.08) (78.25)
Tax on dividend (11.15) (13.31)
(52.13) (410.47)
D. Net cash flow 47.52 308.44
E. Reconciliation with cash and cash equivalents
Opening balance 315.94 7.50
Closing balance 363.46 315.94
47.52 308.44
Cash and cash equivalent is arrived at after deducting Rs. 52.16 million (Rs. 19.10 million) from cash and bank
balance being the amount not available for free use.
Notes to the financial statement 11
Consolidated Cash Flow Statement for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
This is the Cash Flow Statement referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 50 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 51
Share Capital
Authorised
Equity Shares 50,000,000 (previous year 50,000,000) of Rs.10 each 500.00 500.00
Preference Shares 3,000,000 (previous year 3,000,000) of Rs.100 each 300.00 300.00
800.00 800.00
Issued, subscribed and paid-up
Equity Shares - 22,374,912 (previous year 22,374,912 ) of Rs.10 each 223.75 223.75
223.75 223.75
Schedules forming part of the consolidated financial statements
SCHEDULE-1
(Rs. in million)
As at As at
31 March 2011 31 March 2010
A. Revaluation reserve
Balance at the beginning of the year 173.74 212.32
Less: Deduction during the year 22.63 38.58
151.11 173.74
B. Preference share redemption reserve 100.00 100.00
C. General reserve
Balance at the beginning of the year 2,439.81 1,879.11
Add: Transfer from profit and loss account 685.74 560.70
3,125.55 2,439.81
D. Surplus in profit and loss account 300.00 250.00
3,676.66 2,963.55
Schedules forming part of the consolidated financial statements
SCHEDULE-2
(Rs. in million)
As at As at
31 March 2011 31 March 2010
A. Cash flow from operating activities
Profit - Net profit after income tax 826.89 689.10
- Add: income tax 343.70 340.84
- Net profit before income tax 1,170.59 1,029.94
- Add: Depreciation 587.42 541.18
- Add: Preliminary expenses written off 0.00 0.07
- Gross profit 1,758.01 1,571.19
Adjustment for - Interest cost and finance charges 179.93 199.85
- Interest earned (24.26) (8.95)
- Loss on sale/writing off of fixed assets 7.43 1.86
- Unrealised exchange differences 3.10 1.04
- Provision for doubtful debts & advances (2.82) 4.54
Operating profit before working capital changes 1,921.39 1,769.53
Adjustment for - Trade and other receivables (80.43) (212.52)
- Inventories (377.43) (72.32)
- Trade and other payables 144.63 376.88
Cash generated from operations 1,608.16 1,861.57
Income tax paid (378.30) (374.98)
1,229.86 1,486.59
B. Cash flow from investment activities
Purchase of fixed assets (1,098.55) (781.74)
Sale of fixed assets 8.67 29.10
Short term deposits with banks (33.06) (8.65)
Purchase of intangible assets (26.10) (14.16)
Interest received 18.83 7.77
(1,130.21) (767.68)
C. Cash flow from financing activities
Proceeds from long term borrowings 798.69 250.00
Repayment of long term borrowings (574.38) (549.16)
Proceeds from public deposits 181.34 404.93
Repayment of public deposits (283.90) (90.35)
Short term loans from banks 99.91 (148.94)
Interest and finance charges paid (195.56) (185.39)
Dividend paid (67.08) (78.25)
Tax on dividend (11.15) (13.31)
(52.13) (410.47)
D. Net cash flow 47.52 308.44
E. Reconciliation with cash and cash equivalents
Opening balance 315.94 7.50
Closing balance 363.46 315.94
47.52 308.44
Cash and cash equivalent is arrived at after deducting Rs. 52.16 million (Rs. 19.10 million) from cash and bank
balance being the amount not available for free use.
Notes to the financial statement 11
Consolidated Cash Flow Statement for the year ended 31 March 2011
(Rs. in million)
Schedule
31 March 2011 31 March 2010
Year ended Year ended
This is the Cash Flow Statement referred to in our report of even date For and on behalf of the Board of Directors
For Walker, Chandiok & Co Pradeep Dinodia
(Firm Regn. No. 001076N) Chairman
Chartered Accountants DIN 00027995
per David Jones O. P. Khaitan
Partner Director
Membership No. 98113 DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Company Secretary
DIN 00124760
P.S. Ladiwala Meenakshi S Dass
Place : New Delhi Dy. Executive Director & CFO Whole - Time Director
Date : April 30, 2011 DIN 00524865
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 52 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 53
Current assets, loans and advances
Current assets
Inventories - Raw materials 255.10 216.12
- Loose tools 26.35 13.28
- Stores and spares 94.88 61.19
- Stock in process 368.90 317.65
- Finished goods 561.77 321.33
1,307.00 929.57
Sundry debtors (unsecured)
Over six months - Good 9.74 4.53
- Doubtful 7.83 12.08
Others - Good 1,142.53 1,115.88
- Doubtful 2.30 -
1,162.40 1,132.49
Less : Provision for doubtful debts 10.13 12.08
1,152.27 1,120.41
Cash and bank
Cash in hand 0.30 0.65
Cheques in hand - 0.02
With scheduled banks - Fixed deposit accounts 403.19 277.56
- Current accounts 11.78 56.50
- Dividend accounts 0.34 0.30
415.61 335.03
Other current assets
Interest accrued but not due 8.81 3.38
Loans and advances
Secured
Housing loans - Good 2.27 3.34
Unsecured
Advances recoverable in cash or in kind or for
value to be received
- Good 236.88 222.06
- Doubtful 6.32 7.19
Balance with excise department 29.60 6.46
Deposits with government departments 48.10 36.65
323.17 275.70
Less : Provision for doubtful advances 6.32 7.19
316.85 268.51
3,200.54 2,656.90
Schedules forming part of the consolidated financial statements
SCHEDULE-5
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Loans
Secured
From banks - working capital 195.02 95.12
- term loan 1,621.47 1,386.57
Interest free trade tax loan 18.70 28.51
Vehicle loan 1.24 2.02
1,836.43 1,512.22
Unsecured
Public deposits 389.98 494.74
389.98 494.74
2,226.41 2,006.96
Cost
P a r t i c u l a r s As at During the year As at As at For the Deductions Upto As at As at
1 April 2010 Additions Deductions 31 March 2011 1 April 2010 Year 31 March 2011 31 March 2011 31 March 2010
A. Tangible
Land - Leasehold 360.42 - - 360.42 14.44 3.69 - 18.13 342.29 345.98
Building 537.05 202.29 - 739.34 122.21 17.50 - 139.71 599.63 414.84
Plant and machinery 5,833.51 886.87 46.77 6,673.61 2,745.34 499.52 40.95 3,203.91 3,469.70 3,088.17
Dies 105.98 21.80 8.77 119.01 69.73 19.75 7.70 81.78 37.23 36.25
Furniture, fixture, 212.45 48.88 13.89 247.44 180.44 36.86 12.22 205.08 42.36 32.01
computer and office
equipment
Vehicles 98.47 21.15 16.40 103.22 49.59 16.21 12.79 53.01 50.21 48.88
B. Intangible
Computer software 62.37 21.31 - 83.68 54.65 13.01 - 67.66 16.02 7.72
Product design & 39.99 4.79 - 44.78 34.84 1.60 - 36.44 8.34 5.15
development
Total 7,250.24 1,207.09 85.83 8,371.50 3,271.24 608.14 73.66 3,805.72 4,565.78 3,979.00
Total as at
31 March 2010 6,935.21 502.33 187.30 7,250.24 2,848.85 572.49 150.10 3,271.24
Add: Capital work in progress 401.81 215.95
Total 4,967.59 4,194.95
Depreciation / amortisation Net value
Schedules forming part of the consolidated financial statements
SCHEDULE-3
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the consolidated financial statements
SCHEDULE-4
Fixed assets (Rs. in million)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 52 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 53
Current assets, loans and advances
Current assets
Inventories - Raw materials 255.10 216.12
- Loose tools 26.35 13.28
- Stores and spares 94.88 61.19
- Stock in process 368.90 317.65
- Finished goods 561.77 321.33
1,307.00 929.57
Sundry debtors (unsecured)
Over six months - Good 9.74 4.53
- Doubtful 7.83 12.08
Others - Good 1,142.53 1,115.88
- Doubtful 2.30 -
1,162.40 1,132.49
Less : Provision for doubtful debts 10.13 12.08
1,152.27 1,120.41
Cash and bank
Cash in hand 0.30 0.65
Cheques in hand - 0.02
With scheduled banks - Fixed deposit accounts 403.19 277.56
- Current accounts 11.78 56.50
- Dividend accounts 0.34 0.30
415.61 335.03
Other current assets
Interest accrued but not due 8.81 3.38
Loans and advances
Secured
Housing loans - Good 2.27 3.34
Unsecured
