!!
Corporate Office Board of Directors
14th Floor, Tower – B,
Unitech’s Millennium Plaza, Mr. Deep Kapuria
Sushant Lok – 1, Sector – 27, Executive Chairman
Gurgaon, Mr. Anil Kumar Khanna
Haryana – 122009 Independent Director
Tel : (0124)4715100,
Fax : (0124) 2806085, Mr. Pranav Kapuria
Email : [email protected] Managing Director

Registered Office & Plant II Mr. Sandeep Dinodia

Plot No. 24,25 & 26, Independent Director
Sector -7 , IMT Manesar, Gurgaon, Mr. Bidadi Anjani Kumar
Haryana – 122050, Director
Tel: (0124) 4715200
Mr. Vinit Taneja
Plant I Independent Director
A-589, Industrial Complex,
Bhiwadi – 301019, Mr. Anuj Kapuria
Dist. Alwar, (Rajasthan), Executive Director
Tel: (01493) 265000/265199 Mr. Prosad Dasgupta
Plant III: Independent Director
SPL – 146, Mr. Krishna Chandra Verma
Industrial Complex, Independent Director
Bhiwadi – 301019,
Dist. Alwar, (Rajasthan) Mr. Ramesh Chandra Jain
Director
Plants of subsidiary companies
Ms. Malini Sud
The Hi-Tech Gears Canada Inc. Independent Director
(Formerly known as Teutech Industries Inc.)
361, Speedvale Avenue W, Mr. Anant Jaivant Talaulicar
Guelph, ON N1H 1C7, Canada Director
Mr. Neville D’Souza
Teutech LLC Independent Director
227, Barton Street, Emporium,
PA, 15834, USA Senior Executive
Bankers Mr. Vijay Mathur
Standard Chartered Bank Sr. General Manager Finance
HDFC Bank
Citi Bank Key Managerial Personnel
State Bank of India Mr. S.K. Khatri
Kotak Mahindra Bank Company Secretary
ICICI Bank Ltd.
Statutory Auditors
M/s O.P. Dadu & Co.,
Registrar & Transfer Agent Chartered Accountants,
MAS Services Limited 24/4834, Ansari Road, Darya Ganj,
(Unit: The Hi-Tech Gears Limited) New Delhi-110002
T-34, 2nd Floor Okhla Industrial Area,
Phase-II, New Delhi – 110020 Cost Auditors
Tel : + (011) 26387281, 82, 83 M/s Kabra & Associates,
Fax: (011) 26387384 Cost Accountants,
552/1B, Arjun Street Main Vishwas Road,
Vishwas Nagar, Delhi-110032
Internal Auditors Secretarial Auditor
M/s Grant Thornton India, LLP M/s Grover Ahuja & Associates,
21st Floor, DLF Square Company Secretaries,
Jacaranda Marg, DLF Phase II 302, Third Floor, Gagandeep Building,
Gurgaon-122002 Rajendra Place, New Delhi-110008
India
 Vision
Be a global footprint Company and a benchmark for world class manufacturing systems

Mission
We will be the preferred partner in delivering engineering products and design solution through lean philosophy
with a focus on:
• Building a customer centric Organization
• Rapid development of products and innovative solutions
• Ensuring cost effectiveness
• Developing competent and committed people

Forward Looking Statement & Disclaimer

In our report we have disclosed forward looking information
so that investor can better understand the company’s future
Contents
prospects and make informed decisions.  This Annual report 1. Milestones 2
and other written and oral statements that we make from
time to time contain such forward looking statements that set 2. Chairman’s Message 3
out anticipated results based on management’s plans and
assumptions.  We have tried, wherever possible, to identify 3. Managing Director’s Message 6
such statements by using words such as ‘anticipate’, ‘estimate’, 4. Directors’ Report 9
‘expect’, ‘projects’ ‘intends’, ‘plans’, ‘believes’, and words and
terms of similar substance in connection with any discussion 5. Management Discussion & Analysis 28
of future operating or financial performance.  We cannot
guarantee that any forward looking statement will be realized,
6. Corporate Governance Report 33
although we believe we have been prudent in our plans and 7. Shareholder’s Information 46
assumptions. Achievement of future results is subject to risks,
uncertainties and inaccurate assumptions.  Should known 8. Standalone Auditors’ Report 47
or unknown risks or uncertainties materialize, or should
9. Standalone Balance Sheet 51
underlying assumptions prove inaccurate assumptions, should
underlying assumptions prove inaccurate, actual results could 10. Standalone Statement of Profit & Loss 52
vary materially from those anticipated, estimated or projected.
Investors should bear this in mind as they consider forward- 11. Standalone Cash Flow Statement 54
looking statements.  We undertake no obligation to publicly 12. Standalone Notes to Financial Statements 55
update any forward-looking statements, whether as a result of
new information, future events or otherwise. 13. Consolidated Auditors’ Report 91
The financial statements have the figures in millions unless 14. Consolidated Balance Sheet 95
specifically mentioned. The Messages, Management
Discussion analysis and Directors’ Report together with its
15. Consolidated Statement of Profit & Loss 96
Annexure are the statement of the financial figures, hence are 16. Consolidated Cash Flow Statement 98
provided in Rupees in Millions, unless specifically mentioned.
17. Consolidated Notes to Financial Statements 99
Source of information: we have consulted RBI, SIAM, ACMA,
industry associations, fellow industry members, Industry 18. Notice 139
journals, various ministries sites for the information set in this 19. Proxy Form 153
Report and some international sources sites such as IMF,
World Bank etc. We have tried, wherever possible, to identify 20. Attendance Sheet 154
and authenticate the such information, however we undertake
no obligation for its correctness and its updates. 21. Route Map 155

1
 The Hi-Tech Gears Ltd.

MILESTONES CUSTOMERS
1986 onwards...

1986 Incorporated as a Public Limited Company

1988 Production Commencement & became single
source supplier to Hero Honda
1989 Product Indigenization
1992 Technical Tie-up with Kyush Musashi, a subsidiary
of Honda Motors, Japan
1993 Backward Integration into Precision Forgings
1995 Selected as single source supplier to Honda
Power, Tata Cummins Ltd.
1996 Technology Agreement with GETRAG, US
1996 Certified as ISO 9002, BPR launched
1997 Selected as a global source to Cummins, US
1998 Certified as QS 9000
1999 Separate Division to handle high-end design and
CAD Services established, under the name of Hi-
Tech ESoft.
2002 Launches Initiative of Lean Manufactured
2003 Certified for:-
• Integrated Quality Management Systems
• TS 16949 for quality & obtained
Environment Certification ISO 4001:
• Occupational Health & Safety Certification
OHSAS 18001:1999
2004 Prototyping/Productionsing Precision Components
for Robert Bosch, GM, Volvo and Daimler
Chrysler
2005 State-of-the-art Manufacturing Facility set up at
Manesar
2007 Hi-Tech eSoft (division of HGL) Certified for ISO
9001:2000
2008 ACMA Export Award 2006-07
2009 Excellence Award for Manufacturing and Export
2010 TPM Excellence Awards Category A & Shingo
Silver Medallion
2011 New State of Art “ECOFAC” Plant setup in Bhiwadi
2012 Award for excellence in Consistent TPM
Commitment
2013 ACMA Export Award
2014 ACMA Export Award (Large Category)
2015 Name of the Company changed to “The Hi-Tech
Gears Ltd.”
2017 Acquisition of Teutech Industries INC, Canada and
Teutech LLC, USA.

2
 passion ‫ ׀‬innovation ‫ ׀‬technology

CHAIRMAN’s MESSAGE is that the budget deficit is likely to continue to grow in the US,
because of earlier tax cuts and higher government spending.
The aggressive approach taken by the USA towards its trading
partners comes as blow, resulting in the World Bank cutting its
forecast for global growth by 0.3 % points for this year in response
to trade restrictions and unexpected weakness in manufacturing
across both advanced and developing economies. Global trade
growth has slowed to its lowest rate since the 2008-09 financial
crisis, as exports from Europe and Japan have dropped, particularly
to China. The World economic growth is expected to moderate
from 3% in 2017 to around 2.7% in 2019.
In the Eurozone, uncertainty relating to global trade tensions and
Brexit will take a toll. Growth in China is also expected to slow down
relative to 2018. Although the government will try to ensure that the
slowdown is minimal, the impact of US tariffs and the need to control
debt levels are likely to result in at least a modest deceleration in
growth in 2019.
Emerging and developing economies growth are constrained by
sluggish investment, and risks are tilted to the downside. These
risks include rising trade barriers, renewed financial stress, currency
depreciations as well as sharper than expected slowdowns in
several major economies. Sharp currency depreciations are more
common in emerging and developing economies like India than
in advanced economies, and central banks are often required to
respond to these fluctuations to maintain price stability.
Growth in emerging markets and developing economies are
expected to stabilize next year as some countries move past
periods of financial strain. However, cynical economists warn that
further escalation of tariffs on more Chinese goods or levies on
foreign autos by US could slow global growth to a crawl.
India is still enjoying the fastest growing economy tag, despite
Dear Shareholders, some headwinds in the 2nd half of the 2018-19. The gross national
income (GNI) at current prices grew by 11.3 %. India’s gross
domestic product (GDP) is estimated to have slowed to a five-year
Time is possibly the most valued component that one invests in any
low of 5.8 % in the last quarter of FY19, mainly due to poor show
journey. It is with time that trust, understanding, compatibility and
in the farm and manufacturing sectors. Overall the GDP moderated
capability blossoms to bear results.
to 6.8 % in FY 19 from 7.2 % in FY 18 with the Inflation rate at 3.4
You will be happy to learn that amidst all the path-breaking changes % in FY 19.
across the globe, your Company has set a new benchmark of INR
The country’s per-capita income is estimated to have risen by 10%
9000 million sales in FY 19. It is at this point that I would like to thank
to Rs 10,534 a month during the financial year compare to Rs 9,580
each one of the stakeholders for having faith in the management
a month in the previous year. The per-capita income is an important
of the Company and for being there through the exciting journey of
indicator of the prosperity of a country. India is set to become the
33 years. We have come through various transitional curves, many
fifth-largest economy of the world with the growth leading to a GDP
of them very challenging, to reach a distinguished and reputed
of $2.8 trillion in current year. But, due to its huge  population  of
position in the automotive industry. Obviously, your Company is
more than 1.35 billion, India is at 145th position in term of per capita
not going to rest on its laurels but will continually strive to deliver
$2036 per annum.
excellence in each sphere of the Business Process.
The business environment is constantly changing, and all economies GDP Growth Rate
are bearing the brunt of the volatility. Your company has however 8% 7.6%
7.2% 7.1% 7.2%
tried to maintain a fine balance by maintaining the operational 6.9% 6.8% 7.00%(+/-0.20)
7%
Growth Rate in Percentage

excellence, which has always been the hallmark of your company 6%

5.1%
and by lowering business risks through planned diversification in 5%
times of such economic volatility. 4%

Global and Domestic Economic Affairs 3%

2%
All major global economies enjoyed a mini boom between mid
1%
of 2016 and upto 3rd Quarter of 2018, when growth picked up in
0%
all spheres. This phase has started deteriorating due to many 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
volatilities, major being US where the boost from fiscal stimulus are *Estimated
fading, higher interest rates are dampening consumer spending GDP Growth Rate
and a strong dollar could be a drag on US exports. The latest

3
 passion ‫ ׀‬innovation ‫ ׀‬technology

The main source of revenue for the Government is always indirect equipment, beside incentives and encouragement from the State
taxation. GST collections have increased and as an average, it and Central Government.
is almost Rs. 1.00 lakh crore per month and is increasing further. According to the data released by Society of Indian Automobile
The collection is the outcome of continued rationalism of GST Manufacturers (SIAM), during April 2018-March 2019, the industry
rates and friendly regulation, extensive automation of business manufactured a total 30,915,420 vehicles including passenger
processes, application of e-way bill mechanism and closing of gaps vehicles, commercial vehicles, three wheelers, two wheelers and
in the system. Similarly, the direct tax collection is also heading quadricycles, recording a growth of 6.26 % over the previous year
northwards. The Government is hopeful of future growth from all (29,094,447 units). The production trends also reveal an expanding
sectors and has set an ambitious target of becoming a $5 trillion market for three wheelers, as also a healthy bounce back of the
economy by FY 25.However a sustained GDP growth rate of atleast commercial vehicles segment. 
8% is needed to achieve the same.
In terms of sales, the domestic Industry sold a total 26,267,783
In this report I would like to make a special mention of the financial vehicles; out of this passenger vehicles grew by only 2.70%
crisis in our economy; we as stakeholders are directly impacted (3,377,436 units). However, in commercial vehicle, the growth of
by the situation. The year 2014-15 marked a watershed. RBI, 17.55% (units1,007,319) was excellent during 2018-19. Scooters/
acting in the belief that NPAs were being under-stated, introduced Scooterettee sales declined by 0.27% while, Motorcycles and
tougher norms for NPA recognition under an Asset Quality Review. Mopeds registered a growth of 7.76% (13,599,678 units) and
NPAs in 2015-16 almost doubled over the previous year as a 2.41% (880,243 units) respectively, taking total two wheeler sales
result. Reasons attributable could be, the sectors to which Banks/ growth to 4.86% (21,181,390 units) for the year.  Overall three
Financial Institutions were heavily exposed were impacted by non- wheelers sales registered a growth of 10.27% (701,011 units), while
viable factors. Passenger Carrier sales increased by 10.62% (units 572,392).
Higher NPAs meant higher provisions on the part of banks. Sales Volumes of Automobile sector in 2018-19 (Units in '000)
Provisions therefore rose to a level where banks, especially PSBs,
Passenger Vehicle,
started making losses. Their capital got eroded as a result. 4054
The other side of story is that the NBFCs have always had an Commercial
important role to perform in the financial sector and they are and Vehicle, 1107
continue to be an essential part of the Indian economy. When
public sector banks were reeling under pressure from bad loans
and withdrawing from the lending space, NBFCs were the first to Three-
answer the call. They plugged the funding gap as their local network Wheelers,
1269
and understanding of customer profiles at a local level gave them
an edge over commerical banks when it comes to lending at
the micro level. However, due to an excessive mismatch of their Two- Wheelers,
24467
assets, loans and assets, NBFCs are also now going through a
very difficult phase.
The sector’s exports also grew during the year, with overall
In view of the recent development of the failure of major NBFCs, automobile exports increasing by 14.50% (4,629,054). While
the RBI has recommended an extra vigil on NBFCs and warned passenger vehicles exports shrunk by 9.64% (units 676,193) ,
that a large shadow bank getting hit can have the same impact commercial vehicles exports registered a growth of 3.17% (99,931
to the system as a large bank going down. Based on the strict units). The star performer in exports were three wheelers and two
government vigil and resolution mechanism, the NPAs for the first wheelers which increased by 49% (unit 567,689) and 16.55% (units
time have come below 9.5% in Financial Year 2019. 3,280,841) respectively in FY19 over FY18.
The task of accelerating economic growth is urgent. This is not As such the automotive industry performed well in 2018-19 ;
possible without finding a solution to the problems that confront the however India needs to prepare itself as the automobile sector
banking system and the NBFC issues. There is ample scope for readies for a paradigm shift. The industry is at an inflection point
improving performance within the framework of public ownership where both opportunities and challenges abound in equal measure
and the NBFC system. and will shape the direction of future events in the industry.
Similarly, high demand for oil and rising dependency on crude The near-term period is expected to be a tumultuous one for the
imports also means a drain on the country’s foreign exchange
auto sector on account of various regulatory changes, especially
reserves, which will get exacerbated by a weaker rupee against
the transition from BS-IV to BS-VI and CAFE regulations. The
the dollar. A surge in crude oil prices threatens to stoke inflation,
uncertainty is further compounded by lower consumer sentiments
derail earnings growth of companies, and hurt India’s economy
resulting in inventory build-up, and all OEMs are constantly re-
in the years ahead. The challenge before the Government is that
aligning production in line with demand. Also, Electric Vehicles (EV)
it will be required to find ways to offset the inflationary impact of
higher fuel prices and relieve the burden on the poorer sections of are being promoted by the Government which poses a threat to
the population. existing production lines in the auto sector.
Indian Automotive Sector and our Future Outlook China has taken a lead in the development and use of EVs, specially
two wheelers and is the world’s largest EV market. It has infact
The Automobile Sector in our country is one of the major already imposed restrictions on investment for traditional vehicles
contributors in manufacturing and GDP. It is also providing and has taken several steps to promote EVs.
employment to over 30 million people through direct/indirect
employment. India has become a preferred place for world OEMs India, though, unlike China or countries in EU, has not set a
for production of their vehicles due to many cost benefits, such target for automakers to convert a certain part of their total vehicle
as skilled labour, availability of raw material, and world class production to electric. But, the NITI-Aayog is considering a policy

4
proposal to ban all internal combustion engines for two-wheelers make a difference in the markets we operate in, make our offerings
under 150cc by 2025 and three-wheelers by 2023 and 30% of all with global quality standards and more competitive. I am happy to
other vehicles by 2030. In the very recent past, we however hear share that your Company together with its subsidiary companies
that the Government may relax these targets, so that the existing in US and Canada have done well in all spheres. It is now in the
auto industry has enough time to adjust and does not face any process of establishing another vertical which is part of a Global
major disruption. Value Chain (GBV) with an enlarged base and operations in an
There are some other initiatives too being carved out by the important and essential geography. With presence in other
Government which are likely to support industrial growth. The geographies, your Company’s customer base and product portfolio
Government seeks to achieve two objectives—(i) facilitate long-term have been further strengthened.
growth in the industry and (ii) reduce emissions and dependence on Your Company, in addition to tapping new markets, will leverage
imported oil. The Government plans to provide land for parking and its position by building its relationships with its existing and new
charging, subsidies to vehicle manufacturers and battery makers, customers and focus on product development. Presently the
drive investments, increase manufacturing capacity and breadth of Company has an export income of INR 1912.10 million (standalone),
services and continue the cut in interest rates. There is therefore which is an increase of 46.60% increase over last year. The export
a lot of work done and to be done in this space. The need now is programmes are also expected to gain further momentum. Going
for the all stakeholders, including the government, city planners, forward, the overall focus will continue to be on quality delivery at
OEMs, battery manufacturers, suppliers and service providers to optimum costs.
work together to fullfil India’s grand ambition of sustainable growth.
To summarise the financial results for the year FY 2019, I must
Prospects : India and the Auto sector
mention that there was significant growth in all the key areas;
Fresh off winning a clear mandate in the national elections in May resulting in robust overall growth. The standalone turnover of
2019, Modi 2.0 has presented the first union budget of its second the Company grew by 20.28 % and touched Rs. 6,634.52 million.
term. It is expected that this budget will be instrumental in setting As a result of this and our enhanced operating efficiencies,
the tone for administration, and conveying the seriousness of the the standalone profit before tax grew even higher to Rs 531.22
Government to revamp business, which is reeling under the twin million. After consolidating the financials of the Company with its
shock of a changing global trade scenario, as well as a slowing subsidiaries, the consolidated turnover stood at an all time high of
domestic economy. Most importantly, the aim is to bring reforms Rs. 9306.81 million. The Company has shared the gains among
for the benefit of the country. the shareholders by declaring an interim dividend of 15%. Your
Prospects of pickup in growth in 2019-20 is largely dependent on Board of Directors have further reviewed the cash position of the
the back of further increase in private investment and acceleration Company and have recommended a final dividend of 20% for your
in consumption. The FM in her budget speech also said that approval, thus taking the total to 35% of share capital with a total
“India Inc. are not only India’s job creators and nation’s payout of Rs. 65.68 million.
wealth creators.” To address the challenges of slowing economic
The vedic philosophy “Sarve bhavantu sukhina sarve santu
growth and inadequate job creation, PM has constituted two
niramaya, Sarve bhadrani pashyantu ma kashchit dukhbhave
cabinet committees- one on investment and growth and another
bhavate” provides us a holistic view of life and guides us that
on employment and skill development. The key actions identified
by the government are, reforming the financial sector, rationalise ‘enlightened collective interest’ should be the basis of our actions.
the indirect tax structure for better revenue collection, privatise or ‘Survival of all’ is the essence of this idea. Ultimate objective of
consolidate the PSBs and PSUs, revival of financial sector & NBFCs, the institutions and organizations is to work towards the goal
new targets for electrification along with support to industries by of universal welfare. We have been taking up deep impacting
way of further improving the ease of doing business. initiatives in line with what is required to be done as a responsible
citizen of the Society. To exhibit the commitment, your Company
Once, the initiatives of the government are fully effective it will
has contributed Rs.7.78 million for the betterment of the society
result in higher contribution to GDP by the manufacturing sector,
during the FY 2019 in line with the CSR Regulations.
Introduction of water transport, creating better road and rail network,
clarity on EV to auto industry, higher FDIs are expected to make the I am honored to steward this great organization and I am filled
Indian Economy grow faster in future.   with optimism about what we can achieve in partnership with
Regarding the Auto Industry, in the Automotive Mission Plan our customers and society. Together, we are changing work and
2026, the government and industry set a target to triple industry business and ultimately, the world we live in.
revenues to $300 billion, and expand exports sevenfold to $80 Before I conclude, I would take this opportunity to thank you as the
billion. To meet these aims, it is estimated that the sector could shareholders of the Company for your support to the Company over
contribute more than 60 million additional direct and indirect jobs, so many years. I would also like to thank our customers, suppliers,
and the result could be improved manufacturing competitiveness bankers the various government agencies with whom we have
and reduced emissions. Pushing ahead with its goal to have more been working, our loyal employees and all our business partners
electric vehicles to curb rampant pollution, the government has for their continued support and belief in The Hi-Tech Gear’s mission
started, the second phase of the FAME 2 scheme, with an outlay and vision. I offer my sincere gratitude to my board colleagues also
of ₹10,000 crore. The FM also announced certain lucrative income for their wise guidance from time to time. I am sure that we will
tax rebates for supporting EVs including interest subsidy, reduction pass through these challenging times with many learnings and the
of GST on EVs & batteries etc. journey will be more rewarding as we move ahead.
Company Performance and Strategy
Achieving our goals with discipline has been our unchanging focus. Deep Kapuria
Each time we look at a growth horizon, we look at how we can Chairman