Advances recoverable in cash or in kind or for
value to be received
- Good 236.88 222.06
- Doubtful 6.32 7.19
Balance with excise department 29.60 6.46
Deposits with government departments 48.10 36.65
323.17 275.70
Less : Provision for doubtful advances 6.32 7.19
316.85 268.51
3,200.54 2,656.90
Schedules forming part of the consolidated financial statements
SCHEDULE-5
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Loans
Secured
From banks - working capital 195.02 95.12
- term loan 1,621.47 1,386.57
Interest free trade tax loan 18.70 28.51
Vehicle loan 1.24 2.02
1,836.43 1,512.22
Unsecured
Public deposits 389.98 494.74
389.98 494.74
2,226.41 2,006.96
Cost
P a r t i c u l a r s As at During the year As at As at For the Deductions Upto As at As at
1 April 2010 Additions Deductions 31 March 2011 1 April 2010 Year 31 March 2011 31 March 2011 31 March 2010
A. Tangible
Land - Leasehold 360.42 - - 360.42 14.44 3.69 - 18.13 342.29 345.98
Building 537.05 202.29 - 739.34 122.21 17.50 - 139.71 599.63 414.84
Plant and machinery 5,833.51 886.87 46.77 6,673.61 2,745.34 499.52 40.95 3,203.91 3,469.70 3,088.17
Dies 105.98 21.80 8.77 119.01 69.73 19.75 7.70 81.78 37.23 36.25
Furniture, fixture, 212.45 48.88 13.89 247.44 180.44 36.86 12.22 205.08 42.36 32.01
computer and office
equipment
Vehicles 98.47 21.15 16.40 103.22 49.59 16.21 12.79 53.01 50.21 48.88
B. Intangible
Computer software 62.37 21.31 - 83.68 54.65 13.01 - 67.66 16.02 7.72
Product design & 39.99 4.79 - 44.78 34.84 1.60 - 36.44 8.34 5.15
development
Total 7,250.24 1,207.09 85.83 8,371.50 3,271.24 608.14 73.66 3,805.72 4,565.78 3,979.00
Total as at
31 March 2010 6,935.21 502.33 187.30 7,250.24 2,848.85 572.49 150.10 3,271.24
Add: Capital work in progress 401.81 215.95
Total 4,967.59 4,194.95
Depreciation / amortisation Net value
Schedules forming part of the consolidated financial statements
SCHEDULE-3
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the consolidated financial statements
SCHEDULE-4
Fixed assets (Rs. in million)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 54 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 55
Expenditure
Manufacturing and other expenses
Purchases and stock variation
Opening stock - Process 317.66 250.29
- Finished 321.33 346.22
Add: Purchase of products for assembly 400.51 390.67
1,039.50 987.18
Less: Closing stock - Process 368.90 317.66
- Finished 561.77 321.33
Increase in excise duty on finished goods 34.94 12.07
143.77 360.26
Raw material consumed 2,084.03 1,685.00
Stores and spares consumed 1,100.37 956.64
Power and fuel 617.07 468.67
Royalty 149.30 128.34
Repairs - Machinery 53.05 38.79
- Building 39.51 25.42
- Others 18.39 20.11
Manufacturing expenses 312.14 265.84
Salaries, wages and bonus 1,154.02 982.98
Provident fund and other funds 75.11 64.56
Staff welfare expenses 96.73 78.33
Selling, distribution and promotion expenses 233.38 202.15
Bad debts and advances written off 0.70 0.67
Provision for doubtful debts and advances - 4.54
Rent 28.30 29.78
Rates and taxes 6.09 5.65
Insurance 10.36 9.95
Loss on sale / writing off of assets 11.18 8.44
Directors' fees 1.37 1.45
Auditors remuneration 0.89 0.60
Miscellaneous expenses 332.67 247.94
6,468.43 5,586.11
Interest
Term loans 120.52 141.16
Public deposits 51.23 39.76
Others 5.23 10.57
176.98 191.49
Depreciation
For the year 608.14 572.49
Less: Transferred from revaluation reserve 20.72 31.31
587.42 541.18
Income tax
Current tax 361.67 370.33
Deferred tax credit (17.97) (29.49)
343.70 340.84
Schedules forming part of the consolidated financial statements
SCHEDULE-8
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
Current liabilities and provisions
Current liabilities
Sundry creditors
- Dues to micro and small enterprises - 0.53
(Refer note no. 5 of schedule no. 11)
- Others 776.18 500.35
Advances from customers 32.37 16.12
Investor education and protection fund:*
- Unclaimed dividend 0.34 0.30
- Unclaimed fixed deposits 4.53 2.33
- Interest on unclaimed fixed deposits 0.83 0.38
Other liabilities 614.81 589.54
Interest accrued but not due 31.84 27.17
1,460.90 1,136.72
*Not due for deposit
Provisions
Employee benefits 270.43 213.82
Income tax 8.71 25.34
Proposed dividend 44.75 33.56
Dividend tax on proposed dividend 7.26 5.58
331.15 278.30
1,792.05 1,415.02
Other income
Export benefits 53.71 38.25
Interest income 24.26 8.95
Profit on sale of assets 3.75 6.58
Provision for doubtful debts / advances written back 2.82 -
Liabilities and provisions no longer required written back 19.25 11.75
Miscellaneous income 29.58 25.85
133.37 91.38
Schedules forming part of the consolidated financial statements
SCHEDULE-6
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the consolidated financial statements
SCHEDULE-7
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 54 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 55
Expenditure
Manufacturing and other expenses
Purchases and stock variation
Opening stock - Process 317.66 250.29
- Finished 321.33 346.22
Add: Purchase of products for assembly 400.51 390.67
1,039.50 987.18
Less: Closing stock - Process 368.90 317.66
- Finished 561.77 321.33
Increase in excise duty on finished goods 34.94 12.07
143.77 360.26
Raw material consumed 2,084.03 1,685.00
Stores and spares consumed 1,100.37 956.64
Power and fuel 617.07 468.67
Royalty 149.30 128.34
Repairs - Machinery 53.05 38.79
- Building 39.51 25.42
- Others 18.39 20.11
Manufacturing expenses 312.14 265.84
Salaries, wages and bonus 1,154.02 982.98
Provident fund and other funds 75.11 64.56
Staff welfare expenses 96.73 78.33
Selling, distribution and promotion expenses 233.38 202.15
Bad debts and advances written off 0.70 0.67
Provision for doubtful debts and advances - 4.54
Rent 28.30 29.78
Rates and taxes 6.09 5.65
Insurance 10.36 9.95
Loss on sale / writing off of assets 11.18 8.44
Directors' fees 1.37 1.45
Auditors remuneration 0.89 0.60
Miscellaneous expenses 332.67 247.94
6,468.43 5,586.11
Interest
Term loans 120.52 141.16
Public deposits 51.23 39.76
Others 5.23 10.57
176.98 191.49
Depreciation
For the year 608.14 572.49
Less: Transferred from revaluation reserve 20.72 31.31
587.42 541.18
Income tax
Current tax 361.67 370.33
Deferred tax credit (17.97) (29.49)
343.70 340.84
Schedules forming part of the consolidated financial statements
SCHEDULE-8
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
Current liabilities and provisions
Current liabilities
Sundry creditors
- Dues to micro and small enterprises - 0.53
(Refer note no. 5 of schedule no. 11)
- Others 776.18 500.35
Advances from customers 32.37 16.12
Investor education and protection fund:*
- Unclaimed dividend 0.34 0.30
- Unclaimed fixed deposits 4.53 2.33
- Interest on unclaimed fixed deposits 0.83 0.38
Other liabilities 614.81 589.54
Interest accrued but not due 31.84 27.17
1,460.90 1,136.72
*Not due for deposit
Provisions
Employee benefits 270.43 213.82
Income tax 8.71 25.34
Proposed dividend 44.75 33.56
Dividend tax on proposed dividend 7.26 5.58
331.15 278.30
1,792.05 1,415.02
Other income
Export benefits 53.71 38.25
Interest income 24.26 8.95
Profit on sale of assets 3.75 6.58
Provision for doubtful debts / advances written back 2.82 -
Liabilities and provisions no longer required written back 19.25 11.75
Miscellaneous income 29.58 25.85
133.37 91.38
Schedules forming part of the consolidated financial statements
SCHEDULE-6
(Rs. in million)
As at As at
31 March 2011 31 March 2010
Schedules forming part of the consolidated financial statements
SCHEDULE-7
(Rs. in million)
31 March 2011 31 March 2010
Year ended Year ended
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 56 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 57
6. Investments
Long term investments are stated at cost. Any diminution in the value of Long term Investments, other than temporary,
is provided for in the books of account. Current investments are stated at lower of the cost or fair value.
7. Inventories
Inventories are valued on the following basis :
i) Raw materials, loose tools, stores and spares - at lower of cost determined on weighted average basis or net
realisable value.
ii) Stock in process at lower of cost or net realisable value.
iii) Finished goods stock - at lower of cost including excise duty or net realisable value.
Cost of finished goods and stock-in-process includes cost of material, labour and related overheads.
8. Foreign currency transactions
Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing on or closely
approximating to the date of transaction.
Monetary items denominated in foreign currency and covered by forward exchange contracts are translated at the
rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward
rate and exchange rate on the date of transaction, such difference having been recognized in the Profit & Loss
Account over the life of the contract.
Other monetary items are translated at the year end rates and exchange rate difference on such translation is
recognised in profit & loss account.
Forward exchange contracts entered to hedge the foreign currency risk of highly probable forecast transactions and
firm commitments are marked to market at the balance sheet date. Exchange loss on marked to market basis is
recognised in the profit and loss account, however, any gain is ignored.
9. Employee benefits
Contribution towards Provident Fund and Superannuation fund is paid as per the statutory provisions/company
scheme. These benefits are considered as defined contribution plan and contributions are charged to Profit & Loss
account of the year when it becomes due.
Retirement benefit in the form of Gratuity is considered as defined benefit plan and liability is provided for on the basis
of an actuarial valuation.
Company provides for the encashment of leave as per the company scheme and employees are entitled to
accumulate leave subject to certain limits, for future encashment/availment. The liability is provided for unutilized
leave at the year end on the basis of an actuarial valuation.
10. Research and development
Revenue expenditure on research and development, inclusive of dies for model development, is charged as expense
in the year in which incurred. Capital expenditure is included in fixed assets.
11. Leases
Lease rentals in respect of assets taken on operating lease are charged to the profit and loss account on a straight-line
basis over the term of lease.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-9
Significant Accounting Policies (contd.)
1. Principles of consolidation
The financial statements are prepared on accrual basis under the historical cost convention as supplemented by the
revaluation of certain assets, in accordance with the generally accepted accounting principles in India and to comply
with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 including the
Rules framed there under.
2. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported balances of assets and liabilities and the
disclosure relating to contingent liabilities as at the date of financial statements and reported amount of income and
expenses during the period. Difference between the actual results and estimates are recognised in the year in which
the results are known or materialized.
3. Revenue recognition
Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of the goods are
transferred to the customer and is stated inclusive of excise duty and net of trade discounts, sales return and sales tax /
VAT, wherever applicable.
Other revenues are recognised on accrual basis, except where there are uncertainties in the determination/realisation
of income, the same is not accounted for.
4. Fixed assets
Fixed Assets are stated at their original cost (net of cenvat availed) including taxes and other incidental expenses
related to acquisition/ installation including interest on loan taken for the acquisition of qualifying assets upto the date
of commissioning of assets. Wherever assets are revalued, cost is adjusted by the amount added on revaluation
based on Govt. approved valuers report and disclosed separately as required under the Companies Act, 1956.
5. Depreciation and amortisation
Depreciation is provided on Fixed Assets over their estimated useful lives or lives based on the rates specified in
Schedule XIV to the Companies Act, 1956, whichever is lower, on the following basis :
i) Furniture, fixtures, computers and - W.D.V. method
office equipments
ii) Other assets - Straight line method
Lease money paid for leasehold land is amortised over the lease period.
Where assets are revalued, depreciation is charged on the revalued amount based on remaining useful life of the
asset specified by the valuer provided depreciation on such block of assets is not lower than depreciation chargeable
on historical cost as per the Companies Act, 1956.
Where there is a revision of the estimated useful life of asset, the unamortised depreciable amount is charged over the
revised remaining useful life.
Depreciation on assets acquired/sold/discarded during the year is charged on pro-rata basis except for furniture,
fixtures, Equipments and Computer where full years depreciation is computed in the year of acquisition and no
depreciation is provided in the year of sale.
Assets costing upto Rs. 5,000/- is fully depreciated in the year of acquisition.
Intangible assets are amortised on straight-line basis
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-9
Significant Accounting Policies
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 56 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 57
6. Investments
Long term investments are stated at cost. Any diminution in the value of Long term Investments, other than temporary,
is provided for in the books of account. Current investments are stated at lower of the cost or fair value.
7. Inventories
Inventories are valued on the following basis :
i) Raw materials, loose tools, stores and spares - at lower of cost determined on weighted average basis or net
realisable value.
ii) Stock in process at lower of cost or net realisable value.
iii) Finished goods stock - at lower of cost including excise duty or net realisable value.
Cost of finished goods and stock-in-process includes cost of material, labour and related overheads.
8. Foreign currency transactions
Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing on or closely
approximating to the date of transaction.
Monetary items denominated in foreign currency and covered by forward exchange contracts are translated at the
rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward
rate and exchange rate on the date of transaction, such difference having been recognized in the Profit & Loss
Account over the life of the contract.
Other monetary items are translated at the year end rates and exchange rate difference on such translation is
recognised in profit & loss account.
Forward exchange contracts entered to hedge the foreign currency risk of highly probable forecast transactions and
firm commitments are marked to market at the balance sheet date. Exchange loss on marked to market basis is
recognised in the profit and loss account, however, any gain is ignored.
9. Employee benefits
Contribution towards Provident Fund and Superannuation fund is paid as per the statutory provisions/company
scheme. These benefits are considered as defined contribution plan and contributions are charged to Profit & Loss
account of the year when it becomes due.
Retirement benefit in the form of Gratuity is considered as defined benefit plan and liability is provided for on the basis
of an actuarial valuation.
Company provides for the encashment of leave as per the company scheme and employees are entitled to
accumulate leave subject to certain limits, for future encashment/availment. The liability is provided for unutilized
leave at the year end on the basis of an actuarial valuation.
10. Research and development
Revenue expenditure on research and development, inclusive of dies for model development, is charged as expense
in the year in which incurred. Capital expenditure is included in fixed assets.
11. Leases
Lease rentals in respect of assets taken on operating lease are charged to the profit and loss account on a straight-line
basis over the term of lease.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-9
Significant Accounting Policies (contd.)
1. Principles of consolidation
The financial statements are prepared on accrual basis under the historical cost convention as supplemented by the
revaluation of certain assets, in accordance with the generally accepted accounting principles in India and to comply
with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 including the
Rules framed there under.
2. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported balances of assets and liabilities and the
disclosure relating to contingent liabilities as at the date of financial statements and reported amount of income and
expenses during the period. Difference between the actual results and estimates are recognised in the year in which
the results are known or materialized.
3. Revenue recognition
Revenue from sale of goods is recognised when significant risks and rewards in respect of ownership of the goods are
transferred to the customer and is stated inclusive of excise duty and net of trade discounts, sales return and sales tax /
VAT, wherever applicable.
Other revenues are recognised on accrual basis, except where there are uncertainties in the determination/realisation
of income, the same is not accounted for.
4. Fixed assets
Fixed Assets are stated at their original cost (net of cenvat availed) including taxes and other incidental expenses
related to acquisition/ installation including interest on loan taken for the acquisition of qualifying assets upto the date
of commissioning of assets. Wherever assets are revalued, cost is adjusted by the amount added on revaluation
based on Govt. approved valuers report and disclosed separately as required under the Companies Act, 1956.
5. Depreciation and amortisation
Depreciation is provided on Fixed Assets over their estimated useful lives or lives based on the rates specified in
Schedule XIV to the Companies Act, 1956, whichever is lower, on the following basis :
i) Furniture, fixtures, computers and - W.D.V. method
office equipments
ii) Other assets - Straight line method
Lease money paid for leasehold land is amortised over the lease period.