5
 passion ‫ ׀‬innovation ‫ ׀‬technology

Managing Director’s Message on financial markets in both emerging and advanced economies.
The Euro area economy lost more momentum than expected as
consumer and business confidence weakened. Vehicle production
in many advanced countries was disrupted by the introduction of
new emission standards; investment dropped in various developed
countries as sovereign spreads widened; and external demand,
especially from emerging Asia, softened.
Analysts say the tariffs could hamper the rebound in the US
economy, with consumption likely to be hit, as ultimately, these
tariffs would be paid by the American public only. Also, this
exacerbates the uncertainty in the global trading environment,
affects global sentiments negatively, and adds to risk aversion
globally. Ongoing trade tussles are fueling fears about damage to
global economic growth and leaving the world on the brink of a
trade war. A realistic situation suggests that even if the two countries
reach a comprehensive treaty, still the discussions around trade,
investment, procurement and technology would remain for years
to come.
India’s growth of real GDP has been high with average growth of
7.5 % in the last many years. It grew at 6.8 % in FY19, thereby
experiencing moderation in growth when compared to FY18. This
moderation was mainly on account of decline in various areas
such as manufacturing, mining, agriculture, transport, storage,
communication, services & defense sectors. The growth in world
output also declined from 3% in 2017 to 2.8 % in 2018.
Certain facets of the Indian economy are important and I would
therefore like to share it with you for a better understanding of the
situation today :
Corporate Earnings and Investment:- Corporate earnings
increased in the first three quarters of FY19 but are falling since then.
Analysts attribute the poor corporate earnings to a combination of a
Dear Shareholders, slowdown in aggregate demand, relatively high interest rates plus
It gives me great pleasure to communicate with you through the depreciation, and tax outgo, erasing the gains from an improvement
33rd Annual Report of the Company as it provides me another in operating margins. This negative trend is likely to persist for some
opportunity to update you on the affairs of the Company. more time, given the YoY rise in energy prices and disruption in
global trade, including withdrawal of India’s preferential trade status
Despite softening GDP growth in 2018, induced by global trade
by the US. The move by the US is likely to hit the export-oriented
tensions and other political and economic uncertainties, we
companies in sectors such as ours, pharmaceuticals, garments,
achieved a highest ever sales revenue of Rs. 9310 million on a
gems and jewellery, engineering goods etc. New investments are
consolidated basis and Rs. 6635 million on a standalone basis.
not taking place, in view of the uncertainty.
New initiatives were taken by your company in North America to
Crude Oil:- Another factor that added to the heat is unpredictable
integrate into the Global Value Chain, with our footprints in both
crude oil prices, India is among the most vulnerable to rising energy
Canada and the USA. The objective of these initiatives were to
costs. PNG statistics shows that India incurred Rs. 5,66,450 million
further strengthen our processes, build better relationships with
towards import of crude oil in FY 2018 and the same will increase
our customers and consolidate our position as a manufacturer of
by considerable amount by the end of FY 2019. A surge in crude
quality products for the auto sector.
oil prices  threatens to stoke  inflation, derail earnings growth of
Macro Economic Updates companies, and hurt India’s economy. It consumes a huge chunk
Volatility has become a predominant factor again and is now out of our foreign reserves and the higher cost can also impact the
impacting every aspect of our lives. raw material supply chain of many manufacturing companies as
After considerable growth in last few years, global economic India imports a major portion of its crude requirements.
activity slowed down from the second half of last year, reflecting Rupee Vs Dollar:- The Currency turmoil in developed countries
a confluence of factors affecting major economies, including USA also contributed to the nervousness in emerging markets such as
and China. The Chinese economy also slowed down following India. There are many reasons that warrant a weak rupee in 2019
a combination of regulatory tightening to rein in shadow banking and that may, in fact, be the most appropriate response to global
and an increase in trade tensions with the USA. This took a toll and domestic factors ranged against the rupee. However as India

6
has more imports than exports, we will have to be prepared for a compared to 2,31,54,838 unit and 2,30,15,120 units in previous
larger outflow of foreign exhange.   year, thus registering a marginal growth of 5.82% in production
Financial crisis:- The country is already facing a cash crunch in and 6.29% in sales respectively.
the banking sector and now the ongoing liquidity crisis in the NBFC There has however been a fall in volumes from the last few
sector is the result of an asset-liability mismatch. Since there are lots months.  The cumulative domestic sales of all vehicles continued
of restrictions imposed on NBFCs to raise retail deposits from the to skid further in first quarter of 2019-20. Recently, the Society of
general public, they depend on wholesale lending for their capital Indian Automobile Manufacturers announced a 10.51% decline in
requirements. As a result, the cost of funds for NBFCs is higher total vehicles sales for April-June quarter, the lowest in nearly eight
than that of banks. However, due to the tightening of norms, NPAs years. Looking at the downtrend, the liquidity crunch facing non-
and defaults, banks have stopped refinancing the loans of NBFCs banking vehicle financiers, lack of clarity on technological changes,
and also stopped the disbursal of sanctioned loans to them.  rural distress etc, the OEMs have also cut their production
significantly.
RBI and the Government have taken steps to ring fence the Banking
and NBFC sector and support its financing needs by providing Declining automotive sales are primarily an indicator of how the
additional liquidity and credit enhancement for refinancing needs, Indian economy is performing, particularly the purchasing power of
but there are still speculations over spill-over concerns in the market people while a slowdown in commercial vehicle sales indicates an
in the near-term. investment cycle slowdown.

The financial crisis, low consumption, rising sluggishness in The real immediate challenge for auto-makers is to meet the
the economy, trade disputes, and other plethora of events have technological change. BS VI emission norms are effective from
April 01, 2020 and thereafter implementation of Corporate Average
created an environment of vulnerability and volatality. In view of the
Fuel Efficiency norms. This invariably results in increased vehicle
recent turmoil and state of economy as stated above, my concerns
costs. As a result, this will see big investments made in cleaner
are especially connected with the Government’s resolution to
technology which, in turn, will make vehicles pricier and on the
issues such as falling private sector investment, farm distress,
other side manufacturers and suppliers would need at least five
and stagnation of export growth. The real test of the Government
years to get a return on the equity.
today, is to overcome this unpredictability in such a manner that the
economic equilibrium is established. Most importantly, the automobile industry is at the cusp of a once-
in-a-century disruption with the advent of electric vehicles (EV).
Despite all the turmoil, the Long-term prospects for the Indian
Companies must devise a proper strategy for developing the
economy still looks good, on the back of the return of a stable and
requisite technologies. Besides technologies, the business would
strong government at the Centre with its focus on growth and also need to set up an alternative ecosystem at the earliest in order
development, along with ongoing consolidation and restructuring to engineer the smooth transformation to EV. Charging Ecosystem
activities. The Government is thinking of various ways to assist the is as important as the vehicle itself. Hence, two major roadblocks to
manufacturing sector and we should see positive steps being taken be overcome are availability of charging infrastructure and sourcing
in this financial year post the last budget. of standard lithium batteries.
The Automotive Sector The manufacturers have argued that they were forced to accept
The automobile industry in India is the world’s fourth largest in shorter timeline for tighter emission norms, involving expensive
numbers. India currently enjoys the tag of the world’s 4th largest redevelopment. This could be the premature switch with no
and 7th largest manufacturer of cars and commercial vehicles established supply chain, charging infrastructure or skilled labour
respectively. which may result in India losing its leadership position in scooters
In 2018-19, the industry registered a growth of 6.45% over the and motorbikes.
same period last year by selling 30,896,837 vehicles compared to Government initiatives for Auto Industry :- Through various
29,024,153 vehicles in previous year. programs and initiatives, the government seeks to achieve two
objectives—facilitate long-term growth in the industry and reduce
Number of vehicles (Units in '000 ) emissions and oil dependence.
1000000
• SAMARTH Udyog – ‘Demo cum experience’ centres
24503 are being set up in the country for promoting smart and
10000 4026 advanced manufacturing helping SMEs to implement
1112 1269
Industry 4.0.
(Production)
100 • Government aims to develop India as a global
manufacturing centre and an R&D hub.
1 • Under NATRiP, the Government is planning to set up R&D
Passenger Vehicle Commercial Vehicle Three-Wheeler Two- Wheeler centres at a total cost of US$ 388.5 million to enable the
Vehicle Vehicle
industry to be on par with global standards
Two wheelers have always had a major share of volumes in the • The Government has shortlisted 11 cities in the country
total output, however there was limited growth in the year. The for introduction of electric vehicles (EVs) in their public
segment produced and sold 2,45,03,086 units and 2,44,62,231 units transport systems under the FAME scheme.

7
 passion ‫ ׀‬innovation ‫ ׀‬technology

• Setting up of incubation centres for start-ups working in NET TURNOVER & PAT
electric vehicles space.
• Recently, the Government approved the FAME-II scheme 8000 500
450
with a fund requirement of Rs 10,000 crores for FY20-22. 7000 6472.15

Amount (in million)

400
6000
• In the Automotive Mission Plan 2026, the government 5272.7
350
5000 4319.3 4499.7 4495.3
and industry set a target to triple industry revenues and 4000 3733.8 3610.2
354.8 300
319.1
211.6
expand exports sevenfold. In this process it is expected to 3000
184.2
208.8 250
162.1 159.3 200
generate more than 60 million additional employment. 2000 150
• To address pollution from old vehicles, the government is 1000 100
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
working on an initiative that focuses on formulation of end-
of-life or scrappage policies. It plans to give incentive for Turnover PAT
the adoption of these policies with the help of lower taxes,
discounts on purchase prices. Your Company has made its mark as a leader of sustainable
manufacturing. Our state-of-the-art Plants are operating to
• To overcome the slowdown issue, Government is
their capacity now while minimizing wastes and pollutants. This
considering a package of stimulus for industry.
phenomenon has attracted several recognitions from the top
• A host of incentives unveiled in the Union budget for EVs, assessing agencies, which are enumerated elsewhere in this
India has joined China and Europe that have backed the Annual Report making your Company a respected name in the
development of the blossoming  EV industry  by offering industry for its competitive and cutting-edge products.
extensive fiscal incentives and a favourable regulatory
As I have mentioned in my previous communication to you, we
environment.
have seriously considered an organic as well as inorganic growth
On the other side, manufacturers have also found new avenues strategy that has started bearing fruits. Your Company is confident
of growth as they are now tapping non-metro cities. Quick growth that exposure to more and more global environment will lead to
is likely from upcountry markets, where high ways and roads are strong growth opportunities. Further, as a part of operational
being built, and discretionary income and aspirations are rising. strategy, the registered office has been changed to Haryana.
Small towns and rural areas are regarded as the next engines of
The Board has both executive and non executive directors
growth for passenger vehicle business.
possessing a wide range of expertise. The Board has continued
Performance of the Company its role to monitor the performance of the company, including its
FY19 was a year in which we made continued progress in many operational & financial performance and progress in delivering new
areas despite an increasing volatile economic and business growth. In terms of strategy, your Company is following a consistent
environment, particularly in the last quarter. The total sales turnover and long term strategy, to deliver competitive returns through focus
of the Company increased to Rs.6634.52 million, registering a on quality and timely delivery. Further, the journey of growth, which
significant increase of 20.28%. Profit before tax was Rs.531.22 began in a small way, has been gathering momentum with each
million and profit after tax stood at Rs.354.84 million compared to passing year adding new dimensions and ventures in different
Rs. 483.87 million and Rs. 319.12 million in FY18. Earnings per geographies.
Share also increased to Rs. 18.91 from Rs. 17.00 in the previous In this eventful journey, each year has been packed with
year. The Company recorded an export turnover of Rs.1912.10 achievements that underline our committed performance. I sincerely
million in 2018-19, compared to Rs. 1304.38 in the previous year, thank all our stakeholders including our shareholders, customers,
thus recording an increase of 46.60 %. vendors and bankers for their unstinting support and guidance.
Post consolidation with the subsidiaries overseas, the turnover May I also express my gratitude to the Board Members for their
stood at Rs. 9306.81 million compared to Rs. 7794.91 million valued guidance and my thanks to my colleagues at all levels for
during the previous year, registering increase of 19.40 %. The their support especially during these days of volatility and economic
consolidated financials of the Company with its subsidiaries are uncertainity.  Your Company is positive about its medium and long
attached to this Annual Report. Recognizing the importance of term growth prospectives and looks forward to continued profitable
sharing the gains with shareholders who have placed their funds growth in the years to come.
and trust in the Company at all times, an amount of Rs.65.68 million
Pranav Kapuria
is being paid out by way of dividends i.e. 15% interim dividend and
Managing Director
now proposed 20% final dividend.

8
DIRECTORS’ REPORT
Dear Members,
Your Directors have great pleasure in presenting the 33rdAnnual Report of your Company, together with the audited financial statement of accounts of the
company for the financial year ended 31st March, 2019. Further, the consolidated performance of the company and its subsidiaries has been referred to
wherever required.
Financial Results
The highlights of the standalone and consolidated financial performance of the Company are as under:-
(Rs. in million except per share data)
Particulars Standalone Consolidated
2018-19 2017-2018 2018-19 2017-2018
Revenue from Operation 6472.15 5383.82 9137.22 7596.81
Other Income 162.37 131.89 169.59 198.10
Total Income 6634.52 5515.71 9306.81 7794.91
Profit before Depreciation, Interest & Taxes (PBDIT) 986.12 837.42 1301.99 1144.55
Depreciation 270.80 262.98 421.91 394.25
Profit before Interest & Taxes (PBIT) 715.32 574.44 880.08 750.30
Financial Charges 184.10 90.57 294.81 235.12
Profit before Taxes (PBT) 531.22 483.87 585.27 515.18
Provision for Taxes 176.38 164.75 229.49 172.75
Profit after Tax (PAT) 354.84 319.12 355.78 342.43
Balance of profit brought forward 2216.68 1956.73 2220.69 1827.05
Balance available for appropriation 2573.30 2278.80 2608.89 2282.81
Dividend 65.69 51.61 65.69 51.61
Tax on dividend 13.50 10.51 13.50 10.51
Balance Surplus in P & L Account 2494.11 2216.68 2529.70 2220.69
Paid-up Equity Share Capital 187.68 187.68 187.68 187.68
Earnings Per Share (EPS) 18.91 17.00 18.96 18.25

General Information State of Company Affairs

Financial Year 2019 was a roller coaster year for domestic automobile Your Company is one of the few industrial enterprises which have become
industry. Auto industry faced multiple regulatory, geopolitical, and a world-class Indian brand with a green and sustainable strategy of growth,
economic disruptions creating both developments and challenges for the despite an increasing volatile economic and business environment.
Indian economy. The first quarter of the financial year claimed successful Besides being cost competitive, delivering to strict schedules and adhering
sales whereas the later quarters reeled one of its major slowdown in to high quality standards are the main keys of success for auto component
auto industry. In short to medium term, this sector faces huge transitions manufacturers, especially to enter into and grow export markets. Your
due to the ongoing credit crunch, low consumption level, Government’s company possesses all the above skills and is appreciated by customers
transitional measures of shifting from BS IV to BS VI, introduction of all over the world. Keeping this in mind, your company is today tapping new
Electric Vehicles. However, in long term, Indian automotive industry is geographies due to the high potential available in the export markets.
expected to emerge as the World’s third largest passenger vehicle market
Detailed information on the operations and on the state of affairs of the
in coming period.
Company are majorly covered in the Management Discussion & Analysis
All segments of the automobiles registered reasonable amount of growth Report, forming part of this report. The performance of the Company was
on full year basis. The domestic sales of Commercial Vehicles grew by in line or better than the growth of Auto Industries. During the FY 2018-19,
17.55 % during April- March 2019 and Three Wheeler registered a 10.27% the total revenue stood at Rs. 6634.52 million as compared to Rs. 5515.71
growth in domestic sales. In Two Wheeler segment, the sales of Scooters/ million in the last FY 2017-18, registering a growth of 20.28 %. The profit
Scooterette declined by 0.27 % while sales of Motorcycles and Mopeds before tax stood at Rs 531.22 million as compared to Rs 483.87 million in
grew by 7.76% and 2.41% respectively in FY 2018-19 over FY 2017-18. previous year. Similarly, the Net profit after tax of the Company is Rs. 354.84
The growth engine of automobile industry is always passenger vehicles. million as compared to Rs 319.12 million in previous year, registering a
Unfortunately, this segment grew with only 2.70%. growth of 11.19%.
On export side, the overall automobile exports increased by 14.50 %. While On a consolidated basis, the total revenue was Rs. 9306.81 million as
Three Wheelers and Two Wheelers registered a growth of 49.00 % and compared to Rs. 7794.91 millions in the previous FY. Similarly, the Net profit
16.55 % respectively, exports of Passenger Vehicle declined by 9.64 % and after tax was Rs. 355.78 millions as compared to Rs. 342.43 millions in
Commercial Vehicles registered a growth of 3.17 % in April-March 2019 previous FY.
over April-March 2018.
At the export front, the Company also did well and recorded an export
The Indian auto components industry is going through a transformational turnover of Rs. 1912.10 million as compared to Rs. 1304.38 million in the
period with the concept of mobility changing continuously. The prospects of previous year, hereby recorded an robust growth of 46.60% as compared to
the Industry is to benefit over next years are good. the percentage during the same period in the previous year. The total export
turnover now 29.54 % of the total turnover of the Company.

9
Your Company expects to benefit over the next period from its good (b) that such accounting policies have been selected and applied
business linkage with OEMs and healthy operating efficiencies. In view of consistently and judgments and estimates made that are reasonable
this, the long term prospects of your Company are bright. and prudent so as to give a true and fair view of the state of affairs of
Consolidated Financial Statements the Company as on March 31, 2019 and of the profit of the Company
for the year ended on that date,
In accordance with the provisions of the Companies Act, 2013 (‘the Act’)
and IndAS-110 on Consolidated Financial Statements, read with Ind AS- (c) that proper and sufficient care has been taken for maintenance of
28 on Investments in Subsidiaries outside India, the Audited Consolidated adequate accounting records in accordance with the provisions
Financial Statements for the FY ended March 31, 2019 are provided in this of the Act for safeguarding the assets of the Company and for
Annual Report. prevention and detection of fraud and other irregularities,
Share Capital (d) that the annual financial statements have been prepared on going
The paid up Equity Share Capital as on 31st March, 2019 was Rs. 187.68 concern basis,
million. During the year under review, the Company has not issued shares (e) that proper internal financial controls were in place and that the
or granted stock options or sweat equity. financial controls were adequate and were operating effectively,
Dividend and

During the year under review and based on the performance of the company, (f) that the systems to ensure compliance with the provisions of all
an interim dividend of 15% i.e. Rs. 1.50 per equity share amounting to Rs. applicable laws were in place and were adequate and operating
28.15 million was declared and paid, the same is being confirmed at the effectively.
forthcoming AGM. Further, the Directors have now recommended to the Details of Internal Financial Controls with reference to the Financial
shareholders a final dividend of 20% i.e. Rs. 2.00 per equity share for Statement
the FY 2018-19, resulting in an another payout of Rs. 37.54 million. The In view of the requirement of the Companies Act, 2013, the Company
total dividend payout stands at Rs. 65.69 million (Previous year Rs. 65.69 has successfully documented its Internal Financial Controls (IFC).
million) & tax on dividend comes to Rs 13.50 million (Previous year Rs.
This ensures orderly and efficient conduct of its business, including
13.50 million). During the FY under review, no amount has been transferred
adherence to Company policies, safeguarding of its assets, accuracy,
to General Reserve of the Company.
prevention of errors & completeness of the accounting records and the
If the final dividend on the shares as, recommended by the Board of timely preparation of reliable financial information. The Internal Financial
Directors, is approved by the shareholders in their forthcoming 33rd Annual Controls with reference to the Financial Statements were adequate and
General Meeting of the company, payment of such dividend will be made operating effectively.
to those members whose names appear in the Register of Members as per
Further, the Audit Committee monitors the adequacy and effectiveness of
Book closure dates mentioned in the shareholder’s information.
your Company’s internal control framework.
Change in the nature of business
Details of Subsidiary/Joint Ventures/Associate Companies
There was no change in the nature of the business of the company during
During the financial year 2018-19, the Company incorporated a Wholly
the financial year 2018-19.
Owned Subsidiary Company in Canada in the name of “Neo-Tech Smart
Change of the registered office Solutions Inc.” and subscribed 2,50,000 common shares of CAD $ 1.00
In order to enhance better administrative and economic control over the each.
company and to streamline & rationalize its operations as well as the As on March 31, 2019, the Company has nine (09) Wholly Owned
management of affairs of the Company, the shareholders of the Company
Subsidiaries (including step-down subsidiaries) in Canada and US. There
approved the change of Registered Office from the State of Rajasthan to the
is no reverse investment by the subsidiary companies in the share capital
State of Haryana. The Regional Director North Western Region approved
of the Company.
the move. Later, Registrar of Company (ROC) have issued fresh certificate
of Incorporation in this regard. The Company’s registered office is now The Board have duly reviewed the affairs of the subsidiary companies, from
situated at Plot No 24, 25, 26, Sector-7, IMT Manesar, Gurgaon-122050, time to time wherein,2545887 Ontario Inc., The Hi-Tech Gears Canada
Haryana. w.e.f. July 19, 2019 Inc. and “Teutech Holding Co.” are considered to be ‘Material Subsidiary’
companies, pursuant to provisions of Regulation 16 of the SEBI (LODR)
The shifting of the Registered Office as aforesaid is in the best interests of
Regulations, 2015. Further, there is no material change in the subsidiary
the company, its shareholders and all concerned. The shifting will in no way
companies and the Company has taken note of all the significant
be detrimental to the interest(s) of any member of the public, employees or
transactions and arrangements entered into by its subsidiaries. The other
other associates of the Company in any manner whatsoever.
financial and vital details related to subsidiaries are provided in MGT-9
Compliance with Secretarial Standards (Extract of Annual Return) & AOC-1 (Statement containing salient features
The Company is fully compliant with all applicable Secretarial Standards of the financial statement of subsidiaries) attached to this Report, pursuant
issued by the Institute of Company Secretaries of India (ICSI). to section 129(3) and section 136 of the Companies Act, 2013 and rules
Directors Responsibility Statement made thereunder.
In terms of section 134 (3) (c) & 134 (5) of the Companies Act, 2013, and to In accordance with the provisions of the Companies Act, 2013 and
the best of their knowledge and belief, and according to the information and applicable accounting standards the standalone and consolidated financials
explanations provided to them, your Directors hereby make the following together with the reports of Statutory Auditors are provided in the Annual
statements: Report. Further, the Company has amended/ made revision in the policy
(a) that in preparation of the Annual Accounts, the applicable accounting for determining material subsidiaries in order to align with amended listing
standards have been followed along with proper explanations regulations and other applicable laws. The revised policy is available at
relating to material departures, if any, www.thehitechgears.com.