Where assets are revalued, depreciation is charged on the revalued amount based on remaining useful life of the
asset specified by the valuer provided depreciation on such block of assets is not lower than depreciation chargeable
on historical cost as per the Companies Act, 1956.
Where there is a revision of the estimated useful life of asset, the unamortised depreciable amount is charged over the
revised remaining useful life.
Depreciation on assets acquired/sold/discarded during the year is charged on pro-rata basis except for furniture,
fixtures, Equipments and Computer where full years depreciation is computed in the year of acquisition and no
depreciation is provided in the year of sale.
Assets costing upto Rs. 5,000/- is fully depreciated in the year of acquisition.
Intangible assets are amortised on straight-line basis
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-9
Significant Accounting Policies
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 58 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 59
1. Basis of consolidation
The consolidated financial statements includes the financial statements of Shriram Pistons & Rings Ltd., the parent
company and its subsidiary, SPR International Auto Exports Ltd., incorporated in India, in which the parent Company
holds 100% of its share capital (collectively referred to as the group).
The consolidated financial statements have been prepared in accordance with the Accounting Standard (AS 21),
Consolidated Financial Statements referred to in the Companies Accounting Standards Rules, 2006 issued by the
Central Government.
2. Deferred tax
Elements of deferred tax liability created for tax effect of timing differences are as under:
(Rs. in million)
2011 2010
Liability - Depreciation 352.56 352.79
Assets - Liabilities on payment basis
u/s 43 B of Income Tax Act, 1961 97.96 79.01
- Provision for doubtful debts/advances 5.34 6.55
103.30 85.56
Net Liability 249.26 267.23
3. Loans
a) Working capital loans of Rs. 195.02 million (Rs. 95.12 million) are secured as under:-
i) Secured by way of first pari-passu charge on stocks and book debts of the parent company and
ii) Second pari-passu charge on all present & future fixed assets of the parent company.
b) Term loans from banks amounting to Rs. 1,621.47 million (Rs. 1,386.57 million) are secured as under:-
i) Rs. Nil (Rs. 80.00 million) is secured by way of first pari-passu charge on all present & future fixed assets of
the parent company.
ii) Rs. Nil (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets and hypothecation of all movable assets, present and future subject to prior charge as
per note 4 (a)(i) .
iii) Rs. 415.63 million (Rs. 571.92 million) are secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the parent company and hypothecation of all movable assets, present
and future, subject to prior charge as per note 4 (a)(i).
iv) Rs. 209.65 million (Rs. 334.65 million) is secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the parent company and hypothecation of all movable assets, present
and future, subject to prior charge as per note 4 (a)(i).
v) Rs. 297.50 million (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all
present & future movable and immovable fixed assets of the parent company.
vi) Rs. 327.81 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
movable and immovable fixed assets of the parent Company.
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements
Assets acquired on finance lease which transfer risk and rewards of ownership to the Company are capitalised as
assets by the Company at the lower of fair value of the leased property or the present value of the related lease
payments or where applicable, estimated fair value of such assets. Amortisation of capitalised leased assets is
computed on the straight line method over the useful life of the assets. Lease rental payable is apportioned between
principal and finance charge using the internal rate of return method. The finance charge is allocated over the lease
term so as to produce a constant periodic rate of interest on the remaining balance of liability.
12. Taxes on income
Tax expense comprises current income tax and deferred income tax.
Current tax is determined as the amount of tax payable in respect of taxable income for the year, in accordance with
the Income Tax Act, 1961.
Deferred income tax reflects the impact of current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates
and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only
to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
13. Earnings per share
Basic earnings per share is calculated by dividing net profit or loss for the year attributable to equity shareholders by
weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events of bonus issue, share split and any new equity issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
14. Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount
of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated historical cost.
15. Contingent liabilities and provisions
The company recognizes a provision when there is a present obligation as a result of past events and it is probable that
an outflow of resources would be required to settle the obligation and a reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation but probably
will not require an outflow of resources.
When there is a possible obligation or a present obligation in respect of which the likelyhood on outflow of resources is
remote, no provision or disclosure is made.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-9
Significant Accounting Policies (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 58 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 59
1. Basis of consolidation
The consolidated financial statements includes the financial statements of Shriram Pistons & Rings Ltd., the parent
company and its subsidiary, SPR International Auto Exports Ltd., incorporated in India, in which the parent Company
holds 100% of its share capital (collectively referred to as the group).
The consolidated financial statements have been prepared in accordance with the Accounting Standard (AS 21),
Consolidated Financial Statements referred to in the Companies Accounting Standards Rules, 2006 issued by the
Central Government.
2. Deferred tax
Elements of deferred tax liability created for tax effect of timing differences are as under:
(Rs. in million)
2011 2010
Liability - Depreciation 352.56 352.79
Assets - Liabilities on payment basis
u/s 43 B of Income Tax Act, 1961 97.96 79.01
- Provision for doubtful debts/advances 5.34 6.55
103.30 85.56
Net Liability 249.26 267.23
3. Loans
a) Working capital loans of Rs. 195.02 million (Rs. 95.12 million) are secured as under:-
i) Secured by way of first pari-passu charge on stocks and book debts of the parent company and
ii) Second pari-passu charge on all present & future fixed assets of the parent company.
b) Term loans from banks amounting to Rs. 1,621.47 million (Rs. 1,386.57 million) are secured as under:-
i) Rs. Nil (Rs. 80.00 million) is secured by way of first pari-passu charge on all present & future fixed assets of
the parent company.
ii) Rs. Nil (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets and hypothecation of all movable assets, present and future subject to prior charge as
per note 4 (a)(i) .
iii) Rs. 415.63 million (Rs. 571.92 million) are secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the parent company and hypothecation of all movable assets, present
and future, subject to prior charge as per note 4 (a)(i).
iv) Rs. 209.65 million (Rs. 334.65 million) is secured by way of first pari-passu charge and mortgage of all
present & future immovable assets of the parent company and hypothecation of all movable assets, present
and future, subject to prior charge as per note 4 (a)(i).
v) Rs. 297.50 million (Rs. 200.00 million) is secured by way of first pari-passu charge and mortgage of all
present & future movable and immovable fixed assets of the parent company.
vi) Rs. 327.81 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
movable and immovable fixed assets of the parent Company.
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements
Assets acquired on finance lease which transfer risk and rewards of ownership to the Company are capitalised as
assets by the Company at the lower of fair value of the leased property or the present value of the related lease
payments or where applicable, estimated fair value of such assets. Amortisation of capitalised leased assets is
computed on the straight line method over the useful life of the assets. Lease rental payable is apportioned between
principal and finance charge using the internal rate of return method. The finance charge is allocated over the lease
term so as to produce a constant periodic rate of interest on the remaining balance of liability.
12. Taxes on income
Tax expense comprises current income tax and deferred income tax.
Current tax is determined as the amount of tax payable in respect of taxable income for the year, in accordance with
the Income Tax Act, 1961.
Deferred income tax reflects the impact of current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates
and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only
to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient
future taxable income will be available against which such deferred tax assets can be realised.
13. Earnings per share
Basic earnings per share is calculated by dividing net profit or loss for the year attributable to equity shareholders by
weighted average number of equity shares outstanding during the year. The weighted average number of equity
shares outstanding during the year is adjusted for events of bonus issue, share split and any new equity issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential equity shares.
14. Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount
of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and
is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated historical cost.
15. Contingent liabilities and provisions
The company recognizes a provision when there is a present obligation as a result of past events and it is probable that
an outflow of resources would be required to settle the obligation and a reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation but probably
will not require an outflow of resources.
When there is a possible obligation or a present obligation in respect of which the likelyhood on outflow of resources is
remote, no provision or disclosure is made.
Schedules forming part of the financial statements for the year ended 31 March 2011
SCHEDULE-9
Significant Accounting Policies (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 60 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 61
iii) Miscellaneous income includes income from mutual fund investments (non-trade) of Rs. 1.38 million (Nil).
During the year parent company has purchased and sold units of mutual fund as under :-
Name of Mutual Fund Face Value Units
(Rs.) Purchased Sold
(Nos.) (Nos.)