10
Directors, Key Managerial Personnel’s and Evaluation Disclosure Requirements) Regulations, 2015 (‘the Listing Regulations’),
The Board is duly constituted with proper balance of Executive, Non- as amended from time to time, stating that they meet the criteria of
Executive, Independent Directors & Whole Time Directors. independence as provided in sub-section (6) of section 149 of Companies
Act, 2013 and the Listing Regulations.
During the year under review, Mr. Anant Jaivant Talaulicar (DIN 00031051)
was appointed as an Additional Director in the meeting of the Board of c. Meetings of the Board
Director, thereafter his appointed was approved by the members as Non- The Board met 6 (six) times during the period 2018-19 to conduct the
Executive Director of the Company w.e.f May, 21, 2018 at their 32nd Annual operations of the Company. The details are given in the Corporate
General Meeting . Governance Report, which forms part of this Annual Report. It is confirmed
Further, the Board appointed Mr. Neville D’Souza (DIN 08536411) as that the gap between two consecutive meetings was not more than one
additional director in the category of Non-Executive and Independent hundred and twenty days as provided in section 173 of the Act.
Directors effective August 14, 2019. The Board recommends his appointment d. Annual Evaluation of the Board, its Committees and of Individual
to the shareholders as an Independent Director of the Company for a terms Directors
of 5 years in forthcoming Annual General Meeting. Pursuant to the provisions of the Companies Act, 2013 and the SEBI (LODR)
Retire by Rotation Regulations, 2015, the Board carried out an formal annual performance
Independent Directors are not liable to retire by rotation. Pursuant to the evaluation of its own performance, the Chairman, Directors individually and
provision of Section 152(6) of the Companies Act, 2013 Mr. Anuj Kapuria the working of the different committees. Such evaluation was done through
(DIN: 00006366), Executive Director, being longest in the office, retire by the established evaluation framework and the SEBI Guidance Note. 
rotation at the ensuing Annual General Meeting and being eligible offer The framework included different tools such as individual questionnaire,
himself for the re-appointment. Brief profile of Mr. Anuj Kapuria has been covering various information required to have the evaluation. All the layers
given in the Notice convening the Annual General Meeting. of the Board, such as Board, Committees and the Independent Directors
performed their part by evaluating the performances of the holders as
a. Key Managerial Personnel’s
mandated.
All Whole Time Directors such as Mr. Deep Kapuria, Executive Chairman,
Auditors
Mr. Pranav Kapuria, Managing Director and Mr. Anuj Kapuria, Executive
Director are regarded as KMPs, in addition to Chief Financial Officer a) Statutory Auditors
(C.F.O.) and Company Secretary (C.S.). M/s O P Dadu & Co., Chartered Accountants, (Firm Registration No.
The Board at its meeting held on February 02, 2019, pursuant to the 001201N) the Statutory Auditors of the Company, were appointed in the
recommendation of Nomination and Remuneration Committee appointed Mr. 31st Annual General Meeting for a term of five consecutive years till the
Dinesh Chand Sharma as Chief Financial Officer (CFO) and Key Managerial conclusion of 36th Annual General Meeting of the Company to be held
Personnel of the Company w.e.f February 25, 2019 in place of Mr. Vijay in the year 2022-23. They have furnished a certificate confirming the
Mathur, who step down from the post of CFO w.e.f February 22, 2019. eligibility under section 141 of the Companies Act, 2013 and Rules made
thereunder.
b. Independent Directors
Pursuant to the provisions of Companies (Amendment) Act, 2017 read
The Board has 7 (Seven) Independent Directors, including one Woman
with MCA notification dated 07th May, 2018, the appointment of Statutory
Independent Director, representing diversified fields and expertise. Details
Auditors is not required to be ratified at every Annual general Meeting.
are provided in the appropriate section of the Corporate Governance
Report. The Auditors’ Report does not contain any qualification, reservation or
adverse remark and do not call for any further explanation/ clarification
The Board taking in account the performance evaluation and the
by the Board of Directors as provided under Section 134 of the Act. With
recommendation of Nomination and Remuneration Committee, re-appointed
respect to the point no. (vii) (b) in Annexure “A” to Auditors’ Report relating
following independent directors for second term of 5 consecutive years subject
to non deposit of disputed taxes. The Board wishes to inform that those
to the approval of shareholders at the ensuing Annual General Meeting:
matters are related to regular income tax matters for which the Company
S. Name of Independent Tenure has preferred appeal to Appellate Authorities. The necessary explanations
No Director are also provided in Note 38A (2) to the Standalone Financial Statements.
1. Mr. Sandeep Dinodia September 18, 2019 to the date 38th Annual Further in respect of point no. (x) in Annexure “A” to Auditors’ Report read
General Meeting with section 143 (12) & 134 (3) (ca), during the quarter ended December
2. Mr. Anil Kumar Khanna September 18, 2019 to the date of 38th
31, 2018, a case of embezzlement by an employee to the extent of
Annual General Meeting
Rs. 2.23 million was reported. A complaint regarding the matter was lodged
3. Mr. Krishna Chandra September 18, 2019 to the date of 38th
Verma Annual General Meeting with the Police Authorities in Bhiwadi, Dist. Alwar, Rajasthan. The Police
4. Mr. Vinit Taneja September 18, 2019 to the date of 38th have immediately taken the person into the custody after initial investigation.
Annual General Meeting Further, the company has suo-moto informed the Stock Exchanges about
5. Mr. Prosad Dasgupta September 18, 2019 to the date of 38th above misappropriation of company’s fund on November 16, 2018. The rest
Annual General Meeting of report by the Statutory Auditors is self-explanatory. Please refer to the
6. Ms. Malini Sud February 12, 2020 to February 11, 2025 Notes to Accounts, wherever necessary.
7. Mr. Neville D’Souza August 14, 2019 to the date of forthcoming b) Cost Auditors
Annual General Meeting*
* Mr. Neville D’Souza, Independent & Non-Executive Director (DIN: The provisions relating to section 148(1) read with rules are applicable,
08536411), was originally appointed as an Additional Independent Director accordingly cost accounts and records are made and maintained.
on Board of the Company on August 14, 2019 Further, as per Section 148 and all other applicable provisions of the
The Independent Directors have submitted their declarations of Companies Act, 2013, read with the Companies (Audit and Auditors) Rules,
independence, as required pursuant to provisions of section 149 (7) of the 2014, the Board of Directors have on the recommendation of the Audit
Companies Act, 2013 and Regulation 16 of SEBI (Listing Obligation and Committee, approved the re-appointment of M/s. Kabra & Associates, Cost

11
Accountants as the Cost Auditors of the Company for the year ending 2019- amendment thereof.
2020. The remuneration proposed to be paid to them requires ratification of Accordingly, during the financial year 2018-19, the Company has transferred
the shareholders of the Company. In view of this, your approval for payment 12,152 and 800 equity shares to the IEPF Authority, in two tranches in
of remuneration to Cost Auditors is being sought at the ensuing Annual respect of which the amount of dividend has not been claimed or unpaid for
General Meeting. Accordingly, a resolution seeking approval by members the consecutive seven years to the concerned shareholders from the date
for the remuneration payable to M/s Kabra & Associates is included in the of declaration respectively. A list of such cases is available at the company
Notice convening 33rdAnnual General Meeting. website.
c) Secretarial Auditor Extract of Annual Return
The Company has devised proper systems to ensure compliance with the As required pursuant to Section 92(3) & 134 (3) of the Companies Act,
provisions of all applicable Secretarial Standards issued by ICSI. 2013, an extract of Annual Return in the prescribed form MGT-9 is annexed
As per Section 204 of the Companies Act, 2013 inter-alia requires every to this Report as Annexure II and also on company’s website on the link:
listed company to annex with its Board’s Report, a Secretarial Audit Report www.thehitechgears.com.
provided by a Company Secretary in Practice, in the prescribed format. The The Conservation of Energy, Technology Absorption, Foreign
Board of Directors appointed M/s Grover Ahuja & Associates, Practicing Exchange earnings and outgo
Company Secretaries as Secretarial Auditor to conduct Secretarial Audit of Details of Energy Conservation, Technology Absorption, Research &
the Company and their report is annexed to this Board Report (Annexure-I). Development activities undertaken by the Company and foreign exchange
The Secretarial Audit Report does not contain any qualification, reservation earnings and outgo of the Company and other information in accordance
or adverse remark and do not call for any further explanation/ clarification with the provisions of Section 134(3) (m) of the Companies Act, 2013, read
by the Board of Directors under the Act. with Rule 8(3) of the Companies (Accounts) Rules, 2014, are given in
Additionally, pursuant to SEBI circular dated CIR/CFD/CMD1/27/2019 dated Annexure III, to this Report.
February 08, 2019, the Company has undertaken and received an Annual Report on Corporate Governance
Secretarial Compliance Report from M/s Grover Ahuja & Associates,
In terms of Listing Regulations, a report on Corporate Governance is given
Practicing Company Secretaries and submitted the same to the stock
separately and forming part of this report and a certificate from the M/s
exchanges within the specified time period. Grover Ahuja & Associates, Practicing Company Secretaries confirming
Internal Control Systems and its Adequacy compliance with the provisions of Corporate Governance is also annexed
The Company has internal control systems commensurate with the size, to the report.
scale and complexity of its business operations. The scope and functions of Management Discussion &Analysis Report
Internal Auditors are defined and reviewed by the Audit committee. Internal The Management Discussion & Analysis Report is given separately and
Auditors present their quarterly report to the Audit Committee, highlighting forming part of this report together with its contents.
various observations, system and procedure related lapses, if any and
Risk Management Policy
corrective actions being taken to address them.
Pursuant to Regulation 21 of SEBI (Listing Obligations and Disclosure
Investor Education and Protection Fund (‘IEPF’)
Requirements) Regulations, 2015, provisions of constituting Risk
Pursuant to section 124, 125 and applicable provisions of the Companies Management Policy are not applicableto the Company. Although the
Act, 2013 and Rules made there under, all unpaid or unclaimed dividends Company has adopted an enterprise Risk Management Policy and
are required to be transferred by the Company to IEPF after the completion established a Risk Management Framework with an objective of timely
of seven years from the date of declaration of dividend. identification, mitigation and control of the risks, which may threaten
Similarly, the MCA has notified Investor Education and Protection Fund the existence of the Company, in accordance with the provisions of The
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 effective Companies Act, 2013.
from 7th September 2016 which provide that, the shares in respect of which Corporate Social Responsibility
dividend has not been claimed or unpaid by the shareholders for seven Pursuant to the provisions of Section 135 and other applicable provisions of
consecutive years or more shall also be transferred to the demat account(s) the Companies Act, 2013 and Rules made thereunder the Company have
to be prescribed by the IEPF Authority. adopted & developed a Policy covering the activities mentioned in Schedule
The details of such dividend and shares transferred pursuant to the aforesaid VII of Companies Act, 2013,upon the recommendation of CSR Committee.
provisions are provided in General Shareholder information section at point Implementation of the policy is undertaken under the guidance of CSR
No. 14 of Section XI of Corporate Governance Report and Note No. 11 of Committee and a brief of the Corporate Social Responsibility is provided
the Notice of ensuring 33rd Annual General Meeting. in Annexure-IV.
In terms of the said Rules and the amendment thereof vide notification Your Company has in place a CSR Policy. The CSR policy lays down CSR
dated 28th February, 2017 and 13th October, 2017, the necessary activities to be undertaken by your Company. The CSR activities undertaken
communications have been made to the respective shareholders whose by your Company are based on the approved CSR policy, which is available
shares were required to be transferred to the IEPF so as to enable them to on the Company’s website, www.thehitechgears.com.
claim their dividend attached to such shares before such dividend and shares Particulars of contracts or arrangements with related parties
are transferred to IEPF and further, the necessary information in this regard
All transactions entered by the Company with the parties, which may be
is available on the website of the Company i.e. www.thehitechgears.com
regarded with related parties, were considered to be in the ordinary course
for the convenience of the shareholders.
of business and on the arm’s length basis. As provided under section
In view of this, those shareholders whose dividend is unpaid or unclaimed 134(3)(h) of the Act and Rules made thereunder, disclosure of particulars
must claim it at the earliest. The equity shares once transferred into IEPF of material transactions with related parties entered into by the Company
can only be claimed by the concerned shareholder from IEPF Authority with related parties in the prescribed format annexed to this report as
after complying with the procedure prescribed under the Rules and any Annexure-V. Disclosures on related party transactions are also set out in

12
Note No. 36 to the financial statements. With a view to provide easy liquidity in the shares of the Company, the
The revised Policy on materiality of related party transactions pursuant to equity shares of your Company are presently listed on the premier stock
Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) exchanges viz., the National Stock Exchange of India Limited (NSE) and
Regulations, 2015 as approved by the Board may be accessed on the the Bombay Stock Exchange India Limited (BSE) Mumbai. Pursuant to
Company’s website at the link www.thehitechgears.com. Regulation 14 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the annual listing fees for the year 2019-20 has been
Electronic Clearing Services (ECS)
paid within the prescribed time period.
As per the circular issued by Securities & Exchange Board of India (SEBI),
Fixed Deposits
companies should mandatorily use the facility of Electronic Clearing
During the year under review your Company neither invited nor accepted
Services (ECS), for distribution of dividends to its members. This facility
any deposit within the meaning of Section 73 of the Companies Act, 2013,
provides to the members an opportunity to receive dividend amount directly
and rules made there under.
in their bank accounts. For availing this facility, members holding shares in
physical form may send their duly filled ECS mandate form to the Company’s Dematerialization of the equity shares
Registrar and Share Transfer Agent (RTA). Members are holding shares 99.59% of the total equity shares of the Company are held in dematerialized
in dematerialized form may kindly note that their bank account details as form with the participants of National Securities Depository Limited (NSDL)
furnished to their depositories will be taken for the purpose of ECS and the and Central Depository Securities (India) Limited as on the date of this
Company. report.
Postal Ballot Keeping in view the benefits of dematerialization, your directors urge
During the period under review, one Special Resolution for shifting of the shareholders holding shares in physical form to get their shares
Registered Office through postal ballot was proposed by the Board of dematerialized.
Directors and passed by the shareholders. The details of same is provided Particulars of Employees
in point no. VIII of Corporate Governance Report attached to report.
Disclosures pertaining to remuneration and other details as required under
Code of Conduct of Insider Trading Section 197(12) of the Act read with Rule 5 of the Companies (Appointment
The Company has adopted a Code of Conduct to regulate, monitor and and Remuneration of Managerial Personnel) Rules, 2014 are given in
report trading by insiders. This Code of Conduct is intended to prevent Annexure VI.
misuse of Unpublished Price Sensitive Information (“UPSI”) by designated Remuneration Policy
persons.
In terms of provisions of Section 178 of the Companies Act, 2013 read with
During the year, the company has amended the said code of conduct to Regulation 19 of the Listing Regulations, a policy relating to remuneration
regulate, monitor and report trading by designated persons and their for the Directors, Key Managerial Personnel and other employees has
immediate relatives in pursuance to the SEBI (Prohibition of Insider been adopted by the Board of Directors of the Company in pursuance of
Trading) (Amendment) Regulations, 2018 including the code of practices its formulation and recommendation by the Nomination and Remuneration
and procedures of fair disclosure of unpublished price sensitive information. Committee thereby analyzing the criteria for determining qualifications,
The same has been placed on the Company’s Official website i.e. positive attributes and independence of a Director. The said policy available
www.thehitechgears.com. on the website of the Company at www.thehitechgears.com. Salient feature
In accordance with such Code of Conduct, the Company closes its trading of the policy are provided in attached Corporate Governance Report.
window for Designated Persons from time to time. The trading window is Audit Committee
also closed during and after occurrence of price sensitive events as per the
Company has duly constituted Audit Committee, which meets on
said Code of Conduct.
regular intervals for the business required to be transacted thereat. The
Code of Conduct recommendations made by committee are accepted by the Board. A
Your Company has a Code of Conduct for its Board Members and Senior synopsis is described in the Corporate Governance report.
Management personnel in place pursuant to SEBI Listing Regulations . Vigil Mechanism Policy
The code of conduct has also been posted on the official website of the
The Company has a vigil mechanism policy to deal with any instance
Company.
of fraud and mismanagement. The employees of the Company are free
The Declaration by the Managing Director of the Company regarding to report violations of any laws, rules, regulations and concerns about
compliance with the Code of Conduct for Board Members and Senior unethical conduct to the Audit Committee under this policy. The policy
Management is annexed with the Corporate Governance Report. ensures that strict confidentiality is maintained whilst dealing with
Reconciliation of Share Capital Audit concerns and also that no discrimination with any person for a genuinely
raised concern. The policy may be accessed on the Company’s website
M/s Grover Ahuja & Associates, practicing Company Secretary carried out
at www.thehitechgears.com.
the Secretarial Audit on quarterly basis to reconcile the total issued and
listed share capital with National Securities Depository Limited (NSDL) Obligation of Company under the Sexual Harassment of Women at
and Central Depository Services (India) Limited (CDSL). The Board Workplace (Prevention, Prohibition And Redressal) Act, 2013
of Directors confirms that the total issued and paid up capital as on 31st The Company has complied with the provisions relating to the constitution
March, 2019 is reconciled with the total number of shares in physical form of Internal Complaints Committee under the Sexual Harassment of
and the total number of dematerialized shares held with NSDL and CDSL. Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Reconciliation of Share Capital Audit Certificate is being submitted Accordingly, the company has set up Committee for implementation of
every quarter to the Stock Exchanges and is also placed before the Board said policy.
Meeting.
Further, during the year Company has not received any complaint
Listing of Shares

13
of harassment. Complete details are provided in attached Corporate many years gone-by, this year also witnessed increased cohesion among all
Governance Report. levels of employees, which is evident from the performance of the Company.
Particulars of Loans given, Investments made, Guarantees given and Training and Development of employees provided further impetus and have
Securities provided contributed towards the all round improved performance of your company.
The Company encourages by rewarding & recognising employees for their
The Company has not given any loans or guarantee covered under the
long term commitment as & when the opportunity arise.
provisions of section 186 of the Companies Act, 2013.
Trade Relations
The details of the investments made by the Company are given in the notes
to the financial statements. The Board of Directors place on record their appreciation for the co-
operation and valuable support extended by the customers, the suppliers
Material changes and Commitments
and all other persons directly or indirectly associated with the Company.
There are no material changes and commitments affecting the financial Your Company regards them as partners and shares with them a common
position of the Company which have occurred between the end of the vision of growth in the future.
Financial Year to which the financial statements relate and the date of the
Acknowledgement
report.
Your directors place on record their sincere appreciation for the assistance,
Details of significant and material orders passed by the regulators or
cooperation and valuable support provided to the Company by Customers,
courts or tribunals impacting the going concern status and company’s
Vendors, Banks & Financial Institutions and hope to continue to receive
operations in future
the same in future. Your Directors also record their appreciation for the
There is no significant and/or material order passed by the regulators or commitment and dedication of the employees of the Company at all levels.
courts or tribunals impacting the going concern status of the Company.
The Board of Directors also place on record their gratitude to the
Business Responsibility Reporting shareholders of the Company for their continued support to and confidence
As per Regulation 34 of SEBI (Listing Obligations and Disclosure in the management of the Company.
Requirements) Regulations, 2015 of Business Responsibility Reporting is By Order of the Board
not applicable to the Company. For The Hi -Tech Gears Limited
Personnel
The Board of Directors place on record their appreciation of the untiring Place : New Delhi Deep Kapuria
efforts of the employees of the organisation at every level. The efforts to Dated : August 14, 2019 Chairman
create a family like atmosphere continued throughout the year. Like the

14
 ANNEXURES TO THE DIRECTORS’ REPORT
ANNEXURE - I
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANICAL YEAR ENDED 31ST MARCH, 2019
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]

To iii. The Securities and Exchange Board of India (Delisting of Equity

The Members, Shares) Regulations, 2009;
M/s. The Hi-Tech Gears Limited iv. The Securities and Exchange Board of India (Buyback of Securities)
We have conducted the secretarial audit of the compliance of applicable Regulations, 2018;
statutory provisions and the adherence to good corporate governance v. The Securities and Exchange Board of India (Share Based Employee
practice by The Hi-Tech Gears Limited (hereinafter called “the Company”). Benefits) Regulations, 2014
Secretarial Audit was conducted in a manner that provided us a reasonable
(vi) Factories Act, 1948 and Rajasthan Factory Rules, 1951;
basis for evaluating the corporate conducts / statutory compliances and
expressing our opinion thereon. (vii) The Environment (Protection) Act, 1986 and other Environment
laws;
Based on our verification of the Company’s Books, Papers, Minutes Books,
Forms and Returns filed and other records maintained by the Company (viii) The Employees Provident Fund & Miscellaneous Provisions Act,
and also the information provided by the Company, its officers, agents 1952;
and authorized representatives during the conduct of secretarial audit, we (ix) Income Tax Act, 1961 and Other Applicable Tax Laws;
hereby report that in our opinion, the Company has, during the financial (x) Industrial Dispute Act, 1947;
year ended 31st March, 2019, complied with the statutory provisions listed
(xi) Minimum Wages Act, 1948;
hereunder and also that the Company has proper Board processes and
compliance mechanism in place to the extent, in the manner and subject to (xii) Contract Labour Act, 1970;
the reporting made hereinafter: (xiii) Payment of Bonus Act, 1965;
We have examined the books, papers, minute books, forms and returns (xiv) Employee’s State Insurance Act, 1948;
filed and other records maintained by the Company for the financial year (xv) Payment of Wages Act, 1936 and other applicable Labour & Industrial
ended on 31st March, 2019 according to the provisions of: Laws.
(i) The Companies Act, 2013 (the Act) and the rules made there under; We have also examined compliance with the Secretarial Standards issued
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the by The Institute of Company Secretaries of India.
rules made there under; During the period under review, the Company has complied with the
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
there under; mentioned above subject to the following observations;
(iv) Foreign Exchange Management Act, 1999 and the rules and We report that:
regulations made there under to the extent of foreign Direct Investment, a) As per the information and explanations provided by the Company,
Overseas Direct Investment, External Commercial Borrowings; its officers, agents and authorised representatives during the conduct
(v) The following Regulations and Guidelines prescribed under the of secretarial audit, we report that the provisions of the Foreign
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) were Exchange Management Act, 1999 and the Rules and Regulations
applicable to the Company under the financial year under report:- made thereunder to the extent of :
i. The Securities and Exchange Board of India (Prohibition of Insider (i) External Commercial Borrowings were attracted to the Company
Trading) Regulations, 2015; under the financial year under report;
ii. The Securities and Exchange Board of India (Registrars to a Issue and (ii) Foreign Direct Investment (FDI) were not attracted to the
Share Transfer Agents) Regulations, 1993, regarding the Companies company under the financial year under report;
Act and dealing with client; (iii) Overseas Direct Investment in Wholly Owned Subsidiary
iii. The Securities and Exchange Board of India (Substantial Acquisition abroad was attracted to the company under the financial year
of Shares and Takeovers) Regulations, 2011; under report.
iv. The Securities and Exchange Board of India (Listing Obligations And b) As per the information and explanations provided by the company,
Disclosure Requirements) Regulations, 2015. its officers, agents and authorised representatives during the conduct
Provisions of the following Regulations and Guidelines prescribed under of Secretarial Audit, we report that the Company has not made any
the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) were not GDRs/ADRs or any Commercial Instrument under the financial year
applicable to the Company under the financial year under report:- under report.

i. The Securities and Exchange Board of India (Issue and Listing of We further report that during the period under review, the Company had
Debt Securities) Regulations, 2008; received the following notice, details of which are provided below:

ii. The Securities and Exchange Board of India (Issue of Capital and 1. Investor Education and Protection Fund Authority, Ministry of Corporate
Disclosure Requirements) Regulations, 2009; Affairs, in its letter number 17/1/2018/IEPFA/INSP2/206(4)/1F4NF/884
dated 5th September, 2018 have sought for the information pursuant

15
 to Section 124(6) of the Companies Act, 2013. The same was duly Annexure A
replied by the Company in its letter dated 29th October, 2018 stating
To
the specific information as required by the Investor Education and
Protection Fund Authority, Ministry of Corporate Affairs. The Members
M/s. The Hi-Tech Gears Limited
2. Ministry of Corporate Affairs in its dated 7th May, 2018 have sought
for the information pursuant to Section 2(87) of the Companies Act, Our report of even date is to be read along with this letter.
2013. The same was duly replied by the Company in its letter dated 1. Maintenance of Secretarial record is the responsibility of the
30th May, 2018 stating the specific information as required by the management of the Company. Our responsibility is to express as
Ministry of Corporate Affairs. opinion on these secretarial records based on our audit.
3. Ministry of Corporate Affairs in its e-mail dated March 14, 2019 have 2. We have followed the audit practices and process as were appropriate
sought for information on CSR for the financial year 2015-16 under to obtain reasonable assurance about the correctness of the contents
Section 135 r/w Section 134(3)(o) of the Companies Act, 2013. The of the secretarial records. The verification was done on test basis
same was duly replied by the Company through an e-mail dated to ensure that correct facts are reflected in secretarial records. We
March 29, 2019.An e-form CFI(CSR) was also filed in respect thereof, believe that the processes and practices, we followed provide a
stating the specific information as required. reasonable basis for our opinion.
We further report that: 3. We have not verified the correctness and appropriateness of financial
The Board of Directors of the Company is duly constituted with proper records and Books of Accounts of the Company.
balance of Executive Directors, Non-Executive Directors, Independent 4. Where ever required, we have obtained the Management
Directors and Woman Director. The changes in the composition of the representation about the compliance of laws, rules and regulations
Board of Directors that took place during the year under review were carried and happening of events etc.
out in compliance with the provisions of the Act. 5. The compliance of the provisions of Corporate and other applicable
Adequate notice is given to all directors to schedule the Board Meetings, laws, rules, regulations, standards is the responsibility of management.
agenda and detailed notes on agenda were sent at least seven days in Our examination was limited to the verification of procedures on test
advance, and a system exists for seeking and obtaining further information basis.
and clarifications on the agenda items before the meeting and for meaningful For Grover Ahuja & Associates
participation at the meeting. Company Secretaries
Majority decision is carried through while the dissenting members’ views, if
any, are captured and recorded as part of the minutes. Akarshika Goel
We further report that there are adequate systems and processes in the (Partner)
Company commensurate with the size and operations of the Company to Place: New Delhi ACS No.: 29525
monitor and ensure compliance with applicable laws, rules, regulations and Date : May 24, 2019 C.P No.: 12770
guidelines.