HDFC Cash Management Fund -
Treasury Advantage Plan - Daily Dividend 10.0315 5,985,870 6,014,581
LIC MF Income Plus - Daily Dividend Plan 10.0000 4,000,000 4,041,433
SBI - Ultra Short Term Fund - Daily Dividend Plan 10.0060 5,996,770 6,018,886
Tata Floater Fund - Daily Dividend Plan 10.0356 5,978,716 6,019,094
b) Expenditure
i) Payment to Statutory Auditors (excluding service tax)
(Rs. in million)
2011 2010
- As Audit Fee 0.55 0.39
- As Certification Fee 0.23 * 0.14
- Out of pocket expenses 0.07 * 0.02
* Includes Rs. 0.03 million and Rs. 0.02 million towards payment to previous auditors for certification and
out of pocket expenses respectively.
ii) Expenditure on rent is net of amount grouped in salaries - Rs. 5.56 million (Rs. 5.81 million).
iii) Rs. Nil (Rs. 0.03 million) is towards net prior period adjustments.
iv) Includes net exchange rate variation of Rs. 26.51 million (Rs. 1.64 million).
c) R & D Expenditure
R&D facility of the parent company is recognized by Ministry of Science & Technology, Department of Scientific &
Industrial Research (DSIR).
The details of research and development expenditure are as under:-
i) Capital expenditure
(Rs. in million)
2011 2010
- Tangible assets 15.24 0.13
- Intangible assets 9.71 -
Total ( a ) 24.95 0.13
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
vii) Rs. 370.88 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets of the parent company and hypothecation of all movable assets, present and future,
subject to prior charge as per note 4 (a) (i).
c) Interest free trade tax loan of Rs. 18.70 million (Rs. 28.51 million) is secured by way of pari-passu second charge
on all assets of the parent Company, subject to prior charge as per note 4 (a)(i).
d) Vehicle loan of Rs.1.24 million (Rs. 2.02 million) is secured against hypothecation of vehicles purchased out of
this loan.
e) Public deposits include Rs. 51.29 million (Rs. 46.93 million) received from directors of the parent company.
f) Loans include due within a year: -
- Secured - Rs. 439.75 million (Rs. 495.30 million)
- Unsecured - Rs. 159.30 million (Rs. 249.94 million)
4. Fixed assets
i) Addition in fixed assets is net of Rs. 0.07 million (Rs. 1.19 million), being increase in cost of assets capitalized in
previous years.
ii) Deduction in fixed assets include of Rs. 5.33 million (Rs. 0.61 million), being decrease in cost of assets
capitalized in previous year.
iii) Addition to fixed assets includes Rs. 20.36 million (Nil) towards capitalization of expenses and Rs. 20.28 million
(Nil) towards interest.
iv) Management estimates the useful life at 3 years for dies and 5 years for Furniture, Fixture, Equipment, Computer
and Vehicles. For all other assets, useful lives are based on rates specified in schedule XIV of Companies Act,
1956. Intangible assets are amortized over a period of 3 years.
As a result, depreciation charged in books is higher than depreciation chargeable under section 350 of the
Companies Act 1956.
v) Furniture, Fixtures, Office Equipments and Computer include assets of Rs. 44.67 million (Rs. 35.36 million)
provided to employees as perquisites. Confirmations have been obtained from such respective employees.
vi) Certain items of plant & machinery having WDV of Rs. 7.86 million (Rs. 1.91 million) are not in active use. A
provision of Rs. 7.59 million (Rs. 1.74 million) has been made towards diminution in the value.
5. Current assets, loans and advances
i) Inventories include transit stock of Rs. 178.61 million (Rs. 35.49 million).
ii) Inventories are as certified by the management.
iii) Fixed Deposit Receipts, amounting to Rs. 51.79 million (Rs. 18.77 million) have been lodged as security with
banks.
iv) Housing Loans are secured by the documents of the properties financed.
6. Profit & loss account
a) Income
i) Sales are net of discounts of Rs. 238.82 million (Rs. 271.40 million).
ii) On interest income, primarily on fixed deposits, tax of Rs. 1.82 million (Rs. 0.92 million) has been deducted
at source.
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 60 SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 61
iii) Miscellaneous income includes income from mutual fund investments (non-trade) of Rs. 1.38 million (Nil).
During the year parent company has purchased and sold units of mutual fund as under :-
Name of Mutual Fund Face Value Units
(Rs.) Purchased Sold
(Nos.) (Nos.)
HDFC Cash Management Fund -
Treasury Advantage Plan - Daily Dividend 10.0315 5,985,870 6,014,581
LIC MF Income Plus - Daily Dividend Plan 10.0000 4,000,000 4,041,433
SBI - Ultra Short Term Fund - Daily Dividend Plan 10.0060 5,996,770 6,018,886
Tata Floater Fund - Daily Dividend Plan 10.0356 5,978,716 6,019,094
b) Expenditure
i) Payment to Statutory Auditors (excluding service tax)
(Rs. in million)
2011 2010
- As Audit Fee 0.55 0.39
- As Certification Fee 0.23 * 0.14
- Out of pocket expenses 0.07 * 0.02
* Includes Rs. 0.03 million and Rs. 0.02 million towards payment to previous auditors for certification and
out of pocket expenses respectively.
ii) Expenditure on rent is net of amount grouped in salaries - Rs. 5.56 million (Rs. 5.81 million).
iii) Rs. Nil (Rs. 0.03 million) is towards net prior period adjustments.
iv) Includes net exchange rate variation of Rs. 26.51 million (Rs. 1.64 million).
c) R & D Expenditure
R&D facility of the parent company is recognized by Ministry of Science & Technology, Department of Scientific &
Industrial Research (DSIR).
The details of research and development expenditure are as under:-
i) Capital expenditure
(Rs. in million)
2011 2010
- Tangible assets 15.24 0.13
- Intangible assets 9.71 -
Total ( a ) 24.95 0.13
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
vii) Rs. 370.88 million (Rs. Nil) is secured by way of first pari-passu charge and mortgage of all present & future
immovable assets of the parent company and hypothecation of all movable assets, present and future,
subject to prior charge as per note 4 (a) (i).
c) Interest free trade tax loan of Rs. 18.70 million (Rs. 28.51 million) is secured by way of pari-passu second charge
on all assets of the parent Company, subject to prior charge as per note 4 (a)(i).
d) Vehicle loan of Rs.1.24 million (Rs. 2.02 million) is secured against hypothecation of vehicles purchased out of
this loan.
e) Public deposits include Rs. 51.29 million (Rs. 46.93 million) received from directors of the parent company.
f) Loans include due within a year: -
- Secured - Rs. 439.75 million (Rs. 495.30 million)
- Unsecured - Rs. 159.30 million (Rs. 249.94 million)
4. Fixed assets
i) Addition in fixed assets is net of Rs. 0.07 million (Rs. 1.19 million), being increase in cost of assets capitalized in
previous years.
ii) Deduction in fixed assets include of Rs. 5.33 million (Rs. 0.61 million), being decrease in cost of assets
capitalized in previous year.
iii) Addition to fixed assets includes Rs. 20.36 million (Nil) towards capitalization of expenses and Rs. 20.28 million
(Nil) towards interest.
iv) Management estimates the useful life at 3 years for dies and 5 years for Furniture, Fixture, Equipment, Computer
and Vehicles. For all other assets, useful lives are based on rates specified in schedule XIV of Companies Act,
1956. Intangible assets are amortized over a period of 3 years.
As a result, depreciation charged in books is higher than depreciation chargeable under section 350 of the
Companies Act 1956.
v) Furniture, Fixtures, Office Equipments and Computer include assets of Rs. 44.67 million (Rs. 35.36 million)
provided to employees as perquisites. Confirmations have been obtained from such respective employees.
vi) Certain items of plant & machinery having WDV of Rs. 7.86 million (Rs. 1.91 million) are not in active use. A
provision of Rs. 7.59 million (Rs. 1.74 million) has been made towards diminution in the value.
5. Current assets, loans and advances
i) Inventories include transit stock of Rs. 178.61 million (Rs. 35.49 million).
ii) Inventories are as certified by the management.
iii) Fixed Deposit Receipts, amounting to Rs. 51.79 million (Rs. 18.77 million) have been lodged as security with
banks.
iv) Housing Loans are secured by the documents of the properties financed.
6. Profit & loss account
a) Income
i) Sales are net of discounts of Rs. 238.82 million (Rs. 271.40 million).
ii) On interest income, primarily on fixed deposits, tax of Rs. 1.82 million (Rs. 0.92 million) has been deducted
at source.
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 62 SHRIRAM PISTONS & RINGS LIMITED 63 (CONSOLIDATED)
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Assumptions
a) Discount rate (% p.a.) 8.5 8.5 8.5 8.5
b) Estimated rate of return on plan assets (% p.a.) 9.25 9.0 - -
c) Salary rise (% p.a) 12.0 11.0 12.0 11.0
Estimate of the future salary increase is based on factors such as inflation, seniority, promotions,
demand and supply in employment market.
The gratuity fund is managed by independent Board of Trustees through LIC and SBI Life Insurance.
ii) Expenditure recognized in respect of defined contribution plan is as under:
(Rs. in million)
2011 2010
a) Provident fund 59.85 52.25
b) Superannuation fund 11.26 8.87
c) State insurance fund 24.87 18.88
95.98 80.00
7. Contingent liabilities
i) Disputed - Excise duty Rs. 73.26 million (Rs.69.25 million)
- Income tax Rs. 11.69 million (Rs. 7.22 million)
- Wealth tax Rs. 0.41 million (Rs. 0.41 million)
- VAT/Sales tax Rs. 7.19 million (Rs. 10.34 million)
- Service tax Rs. 258.97 million (Rs. 32.16 million)
ii) Bank guarantees - Rs. 72.18 million (Rs. 31.90 million)
iii) Claims not acknowledged as debts Rs. 16.32 million (Rs. 16.88 million)
iv) Bills discounted from banks Rs.13.78 million (Rs. 54.08 million).
v) Parent Company has given guarantee for repayment of loan liabilities for vehicles purchased by its
employees/vendors/customers. Outstanding loan amount at the year end is Rs. 12.34 million (Rs. 18.64 million)
and there is no default till date.
vi) Parent Company has imported some machines under the EPCG scheme undertaking export obligation of parent
company products. The outstanding export obligation of Rs. 5097.58 million (Rs. 5028.74 million) is to be fulfilled
over a period of next 7 years.
8. Segment reporting
As the groups business activity falls within a single business segment viz automotive components and a single
geographical segment, disclosure requirements of accounting standard (AS 17), specified in the companies
(accounting standard) rules, 2006 are not applicable.
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
ii) Revenue expenditure
(Rs. in million)
2011 2010
- Salary and wages 28.09 22.26
- Materials, consumables and spares 40.04 42.32
- Other expenditure 6.03 3.21
Total ( b ) 74.16 67.79
d) Employee benefits
i) Gratuity and leave liability has been recognized as defined benefit plan as under:-
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Reconciliation of obligation
i) Opening obligation 334.86 260.59 84.44 64.33
ii) Current service cost 39.36 28.73 55.15 40.72
iii) Interest cost 27.90 21.61 5.96 4.38
iv) Actuarial (gain)/loss 38.15 36.55 (32.72) (17.47)
v) Benefits paid (13.18) (12.62) (6.73) (7.52)
vi) Closing obligation 427.09 334.86 106.10 84.44
Change in plan assets
a) Opening fair value of plan assets 205.48 172.66 - -
b) Expected return of plan assets 20.71 16.25 - -
c) Actuarial gain/(loss) (0.38) 0.73 - -
d) Contribution 38.57 28.46 - -
e) Benefits paid (1.62) (12.62) (6.73) (7.52)
f) Closing fair value of plan assets 262.76 205.48 - -
Reconciliation of fair value of assets and obligation
a) Closing present value of obligation 427.09 334.86 106.10 84.44
b) Closing present value of plan assets 262.76 205.48 - -
c) Unfunded amount recognized in the balance sheet 164.33 129.38 106.10 84.44
Expenses recognized during the year
a) Current services cost 39.36 28.73 55.15 40.72
b) Interest cost 27.90 21.61 5.96 4.38
c) Expected return on plan assets (20.71) (16.25) - -
d) Actuarial (gain)/loss 38.53 35.83 (32.72) (17.47)
85.08 69.92 28.39 27.63
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 62 SHRIRAM PISTONS & RINGS LIMITED 63 (CONSOLIDATED)
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Assumptions
a) Discount rate (% p.a.) 8.5 8.5 8.5 8.5
b) Estimated rate of return on plan assets (% p.a.) 9.25 9.0 - -
c) Salary rise (% p.a) 12.0 11.0 12.0 11.0
Estimate of the future salary increase is based on factors such as inflation, seniority, promotions,
demand and supply in employment market.
The gratuity fund is managed by independent Board of Trustees through LIC and SBI Life Insurance.
ii) Expenditure recognized in respect of defined contribution plan is as under:
(Rs. in million)
2011 2010
a) Provident fund 59.85 52.25
b) Superannuation fund 11.26 8.87
c) State insurance fund 24.87 18.88
95.98 80.00
7. Contingent liabilities
i) Disputed - Excise duty Rs. 73.26 million (Rs.69.25 million)
- Income tax Rs. 11.69 million (Rs. 7.22 million)
- Wealth tax Rs. 0.41 million (Rs. 0.41 million)
- VAT/Sales tax Rs. 7.19 million (Rs. 10.34 million)
- Service tax Rs. 258.97 million (Rs. 32.16 million)
ii) Bank guarantees - Rs. 72.18 million (Rs. 31.90 million)
iii) Claims not acknowledged as debts Rs. 16.32 million (Rs. 16.88 million)
iv) Bills discounted from banks Rs.13.78 million (Rs. 54.08 million).
v) Parent Company has given guarantee for repayment of loan liabilities for vehicles purchased by its
employees/vendors/customers. Outstanding loan amount at the year end is Rs. 12.34 million (Rs. 18.64 million)
and there is no default till date.
vi) Parent Company has imported some machines under the EPCG scheme undertaking export obligation of parent
company products. The outstanding export obligation of Rs. 5097.58 million (Rs. 5028.74 million) is to be fulfilled
over a period of next 7 years.
8. Segment reporting
As the groups business activity falls within a single business segment viz automotive components and a single
geographical segment, disclosure requirements of accounting standard (AS 17), specified in the companies
(accounting standard) rules, 2006 are not applicable.
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
ii) Revenue expenditure
(Rs. in million)
2011 2010
- Salary and wages 28.09 22.26
- Materials, consumables and spares 40.04 42.32
- Other expenditure 6.03 3.21
Total ( b ) 74.16 67.79
d) Employee benefits
i) Gratuity and leave liability has been recognized as defined benefit plan as under:-
(Rs. in million) (Rs. in million)
Particulars Gratuity Leave liability
2011 2010 2011 2010
Reconciliation of obligation
i) Opening obligation 334.86 260.59 84.44 64.33
ii) Current service cost 39.36 28.73 55.15 40.72
iii) Interest cost 27.90 21.61 5.96 4.38
iv) Actuarial (gain)/loss 38.15 36.55 (32.72) (17.47)
v) Benefits paid (13.18) (12.62) (6.73) (7.52)
vi) Closing obligation 427.09 334.86 106.10 84.44
Change in plan assets
a) Opening fair value of plan assets 205.48 172.66 - -
b) Expected return of plan assets 20.71 16.25 - -
c) Actuarial gain/(loss) (0.38) 0.73 - -
d) Contribution 38.57 28.46 - -
e) Benefits paid (1.62) (12.62) (6.73) (7.52)
f) Closing fair value of plan assets 262.76 205.48 - -
Reconciliation of fair value of assets and obligation
a) Closing present value of obligation 427.09 334.86 106.10 84.44
b) Closing present value of plan assets 262.76 205.48 - -
c) Unfunded amount recognized in the balance sheet 164.33 129.38 106.10 84.44
Expenses recognized during the year
a) Current services cost 39.36 28.73 55.15 40.72
b) Interest cost 27.90 21.61 5.96 4.38
c) Expected return on plan assets (20.71) (16.25) - -
d) Actuarial (gain)/loss 38.53 35.83 (32.72) (17.47)
85.08 69.92 28.39 27.63
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 64 SHRIRAM PISTONS & RINGS LIMITED 65 (CONSOLIDATED)
3 Interest on Fixed deposits Mr. R Srinivasan 1.45 1.03
Mrs. Meenakshi Dass 0.83 0.24
4 Dividend Paid Mr. A K Taneja 0.0001 0.0001
Mrs. Meenakshi Dass 13.72 1.86
5 Public Deposit taken during the year Mr. A K Taneja - 1.50
Mr. R Srinivasan 7.65 2.64
Mrs. Meenakshi Dass 10.00 7.00
6 Outstanding at the year end
- Fixed Deposit Mr. R Srinivasan 12.69 8.53
Mrs. Meenakshi Dass 9.00 3.00
- Interest accrued but not due Mr. R Srinivasan 1.76 1.62
Mrs. Meenakshi Dass 0.57 0.21
- Amount payable Mr. A K Taneja 17.61 15.71
Mr. R Srinivasan 13.20 11.78
Mrs. Meenakshi Dass 14.96 13.36
B) Relatives of KMP
1 Rent Paid Mrs. Usha Srinivasan 0.14 0.12
2 Interest on Fixed deposits Mr. Luv D Shriram 0.17 -
Mrs. Usha Srinivasan 0.62 0.45
Mr. Deepak C Shriram 0.20 0.26
Mr. Kush D Shriram 0.84 0.73
Mr. Arjun D Shriram 0.58 0.58
Ms. Nandishi Shriram 0.91 0.95
3 Directors Sitting Fee Mr. Luv D Shriram 0.15 0.15
4 Dividend Paid Mrs. Usha Srinivasan 0.01 0.011
Mr. Deepak C Shriram 0.003 0.003
Mr. Luv D Shriram 10.00 -
5 Public Deposit taken during the year Mrs. Usha Srinivasan 0.46 4.29
Mr. Luv D Shriram 4.50 -
Mr. Deepak C Shriram - 2.00
Mr. Kush D Shriram - 2.50
6 Outstanding at the year end
- Fixed Deposit Mr. Luv D Shriram 1.00 -
Mrs. Usha Srinivasan 4.85 4.74
Mr. Deepak C Shriram 0.50 2.50
Mr. Kush D Shriram 7.50 7.50
(Rs in million)
S. No. Items Party 2011 2010
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
9. Related party disclosure
As per AS 18, issued by the Institute of Chartered Accountants of India, the parent companys related parties and
transactions with them are disclosed below :
A. List of related parties
i) Subsidiary company - SPR International Auto Exports Ltd.