For Grover Ahuja & Associates

Company Secretaries

Akarshika Goel
(Partner)
Place: New Delhi ACS No.: 29525
Date : May 24, 2019 C.P No.: 12770

This report is to be read with our letter of even date which is annexed as
‘Annexure A’ and forms an integral part of this report.

16
 ANNEXURE - II
FORM NO. MGT 9
Extract of Annual Return
as on financial year ended on 31.03.2019
[Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014]
I. REGISTRATION & OTHER DETAILS:
1. CIN L29130HR1986PLC081555
2. Registration Date 23/10/1986
3. Name of the Company The Hi-Tech Gears Limited
4. Category/Sub-category of the Company Company Limited by Shares/ Indian Non-Government Company
5. Address of the Registered office & contact details Plot No. 24-26, Sector-7, IMT Manesar,
Distt. Gurgaon -122050, Haryana, India
Tel: (0124) 4715200
6. Whether a company is listed or not Yes
7. Name, Address & contact details of the Registrar & M/S MAS Services Limited
Transfer Agent, if any. (Unit: The Hi-Tech Gears Limited)
T-34, 2nd Floor, Okhla Industrial Area, Phase –II,
New Delhi – 110020
Ph.: 011 – 26387281, 82, 83, Fax: 011 – 26387384
Web site: www.masserv.com
Email: [email protected]; [email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

(All the business activities contributing 10 % or more of the total turnover of the company shall be stated)
S. Name and Description of main products / services NIC Code of the %  to total turnover of
No. Product/service the company
1 Manufacture of diverse parts and accessories for motor vehicles such as brakes, gearboxes, 29301 100%
axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes,
catalyser, clutches, steering wheels, steering columns and steering boxes etc.

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -

S. No. Name and Address of the Company CIN/GLN Holding/Subsidiary/Associate % of shares held Applicable Section
1. 2545887 Ontario Inc. Ontario: 2545887 Subsidiary 100 Section 2(87)
361 Speedvale Ave. West Guelph, Ontario
N1H1C7 Canada
2 The Hi-Tech Gears Canada Inc. Ontario : 1965796 Step down Subsidiary 100 Section 2(87)
(Formerly known as Teutech Industries Inc.)
361, Speedvale Avenue West, Ontario,
N1H1C7 Canada
3 Teutech Holding Corporation Delaware: Step down Subsidiary 100 Section 2(87)
Suite 606, 1220 N. Market Street, 98-0414627
Wilmington, Delaware, 19801, County of
Newcastle, USA
4 Teutech, L.L.C. Alabama : Step down Subsidiary 100 Section 2(87)
416 Owens Drive, Huntsville, Alabama, 20-0424638
35801, USA
5 Teutech Leasing Corp Alabama : Step down Subsidiary 100 Section 2(87)
400 Meridian Street, Suite 301, Huntsville, 20-0504993
Alabama, 35801, USA
6 2504584 Ontario Inc. Ontario : Step down Subsidiary 100 Section 2(87)
361, Speedvale Avenue West, Ontario 2504584
N1H1C7 Canada
7 2323532 Ontario Inc. Ontario: 2323532 Step down Subsidiary 100 Section 2(87)
361, Speedvale Avenue West, Ontario
N1H1C7, Canada
8 Neo-Tech Auto Systemz Inc. 36-4801889(EIN) Subsidiary 100 Section 2(87)
3411 Silverside Road, Rodney Building,
Suite 104, Wilmington, De 19810, USA
9 Neo –Tech Smart Solutions Inc. 002635220 Subsidiary 100 Section 2(87)
361, Speedvale Avenue West,
Ontario N1H1C7, Canada

17
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as % age of Total Equity)
A - Category-wise Share Holding
Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
[As on 01-April-2018] [As on 31-March-2019] During
Demat Physical Total % of Total Demat Physical Total % of Total the year
Shares Shares
A. Promoters
(1) Indian
a) Individual/ HUF 5571545 8000 5579545 29.73 5571545 8000 5579545 29.73 0

b) Central Govt - - - - - - - - -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. 4799076 0 4799076 25.57 4799076 0 4799076 25.57 0
e) Banks / FI - - - - - - - - -
f) Any other - - - - - - - - -
Total shareholding of 10370621 8000 10378621 55.30 10370621 8000 10378621 55.30 0
Promoter (A)
B. Public Shareholding
1. Institutions - - - - - - - - -
a) Mutual Funds - - - - - - - - 0
b) Banks / FI 43748 900 44648 0.24 23408 900 24308 0.13 (0.11)
c) Central Govt - - - - - - - - -
d) State Govt(s) - - - - - - - - -
e) Venture Capital Funds - - - - - - - - -
f) Insurance Companies - - - - - - - - -
g) FIIs - - - - - - - - -
h) Foreign Venture Capital - - - - - - - - -
Funds
i) Others (specify) 739 - 739 - - - - -
Sub-total (B)(1):- 44487 900 45387 0.24 23408 900 24308 0.13 (0.11)
2. Non-Institutions
a) Bodies Corp.
i) Indian 1706252 9072 1715324 9.14 1570787 1072 1571859 8.38 (0.76)
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals
i) Individual shareholders 2432713 85457 2518170 13.42 2401123 66732 2467855 13.15 (0.27)
holding nominal share
capital upto Rs. 2 lakh
ii) Individual shareholders 3818594 - 3818594 20.35 3787227 - 3787227 20.18 (0.17)
holding nominal share
capital in excess of Rs 2
lakh
c) Others (NBFCs registered 1585 - 1585 0.00 185 - 185 0.00 0.00
with RBI)
d) Non Resident Indians 229815 - 229815 1.22 233244 - 233244 1.24 0.02
including on Repeatriable
Basis/Non Repeatriable
Basis
e) Overseas Corporate Bodies - - - - - - - - -
f) Foreign Nationals - - - - - - - - -
g) Any Other/ Clearing 60504 - 60504 0.32 304701 - 304701 1.62 1.3
Members
h) Trusts - - - - - - - - -
i) Foreign Bodies - D R - - - - - - - - -
Sub-total (B)(2):- 8249463 94529 8343992 44.46 8297267 67804 8343992 44.57 0.11
Total Public Shareholding 8293950 95429 8389379 44.70 8320675 68704 8389379 44.70 0.00
(B)=(B)(1)+ (B)(2)
C. Shares held by Custodian - - - - - - - - -
for GDRs & ADRs
Grand Total (A+B+C) 18664571 103429 18768000 100.00 18691296 76704 18768000 100.00 0.00

18
B) Shareholding of Promoter
S. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. shareholding
No. of % of total %of Shares No. of % of total %of Shares during the
Shares Shares Pledged / Shares Shares Pledged / year
of the encumbered to of the encumbered
company total shares company to total shares
1 Vulcan Electro Controls Limited 1082000 5.77 - 1082000 5.77 - 0.00
2 Olympus Electrical Industries Pvt Ltd 1745200 9.30 - 1745200 9.30 - 0.00
3 Hi-Tech Portfolio Investments Limited 1971876 10.51 - 1971876 10.51 - 0.00
4 Veena Kapuria 501120 2.67 - 501120 2.67 - 0.00
5 Dev Kumari Kapuria 2000 0.01 - 2000 0.01 - 0.00
6 Anuj Kapuria 844062 4.50 - 844062 4.50 - 0.00
7 Pranav Kapuria 848102 4.52 - 848102 4.52 - 0.00
8 Deep Kapuria 3117461 16.61 - 3117461 16.61 - 0.00
9 Deep Kapuria & Sons (HUF) 220800 1.18 - 220800 1.18 - 0.00
10 Master Abhay Kapuria 8000 0.04 - 8000 0.04 - 0.00
11 Adhiveer Kapuria 19000 0.10 - 19000 0.10 - 0.00
12 Adhiraj Kapuria 19000 0.10 - 19000 0.10 - 0.00
Total 10378621 55.30 - 10378621 55.30 - 0.00
C) Change in Promoters’ Shareholding (please specify, if there is no change)
No change took place in Promoters’ Shareholding during the year i.e. from 01st April, 2018 to 31st March, 2019
D) Shareholding Pattern of top ten Shareholders:
(Other than Directors, Promoters and Holders of GDRs and ADRs):
Top Ten Shareholders Shareholding at the beginning of Top Ten Shareholders Shareholding at the End of the
the year (April 1, 2018) year (March 31, 2019)
No. of shares % of total shares No. of % of total shares
of the Company shares of the Company
Nemish S Shah 767049 4.09 Nemish S Shah 767049 4.09
Anuj Anantrai Sheth 759959 4.05 Anuj Anantrai Sheth 759959 4.05
Nemish S Shah (HUF) 580000 3.09 Nemish S Shah (HUF) 580000 3.09
Mukesh Chimanlal Patani 536762 2.86 Mukesh Chimanlal Patani 536762 2.86
Hiten Anantrai Sheth 285000 1.52 Shamyak Investment Private 289600 1.54
Limited
Prescient Wealth Management Pvt Ltd 223990 1.19 HitenAnantrai Sheth 285000 1.52
Shamyak Investment Pvt. Ltd. 179600 0.95 Prescient Wealth Management 255363 1.36
Pvt Ltd
Gagandeep Credit Capital Pvt Ltd. 148376 0.79 Gagandeep Credit Capital Pvt 154376 0.82
Ltd.
Prescient Securities Private Limited 142292 0.76 Prescient Securities Private 142292 0.76
Limited
Anvil Share and Stock Broking Pvt. Ltd 348380 1.85 Zafar Ahmadullah 133000 0.71
Note: The shares of the Company are traded on a daily basis at the Stock Exchanges and hence the date wise increase/decrease in shareholding is not
indicated.
E) Shareholding of Directors and Key Managerial Personnel:
S. Name Shareholding Date Increase/Decrease Reason Cumulative % of total
No. No. of Shares at % of total in shareholding Shareholding shares
the beginning shares during the year of the
(01-04-18) / end of the (01-04-18 to 31- Company
of the year (31- Company 03-19)
03-19) No. of Shares
A DIRECTORS
1 Mr. Deep Kapuria 3117461 16.61 1-Apr-18     3117461 16.61
3117461 16.61 31-Mar-19 - - 3117461 16.61
2 Mr. Pranav Kapuria 848102 4.52 1-Apr-18     848102 4.52 
848102 4.52 31-Mar-19 - - 848102 4.52
3 Mr. Anuj Kapuria 844062 4.50 1-Apr-18     844062 4.50
844062 4.50 31-Mar-19 - - 844062 4.50
4 Mr. Sandeep Dinodia 0 0.00 1-Apr-18 0 0.00
0 0.00 31-Mar-19 - 0 0.00
5 Mr. Ramesh Chandra Jain 0 0.00 1-Apr-18 0 0.00
0 0.00 31-Mar-19 - - 0 0.00

19
 S. Name Shareholding Date Increase/Decrease Reason Cumulative % of total
No. No. of Shares at % of total in shareholding Shareholding shares
the beginning shares during the year of the
(01-04-18) / end of the (01-04-18 to 31- Company
of the year (31- Company 03-19)
03-19) No. of Shares
6 Mr. Anil Kumar Khanna 0 0.00 1-Apr-18 0 0.00
0 0.00 31-Mar-19 - - 0 0.00
7 Mr. Bidadi Anjani Kumar 0 0.00 1-Apr-18 0 0.00
0 0.00 31-Mar-19 - - 0 0.00
8 Mr. Vinit Taneja 5600 0.03 1-Apr-18 5600 0.03
5600 0.03 31-Mar-19 - - 5600 0.03
9 Anant Jaivant Talaulicar 0 0.00 1-Apr-18 - - 0 0.00
0 0.00 31-Mar-19 - - 0 0.00
10 Mr. Krishna Chandra 0 0.00 1-Apr-18 - - 0  0.00
Verma 0 0.00 31-Mar-19 - - 0  0.00
11 Mr. Prosad Das Gupta 2000 0.00 1-Apr-18 2000  0.00
2000 0.00 31-Mar-19 - 2000  0.00
12 Ms. Malini Sud 0 0.00 1-Apr-18 0  0.00
0 0.00 31-Mar-19 - - 0  0.00
B KEY MANAGERIAL 0.00
PERSONNEL
13 Mr. Vijay Mathur (CFO) 20 0.00 1-Apr-18 20 0.00
(01.04.2018-22.02.19) 20 0.00 22-Feb-19 - - 20 0.00
14 Mr. Dinesh Chand Sharma 0 0.00 25-Feb-19 0 0.00
(CFO) (25.02.2019-
0 0.00 31-Mar-19 - - 0 0.00
31.03.2019)
15 Mr. S.K. Khatri (CS) 0 0.00 1-Apr-18   0 0.00
0 0.00 31-Mar-19 - - 0 0.00
V) INDEBTEDNESS: Indebtedness of the Company including interest outstanding/accrued but not due for payment
(Amount in million)
Secured Loans Unsecured Loans Deposits Total Indebtedness
excluding deposits
Indebtedness at the beginning of the financial year
i) Principal Amount 1819.50 - - 1819.50
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 11.75 - - 11.75
Total (i+ii+iii) 1831.25 - - 1831.25
Change in Indebtedness during the financial year
* Addition 777.43 - - 777.43
* Reduction 62.66 - - 62.66
Net Change 714.77 - - 714.77
Indebtedness at the end of the financial year
i) Principal Amount 2534.27 - - 2534.27
ii) Interest due but not paid 0 - - 0
iii) Interest accrued but not due 15.00 - - 15.00
Total (i+ii+iii) 2549.27 - - 2549.27
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(Amount in million)
Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No. Mr. Deep Kapuria Mr. Pranav Mr. Anuj
(Chairman) Kapuria (MD) Kapuria (WTD)
2018-19 2018-19 2018-19
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 12.67 5.24 4.34 22.25
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.88 0.41 0.64 1.93
(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 NIL NIL NIL NIL
2 Stock Option NIL NIL NIL NIL
3 Sweat Equity NIL NIL NIL NIL
4 Commission 6.73* 4.94* 4.94* 16.61*
- as % of profit 1.59% 1.16% 1.16% 3.91%
- others, specify…

20
 Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No. Mr. Deep Kapuria Mr. Pranav Mr. Anuj
(Chairman) Kapuria (MD) Kapuria (WTD)
2018-19 2018-19 2018-19
5 Others, please specify NIL NIL NIL NIL
Total (A) 20.28 10.59 9.92 40.79
Ceiling as per the Act Being 10% of the net profit of the Company as calculated as per section 197,
198 & other applicable provisions of Companies Act, 2013.
* The Commission relates to 2018-19, however the same is still to be disbursed.
B. Remuneration to other directors (Amount in million)
S. No. Name of the Directors & Designation Commission Sitting Fees Total Amount
1 Mr. Sandeep Dinodia, Independent Director 0.24 0.14 0.38
2 Mr. Krishna Chandra Verma, Independent Director 0.24 0.13 0.37
3 Mr. Vinit Taneja, Independent Director 0.24 0.10 0.34
4 Mr. Anil Kumar Khanna, Independent Director 0.24 0.08 0.32
5 Mr. Ramesh Chandra Jain, Non-Executive Director 0.24 0.06 0.30
6 Mr. Bidadi Anjani Kumar, Non-Executive Director 0.24 0.05 0.29
7 Mr. Prosad Dasgupta, Independent Director 0.24 0.07 0.31
8 Ms. Malini Sud, Independent Director 0.24 0.05 0.29
9 Mr. Anant Jaivant Talaulicar, Non-Executive Director 0.20 0.01 0.21
Total (B) 2.12 0.69 2.81
Ceiling as per the Act 1% of the net profit of the Company as calculated as per section 197, 198 &
other applicable provisions of Companies Act, 2013. However the payout is
restricted to 0.5% of the Net Profits calculated in terms of section 197, 198
& other applicable provisions of the Companies Act, 2013.
Total Managerial Remuneration ceiling as per Act, i.e 11% of the net profit of the Company as calculated as per section 197, 198 & other applicable provisions
of Companies Act, 2013. Out of this 10% is utilized for remuneration to whole time directors and 0.5% to Non Executive Directors (other than sitting fee)
Total Managerial Remuneration (Total A+B) is Rs. 43.60 million.
C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD (Amount in million)
S. No.  Particulars of Remuneration Mr. Vijay Mathur Mr. Dinesh Chand Mr. S.K. Khatri Total
Sharma
CFO CFO CS
2018-19 (01.04.2018 to 2018-19 (25.02.2019 2018-19
22.02.2019) to 31.03. 2019)
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of 3.08 0.91 2.15 6.14
the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.00* NIL 0.00* 0.00
(c) Profits in lieu of salary under section 17(3) Income-tax NIL NIL NIL NIL
Act, 1961
2 Stock Option NIL NIL NIL NIL
3 Sweat Equity NIL NIL NIL NIL
4 Commission NIL NIL NIL NIL
- as % of profit NIL NIL
-Others, specify
5 Others, please specify NIL NIL NIL NIL
  Total 3.08 0.91 2.15 6.14
* Value of perquisites is Rs. 1500/- u/s 17(2) Income-tax Act, 1961.
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type Section of the Brief Description Details of Penalty/ Authority Appeal made if any
Companies Act Punishment/ Compounding (RD/ NCLT/ Court) (give details)
fees imposed
A. COMPANY
Penalty
Punishment None None
Compounding
B. DIRECTORS
Penalty
Punishment None None
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment None None
Compounding

21
 ANNEXURE-III

INFORMATION AS PER SECTION 134 (3) (m) OF THE COMPANIES Additionally, the state of the art new plant in Bhiwadi, an ‘ECOFAC Plant’,
ACT, 2013, READ WITH RULE 8(3) OF THE COMPANIES (ACCOUNTS) i.e. a sustainable green manufacturing plant is working to satisfy all green
RULES, 2014 FORMING PART OF DIRECTORS’ REPORT FOR THE needs. It has many energy conservation features. The Plant has received
YEAR ENDED MARCH 31, 2019. Platinum rating from the Indian Green Building Council.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND It is further to inform that the Manesar Manufacturing Unit has also upgraded
FOREIGN EXCHANGE EARNINGS & OUTGO its facility and become another “ECOFAC Plant’. This Unit is also awarded
A. CONSERVATION OF ENERGY Platinum Award from Indian Green Building Council.

Continuous efforts are being made to conserve the energy. The activities Additional cost, if any for above measures are absorbed in the production/
are ongoing to save and optimum utilization for electricity and fuel and operation process, thus no cost is identified separately
thereby reducing energy cost. Some of initiatives taken/ improved are as New ideas are being adopted across the shop floor, factory area and even
under: in office premises to conserve and promote of operations. Accordingly,
• Used IE4 Grade highly energy efficient  motor in 90 KW Kaeser the company will continue to adopt future proposals for consumption of
Compressor. energy.
• Replacement of all 4x54 watt T5 Lamps in Shop floor with 100 Watt LED The impacts of above measures are mainly reduction in power & fuel
Light. consumption, resulting reduction of cost of production. The information
• Enhance the STP Plant capacity from 20 KLD to 40KLD to treat and relating to Total Energy Consumption and Energy Consumption per unit of
reuse the waste water. production is not applicable to Company, thus the Form A is not furnished.
• Installation of Robot in Mazak Machine Cell for Shaft machining B. TECHNOLOGY ABSORPTION
operation. i. Efforts made in Technology Absorption
• Controlling of Air leakages from Air Pressure Gauges unit thru sensors The Company has absorbed the technologies received from its
and pneumatic valve. partners in the past and in the last five years; no further technologies
• Regular Air Leakage & Water Leakage Audit and subsequently plugging have been imported.
the leakage points.
The steps initiated by the Company for implementation and absorption
• Providing interlocking to stop preheating & Tempering furnace, if run idle of Lean Manufacturing are consistently showing encouraging
more than ten minutes. outcome. Further, Company’s commitment towards Total Productivity
• Electricity utilisation thru two solar plants of 400 KW and 250KW on roof Maintenance (TPM) has yielded excellent results in quality and
top of 2 manufacturing units. design of the products. These efforts shall ensure that the above said
• Maintaining temperature of panel AC’s of machines in range of technology and the work culture is harnessed and percolated down to
24 to 28 C the entire organization. Your Company has continuously endeavoured
• Energy Conservation by Automation of CNC machines by auto switching to acquire world-class technology both in hardware and software.
Off of Hydraulic  electric motors & chip conveyor motors when machine The benefit and impacts of above mentioned measures are lead time
stopped for more than 3 minutes reduction of the various complex methods, elimination of waste and
• Provide Solar Reflexive paint on Roof to reduce the shop floor temp. by saving of time and efforts.
2DegC ii. Specific areas in which Research and Development carried out by the
• Energy Audits are done on periodic basis and corrective actions taken, Company
wherever required.
Research & Development were carried in product development/
• Energy conservation by adaptation & continuous running of VFD in 570 process development/ energy conservation/ environment protection/
CFM Air compressor cost reduction and automation. In aforesaid process design and
• Various Modules are developed to conserve and save the energy.  The material data base are continuously improved and enhanced.
same are monitored thru Project Management system.
The Company is continuing to absorb the innovative Solution Ideas
• Conversion of normal Lamps with LED lamps in Shop floor in product specification tool and end products. The Company is
• Adaptation of energy efficient motors in Forced Duct Ventilators - continuously working in the direction to prepare parts for itself for the
replaced with old motors technological changes in the auto sector, including electrification of
• Automation of Cooling Tower pumps and motors for energy saving vehicles, as mandated by government.
WATER CONSERVATION MEASURES iii. Benefits derived with the installation of various additional equipments
• Continious usage of Drip Irrigation system for the Shrub, Grass and the have made it possible to achieve consistency in production and quality
Plant to reduce the water consumption of the existing finished product and the new product development.
• Adaptation of low water consumption   faucets and fixtures  to minimize iv. Future plan of Action
water consumption in general use and in Canteen • Reduction in process losses by continues identifying the area of
• Maintaining Rain water harvesting system in good working condition for operation.
maintaining ground water level. • Development of new products
• Use of ETP water for gardening and other miscellaneous usages. • New measures required for the utilization of the renewable energy
• Enhancement of greenery landscape • Project adopted for optimizing the motor capacity in machines.

22
 • Run the Plant on Solar Power thru bilateral Capex model. C. FOREIGN EXCHANGE EARNINGS & OUTGO
v. Expenditure on Research & Development The Company recorded an export turnover of Rs. 1912.1 million as
Development and improvement of products has been an inbuilt and compare to Rs. 1304.38 million in the previous year, thereby recorded
ongoing activity within the existing manufacturing facilities, however an increase of 46.60 %. The total exports are now 29.54% of the total
management has identified an amount of Rs. 26 million on account of turnover. The details of Foreign Exchange Inflow and outflow are as
R&D. Note no. 44 of the Notes to Accounts of standalone Financials under:
may be referred for the details.