ii) Key management personnel a) Shri A.K Taneja
Managing Director
b) Shri R. Srinivasan
Jt. Managing Director
c) Smt. Meenakshi S. Dass
Whole Time Director
iii) Relatives of key management
Personnel of (ii) (b) above - Smt. Usha Srinivasan
(ii)(c) above - Shri. Deepak C. Shriram
- Shri Arjun D. Shriram
- Shri Luv D. Shriram
- Shri Kush D. Shriram
- Ms Nandishi Shriram
iv) Enterprises over which there is significant influence
of (ii) (c) and her relatives above - Shriram Automotive Products Ltd.
- Shriram Alpine Sales Pvt. Ltd.
- Shriram Veritech Solutions Pvt. Ltd.
- Sera Com Pvt. Ltd.
- Manisha Commercial Pvt. Ltd
- Sarva Commercial Pvt. Ltd.
- Charat Ram Shriram Pvt. Ltd.
- Pearey Lall & Sons (E.P.) Ltd.
B. Related party transactions
(Rs in million)
S. No. Items Party 2011 2010
A) Key Management Personnel (KMP)
1 Remuneration Mr. A.K.Taneja 28.19 26.03
Mr. R Srinivasan 21.16 19.59
Mrs. Meenakshi Dass 22.98 20.47
2 Rent Paid Mrs. Meenakshi Dass 0.24 -
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 64 SHRIRAM PISTONS & RINGS LIMITED 65 (CONSOLIDATED)
3 Interest on Fixed deposits Mr. R Srinivasan 1.45 1.03
Mrs. Meenakshi Dass 0.83 0.24
4 Dividend Paid Mr. A K Taneja 0.0001 0.0001
Mrs. Meenakshi Dass 13.72 1.86
5 Public Deposit taken during the year Mr. A K Taneja - 1.50
Mr. R Srinivasan 7.65 2.64
Mrs. Meenakshi Dass 10.00 7.00
6 Outstanding at the year end
- Fixed Deposit Mr. R Srinivasan 12.69 8.53
Mrs. Meenakshi Dass 9.00 3.00
- Interest accrued but not due Mr. R Srinivasan 1.76 1.62
Mrs. Meenakshi Dass 0.57 0.21
- Amount payable Mr. A K Taneja 17.61 15.71
Mr. R Srinivasan 13.20 11.78
Mrs. Meenakshi Dass 14.96 13.36
B) Relatives of KMP
1 Rent Paid Mrs. Usha Srinivasan 0.14 0.12
2 Interest on Fixed deposits Mr. Luv D Shriram 0.17 -
Mrs. Usha Srinivasan 0.62 0.45
Mr. Deepak C Shriram 0.20 0.26
Mr. Kush D Shriram 0.84 0.73
Mr. Arjun D Shriram 0.58 0.58
Ms. Nandishi Shriram 0.91 0.95
3 Directors Sitting Fee Mr. Luv D Shriram 0.15 0.15
4 Dividend Paid Mrs. Usha Srinivasan 0.01 0.011
Mr. Deepak C Shriram 0.003 0.003
Mr. Luv D Shriram 10.00 -
5 Public Deposit taken during the year Mrs. Usha Srinivasan 0.46 4.29
Mr. Luv D Shriram 4.50 -
Mr. Deepak C Shriram - 2.00
Mr. Kush D Shriram - 2.50
6 Outstanding at the year end
- Fixed Deposit Mr. Luv D Shriram 1.00 -
Mrs. Usha Srinivasan 4.85 4.74
Mr. Deepak C Shriram 0.50 2.50
Mr. Kush D Shriram 7.50 7.50
(Rs in million)
S. No. Items Party 2011 2010
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
9. Related party disclosure
As per AS 18, issued by the Institute of Chartered Accountants of India, the parent companys related parties and
transactions with them are disclosed below :
A. List of related parties
i) Subsidiary company - SPR International Auto Exports Ltd.
ii) Key management personnel a) Shri A.K Taneja
Managing Director
b) Shri R. Srinivasan
Jt. Managing Director
c) Smt. Meenakshi S. Dass
Whole Time Director
iii) Relatives of key management
Personnel of (ii) (b) above - Smt. Usha Srinivasan
(ii)(c) above - Shri. Deepak C. Shriram
- Shri Arjun D. Shriram
- Shri Luv D. Shriram
- Shri Kush D. Shriram
- Ms Nandishi Shriram
iv) Enterprises over which there is significant influence
of (ii) (c) and her relatives above - Shriram Automotive Products Ltd.
- Shriram Alpine Sales Pvt. Ltd.
- Shriram Veritech Solutions Pvt. Ltd.
- Sera Com Pvt. Ltd.
- Manisha Commercial Pvt. Ltd
- Sarva Commercial Pvt. Ltd.
- Charat Ram Shriram Pvt. Ltd.
- Pearey Lall & Sons (E.P.) Ltd.
B. Related party transactions
(Rs in million)
S. No. Items Party 2011 2010
A) Key Management Personnel (KMP)
1 Remuneration Mr. A.K.Taneja 28.19 26.03
Mr. R Srinivasan 21.16 19.59
Mrs. Meenakshi Dass 22.98 20.47
2 Rent Paid Mrs. Meenakshi Dass 0.24 -
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 66 SHRIRAM PISTONS & RINGS LIMITED 67 (CONSOLIDATED)
- Advance recoverable Shriram Automotive Products Ltd. 1.26 1.32
Pearey Lall & Sons (E.P.) Ltd. 0.003 0.005
Shriram Alpine Sales Pvt. Ltd. 0.64 -
Note : Particulars of relatives / enterprises with whom transactions has taken place during the year only have
been given.