(Amount in million)
Particulars (2017-18) (2018-19)
Inflow 1304.38 1912.1
Outflow
Capital Equipment 23.41 325.24
Consumables 11.01 30.60
Raw Material 2.32 44.86
Others 84.07 112.3*
* It includes ECB Loan repayment amount of Rs. 71.15 million.

23
 ANNEXURE - IV
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITIES Composition of the CSR Committee
(CSR) ACTIVITIES Mr. Krishna Chandra Verma Chairman - Independent Director
CSR is a commitment by business to behave ethically and contribute to Mr. Deep Kapuria Member - Executive Director
economic development and to improve the quality of life of local community Mr. Pranav Kapuria Member - Executive Director
and society at large. It includes ensuring environmental sustainability, Mr. Ramesh Chandra Jain* Member - Non-Executive Director
promoting gender equality, education etc. Business entities can no longer *During the year, the CSR committee was reconstituted by introducing a new
limit themselves to using resources, to engage in activities that increase director, Mr. Ramesh Chandra Jain, as member in the CSR Committee
their profits. They have to be socially responsible corporate citizens and The Committee met twice during the year under review. Details of the
also contribute to the social good. same are provided in Corporate Governance Report attached to the Annual
We have assumed the above requirement to act in socially diligent manner. Report.
We have explored its impact on the economic, social and environmental Average net profit of the Company for the last three financial years
sector which directly affects the relationships with employees, society,
Average net profit: Rs. 377,948,648/-
environment and other stake holders. The Company has developed and
implemented a policy pursuant to the provisions of section 135 of Companies Prescribed CSR expenditure (2% of the average net profit of the last
Act, 2013 read with Companies (Corporate Social Responsibility Policy), three financial years)
Rules 2014. The same is available on the website of the Company. The Company was required to spend Rs. 7.56 million towards CSR during
Brief outline of the Company’s CSR policy including overview of the financial year 2018-19.
projects or programs proposed to be undertaken and a reference to Details of CSR spent during the financial year:
the web-link to the CSR policy and projects or programs. a) Total amount spent for the financial year; Rs. 7.78 million
The Company’s CSR policy has been uploaded and available at the website b) Amount unspent, if any; NIL
of the Company under the web-link at http://www.thehitechgears.com.

Manner in which amount spent during the financial year is detailed below:
(Amount in million)
Sl. CSR project or activity Sector in which the project Locations (Unit) Amount Amount Spent Cumulative Amount
No. identified is covered outlay on the project Expenditure spent: Direct
project/ or programs upto or through
programs (Rs) reporting implementing
wise (Rs) period (Rs) agency
1 Education, Technical Promoting education, Local Area i.e. 5.25 5.25 5.25 Direct
Education including including special education Haryana, Delhi &
Research & Development and vocation skills. Rajasthan
2 Integrated Community Building of tube well, Local Area i.e. 1.33 1.33 6.58 Direct
Development water harvesting & women Rajasthan & Delhi
development
3 Disaster Management Support to victims of natural Local Area i.e 1.20 1.20 7.78 Direct
calamities & disaster New Delhi
through Prime Minister
Relief fund and other
agencies
Responsibility Statement by the Corporate Social Responsibility Committee:
The responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy
of the Company.

(Company Secretary) (Chief Executive Officer or Managing (Chairman CSR Committee)

Director or Director)

24
 ANNEXURE- V
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of
section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis:
There were no contracts or arrangements or transactions entered into with related parties during the year, which were not at arm’s length basis.
2. Details of material contracts or arrangement or transactions at arm’s length basis:
Name(s) of the related party Aquarian Fibrecement The Hi-Tech Robotic Vulcan Electro Controls The Hi-Tech Eng. Systems
and nature of relationship Private Limited (Aquarian) Systemz Limited (HRSL) Limited (Vulcan) Private Limited (HESPL)
Nature of contracts/ Leasing of Property Receiving of Job Work/ Sale/Purchase/ Sale/Purchase/
arrangements/ Services Receive and Rendering of Receiving of services
Transactions Job work/ services
Duration of the contracts / Ongoing Ongoing Ongoing Ongoing
arrangements/ Transactions
Salient terms of the In tune with market In tune with market In tune with market In tune with market
contracts or arrangements parameters estimated parameters estimated parameters estimated parameters estimated
or transactions including the annual value of Rs. 24.0 annual value of Rs185 annual value of Rs 2000 annual value of Rs 1250
value, if any million for the financial year million for the financial year million for all contracts for million for all contracts for
2018-19 2018-19 the financial year 2018-19 the financial year 2018-19
Date(s) of approval by the August 03, 2018 August 03, 2018 August 03, 2018 August 03, 2018
Board
Amount paid as advances Rent is normally paid in As per normal commercial As per normal commercial As per normal commercial
Advance of the month T&C T&C T&C
• Above is the statement of all contracts which may be considered as related party transactions.
• Company has taken Omnibus approval from the Audit Committee for the Related Party Transactions for the financial year 2018-19.
• Out of the above contracts with Vulcan & HESPL are considered material Related Party Transactions.
• During the year under review, the Company has incorporated a Company in Canada. Refer Board Report for brief of transaction. The Company
has invested Rs. 13.78 million in Subsidiary Company. The Investment in equity is pursuant to Section 186 is well within the sanctioned limit by
the Shareholders. Further Related Party Transactions with the overseas wholly owned subsidiaries, if any is exempt within the purview of taking
shareholders approval pursuant to Section 188.
• For Material related party transactions, approval of the Shareholders have been obtained.
• For exact value of Related Party Transactions, please refer chapter XII of the Corporate Governance Report and note 36 of the standalone financial
statement of the Company.

25
 ANNEXURE-VI
Statement of particulars of Employees pursuant to the provision of section 197 of the Companies Act, 2013 read with the Rule 5 of Companies (Appointment & Remuneration of
Managerial Personnel) Rules, 2014, forming part of the 33rd Directors’ Report for the financial year ended on March 31, 2019.
(Rs. In million)
Name Designation Age Nature of Nature of Remuneration Qualification Exp. Date of % of Equity Last Employment &
Employment Duties received (Yrs) Commencement shares held Designation
& other terms of initial
and conditions Employment
Mr. Deep Chairman 70 Contractual Overall Control 21.23 *BE (Hons) from 46 01.01.1987 3117461 Business
Kapuria appointment and policy B.I.T.S., Pilani (16.61%)
for a period of formulation *Advance
5 year w.e.f. Management
01.01.2017 Programme from
IIM (A)
*Lead Assessor
Course
*Owner
Management
Programme from
Harvard Business
School
Mr. Pranav Managing 44 Contractual Overall control 10.98 *B. Com (H) from 18 01.08.2000 848102 With The Hi-Tech Gears
Kapuria Director appointment of day to day Delhi University (4.52%) Ltd. as Director
for a period of management of *MBA from Cardiff
5 years w.e.f. the Company Business School
01.08.2015 *Certificate

26
Program on Lean
Manufacturing
from University of
Michigan
Mr. Anuj Kapuria Whole Time 41 Contractual Overall control 10.25 *BE in Robotic 13 30.05.2005 844062 With The Hi-Tech Gears
Director appointment of day to day and Automated (4.50%) Ltd. as Director
for a period of management of Manufacture
5 years w.e.f. the Company engineering from
15.05.2015 Sussex university,
U.K
*Master’s Degree
in Robotics from
Carnegie Mellon
University
Note:
Information has been furnished in respect of all Whole Time Directors. There was no employees who was in receipt of remuneration which in aggregate was not less than Rs. 102 Lakhs
per annum or was not less than Rs. 8.50 Lakhs per month. Remuneration includes salary, allowance, commission, expenditure on perquisites and Company’s contribution to provident fund.
Commission is pending for disbursement till the finalization of this Report. None of the Employees was in receipt of remuneration in excess of that drawn by any of the Executive Directors and
holds by himself or along with his spouse and dependent children, 2 % or more of the equity shares of the Company. Information pursuant to Rule 5(2) shall be made available to any shareholder
on a specific request made by him in writing before the date of Annual General Meeting. Mr. Deep Kapuria, Mr. Pranav Kapuria and Mr. Anuj Kapuria are related to each other. No other employee
is a relative of any Director or KMP of the Company.
Pursuant to Section 197 (12) of the Companies Act, 2013 & Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Every Listed Company shall disclose the Remuneration of Every Executive Director & KMPs of the Company in the following manner:
1. Ratio of the remuneration of each director to the median remuneration of the employees of the company
a. Executive Directors
Mr. Deep Kapuria, Executive Chairman-51.24; Mr. Pranav Kapuria, Managing Director-26.51; Mr. Anuj Kapuria, Executive Director- 24.73
Remuneration includes basic salary, HRA, Commission. Medical expenses reimbursement, contribution to provident fund & other statutory funds.
b. Non-Executive Director
Mr. Anil Kumar Khanna, Independent Director- 0.77; Mr. Sandeep Dinodia, Independent Director-0.92; Mr. Vinit Taneja, Independent Director-0.82;
Mr. Prosad Dasgupta, Independent Director- 0.75; Mr. Krishna Chandra Verma, Independent Director- 0.89; Mr. Ramesh Chandra Jain, Non-
Executive Director-0.72, Ms. Malini Sud, Independent Director-0.70; Mr. Bidadi Anjani Kumar, Non-Executive Director- 0.70 and Mr. Anant Jaivant
Talaulicar, Non-Executive Director-0.51
Remuneration of Non-Executive Directors includes Sitting fees & Commission.
2. There were 903 number of permanent employees on the rolls of company as on 31st March, 2019;
3. The company registered a growth of 22.75% in operating income as compared to average percentage increase in median remuneration of employees
is 8.90% in financial year 2018-19.
4. (a) Financial Performance of the Company
S. No. Particulars 2018-19 2017-18 % Change
(Rs in million) (Rs in million)
1 Turnover of the Company (net of excise duty) 6472.15 5272.65 22.75%
2 Profit Before Tax 531.22 483.87 9.79%
3 Profit After Tax 354.84 319.12 11.19%
5.
(a) The Market capitalization as on 31st March, 2019 was Rs 5408 million and Rs 7475.3 million as on 31st March, 2018 which shown decline of
27.66 %.
(b) Price Earnings ratio of the Company was 15.23 as at 31st March, 2019 and 23.43 as on 31st March, 2018 which shows a decrease of 35%.
(c) The Company has not made any Public offer in the recent past and accordingly, comparison of Public offer price and the current market price of the
company’s shares will not be relevant;
6. The key parameters for any variable component of remuneration availed by the directors are considered by the Board of Directors based on the
recommendations of the Nomination & Remuneration Committee as per the remuneration policy for Directors, Key Managerial Personnel, Senior
Management & other employee.
7. There is no employee who receive remuneration in excess of the highest paid director during the year
8. The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer or Company Secretary are as under:
Name of Director and DIN Designation % Change in remuneration
Mr. Deep Kapuria Executive Chairman (11.94)
Mr. Pranav Kapuria Managing Director (11.77)
Mr. Anuj Kapuria Executive Director (12.11)
Mr. Sandeep Dinodia Independent Director (25.58)
Mr. Krishna Chandra Verma Independent Director (25.58)
Mr. Vinit Taneja Independent Director (25.58)
Mr. Anil Kumar Khanna Independent Director (25.58)
Mr. Ramesh Chandra Jain Director (25.58)
Mr. Bidadi Anjani Kumar Director (25.58)
Mr. Prosad Dasgupta Independent Director (25.58)
Ms. Malini Sud Independent Director (25.58)
Mr. Anant Jaivant Talaulicar Director N.A.
Mr. Vijay Mathur (upto February 22, 2019) Chief Financial Officer 6.20
Mr. Dinesh Chand Sharma (from February 25, 2019) Chief Financial Officer N.A
Mr. S.K Khatri Company Secretary 7.44
Note:
a) Sitting fees payable to Non-Executive Directors (including Independent Directors) for attending Meeting of Board of Directors including
Committee Meetings of the Company. Hence, it is not considered as remuneration in case of Non-Executive Directors.
b) In case of Executive Directors, the remuneration is as per the provisions of the Companies Act, 2013.
c) Mr. Anant Jaivant Talaulicar joined the Board on May 21, 2018, hence this section is not applicable.
d) Mr. Dinesh Chand Sharma joined as Chief Financial Officer w.e.f. February 25, 2019 hence this section is not applicable.
9. It is affirmed that the remuneration is paid as per the remuneration policy of the Company.

27
Management Discussion Analysis

Brief about the Company With global  economic uncertainties rising  and with  fresh investments in
The Hi-Tech Gears Ltd. is an auto component manufacturer (Tier 1 supplier) the country at a decade low, the IMF, ADB as well as the RBI have pared
of world class repute. The Company has a foothold in US and Canada with down India’s growth forecasts, citing both rising risks to global economic
aggregate revenue of over Rs. 9300 million in FY 2018-19. growth as well as weakening domestic investment activity for their subdued
forecast.
The Company spans a spectrum of products, including transmission and
engine components, driveline components, engines design services and Industry and Segment dynamics
advanced technology-enabled products and solutions at the fore front of FDI inflows grew by 14.57% in FY19 and has been growing at a high
cutting edge technology. rate since 2015. Among the top sectors attracting FDI equity inflows,
services, automobiles and chemicals were the major categories. However
Company continues to focus on creating products and technology, which
in given situations, it would be difficult to sustain the growth amidst fears
enable its customers and stakeholders to rise. By focusing on customer
of withdrawal of funds by FIIs. The share market is responding to the
centricity, frugal innovation and enhancing people capabilities, the Company
development in global and Indian Economy in same manner. Another cause
continues to consolidate its leadership position in the domestic market while
of concern is that Government wants to raise the threshold for minimum
continuously pursuing global expansion.
public shareholding in the listed entities from 25% to 35%, which seems
The Macro Economic Environment difficult to achieve in this era of liquidity crisis.
Global Economy After two years of good agriculture growth, real growth in ‘agriculture &
Growth is projected at 2.8% in 2018 on continued benign global financing allied’ sector was lower in 2018-19 at 2.9%. Growth in manufacturing sector
conditions and modest recovery in emerging market and developing picked up initially, but the momentum slowed down towards the end of the
economies (EMDEs). Global growth in 2019 is expected to continue to financial year with a growth of 3.1% in fourth quarter.
slow, reflecting weaker-than-expected trade and investment at the start Overall Index of Eight Core Industries registered a growth rate of 4.3% in
of the year, weakness in trade and manufacturing across all economies FY19. However, India’s ranking improved to 77th position in 2018 among
especially in Eurozone. It is mainly due to reasons like introduction of 190 countries assessed by the World Bank Doing Business Report, 2019.
new and retaliatory tariff measures, heightened US-China trade tensions, Rail freight and passenger traffic grew by 5.33% and 0.64 % respectively
weaker global economic growth, volatility in financial markets and absence in FY19 as compared to FY18. The installed capacity of electricity has
of Government’s support on major trade issues. U.S. growth is forecast to increased to 3,56,100 MW from 3,44,002 MW in previous year.
ease to 2.5% this year and further decelerate in 2020. Last few years have not been good for the Indian banking sector. They have
At a time when the global economy been disrupted by slowdown, US and been dealing with twin balance sheet problem, which refers to stressed,
China, world’s largest and biggest trading nations, are driven in part by corporate and bank balance sheets. The increase in NPA of banks led to
fallout from the trade war, which has spread to other nations, raising supply strain on balance sheets of banks. Due to inherent advantages, NBFCs
chain costs, chilling exports and worrying political & economic leaders. could rapidly scale their businesses where the formal banking system was
The idea that you could slow down the global growth engine and not affect slow in lending. However, adding to the heat in financial sector, major
other countries is just not credible. Recently, both countries showed some NBFCs are falling, which is another cause of concern for Government.
potentials of trade talk during G-20 summit. However, there is no progress At the same time right implementation of the IBC Code led to recovery and
thereafter, rather US imposed new sanctions in first week of August, China resolution of significant amount of distressed assets and improved business
to follow the suit. The main focus of tensions is likely to remain and there culture. Till March 31, 2019, the CIRP yielded resolutions involving claims
will always be the risk of this escalating into other countries and trade worth Rs. 1,73,359 crores out of which, Rs. 75,000 crores received by
territories. banks from previously non-performing accounts.
Current economic momentum remains weak, while heightened debt levels Service sector is the most dynamic sector in the economy and has remained
and subdued investment growth in developing economies are holding the key driver of economic growth along with being a major contributor to
countries back from achieving their potential. Manufacturing, which is GDP and export basket of the Indian Economy. Service exports has become
especially vulnerable to trade, is slowing across advanced economies one of the mainstays of India’s total exports increasing manifold, from Rs.
even as service industries hold up. It is urgent for such countries to make 0.746 lakh crore in 2000-01 to Rs. 14.389 lakh crore (USD 204.43 Billion) in
significant structural reforms that improve the business climate and attract 2018-19, raising its share in total exports to 38.4%.
investment. However, Indian  information technology  industry which shares a major
India’s Economy chunk in the service sector is in a rough ride this year, as the overall services
From a long time, both India and China are the fastest growing continental market is likely to face slowdown pangs. The growth rate is slow to 3.8%
sized emerging markets of the world. However, growth has been slowing in FY19, compared to 6.7% last year due to softness in banking, financial
down for both nations. The second advance estimate of national income services, insurance in Europe, apart from the manufacturing vertical, is
responsible for slowing book.
released by the Central Statistical organization estimated India’s real GDP
growth for 2018-19 at 6.8%, a 20 basis points decline compared to previous On positive side, India has taken lead in the directions of using the renewal
estimate. energy. India now stands at 4th in wind power, 5th in solar power. Share
of renewables in total electricity generation increased from 6% in to 10%
India’s economic slowdown shows no signs of abating, with a sizeable
in four years. The results are very encouraging, Rs 50k crore saved and
number of indicators of domestic demand still flashing red upto recent time.
108.28 million tonnes of Co2 emissions reduced by energy efficiency
The overall scenario remained unchanged despite some improvement on
programmes in India.
the external front largely because of fresh incoming data on the current
account balance as a share of GDP, which narrowed sharply in the quarter Benchmark policy rate first hiked by 50 bps and later reduced by 110 bps
ended June 2019. Consumption has always been a strong and major driver upto now. Last rate cut being in August 2019. This is the fourth time in a
of growth in the economy, however from last few months, there has been row that the central bank has cut key rates this calendar year to boost the
continuous fall in this direction also. economy.

28
India’s Foreign Trade Overall domestic automobiles sales increased at 5.15% CAGR in FY19
India’s overall exports (Merchandise and Services combined) in FY19 are with 2,62,67,783 vehicles. During FY19, highest year-on-year growth
estimated to be USD 535.45 Billion, exhibiting a positive growth of 7.97% in domestic sales among all the categories was recorded in commercial
vehicles at 17.55% followed by 10.27% year-on-year growth in the sales of
over the same period last year. Overall imports in April-March 2018-19 are
three-wheelers .
estimated to be USD 631.29 Billion, exhibiting a growth of 8.48% over the
same period last year. Domestic Vehicle Industry Growth

Taking merchandise and services tog ether, overall trade deficit for April- 25
20
March 2018-19 is estimated at USD95.85 Billion as compared to USD
20 17.55
86.05 Billion in April-March 2017-18. 
15
11.5
9.2
10 7.2 7.9

3.9 4.13
5 2.7

0 -2.82
2014-15 2015-16 2016-17 2017-18 2018-19
-5

Domestic Passenger Vehicle Industry Growth Growth Rate(%)

Domestic Commercial Vehicle Industry Growth Rate(%)

Premium motorbike sales in India again crossed one million units in FY19.
The total of India’s automotive exports stood at 46,29,054 in 2018-19 as
compared to 40,42,841 in the year 2017-18.
Indian automotive industry (including component manufacturing) is expected
to reach US $ 300 billion by 2026 with exports of US $ 80 billion. Two-
wheelers are expected to grow at steady rate of 9% and lead the show.

Automobile Sector and Production Trends Number of Vehicles (units in '000)

1000000
The Indian auto industry is one of the largest in the world and is also regarded
engine of growth and, it roughly accounts 7.5% of national GDP. Till now,
21181
the industry flourished with rapid urbanisation, coupled with increase in
10000 3377 3281
purchasing power of people, availability of capital and labour, favourable
1007 701
government policies, FDI and support from the efficient auto component 676 568
suppliers within India. Similarly, the Indian auto component industry was 100 (Domestic sales)
also one of the fastest growing industries and was riding on the success of 100
(Export sales)
automobile sector.
Presently, the growth momentum is grossly disturbed, and the sector is
1
slowing down with unprecedented rate. But the trade and Government Passenger Commercial Three-Wheelers Two- Wheelers
policies cannot be held only culprit behind slowing business. The other Vehicle Vehicle
reasons responsible are, a continuing, structural slowdown in international
Once, the growth returns, the Indian auto-components industry would set
growth, technological changes and tensions from Britain’s attempted exit
to become the third largest in the world. Rapidly globalising world to open
from the EU.
up newer avenues for the transportation industry, especially while it makes
As per SIAM figures, the performance of the auto component industry was a shift towards electric, electronic and hybrid cars, which are deemed more
reasonably satisfactory despite less than expected performance in some efficient, safe and reliable modes of transportation. Over the next decade,
categories and exports in FY19. this will lead to newer verticals and opportunities for auto-component
The industry produced a total of 3,09,15,420 vehicles in FY 19 as against manufacturers, who would need to adapt to the change via systematic
2,90,94,447 vehicles in previous year, registering a growth of 6.26%. research and development. Indian auto-component makers are also well
The production of Passenger Vehicles grew by 0.14 % (units 40,26,047). positioned to benefit from the globalisation of the sector as exports potential
Within the Passenger Vehicles segment, Passenger Cars declined by could increase by up to US$ 30 billion by 2022
1.33%, Utility Vehicles and Vans grew by 0.48%, 20.61% respectively. Risk & Concerns in Automobile and Component Segment
In 2018-19 the growth was majorly led by Commercial Vehicle segment
The automobile industry is at that point, where it is facing many disruptions
which registered a growth of 24.20 % with the recording of total vehicle
at the same time. Urgent test for automakers is to meet the technological
production to 11,12,176 units (PY 8,95,448 units). Again within the
changes as BS VI emission norms are being implemented from April 01,
Commercial Vehicles segment Medium & Heavy Commercial Vehicles
2020 and thereafter application of Corporate Average Fuel Efficiency norms.
(M&HCVs) grew by 28.91% and Light Commercial Vehicles grew by 21.26
This invariably result in increased vehicle’s cost on one side and increased
%. The Two-Wheeler segment registered a growth of mere 5.82% in FY
period of return of investment on the other side
2018-19 over previous year by recording total production of 2,45,03,086
units (PY 2,31,54,838 units). Within this segment, Scooters/ Scooterette The NITI Aayog has also set up an ambitious plan of having only electric
registered a de-growth of (-) 0.32 % while Motorcycles and Mopeds vehicles being sold in the country. The Ministry of Heavy Industries,
registered a growth of 8.80 % and 4.10 % respectively in FY 2018-19 Government of India has shortlisted 11 cities in the country for introduction
over FY 2017-18. In recent time, the major attraction is the quadricycle, of Electric vehicles (EVs) in their public transport systems under the FAME.
which grew by 214.54% due to its easy maintenance and city driving This move of NITI Aayog is heavily criticized for considering a proposal
convenience. to ban internal combustion engine (ICE)-powered vehicles in the market.

29
It is proposed to ban traditional three- and two-wheelers (with an engine Foreign Exchange Fluctuation: The volatility in foreign exchange is now
capacity of less than 150cc) by FY2023 and FY2025, respectively, and a major concern for the Company for the repayments of the ECB loans.
replace them with electric vehicles (EVs). To mitigate the risk, the Company has a natural edge, as the Company is
Vehicle manufacturing is the backbone of many economies and is receiving almost 30% of its revenue in foreign exchange through its export
dependent on China for growth. As trade tensions exacerbate China’s sales. Additionally, the management has taken another source of mitigation
economic weakening, manufacturers in other economies, including India i.e. fixing LIBOR component in total interest rate agreed for the External
pay the price. Commercial Borrowings to avoid the risk of fluctuation.

On the auto component side, it is regarded as a low operational cost and Input material: Steel is the primary source and raw material for the products
low margin business. The auto component industry has been battling with of the Company. It is an important part of the cost of the final product. Rising
its industry specific issues/ challenges such as: steel prices continue to be a challenge & pose a threat to the margins of the
Company in this competitive auto component sector.
• Infrastructure Challenges & Cost
• Problem of counterfeit parts To mitigate the risk, the Company continues to strive to improve its operational
• Availability of skilled manpower performance and develop new components, which are technologically
• Building R&D competence and Ecosystem superior and have an edge over its competitors. Additionally, the Company
• Fast technological changes is not dependent upon a single source/ supplier. A core team is constituted
• Implementation of BS VI effective next year, without proper preparation which has expertise in vendor management and keeps a track on the price of
• Heavy capex cost due to fast technological changes for EV. steel. This team negotiates the price in the best interest of the Company.

The auto component industry is not new to the above challenges and it is Power: The other major cost in production is the energy cost. Presently
dealing with them at its best from quite some time. It has almost overpowered the Company is getting power from the State Electricity Board as per the
the under capacity utilisation and excessive imports of raw material and prevailing tariff. The current tariffs are very high and occupy a major portion
capital goods. However, from last year it is experiencing the heat of high in the overall costing of the product.
energy and fuel cost and extreme volatility of currency due to higher crude To address the energy cost, the Company has implemented a process,
products prices. whereby it is purchasing electricity through the Electricity Exchange by
Outlook getting competitive quotes. Further, solar power plants of 400 KW & 250
KW have been successfully installed to reduce the energy cost. Additionally
India is now acting as a global hub for manufacture of commercial vehicles,
the Company is in talk for CAPTIVE consumption, which will reduce the
small & mid size cars and two wheelers. Rapid increase in sales of the
cost considerably.
small car segment in India has prompted a number of global automobile
companies to enhance their capacities for domestic as well as export Customer profile: The Company is primarily a gear & transmission
market. equipment manufacturer and supplier. The Company has a large focus
amongst a few groups of customers and industry segment. This limited
The Global automotive industry is undergoing a cascade of disruptions that
focus adds to market risks and also highlights the fact that one or some
will reshape it in unexpected ways and India is no exception to it.
customers moving out could leave a large impact on the operation and
The rapidly globalising world is opening newer avenues for the transportation financials of the Company. To mitigate this risk the Company is focusing
industry, especially while it makes a shift towards electric, electronic and on widening its customer base, entering new user segments and spreading
hybrid cars, which are deemed more efficient, safe and reliable modes of operations across geographies to mitigate the market risks.
transportation. Over the next decade, this will lead to newer verticals and
Two-Wheeler business: A major share of the Company’s business is still
opportunities for auto-component manufacturers, who would need to adapt
generated from the two wheeler segment and is evident from the financials.
to the changes via systematic research and development.
Competition in the business has also increased significantly. This has had a
The effects of demonetisation and teething problems of the initial rollout serious adverse impact on the margins of the component manufacturers. To
of GST have been diminishing and are now rather helping the economy overcome the risk of dependency on its two wheeler business, the Company
and the industry to grow. Below normal monsoon was expected initially, but has been developing clients for engine and transmission components in
as per the current report, it is improving, which will in turn help in sowing India and abroad.
and harvesting more yield. Additionally, increasing rural demand, growing
Technology Risk: One of the major challenges for the industry is to
urbanization, swelling replacement demand etc. may further accelerate
build R&D competence and an ecosystem. OEMs have been working on
the growth of the automobile industry and in turn the auto component
various technologies simultaneously. OEMs expect Tier-1 suppliers for
industry. Once there is clarity on technological changes, BS VI and EV
technology updation and material changes. Thus, the Company needs
implementation, the long-term prospects are bright & the demand will grow
to continuously stay in touch with such progress & needs to evaluate
due to the aforesaid factors.
ways to address these issues as well as develop technologies which
In view of the opportunities, the Company will leverage its positioning are affordable and accessible. To mitigate the risks, the Company
as it is ready for the BS VI and also rely on building its relationships and has always invested in upgrading its technology to meet the changing
product development plans to grow further. The export programmes are customer demand.
also expected to gain momentum. Overall, the focus will continue to be on
Geographical limitations: Auto component companies have another issue
quality delivery at optimum costs. The Company believes that FY 2019,
that is geographical limitations. Practically, it is difficult for them to expand
while being challenging, will be a year when not only the Company will
beyond certain geographies. Expanding beyond such limits will provide more
continue its growth momentum, but also will consolidate its position in the
fruits in terms of revenue and profits. However, tapping into such markets is
top league.
also not easy due to many factors such as acceptability, quality of the product,
Opportunities, Threat and Mitigation Strategies regulations, lack of capital, limited manpower and other resources.
At the operational level there are several risks that are inherent to the To address the above mentioned concern, the Company has been regular
business of the Company. These are typically transactional in nature. These in reaching out to other geographies. It has almost achieved the exports to
risks are managed through internal processes and controls. In addition, the the tune of around 30% of the total exports. We are committed to increase
Company has to deal with certain major micro risks that affect the Company’s this number. Further, the Company has acquired few entities in the NAFTA
strategy implementation, some of which are enumerated below: region which will be a progressive step in the right direction.

30
Regulatory Change: Regulations are changing to accommodate the Key Ratios
awareness about environmental responsibilities. Stringent emission and Key financial ratios are given below:
safety norms are playing an increasingly important role globally. In the
recent past, the government has focused on tighter emission norms. Now, Particulars Unit 2018- 2017- Change Reason for material
19 18 over change
the focus is also coming on to battery and hybrid vehicles to promote green
previous
vehicles. Of late, safety has also been attracting governmental attention. year
The Company is committed to comply with all applicable environmental Debtors Times 5.9 5.4 9.26 Debtors exceeds
and related regulations by gearing up for the technological changes in Turnover due to increase in
the products, so that it meets the requirements. Keeping this in mind, export sales from
Company has invested some funds in a South Indian entity in research and previous period.
advancement of leading edge expertise in the design and manufacturing of Inventory Times 8.7 11.8 -26.27 In the first three
high reliability motors, drive system, long battery life for the electrification of Turnover quarters, the
demand was high
road transport, carbon free electric vehicles.
and steel prices were
Brief of Financial Results increasing. Company
On standalone basis, the total turnover stood at Rs. 6634.52 million procured large
compared to Rs. 5515.71 million during the previous year. The Company quantity of inputs,
first time touched the Rs. 650 million mark in terms of total revenue. The including steels to
total turnover from operations stood at Rs. 6,472.15 million as compared to counter the demand
Rs. 5,383.82 million in FY 2017-18, registering a growth of 20.21%. Growth & increased input
in all verticals was clearly visible. The profit before tax stood at Rs 531.22 costs. However,
million as compared to Rs 483.87 million in the previous year, recording an due to low demand
increase of 9.78%. EPS stood at Rs. 18.91. Similarly, the net profit after tax in last few months,
is Rs. 354.84 million as compared to Rs 319.12 million in previous year, inventory of input,
which is about 11.19% compared to the previous year. including steel piled
up.
PAT & EPS Current Times 1.5 1.3 15.39 Due to increase in
Ratio current assets over
500 18.91 20
17.00
current liabilities
450
18 Debt Equity Times 0.95 0.75 26.67 Mainly due to
400
Ratio Increase in debts
Amount in (per Share)

354.8
16
350
11.28
11.12 319.1 (Term Loan &
300
9.81
14
Working capital)
250
8.64 8.49 211.6 208.8 12 taken for new
184.2
200 162.1 159.3
10
projects
150
Interest Times 3.9 6.3 -38.10 Due to increase in
100 8
Coverage Interest on Term
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Ratio Loan & Loss due
PAT EPS
to exchange rate
fluctuation (Part of
The Company recorded an export turnover of Rs. 1912.1 million compared Finance Cost)
to Rs. 1304.38 million during the previous year, recording an increase of Operating % 15.2 15.6 -2.57 Higher EBITDA due
46.60%. The total exports are now 29.54% of the total turnover. Profit to Higher Sales and
(EBIDTA) lower increase in
Margin Fixed cost
Exports at F.O.B Value Net Profit % 5.5 5.9 -6.78 Higher PBT due to
Margin Higher Sales and
2500 lower increase in
Amount in million

Fixed cost
1912.1
Return on % 13.3% 13.4% -0.74 Due to Higher PBT
Networth
1500 1304.4
1078.4 1049.3
Operational Excellence, Awards & Recognitions
931.7
833.4 The Company is continuing its success journey and has recently in the true
6000
sense become a global footprint company while setting a benchmark for
500
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 other peer group companies. It follows world class manufacturing systems,
as manifested in its vision statement. In this drive, our efforts have been
On the consolidated side, the turnover was recorded till the close of the recognized by our esteemed customers, who have continuously appreciated
financial year at Rs. 9306.81 million compared to Rs. 7,794.91 million our quality & efforts and supported us from time to time.
during the previous year. The profit before tax stood at Rs. 585.27 million Steps initiated by the Company for implementation and absorption of
as compared to Rs. 515.18 million in previous year. The consolidated Lean Manufacturing and Total Productivity Maintenance (TPM) practices
financials of the Company with its subsidiaries are attached at the relevant are consistently showing encouraging results. Customer recognitions are
part of this Report. the strongest testimony to a company’s excellence. The ECOFAC Plants
An amount of Rs. 65.69 million is being paid out by way of dividends for the at Bhiwadi and Manesar are unique & one of its kind. These Plants have
year 2018-19 compared to Rs. 65.98 million in previous year, out of which been conferred the Platinum category by the Green Building Council.
an interim dividend of 15% was declared and already paid in Feb/Mar 2019, ECOFAC means a sustainable green manufacturing plant. The Company’s
and a final dividend of 20% is being recommended to the shareholders for Plants have all features of safety, energy & water conservation, & waste
their approval. management etc.

31
The Company has successfully installed two roof top Solar Power Plants tested and no reportable material weakness in the design or operation
of 400 KW and 250 KW in Manesar and Bhiwadi manufacturing units was observed. The Company is committed to strengthen the system in a
respectively as part of its commitment to conserve the environment and more stringent manner. Further, the Company has always efficiently used
reduce the energy cost.All modern concepts of Lean, TPM and TEI for the various components of working capital cycle. It has also effectively
best utility are being implemented in these Plants from the initial stage. controlled the inventories and receivables.
Our efforts have not only been appreciated by the concerned authorities Human Resources
but also by customers and will become a model for future sustainable
Managing human resources effectively and efficiently plays a critical role in
manufacturing growth.
ensuring that a satisfied, motivated work force delivers quality services. It
CRISIL Limited has rated The Hi-Tech Gears Ltd. (HGL) as ‘BBB+’. The also plays an important role in increasing staff performance and productivity,
outlook is stable. The rating upgrade reflects the growth in HGL’s revenue enhancing an organization’s competitive advantage, and contributing
as well as improvement in its credit profile. The company’s liquidity remained directly to organizational goals. Satisfied highly-motivated and loyal
comfortable as strong cash generation. employees represent the basis of a competitive company. The growth of
Segment Reporting satisfaction is to be reflected in the increase of productivity, improvement of
The Company is primarily engaged in the business of gears and transmission the products’ quality or rendered services and higher number of innovations.
components, & the inherent nature of both the activities is governed by During the period under review cordial relation were maintained at all levels.
the same set of risk and returns, & these have been grouped as a single Detail of number of employees and other material information is provided
segment in the above disclosures. The said treatment is in accordance with in Directors’ Report.
the principle provided as per the relevant Accounting Standard on Segment The Company continues to maintain its track record of peaceful industrial
Reporting relations ever since its inception. It sustains and fosters its unique paternal
Internal Controls & their adequacy culture across all operating locations. Several health and safety initiatives
have been introduced as part of a structured program to enhance the
The Company has a properly designed and consistently enforced system
safety and health of its workmen and other associates. Performance
of internal control to safeguard the Company’s properties, interests and
measurement and skill up gradation programs are widely deployed within
resources, Further, to have better and sustainable control, a new ERP
the Company.
system has been implemented which is showing the desired results.
Disclaimer
The same are supplemented by an extensive programme of internal
audits, review by management and documented policies, guidelines and This report contains certain statements that the Company believes and
procedures. Internal Auditors conduct the Audits and report directly to the may be considered as forward-looking statements. These forward-looking
Audit Committee and the Board. M/s. Grant Thornton India, LLP a renowned statements may be identified by their use of words like ‘plan’, ‘hope’, ‘will’,
and one of the largest assurance, tax, and advisory firms in India has been ‘expect’, ‘aim’ or such similar words or phrases. All such statements are
working as Internal Auditor of the Company. subject to risks and uncertainties which could cause actual results to
vary materially from those contemplated by the relevant forward-looking
The Company has also in place adequate internal financial controls with
statements.
reference to financial statements. During the year, such controls were

32
CORPORATE GOVERNANCE REPORT believes in complying with all the applicable laws of the country, in its letter as
well in Spirit.
Forming part of 33rd Directors’ Report II. Composition of Board of Directors
I. Company’s Philosophy on Corporate Governance The Board, the apex body is appointed by the shareholders. Directors
The Hi-Tech Gears Limited (“Company”), being in the forefront of the occupy dual responsibility, i.e., Agent & Fiduciary. The Board of Directors of
Indian auto component industry, has implemented and continuously the Company is duly constituted with proper balance of Executive Directors
improved upon various Corporate Governance practices over the years. and Non-Executive Directors including Independent Directors and Woman
Corporate practices like the appointment of professionals from diverse Director.
fields of business on the Company’s Board of Directors, prior intimation The Board of the Company presently consist of 13 members out of them
of date of Board Meetings which are convened at frequent intervals, 10 are Non-Executive Directors from different fields such as Engineering,
outcomes of the Board Meetings, constitution of various Committees Finance, Treasury, Business Management, Administration, Human
of Directors, stated policies on remuneration and retirement, formation Resource, Corporate Planning, Corporate Law, etc. The company has an
& adherence of many policies, attendance of Directors at General Executive Chairman, Mr. Deep Kapuria, who is assisted by his two able
Meetings, dissemination of price sensitive information in a transparent sons.  Mr. Pranav Kapuria is a Managing Director & Mr. Anuj Kapuria is
and fair manner and ensuring liquidity of the Company’s scrip by listing an Executive Director, are overseeing the day to day operations of the
on prominent stock exchanges, have been in place even before they Company.  All the remaining Directors, except Mr. Ramesh Chandra Jain,
have been mandated. Mr. Bidadi Anjani Kumar and Mr. Anant Jaivant Talaulicar, are independent
The Company has complied and observed with all the mandatory provisions and not related to each other.
of the SEBI Listing Regulations, as amended from time to time, with regard All Directors, Executive or Non-Executive, are professionally competent
to Corporate Governance. Company is maintaining maximum transparency and experienced in their respective fields. The Details of Directors as on
in passing on information to the shareholders. Additionally, your Company March 31, 2019 are as follows:-

Name of Director and DIN Designation Category No. of No. of Board No. of Board
Directorships Committees Committee
position as position as
Member Chairman
Mr. Deep Kapuria (00006185) Executive Chairman Promoter, Executive Eight One Nil
Mr. Anil Kumar Khanna (00207839) Director Independent, Non-Executive Eleven Two One
Mr. Sandeep Dinodia (00005395) Director Independent, Non-Executive Two Three Two
Mr. Pranav Kapuria (00006195) Managing Director Promoter, Executive Seven Nil Nil
Mr. Anuj Kapuria (00006366) Executive Director Promoter, Executive Ten Two Nil
Mr. Vinit Taneja (02647727) Director Independent, Non-Executive One One Nil
Mr. Bidadi Anjani Kumar (00022417) Director Non Independent, Non-Executive Six Two One
Mr. Ramesh Chandra Jain (00038529) Director Non Independent Non-Executive Six Three Nil
Mr. Krishna Chandra Verma (03636488) Director Independent, Non-Executive One One Nil
Mr. Prosad Dasgupta (00243254) Director Independent, Non-Executive One Nil Nil
Ms. Malini Sud (01297943) Director Independent, Non-Executive Four One Nil
Mr. Anant Jaivant Talaulicar * (00031051) Director Non-Independent, Non-Executive Seven Two One
Mr. Neville D’Souza ** (08536411) Additional Director Independent, Non-Executive One Nil Nil

* Mr. Anant Jaivant Talaulicar, Non-Independent & Non-Executive Director, Attendance of each Director at the Board Meetings and the last Annual
was appointed as an Additional Director on Board of the Company on General Meeting are given below:
May 21, 2018. Thereafter, his appointment was ratified/ confirmed by
Name of Director Attendance Attendance
shareholders at 32nd Annual General Meeting of the Company.
in the Board in the last
** Mr. Neville D’Souza, Independent & Non-Executive Director was
appointed as an Additional Independent Director on Board of the
Meetings Annual
Company on August 14, 2019.
General
Note-1 Board Committee for the above purpose means Audit Committee Meeting
and Stakeholder Relationship Committee (Including Board Committees of Mr. Deep Kapuria 6 (Six) No
The Hi-Tech Gears Limited). Mr. Anil Kumar Khanna 3 (Three) No
Note-2 Directorship/ Membership of all Companies, whether listed or not, Mr. Sandeep Dinodia 6 (Six) Yes
(including The Hi-Tech Gears Limited), Section 8 Companies but excluding Mr. Bidadi Anjani Kumar 5 (Five) No
foreign companies. Mr. Vinit Taneja 6 (Six) Yes
Number of Board Meetings held during the year 2018-19 Mr. Pranav Kapuria 6 (Six) No
Mr. Anuj Kapuria 6 (Six) Yes
During the year under review, the members of the Board have met 6 (Six)
Mr. Ramesh Chandra Jain 6 (Six) No
times to review, discuss and decide about the activities of business of the
Company. The dates of the meetings are (1) April 04, 2018 (2) May 21, Mr. Krishna Chandra Verma 6 (Six) No
2018, (3) August 03, 2018 (4) October 31, 2018, (5) January 08, 2019 (6) Mr. Prosad Dasgupta 6 (Six) Yes
February 02, 2019. Ms. Malini Sud 4 (Four) No
Mr. Anant Jaivant Talaulicar 1 (One) No
It is confirmed that the gap between the two (2) consecutive meetings of the
Board did not exceed one hundred and twenty days. The meetings usually Directorship of Board Members in other listed entity
held in Delhi. Pursuant to the amended SEBI Listing Regulation, the name of the other
listed entity where the board members are holding directorship as on March

33
31, 2019 are given below: and Six Independent Directors as on March 31, 2019 under the provisions
of SEBI Listing Regulation, as amended from time to time,.
Name of Director Name of the Listed Entity Category
Mr. Deep Kapuria Omax Autos Limited Non-Executive - The Board has received the requisite declarations from the independent
Independent Director directors of the Company under the provisions of Companies Act, 2013 read
Mr. Sandeep Ester Industries Limited Non-Executive - with Rules made thereunder and SEBI Listing Regulation, as amended from
Dinodia Independent Director time to time. Therefore, the Board hereby confirmed that on the basis of such
Mr. Bidadi Anjani Kennametal India Limited Non-Executive - declaration that the independent directors fulfill the conditions as specified
Kumar Independent Director in the above said regulations and are independent of the management.
Mr. Ramesh Frick India Limited Non-Executive - During the year under review, none of the Independent Director of the
Chandra Jain Independent Director company has resigned before the expiry of their tenure.
Ms. Malini Sud Sterling Tools Limited Non-Executive -
Discussions at the Board Meetings:
Independent Director
Mr. Anant Jaivant Force Motors Limited Non-Executive - • Quarterly details of foreign exchange exposures and the steps taken
Talaulicar Independent Director by management to limit the risks of adverse exchange rate movement,
Birlasoft Limited Non-Executive - if material.
Independent Director • Brief on statutory developments, changes in Government policies etc.
Details of Shares held by Non-Executive Director(s) with impact thereof, Directors’ responsibilities arising out of any such
Mr. Vinit Taneja holds 5600 equity shares and Mr. Prosad Dasgupta holds development.
2000 equity shares as on March 31, 2019. No other Non-Executive Director • Interim Dividend declaration & Final Dividend recommendation.
holds any equity shares as on that date. Shares held by Executive Directors • Internal Audit findings and Statutory Auditor reports (through the Audit
are mentioned in Directors’ Report. Committee).
Familiarization Programme • General Notices of Interest of Directors.
At the time of appointment of an Independent Director, a formal letter of • Minutes of Meetings of Audit Committee and other Committees of the
appointment is given to him / her, which inter alia explains the role, functions, Board, as also resolutions passed by circulation
duties and responsibilities expected from him/her as a Director of the • Any issue, which involves possible public or product liability claims of
Company. New Director is also explained in detail the compliances required substantial nature, including any judgment or order, which may have
from him/her under the Companies Act, 2013 and Rules made thereunder, passed strictures on the conduct of the company or taken an adverse
At a separate meeting of the Independent Directors, participants normally view regarding another enterprise that can have negative implications
discuss, a brief details about the Company, nature of the industry in which on the Company.
Company operates, its business model apart from roles and responsibilities • Annual Operating plans of Business, Capital Budgets and any updates,
of Independent Directors. duly reviewed by the Audit Committee.
Disclosure with regard to the core skills/ expertise/ competencies of • Quarterly, Half yearly & annually financial results of the Company and
the Board its operating divisions or business segments, duly reviewed by Audit
The Board of Directors in their meeting held on May 27, 2019 have identified Committee.
the core skills/ expertise/ competencies of the Board in the context of the • Sale of material nature of investments, subsidiaries, Assets, which is
business and sector in which the company’s operations, to function effectively not in normal course of business, if any.
in accordance with amended provisions of the SEBI Listing Regulations. • Transactions that involve substantial payment towards Goodwill,
The detailed Chart/ Matrix of such core skills/ expertise/ competencies as Brand Equity or Intellectual Property.
identified by the Board, is given in the below table: • Details of any Joint Venture, Acquisitions of Companies or Collaboration
Sr. No. Core skills/ expertise/ competencies Agreement, if any.
1 Management, Strategy and Planning • Non-Compliance of any Regulatory, Statutory or Listing requirements
2 Policy Development and shareholders services such as Non-payment of dividend, delay in
3 Governance, Risk and Compliance share transfer (if any). etc.
4 Finance and Taxation
• Show cause, demand, prosecution notices and penalty notices which
5 Mechanical and Engineering Expertise
are materially important.
6 Quality consciousness
7 Government Relations (policy & process) • Fatal or Serious Accidents, Dangerous occurrences, any material
8 Member and stakeholder engagement effluent or pollution problems.
9 Commercial Experience • Any material default in financial obligations to and by the company, or
10 Legal & Corporate Laws substantial non payment for goods sold by the company.
11 Human Resource Management
• Significant labour problems and their proposed solutions. Any
12 Interpersonal Skills
significant development in Human Resources/Industrial Relations
13 Technical Expertise
14 Critical Thinking and Innovation front like implementation of Voluntary Retirement Scheme etc.
15 Global business leadership • The information on recruitment and remuneration of senior officers
16 Manufacturing, automobile engineering and project management just below the Board level, including appointment or removal of Chief
17 Research & Development Financial Officer and the Company Secretary, if any.
18 CSR Management • Investment & borrowing decisions based on recommendations of
19 Regulatory, Government and Security matters Committees, wherever required.
20 Economics and Statistics
• Formulation of criteria for evaluation of own Board as whole and
Confirmation of the Board on Independence of Independent Directors
Individual Directors including Independent Directors.
The Hi-Tech Gears Limited has optimum combination of Board of Directors
• Any other important matter relating to the working of the Company.
comprises of Three Executive Directors, Three Non-Executive Directors