10. Earnings per share
(Rs. in million)
Unit 2011 2010
i) Net profit attributable to equity Rs. 826.89 689.10
shareholders
ii) Weighted average number of Nos. 22,374,912 22,374,912
equity shares
iii) Earning per share (basic/diluted) Rs. 36.96 30.80
11. Forex exposure
Details of outstanding forex exposure as on 31 March 2011 are as under:-
(figures in million)
PARTICULARS USD/INR JPY/USD Euro/USD GBP/USD SGD/USD
1. Hedged exposure
- Inflow - forward
contracts 1.16 - 0.80 - -
- Outflow - currency &
interest swap 20.47 538.11 - - 9.82
2. Un-hedged exposure
- Inflow 3.60 25.54 1.27 0.22 -
- Outflow 9.75 769.13 0.08 0.003 -
12. The summary financial data of SPR International Auto Exports Ltd., subsidiary company is given below :-
(Rs. in million)
i) Share capital 0.50
ii) Reserves & surplus (-)0.11
iii) Total assets 0.50
iv) Total liabilities 0.50
v) Investments -
(Rs. in million)
S. No. Items Party 2011 2010
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
Mr. Arjun D Shriram 5.50 5.50
Ms Nandishi Shriram 8.50 9.00
- Interest accrued but not due Mr. Luv D Shriram 0.04 -
Mrs. Usha Srinivasan 0.91 0.46
Mr. Deepak C Shriram 0.15 0.28
Mr. Kush D Shriram 0.47 0.19
C) Enterprises over which KMP has significant influence or control
1 Licence fee earned Shriram Automotive Products Ltd. 0.08 0.08
2 Purchase of material / Stores Shriram Veritech Solutions Pvt. Ltd. 4.32 -
Pearey Lall & Sons (E.P.) Ltd. 0.002 0.03
Shriram Holographics Pvt. Ltd. - 4.50
3 Purchase of Products for Assembly Shriram Automotive Products Ltd. 154.64 70.87
Shriram Alpine Sales Pvt. Ltd. 21.67 19.12
4 Rent Paid Sera Com Pvt. Ltd. 1.53 1.33
Manisha Commercial Pvt. Ltd. 0.33 0.32
5 Interest on Fixed deposits Pearey Lall & Sons (E.P.) Ltd. 3.47 2.82
Charat Ram Shriram Pvt. Ltd. 0.27 -
6 Dividend Paid Sarva Commercial Pvt. Ltd. 3.19 3.72
Charat Ram Shriram Pvt. Ltd. 0.006 0.008
7 Sale of Assets Shriram Automotive Products Ltd. - 1.15
8 Common Share of activity Shriram Automotive Products Ltd. 1.04 0.63
Shriram Alpine Sales Pvt. Ltd. 0.31 0.25
9 Public Deposit taken during the year Pearey Lall & Sons (E.P.) Ltd. 39.60 40.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
10 Outstanding at the year end
- Fixed Deposit Pearey Lall & Sons (E.P.) Ltd. 23.00 39.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
- Interest accrued but not due Pearey Lall & Sons (E.P.) Ltd. - 2.54
- Amount payable Sera Com Pvt. Ltd. 0.11 -
Manisha Commercial Pvt. Ltd. 0.02 -
Shriram Veritech Solutions Pvt. Ltd. 0.10 -
Shriram Alpine Sales Pvt. Ltd. 3.18 2.33
Shriram Automotive Products Ltd. 0.51 -
(Rs in million)
S. No. Items Party 2011 2010
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED (CONSOLIDATED) 66 SHRIRAM PISTONS & RINGS LIMITED 67 (CONSOLIDATED)
- Advance recoverable Shriram Automotive Products Ltd. 1.26 1.32
Pearey Lall & Sons (E.P.) Ltd. 0.003 0.005
Shriram Alpine Sales Pvt. Ltd. 0.64 -
Note : Particulars of relatives / enterprises with whom transactions has taken place during the year only have
been given.
10. Earnings per share
(Rs. in million)
Unit 2011 2010
i) Net profit attributable to equity Rs. 826.89 689.10
shareholders
ii) Weighted average number of Nos. 22,374,912 22,374,912
equity shares
iii) Earning per share (basic/diluted) Rs. 36.96 30.80
11. Forex exposure
Details of outstanding forex exposure as on 31 March 2011 are as under:-
(figures in million)
PARTICULARS USD/INR JPY/USD Euro/USD GBP/USD SGD/USD
1. Hedged exposure
- Inflow - forward
contracts 1.16 - 0.80 - -
- Outflow - currency &
interest swap 20.47 538.11 - - 9.82
2. Un-hedged exposure
- Inflow 3.60 25.54 1.27 0.22 -
- Outflow 9.75 769.13 0.08 0.003 -
12. The summary financial data of SPR International Auto Exports Ltd., subsidiary company is given below :-
(Rs. in million)
i) Share capital 0.50
ii) Reserves & surplus (-)0.11
iii) Total assets 0.50
iv) Total liabilities 0.50
v) Investments -
(Rs. in million)
S. No. Items Party 2011 2010
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
Mr. Arjun D Shriram 5.50 5.50
Ms Nandishi Shriram 8.50 9.00
- Interest accrued but not due Mr. Luv D Shriram 0.04 -
Mrs. Usha Srinivasan 0.91 0.46
Mr. Deepak C Shriram 0.15 0.28
Mr. Kush D Shriram 0.47 0.19
C) Enterprises over which KMP has significant influence or control
1 Licence fee earned Shriram Automotive Products Ltd. 0.08 0.08
2 Purchase of material / Stores Shriram Veritech Solutions Pvt. Ltd. 4.32 -
Pearey Lall & Sons (E.P.) Ltd. 0.002 0.03
Shriram Holographics Pvt. Ltd. - 4.50
3 Purchase of Products for Assembly Shriram Automotive Products Ltd. 154.64 70.87
Shriram Alpine Sales Pvt. Ltd. 21.67 19.12
4 Rent Paid Sera Com Pvt. Ltd. 1.53 1.33
Manisha Commercial Pvt. Ltd. 0.33 0.32
5 Interest on Fixed deposits Pearey Lall & Sons (E.P.) Ltd. 3.47 2.82
Charat Ram Shriram Pvt. Ltd. 0.27 -
6 Dividend Paid Sarva Commercial Pvt. Ltd. 3.19 3.72
Charat Ram Shriram Pvt. Ltd. 0.006 0.008
7 Sale of Assets Shriram Automotive Products Ltd. - 1.15
8 Common Share of activity Shriram Automotive Products Ltd. 1.04 0.63
Shriram Alpine Sales Pvt. Ltd. 0.31 0.25
9 Public Deposit taken during the year Pearey Lall & Sons (E.P.) Ltd. 39.60 40.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
10 Outstanding at the year end
- Fixed Deposit Pearey Lall & Sons (E.P.) Ltd. 23.00 39.20
Charat Ram Shriram Pvt. Ltd. 4.20 -
- Interest accrued but not due Pearey Lall & Sons (E.P.) Ltd. - 2.54
- Amount payable Sera Com Pvt. Ltd. 0.11 -
Manisha Commercial Pvt. Ltd. 0.02 -
Shriram Veritech Solutions Pvt. Ltd. 0.10 -
Shriram Alpine Sales Pvt. Ltd. 3.18 2.33
Shriram Automotive Products Ltd. 0.51 -
(Rs in million)
S. No. Items Party 2011 2010
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
SHRIRAM PISTONS & RINGS LIMITED 68 (CONSOLIDATED)
vi) Turnover 0.03
vii) Profit before tax 0.014
viii) Provision for tax 0.003
ix) Profit after tax 0.011
x) Proposed dividend -
13. Others
i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided
for is Rs. 769.91 million (Rs. 522.06 million).
ii) Previous year figures have been re-grouped / reclassified, wherever necessary to confirm to current years
classification. Figures in brackets denote previous year figures.
Previous year figures have been audited by another firm of chartered accountants.
On behalf of the Board
Pradeep Dinodia
Chairman
DIN 00027995
O.P Khaitan
Director
DIN 00027798
A. K. Taneja
Managing Director & CEO
DIN 00124814
R. Srinivasan
Jt. Managing Director
& Secretary
DIN 00124760
Place : New Delhi P.S. Ladiwala Meenakshi S Dass
Date : April 30, 2011 Dy. Executive Director & C.F.O Whole - Time Director
DIN 00524865
Schedules forming part of the consolidated financial statements for the year ended 31 March 2011
SCHEDULE-10
Notes to the Consolidated Financial Statements (contd.)
Celebrating the Commencement of Commercial Production
at Pathredi
Technology has always been our driving force. And our
biggest strength too. We are continuously innovating and
finding breakthrough solutions. This has helped us make
components that can withstand the toughest performance
standards. And the toughest of competition.
47TH ANNUAL REPORT
2010-11
Regd. Office : 23, Kasturba Gandhi Marg, New Delhi 110 001 (India)
Tel: +91 11 2331 5941 Fax: +91 11 2331 1203 Website: www.shrirampistons.com