34
• All matters which are required to be exercised by the Board of Directors 5. Review and monitor the auditor’s independence and performance,
in terms of the provisions of the Companies Act 2013 or SEBI (Listing and effectiveness of audit process;
Obligations and Disclosure Requirements) Regulations 2015. 6. Approval or any subsequent modification of transactions of the
The Chairman of the Board, Managing Director and the Company Secretary company with related parties;
in consultation with other concerned members of the Senior Management 7. Scrutiny of inter-corporate loans and investments;
of the company finalize the agenda papers/ documents etc for the Board
8. Valuation of undertakings or assets of the company, wherever it is
Meetings.
necessary;
III. Audit Committee
9. Evaluation of internal financial controls and risk management systems;
Brief description of terms of reference
10. Reviewing, with the management, performance of statutory and
The Audit Committee of your Company consists of Four Directors. Three internal auditors, and adequacy of the internal control systems;
of the members are Non-Executive & Independent Directors and One is an
11. Reviewing the adequacy of internal audit function, if any, including
Executive Director viz., Mr. Sandeep Dinodia and Mr. Anil Kumar Khanna
the structure of the internal audit department, staffing and seniority of
both are Fellow members of the Institute of Chartered Accountants of India
the official heading the department, reporting structure coverage and
& Mr. Krishna Chandra Verma, has immense knowledge of Administration
frequency of internal audit;
and Mr. Anuj Kapuria has a wide experience and specialization in Computer
Vision, Artificial Intelligence. Company Secretary acts as the Secretary of 12. To review the functioning of the Whistle Blower mechanism;
the Audit Committee. The scope, compliances & functions of the Audit 13. Carrying out any other function as is mentioned in the terms of
committee is in line with the provisions of Regulation 18 of SEBI Listing reference of the Audit Committee, in Companies Act, 2013, SEBI
Regulations, as amended from time to time and the provisions of Section (Listing Obligations and Disclosure Requirements) Regulations 2015
177 of the Companies Act, 2013 along with rules made thereunder. or any other statutory regulation, document or otherwise.
As part of the evaluation process, the Board has evaluated the working of Invitees
Audit Committee for the FY 2018-19. Managing Director, Chief Financial Officer, Statutory Auditors, Internal
Meeting and attendance Auditors & Finance Team are normally invited at the Audit Committee as
The Audit Committee met 4 (Four) times during the financial year 2018-19 well as at the Board Meetings; other experts are invited on need basis. The
on the following dates: (1) May 21, 2018, (2) August 03, 2018 (3) October recommendations made by Audit Committee are accepted by Board.
31, 2018 (4) February 02, 2019. These meetings were attended by members IV. Nomination & Remuneration Committee
as detailed below:- Brief description of terms of reference
Name Position/ Category No. of meetings No. of The scope of functions of the Nomination & Remuneration Committee are
Composition during the meetings to look into Company’s policy on specific/general remuneration packages,
tenure attended for Executive, Non-Executive and Independent Directors, including pension
Mr. Sandeep Chairman Non-Executive 4 4 rights and any compensation payment.
Dinodia & Independent Company Secretary acts as the Secretary of the Remuneration Committee.
Director
The Nomination & Remuneration Committee consists of three (3)
Mr. Anil Kumar Member Non-Executive 4 3
Independent Non-Executive Directors.
Khanna & Independent
Director As part of the evaluation process, Board has evaluated the working of
Mr. Krishna Member Non-Executive 4 4 Nomination & Remuneration Committee for the FY 2018-19.
Chandra & Independent Meetings and attendance
Verma Director
The Nomination & Remuneration Committee met two (2) times during the
Mr. Anuj Member Executive 4 4
financial year 2018-19 on May 19, 2018 and August 03, 2018.
Kapuria Director
Audit Committee has following Powers:- This meeting was attended by members as detailed below:-

1. To investigate any activity within its terms of reference. Name Position/ Category No. of meetings No. of
2. To seek information from any employee. Composition during the meetings
3. To obtain outside legal or other professional advice. tenure attended
4. To secure attendance of outsiders with relevant expertise, if it Mr. Vinit Chairman Non-executive 2 2
considers necessary. Taneja & Independent
Director
Audit Committee has the following Roles & Responsibilities:-
Mr. Sandeep Member Non-executive 2 2
Audit Committee performs its duties, roles & responsibilities in terms of the Dinodia & Independent
Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Director
Regulations, 2015 & Section 177 of the Companies Act, 2013, the major are Mr. Anil Member Non-executive 2 1
being: Kumar & Independent
1. Oversight of the company’s financial reporting process and the Khanna Director
disclosure of its financial information to ensure that the financial Nomination & Remuneration Committee have following Roles &
statement is correct, sufficient and credible; Responsibilities
2. Recommendation for appointment, remuneration and terms of 1. Formulation of the criteria for determining qualifications, positive
appointment of auditors of the company; attributes and independence of a director and recommend to the
3. Reviewing, with the management, the annual financial statements and Board a policy, relating to the remuneration of the directors, key
auditor’s report thereon before submission to the board for approval. managerial personnel and other employees;
4. Reviewing, with the management, the quarterly financial statements 2 Nomination and Remuneration Committee also provides the
before submission to the board for approval; manner in which the performance evaluation of Board, its

35
 Committees and Individual Directors are done and provides the i. To formulate a criteria for determining qualifications, positive attributes
review process. and independence of a Director.
3. Devising a policy on Board diversity; ii. To determine remuneration of Directors, KMPs and other senior
4. Formulate a Remuneration Policy as specified under Section 178 management personnel, keeping in view all relevant factors including
of the Companies Act, 2013 and under SEBI Listing Regulation, as industry trends and practices.
amended from time to time. iii. The policy is directed towards rewarding performance based on
5. Identifying persons who are qualified to become directors and who review of achievements periodically.
may be appointed in senior management in accordance with the iv. The policy is in consonance with the existing industry practice.
criteria laid down, and recommend to the Board their appointment v. To ensure that level and composition of remuneration is reasonable
and removal. The company shall disclose the remuneration policy and sufficient, relationship of remuneration to performance is clear
and the evaluation criteria in its Annual Report. and meets appropriate performance benchmarks
6. Carrying out any other function as is mentioned in the terms The Chairman, Managing Director and the Whole Time Director are paid
of reference of the Nomination & Remuneration Committee, in remuneration as approved by the Board of Directors on the recommendation
Companies Act, 2013, SEBI (Listing Obligations and Disclosure of the Nomination & Remuneration Committee within the overall limit
Requirements) Regulations 2015 or any other statutory regulation, sanctioned by the Shareholders. The remuneration is fixed considering
document or otherwise. various factors such as qualification, experience, expertise, prevailing
Remuneration of Directors remuneration in the corporate world, financial position of the Company,
The Company’s Nomination & Remuneration Policy for Directors, Key etc. The remuneration structure of Executive Directors comprises of basic
Managerial Personnel and other employees approved by Board of Directors salary, commission, perquisites, allowances, contribution to provident fund
in their meeting held on August 07, 2014. Similarly, the Company has and other funds, and commission, which is in accordance with Section
devised a Policy for performance evaluation of Independent Directors, 197, 198 and other applicable provisions of the Companies Act, 2013. The
Board, Committees and other individual Directors. Non-Executive Directors do not draw any remuneration from the Company
except sitting fees for attending Board & Committee Meetings & commission
Pursuant to the SEBI Listing Regulations, complete Nomination and
@ 0.5% of Net Profits in a Financial Year for all Non-Executive Directors
Remuneration Policy of your Company can be viewed at the following link:
together.
www.thehitechgears.com. The salient features of the Remuneration Policy
are as under: The Company did not advance any loan to any of Director during the period
under review.
1. The details of the remuneration paid/payable to the Chairman, Managing Director and Whole Time Director for the year ended March 31, 2019, are
as under: - (Amount in Millions)
Name of Director Designation Salary Perquisites EPF Commission Total
Mr. Deep Kapuria Executive Chairman 12.67 0.88 0.95 6.73 21.23
Mr. Pranav Kapuria Managing Director 5.24 0.41 0.39 4.94 10.98
Mr. Anuj Kapuria Executive Director 4.34 0.64 0.33 4.94 10.25
Total 22.25 1.93 1.67 16.61 42.46
Notes:- Mr. Deep Kapuria & 1.16% each for Mr. Pranav Kapuria & Mr. Anuj
a. Salary includes basic salary & HRA, perquisites includes medical & Kapuria.
other perquisites. EPF includes contribution to provident fund and c. Commission is pending for disbursement till the finalization of this
other statutory funds. Report.
b. Shareholders have approved a maximum commission @ 3% of 2. The Non-Executive Directors play an active role in the meetings of the
Net Profit in case of Mr. Deep Kapuria & 1.5% each in case of Mr. Board and are associated with the Various Board Committees. They
Pranav Kapuria & Mr. Anuj Kapuria. The same is calculated in terms also bring independent judgment in the Board’s deliberations and
of Section 197, 198 & other applicable provisions of Companies decisions. The details of the remuneration paid/payable to the Non-
Act, 2013. In current year, the Commission payable are 1.59% for Executive Directors for the year ended March 31, 2019 are as under: -
(Amount in Millions)
No. Name of the Non-Executive Directors Sitting fees Commission Total
1. Mr. Anil Kumar Khanna 0.08 0.24 0.32
2. Mr. Sandeep Dinodia 0.14 0.24 0.38
3. Mr. Vinit Taneja 0.10 0.24 0.34
4. Mr. Ramesh Chandra Jain 0.06 0.24 0.30
5. Mr. Prosad Dasgupta 0.07 0.24 0.31
6. Mr. Krishna Chandra Verma 0.13 0.24 0.37
7. Mr. Bidadi Anjani Kumar 0.05 0.24 0.29
8. Ms. Malini Sud 0.05 0.24 0.29
9. Mr. Anant Jaivant Talaulicar* 0.01 0.20 0.21
  Total 0.69 2.12 2.81

* Mr. Anant Jaivant Talaulicar was appointed as Non-Executive Director b. There were no other pecuniary transactions/ relationship with Non-
on the Board of the Company with effect from May 21, 2018 in office; Executive Directors.
therefore the amount of his commission is calculated on the basis of c. There is no service contract, notice period, severance fees payable to
number of days during the financial 2018-19. Non-Executive Directors.
Notes: d. No stock option scheme has been launched by the Company till date.
a. Directors other than Executive Directors were entitled to sitting fee &
Commission on the Net Profit of the Company.

36
V. Stakeholder Relationship Committee Name Position/ Category No. of No. of
Brief description of terms of reference Composition meetings meetings
The Stakeholder Relationship Committee of your Company consists of three during the attended
Directors. All members are Independent & Non-Executive Directors. The tenure
scope, compliances & functions of the Stakeholder Relationship Committee Mr. Pranav Member Executive 2 2
Kapuria Director
is in line with the SEBI Listing Regulations, as amended from time to time
and the provisions of Section 178 of the Companies Act, 2013 along with Mr. Ramesh Member Non-Executive 2 1
rules made thereunder. Chandra Jain Directors
Company Secretary acts as the secretary of the Committee.
As part of the evaluation process, the Board has evaluated the working of
Stakeholder Relationship Committee for FY 2018-19. The following roles & responsibilities of the Committee:-
Meetings and attendance 1. Formulate a Corporate Social Responsibility Policy which shall
indicate the activities to be undertaken by the company as specified in
The Stakeholder Relationship Committee met One (1) time during the
Schedule VII of the Act;
financial year 2018-19 on February 02, 2019. This meeting was attended
by members as detailed given below:- 2. The amount of expenditure to be incurred on the activities to be
undertaken by the company as specified in Schedule VII of the Act;
Name Position/ Category No. of No. of 3. Monitor the Corporate Social Responsibility Policy of the company
Composition meetings meetings
from time to time;
during the attended
tenure 4. Other activities, as may be undertaken from time to time in accordance
Mr. Anil Kumar Chairman Non-Executive 1 1 with 1 to 3 above.
Khanna Independent As part of its initiatives under CSR, the Company has undertaken the various
Director projects pursuant to Schedule VII of the Act & CSR Policy of Company.
Mr. Sandeep Member Non-Executive 1 1 During the financial year 2018-19, Company spent a sum of Rs. 7.78 million
Dinodia Independent as per details mentioned in Annexure IV to the Directors’ Report.
Director
Mr. Vinit Member Non-Executive 1 1 (b) Share Transfer Committee
Taneja Independent Brief description of terms of reference
Director The equity shares of the Company are traded in the compulsory DEMAT
Company Secretary acts as the Secretary of the Committee. mode for all investors. All requests for physical share transfer and
Investors Complaints during the financial year ended March 31, 2019 dematerialization of shares (if in order and complete in all respect) are
processed and confirmed within the statutory period.
Pending at the beginning of the year Nil
Received during the year Nil A committee of three Directors, under the nomenclature ‘Share Transfer
Disposed of during the year Nil Committee’ of the Company has been empowered to approve transfer,
Remaining unresolved at the end of the year Nil transmission, DEMAT and other related matters regarding the shares of
the Company.
VI. Other Committees
(a) Corporate Social Responsibility Committee Meetings and attendance
Brief description of terms of reference The Share Transfer Committee met 8 (Eight) times during the financial year
The CSR Committee has been formed pursuant to Section 135 of 2018-19 on April 30, 2018, July 15, 2018, November 21, 2018, November
the Companies Act, 2013 read with the Companies (Corporate Social 30, 2018, December 03, 2018, December 31, 2018, February 11, 2019 and
Responsibility Policy) Rules, 2014. The aforesaid provisions mandate February 23, 2019. The Committee considers the matters relating to transfer,
the Roles, Responsibilities, Powers & Scope of the Corporate & Social transmission and transposition of shares, sub-division and consolidation of
Responsibility Committee & its members. Therefore, Board of Directors shares, replacement of lost/stolen/mutilated share certificates and review
constituted a Corporate & Social Responsibility Committee in April, 2014. of dematerialization and re-materialization of shares during the year.
Pursuant to Regulation 39(4) of SEBI (Listing Obligations and Disclosure
During the financial year 2018-19, Corporate & Social Responsibility
Requirements) Regulations 2015, the Company has opened a separate
Committee of the company was reconstituted by introducing Mr. Ramesh
Demat Suspense Account.
Chandra Jain, Non-Executive Director as member of the Committee.
Presently, the Corporate Social Responsibility Committee of your Company As on March 31, 2019 no equity shares were pending for transfer.
consists of Four Directors. VII Separate Independent Directors’ Meetings
As part of the evaluation process, the Board has evaluated the working of As per the Schedule IV of Companies Act, 2013 and SEBI Listing
the Corporate Social Responsibility Committee for FY 2018-19. Regulations, as amended from time to time, Independent Directors shall
Meetings and attendance meet at least once in every financial year without the presence of Executive
Directors or management personnel. Such meetings are conducted
The Corporate Social Responsibility Committee met Two (2) times during
informally to enable Independent Directors to discuss matters pertaining to
the financial year 2018-19 on May 21, 2018 and January 28, 2019. The
the Company’s affairs.
meeting was attended by members as detailed below:-
During the year under review, the Independent Directors met on May 21,
Name Position/ Category No. of No. of 2018, inter alia, to discuss:
Composition meetings meetings
during the attended 1. Review the performance of Non Independent Directors and the Board
tenure of Directors as a Whole;
Mr. Krishna Chairman Non-Executive 2 2 2. Review the performance of the Chairman of the Company, taking into
Chandra Independent account the views of the Executive and Non-Executive Directors.
Verma Director 3. Assess the quality, quantity and timelines of flow of information
Mr. Deep Member Executive 2 2 between the Company, Management and the Board that is necessary
Kapuria Director for the Board to effectively and reasonably perform their duties.

37
Six Independent Directors were present at the meeting. area of expertise and number of Directorships and Memberships held in
During the year under review, there were no pecuniary transactions with various committees of other companies by such persons in accordance with
any Non-Executive Directors of the Company. the Company’s Policy for Selection of Directors and determining Directors’
independence. The Board considers the Committee’s recommendation,
VIII. General Body Meeting
and takes appropriate decision.
a) Details of last three Annual General Meetings (AGM) of the Company
Every Independent Director, at the first meeting of the Board in which he
are given hereunder:
participates as a Director and thereafter at the first meeting of the Board
Financial Date of Time Location/ Venue No. of in every financial year, gives a declaration that he meets the criteria of
Year Meeting Special independence as provided under law.
Resolution
X MEANS OF COMMUNICATION
Passed
2017-18 September 11.00 A-589, Industrial One 1. The quarterly, half yearly and annual financial results (consolidated
29, 2018 A.M. Complex, Bhiwadi and standalone) and quarterly shareholding pattern are posted on the
–301019 (Rajasthan) Company’s official website i.e. www.thehitechgears.com as per the
2016-17 September 11.00 A-589, Industrial - requirements of SEBI (Listing Obligation & Disclosure Requirements)
29, 2017 A.M. Complex, Bhiwadi Regulations, 2015, as amended from time to time. The Company has
–301019 (Rajasthan) also submitted all periodical Compliance filings on NSE Electronic
2015-16 September 11.00 A-589, Industrial Five Application System (NEAPS) and BSE Corporate Compliance &
23, 2016 A.M. Complex, Bhiwadi Listing Centre (BSE Listing Centre).
–301019 (Rajasthan)
2. Full version of the Annual Report including the notice of Annual
During the financial year 2018-19, a Special Resolution was passed
General Meeting, Management & Discussion Analysis, Directors’
through the process of Postal Ballot including e-voting on January 30, 2019
Report, Corporate Governance Report and Audited (Standalone &
for shifting of its registered office from the state of Rajasthan to the state of
Consolidated) Financial Statement including Cash Flow Statement
Haryana in accordance with the provisions & procedure of the Companies
etc. were sent to the shareholders & Stock Exchanges within the
Act, 2013 read with Companies (Management and Administration) Rules,
stipulated time and also uploaded the same on Company’s Official
2014 and SEBI Listing Regulations, as amended from time to time.
website i.e. www.thehitechgears.com. The Annual Report together
The Voting Result of the Postal Ballot was announced on February 01, 2019 with notice of Annual General Meeting is being sent in following
and details of voting results are given below: manner:
Number of Votes (No. of shares and %) i. To those shareholders, who hold shares in demat forms & have
Sr. Description of Resolution In favour Against provided their email ID to their depositories – through email by
No. providing a link/Annual Report.
1 Approval of shifting of registered office of 10419723 16
ii. To others – Through physical copies of Annual Report by
the company from the State of Rajasthan (100%) (0%)
Courier/registered book post.
to the State of Haryana
Ms. Akarshika Goel, Partner of M/s Grover Ahuja & Associates, Practicing 3. All material information about the Company is promptly sent through
Company Secretaries was appointed to act as the Scrutinizer. She email/facsimile to the Stock Exchanges where the shares of the
conducted voting process in a fair and transparent manner and provided Company are listed and also upload these information on the website
the report in prescribed time period. of Stock Exchanges through NSE Electronic Application System
(NEAPS) and BSE Corporate Compliance & Listing Centre (BSE
b) Dividend history of last five years
Listing Centre).
S. Financial year Rate of Dividend Date of Declaration 4. The Company has not displayed any official news release during the
No.
year under review except as required by the SEBI Listing Regulation
1 2017-18 Interim-15% February 02, 2018
as mentioned in point 1 above.
Final- 20% September 29, 2018
5. The Company generally publishes its financial results in the Business
2 2016-17 Interim-12.5% February 10, 2017
Standard (English) and Dainik Lokmat (Hindi). The details are
Final- 12.5% September 29, 2017
provided in Section XI, Clause 1 herein below.
3 2015-16 Interim-15% February 12, 2016
Final- 15% September 23, 2016 XI General Shareholder information
4 2014-15 Interim-10% February 12, 2015 1. Annual General Meeting:
Final- 15% September 29, 2015 33rd Annual General Meeting of the Company will be held on Friday the
5 2013-14 Interim-10% February 14, 2014 27th day of September, 2019 at 11:00 A.M at the Registered Office of the
Final- 15% September 18, 2014 Company situated at Plot No 24-26, Sector-7, IMT Manesar, Gurgaon-
122050, Haryana.
For the year 2018-19, the interim dividend @ 15% was declared on February
02, 2019. The dividend was paid from Special Dividend Account to all the Financial Calendar Results were Newspapers Date of
shareholders who are entitled to receive the same within mandated time for FY 2018-19 announced on Publication
period. Financial Reporting for August 03, Business August 04,
the 1st quarter ended 2018 Standard 2018
IX Selection of Independent Directors
June 30, 2018 Dainik Lokmat August 04,
Considering the requirement of skill sets on the Board, eminent people having 2018
an independent standing in their respective field/ profession, and who can Financial Reporting October 31, Business November 02,
effectively contribute to the Company’s business and policy decisions are for the 2nd quarter 2018 Standard 2018
considered first by the Nomination and Remuneration Committee and then and half year ended Dainik Lokmat November 02,
by the Board, for appointment, as Independent Directors on the Board. The September 30, 2018 2018
Committee and Board, inter alia, considers qualification, positive attributes,

38
 Financial Calendar Results were Newspapers Date of 3. Date of Book Closure September 21, 2019 to September 27 ,
for FY 2018-19 announced on Publication 2019 (Both days inclusive)
Financial Reporting February 02, Business February 04, E-Voting Cut-Off Date September 20, 2019
for the 3rd quarter 2019 Standard 2019 E- Voting period September 24, 2019 (9:00 A.M.) to
ended December 31, Dainik Lokmat February 04, September 26, 2019 (5:00 P.M.)
2018 2019
Dividend payment Dividend, if declared by the shareholders
Financial Reporting May 27, 2019 Business May 29, 2019
for the 4th quarter and Standard in the Annual General Meeting, shall be
year ended 31 March, Dainik Lokmat May 29, 2019 paid at Rs. 2.00/- per share i.e. @ 20%.
2019 4. Listing on Stock Exchanges As on March 31, 2019 the equity shares
2. Financial Calendar for 2019-2020 of the Company are listed on the
(Tentative and subject to change) following Stock Exchanges:-
Financial Reporting for the 1st quarter August 14, 2019 a) National Stock Exchange Exchange Plaza, 5th Floor, Plot no. C-1,
ended June 30, 2019 of India Limited Block G, Bandra – Kurla Complex,
Financial Reporting for the 2nd quarter and November, 2019 (1st Week) Bandra (E), Mumbai – 400051 Stock
half year ended September 30, 2019 Code- HITECHGEAR
Financial Reporting for the 3rd quarter February, 2020 (2nd Week) b) Bombay Stock Exchange Phiroze Jeejeebhoy Towers, 25th Floor,
ended December 31, 2019 Limited Dalal Street, Mumbai-400001 Scrip
Financial Reporting for the year ended May, 2020 (Last week) Code –522073
March 31, 2020.
Annual General Meeting for the year September 27, 2019 Note : The listing fee for the year 2018-2019 and 2019-20 has been paid to
2018-19 the respective Stock Exchanges within the stipulated time.

5. Market Price Data

Monthly high and low prices of equity shares of the Company at BSE and NSE during the year under review are given hereunder.
Month BSE NSE
Share Price (Rs) Sensex No. of Share Price (Rs) Nifty No. of
High Low Price High Low shares High Price Low Price High Low shares
Price traded traded
April 18 494.00 393.45 35,213.30 32,972.56 114269 498.4 394.00 10759.00 10111.30 458206
May 18 526.15 437.05 35,993.53 34,302.89 115541 521.00 435.25 10929.20 10417.80 355426
June 18 475.25 406.55 35,877.41 34,784.68 24,876 474.40 407.10 10893.25 10550.90 97462
July 18 454.00 385.00 37,644.59 35,106.57 36,604 455.25 386.45 11328.10 10604.65 104257
Aug 18 440.70 400.05 38,989.65 37,128.99 27,529 439.00 400.25 11760.20 11234.95 121411
Sep 18 505.00 414.00 38,934.35 35,985.63 65,348 505.00 410.00 11751.80 10850.30 273610
Oct 18 425.00 343.00 36,616.64 33,291.58 39,690 419.95 340.05 11035.65 10004.55 122184
Nov 18 399.80 339.75 36,389.22 34,303.38 17,934 383.70 340.00 10922.45 10341.90 39155
Dec 18 368.00 315.00 36,554.99 34,426.29 35,025 349.00 316.00 10985.15 10333.85 74911
Jan 19 348.00 301.00 36,701.03 35,375.51 52,690 338.80 304.05 10987.45 10583.65 33202
Feb 19 325.50 270.00 37,172.18 35,287.16 38,239 321.00 270.05 11118.10 10585.65 70628
Mar 19 339.00 275.70 38,748.54 35,926.94 34,129 339.00 276.30 11630.35 10817.00 97922

HGL Share Price at BSE HGL Share price at NSE

700.00 700.00

600.00 600.00
526.15 505 521
494 475.25 498.4 474.4 505
500.00 454 425
440.7 500.00 455.25 439 419.95
399.8
Share Price (Rs)

368 383.7
Share Price (Rs)

400.00 348 400.00

437.05 325.5 339 435.25 349 338.8 321 339
393.45 385 400.05 414 407.1 400.25 410
300.00 406.55 394 386.45
343 339.75 315 300.00 340.05 340 316
301
275.7 304.05
200.00 270 270.05 276.3
200.00

100.00
100.00

0.00
0.00
Sep 18

Nov 18

Dec 18

Feb 19

Mar 19
June 18

July 18

Aug 18
April 18

Oct 18

Jan 19
May 18

Sep 18

Nov 18

Dec 18
Oct 18

Jan 19

Feb 19

Mar 19
April 18

May 18

June 18

July 18

Aug 18

High Price
High Price
Low Price
Low Price

39
6. Performance in comparison to Broad Based Indices:- Share transfer/ transmission approved by the Committee is placed at
Share Price on the last working day of the relevant month the meeting of the Board of Directors from time to time
As per the requirements of Regulation 40(9) of the SEBI (LODR)
HGL Share Price Vis -A-Vis SENSEX Index
Regulations 2015, the Company has obtained the Half Yearly
40,000.00 700.00 Compliance Certificate from a Company Secretary in Practice for due
35,000.00 600.00 compliance of Share Transfer formalities and the same has been filed
500.00
with National Stock Exchange of India Limited (NSE) through NSE
30,000.00
Electronic Application Processing System (NEAPS) and with BSE
SENSEX Index

400.00
25,000.00 Limited (BSE) through BSE Listing Centre accordingly.
300.00
20,000.00
9. (a) Distribution of shareholding
200.00
As on March 31, 2019 the distribution of shareholding was as
15,000.00 100.00
follows:
10,000.00 0.00
April May June July Aug Sep Oct Nov Dec Jan Feb Mar Range of No. of No. of % (No. No. of % (No. of
18 18 18 18 18 18 18 18 18 19 19 19
Sensex Equity Shares share of shareholders shareholders)
Period Financial Year 2018-19 held share)
HGL Price
1 to 5,000 511404 2.725 4215 80.362
5,001 to 10,000 361130 1.924 451 8.599
HGL Share Price Vis -A-Vis NIFTY Index
10,001 to 20,000 340027 1.812 222 4.233
12000 700
20,001 to 30,000 263978 1.407 103 1.964
11500
600 30,001 to 40,000 211027 1.124 58 1.106
500 40,001 to 50,000 191379 1.020 41 0.782
NIFTY Index

11000
400 50,001 to 100,000 481918 2.568 67 1.277
300 100,001 and above 16407137 87.421 88 1.678
10500
200
TOTAL 18,768,000 100.00 5245 100.00
10000
100
(b) Category wise shareholding as on March 31, 2019

9500 0 Category % of No. of

April May June July Aug Sep Oct Nov Dec Jan Feb Mar Shareholders shares held
18 18 18 18 18 18 18 18 18 19 19 19 NIFTY
Promoters 55.30% 1,03,78,621
HGL Price
Period Financial Year 2018-19 Mutual Funds/ UTI/ Financial Institutions/ 1.62% 3,04,816
Banks/Clearing Member
7. Registrar and Share Transfer Agent FII/Foreign Venture Capital /Foreign 1.24% 2,33,244
Portfolio Investment/ NRI/ OCB
MAS Services Limited, New Delhi is the Registrar and Share Transfer Public 33.33% 62,55,267
Agent (RTA) of the Company for handling the share transfer work Unclaimed or Suspense or Escrow Account 0.13% 24,193
both in physical and electronic form. All the correspondences relating Bodies Corporate 8.38% 15,71,859
to share transfer, transmission, dematerialization, rematerialization Total 100% 1,87,68,000
etc. can be made at the following address:-
Shareholding Pattern as on March 31, 2019
MAS Services Limited
(Unit: The Hi-Tech Gears Limited) Bodies Corporate,
8.38%
T-34, 2nd Floor, Okhla Industrial Area, Unclaimed or
Suspense or
Phase –II, New Delhi – 110020 Escrow Account,
0.13%
Ph.: 011 – 26387281, 82, 83
Promoters,
Fax: 011 – 26387384 55.30%
Web site: www.masserv.com Public, 33.33%
Email: [email protected]

Email ID for redressal of Investor Grievances

Pursuant to Regulation 13 of the SEBI (LODR) Regulations
FII/Foreign Venture Capital
2015, Company has created a separate Email ID for redressal of /Foreign Portfolio Mutual Funds/ UTI/ Financial
Investment/ NRI/OCB,
Investor Complaints and Grievances. The Email ID is secretarial@ 1.24%
Institutions/Banks/Clearing
Member, 1.62%
thehitechgears.com
8. Share Transfer System 10. Dematerialization of shares and liquidity
The shares of the Company are traded in the compulsory demat The equity shares of the Company are compulsorily traded and settled
mode for all investors. All physical share transfers, dematerialization only in the dematerialized form under ISIN No. INE127B01011. Your
etc are handled by MAS Services Ltd, Registrar and Share Transfer Company is maintaining connectivity with both the Depositories i.e.
Agent (RTA) of the Company and the request for physical share NSDL and CDSL. The members are requested to dematerialize their
transfer and dematerialization of shares (if found in order and physical holding in view of various advantages in dematerialized
complete in all respect) are processed and confirmed within a period form.
of 15 days.
The details of the equity shares of the Company dematerialized as on
To expedite the share transfer process, authority has been delegated March 31, 2019 is given hereunder:
to the Share Transfer Committee which comprises of three Directors.

40
 Particulars As on March 31, 2019 Type of Date of Date of Amount
No. of Shares % age Dividend Declaration of transfer to transferred to
No. of Shares dematerialized Dividend IEPF IEPF
-NSDL 15783514 84.10 Final Dividend September 27, November 15, Rs. 1,34,123.00
-CDSL 2907782 15.49 (Financial Year 2011 2018
No. of shares in physical form 76704 0.41 2010-11)
Total 18,768,000 100.00 Interim Dividend February 14, April 03, 2019 Rs. 1,08,830.00
(Financial Year 2012
(3) Liquidity
2011-12)
The equity shares of the Company are liquid and frequently traded on The proposed due date for the transfer of unclaimed final dividend for the
the stock exchanges. year 2011-12 to IEPF is 03rd November, 2019.
11. Outstanding GDRs/ADRs/Warrants or any convertible The details of Shares transferred to IEPF during the year 2018-19 are as
instruments, conversion date and likely impact on equity. follows:
The Company has not issued any GDRs/ADRs/Warrants or any Financial Year Date of Transfer of Shares to No of Shares
Convertible instruments, hence this section is not applicable to the IEPF transferred
Company. 2010-11 July 13, 2018 12152
12. Activities relating to Commodity Price Risk or Foreign Exchange 2010-11 December 01, 2018 800
Risk etc. No claim shall lie against the Company in respect of the dividend/shares so
The details of Activities relating to Commodity Price Risk or Foreign transferred. The members who have a claim on the above dividends and
Exchange Risk etc. are provided under the head Risk & Concerns shares may claim the same from IEPF Authority by submitting an application
in Automobile and Component Segment Management Discussion in the prescribed Forms.
Analysis Report form part of the Annual Report. During the year under review, pursuant to SEBI Listing Regulation details
13. Plant Locations relating to shares in the Demat Account of IEPF Authority or Unclaimed or
The Company’s manufacturing facilities are located at the following Suspense Account, as applicable are given below:
locations: S. Particulars Status
No.
S. Plant Address
1 Aggregate number of shareholders No of shareholders: 32
No.
and the outstanding shares in the IEPF No of shares: 11,241
1 A-589, Industrial Complex, Bhiwadi, District Alwar– 301019, Account lying at the beginning of the
Rajasthan year (i.e. April 01, 2018)
2 Plot No. 24, 25 & 26, Sector 7, IMT Manesar, Gurgaon- 2 Number of shareholders who approached Nil
122050, Haryana listed entity for transfer of shares from
3. SPL-146, Industrial Complex, Bhiwadi, District Alwar– IEPF Account during the year
301019, Rajasthan 3 Number of shareholders to whom shares Nil
were transferred from IEPF Account
14. Disclosures with respect to Unpaid/ Unclaimed Dividend and
during the year
Shares
4 Aggregate number of shareholders No of shareholders: 68
Pursuant to provisions of the Companies Act, 2013 read with Investor and the outstanding shares in the IEPF No of shares: 24,193
Education and Protection Fund Authority (Accounting, Audit, Transfer Account lying at the end of the year (i.e.
and Refund) Rules, 2016 (“IEPF Rules”), as amended from time March 31, 2019)
to time, if any dividend is not claimed for a consecutive period of 7 5 Voting rights on these shares shall Voting Rights frozen
years from the date of transfer of the total amount of dividend which remain frozen till the rightful owner of
remained unpaid or unclaimed to Unpaid Dividend Account of the such shares claims the shares
Company, are liable to be transferred to the Investor Education and 15. Address for correspondence
Protection Fund (“IEPF) established under sub-section (1) of section A. Transfer/ : MAS Services Limited
125 of the Act. dematerialization (Unit: The Hi-Tech Gears Limited)
Further, the shares in respect of above unpaid or unclaimed dividend of shares and T-34, 2nd Floor, Okhla Industrial Area,
for a period of 7 consecutive years, are also liable to be transferred to any other queries Phase –II, New Delhi – 110020.
the Demat Account of IEPF Authority in pursuance to the provisions relating to Ph. : 011 – 26387281, 82, 83
of the Act read with its Rules made thereunder. Shares Fax : 011 – 26387384
In this regard, the company has sent periodical reminders by sending Web site: www.masserv.com
notice individually and also by publishing the same in newspaper. Email: [email protected]
The list of unclaimed dividend and shareholders whose shares are [email protected]
liable to be transferred to the IEPF Authority, were also placed on the B. Queries related : Mr. S. K. Khatri
website of the Company in the interest of the shareholders, in order to Payment of Company Secretary & Compliance Officer
to avoid transfer of dividend/Shares to said Authority. dividend on 14th Floor, Tower-B, Unitech’s Millennium
In light of the aforesaid provisions, the Company has transferred the Shares, Annual Plaza, Sushant Lok-1, Sector – 27,
amount of unclaimed dividends outstanding for a consecutive period Report and Gurgaon-122009, Haryana
of 7 years to IEPF during the year. Further, the shares in respect of others Tel No: (0124) – 4715100
which dividend has not been claimed for 7 consecutive years or more, Fax No: (0124) – 2806085
have also been transferred to the demat account of IEPF Authority. Email : [email protected]
The details of unclaimed dividends transferred to IEPF during the
year 2018-19 are as follows:

41
16. Code of conduct for the Board Members and Senior Management Insider Trading pursuant to SEBI` (Prohibition of Insider Trading)
Personnel Regulations, 2015 to prevent practices of Insider trading. Mr. S. K.
The Board of Directors has approved a Code of Conduct for Board Khatri, Company Secretary has been designated as Compliance
Members and Senior Management Personnel of the Company. Officer for this purpose. Employees of the Company have affirmed
This code is also available on the website of the Company, www. compliances with the Insider Trading Code.
thehitechgears.com. In terms of revised Regulation 26 of SEBI During the year, the company has amended the said code of conduct
(Listing Obligations and Disclosure Requirements) Regulations, to regulate, monitor and report trading by designated persons and
2015, a confirmation from the Managing Director and CEO regarding their immediate relatives in pursuance to the SEBI (Prohibition of
compliance with the Code of Conduct by all the Directors and Senior Insider Trading) (Amendment) Regulations, 2018 including the code
Management is given along with this report. of practices and procedures of fair disclosure of unpublished price
17. CEO/CFO Certification sensitive information. The same has been placed on the Company’s
Official website i.e. www.thehitechgears.com.
In terms of Regulation 17(8) read with Part B of Schedule II of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20. Legal Compliance
2015, the certification by the CEO and CFO on the financial statements There were no cases of non-compliance by the Company and no
and internal controls relating to financial reporting has been obtained, material penalties or strictures have been imposed on or proposed
and placed before the Board, in their meeting held on May 27, 2019. against the Company by the stock exchange (s) and/or SEBI and/or
A copy of the same certificate is given along with this report. any other statutory authorities on matters relating to capital market.
18 Compliance Certificate The Company has complied with the provisions of relevant Acts,
Rules & Regulations framed there under during the year 2018-2019.
The company has obtained the compliance certificate from Practicing
Company Secretary with regard to the compliances of the provisions XII. Other Disclosures:
relating corporate governance requirements specified in regulation A. The Contracts/Arrangements with the entities in which the Directors
17 to 27 and clause (b) to (i) of sub-regulation (2) of regulation 46 of may be directly/indirectly interested were approved by the Audit
SEBI (LODR) Regulation, 2015, as amended from time to time. This Committee & Board of Directors. The same are provided below as
certificate is annexed to this Report. required under Regulation 34(3) read with Schedule V(A) of the SEBI
19. Insider Trading Code (Listing Obligations and Disclosure Requirements) Regulations,
2015
The Company has formulated a code of conduct for prevention of

Related Party Disclosure for the period ended March 31, 2019 (Amount in Millions)
Particulars Aquarian Vulcan The Hi-Tech The Hi- Subsidiary Companies KMPs Total
Fibrecement Electro Engineering Tech (only
Pvt. Ltd Controls Systems Pvt. Robotic 2545887 The Hi-Tech Neo Tech WTDs)
Ltd. Ltd. Systemz Ontario Inc. Gears Canada Smart
Ltd. Inc. (Formerly Solutions
known as Inc.
Teutech
Industries Inc.)
Nature of Relationship
Rent 18.00 - - - - - - - 18.00
Sale of Goods - 1.68 117.94 - - 77.55 - - 197.17
Rendering of - 4.55 3.54 - - - - - 8.09
Job Work/
Services
Receiving of - 173.31 - 46.20 - - - - 219.51
Job Work/
Services
Purchased of - 1,358.50 329.05 - - - - - 1,687.55
Goods
Purchase of - - - - - - - - -
Assets
Director’s - - - - - - - 42.46 42.46
Remuneration
Sale of Fixed - 1.00 - - - - - - 1.00
Assets
Investment in - - - - - - 13.78 - 137.80
equity capital

• The transactions with the above entities are done within normal • The transactions with Vulcan Electro Controls Limited & The Hi-Tech
course of business. Transactions other than those for which approval Engineering Systems Private Limited are regarded material in terms
is sought from shareholders in view of their materiality, are neither of Companies Act & SEBI Listing Regulations for which the necessary
materially significant nor they have potential conflict with the interest approvals have been obtained.
of the Company at large. The managerial personnel are paid • Transactions relating to KMPs are remuneration to Whole Time
remuneration in term of the approval of shareholders. Directors. Remuneration to include salary, HRA, perquisites including

42
 medical reimbursement etc. and contribution towards EPF. Details Regulations, the Company has received a certificate from M/s Grover
in Note No. 36 of Notes to Financial Statements may differ due to Ahuja & Associates, Practicing Company Secretaries to the effect that
inclusion/ non-inclusion of certain items. Remuneration to other KMPs, none of the directors on the Board of the Company has been debarred
such as Chief Financial Officer & Company Secretary is provided in or disqualified from being appointed or continuing as directors of the
Form MGT-9. Company by the Ministry of Corporate Affairs or any other statutory
The Board of Directors has formulated a policy on related party authority. The same forms part of this report.
transactions pursuant to the provisions of the Companies Act, I. M/s O.P Dadu, Chartered Accountants are the Statutory Auditors
2013 and SEBI Listing Regulations, as amended from time to time of the company. The details of all remuneration including fees etc.
which has been uploaded and available on the company website at paid during the financial year 2018-19 by the company and its
www.thehitechgears.com. subsidiaries, on consolidated basis to such auditor including all
B. There has neither been any non-compliance of any legal provision entities in the network firm/ entity of which such auditor is a part, are
of applicable laws, nor any penalty or stricture imposed by the Stock given below:
Exchanges or Securities and Exchange Board of India (SEBI) or any S. No. Particulars Amount (In Rupees Mn)
other authorities, on any matters related to capital markets, during the 1 Audit Fees 1.20
last three years. 2 Reimbursement of expenses 0.07
C. As per the requirement of the Companies Act, 2013 and SEBI 3 Certification fees 0.08
Listing Regulations as amended from time to time, the Company has 4 Other Services 0.30
established vigil mechanism to enable directors and employees to Total 1.65
report concerns about unethical behaviors, actual or suspected fraud J. As per the requirement of the Companies Act, 2013 and SEBI
or violation of the Company’s code of conduct or ethical policy. The Listing Regulations as amended from time to time, the disclosure
whistle blowers may lodge their complaints/concern with the Chairman as required under provision of Sexual Harassment of Women at
of the Audit Committee, whose contact details are provided in the Workplace (Prevention, Prohibition and Redressal) Act, 2013 is duly
Whistle Blower Policy of the Company. The policy offers appropriate provided in the Directors’ Report of the Company. In view of this,
protection to the whistle blowers from victimization, harassment or the company has implemented policy as “Policy on Prevention
disciplinary proceedings. The Whistle Blower Policy is also available and Redressal of Sexual Harassment of Women at Workplace”
on the website at www.thehitechgears.com. which is available at the official website of the company i.e.
D. The Company has adhered to all the mandatory requirements of www.thehitechgears.com.
Corporate Governance norms as prescribed under the SEBI Listing Pursuant to the amended SEBI Listing Regulations, details of
Regulations, as amended from time to time, to the extent applicable complaints received, disposed-of and pending in relation to the
on the Company. The certificate regarding compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition
conditions of Corporate Governance received from Practicing and Redressal) Act, 2013 is given below:
Company Secretary is also annexed to this Report. • Number of complaints filed during the financial year: NIL
E. The Company has Nine Subsidiaries and out of them “2545887 • Number of complaints disposed of during the financial year: NIL
Ontario Inc.”, “The Hi-Tech Gears Canada Inc.” (Formerly known • Number of complaints pending as on end of the financial year: NIL
as Teutech Industries Inc) and “Teutech Holding Co.” are considered K. During the year under review, the company has duly complied with all
as Material Subsidiaries of the Company in terms of the provisions the requirements related to the Corporate Governance as specified
of SEBI Listing Regulations, as amended from time to time. For in Regulation 17 to 27 and clauses (b) to (i) of sub-regulation
further details refer to Form AOC-1 & Form MGT-9 and consolidated (2) of regulation 46 of SEBI (Listing Obligations and Disclosure
Financial Statements. Requirements) Regulations, 2015 (“SEBI Listing Regulation”) as
The company has framed the policy for determining “Material amended from time to time.
Subsidiaries” and which has been updated/ amended during the XII During the year under review, the following Discretionary
year in order to align with the amended provisions of the SEBI Listing Requirements as specified in Part E of Schedule II of SEBI Listing
Regulations and other applicable Laws. The said amended policy has regulation, as amended from time to time has been adopted by
been placed on the website of the Company at www.thehitechgears. the company.
com.
Compliance status with Discretionary Requirements is given below:
F. The Company’s Policy is to take forward cover in respect of is foreign
(i) During the year under review, the company has received only
currency exposure. In view of this, the company has fixed LIBOR
unmodified audit opinion from statutory auditors of the company.
component in total interest rate agreed for the external commercial
borrowings to mitigate the risk of fluctuation. During the financial year (ii) The Internal Auditors report directly to the Audit Committee.
ended March 31, 2019, the Company did not engage in commodity
hedging activities.
By Order of the Board
G. During the year under review, the company has not raised any fund For The Hi -Tech Gears Limited
through preferential allotment or qualified institutions placements as
specified under regulation 32(7A) of SEBI (LODR) Regulation, 2015 Place : New Delhi Deep Kapuria
H. Certification from Practicing Company Secretary Dated : August 14, 2019 Chairman
In accordance with the amended provisions of the SEBI Listing

43
Certification by CEO and CFO Certificate from Practicing Company
The Board of Directors Secretary on Compliance with the
The Hi-Tech Gears Limited Conditions of Corporate Governance under
A-589, Industrial Complex, SEBI (Listing Obligations and Disclosure
Dist. Alwar, Bhiwadi – 301019, Requirements) Regulations, 2015
Rajasthan.
Ref: Certification by CEO and CFO for Financial Year 2018-19 To
(a) We, the undersigned in our respective capacities, certify to the Board The Members of
that we have reviewed the financial statements and the cash flow The Hi-Tech Gears Limited
statement for the financial year 2018-19 and that to the best of our We have examined the compliance of the conditions of Corporate
knowledge and belief: Governance by The Hi-Tech Gears Limited (‘the Company’), for the year
i. These statements do not contain any materially untrue statement ended on March 31, 2019, as stipulated under regulation 17-27, clause (b)
or omit any material fact or contain statements that might be to (i) of sub-regulation (2) of regulation 46 and para C, D & E of schedule
misleading; V of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
ii. These statements together present a true and fair view of 2015 (“SEBI Listing Regulation”).
the Company’s affairs and are in compliance with existing The compliance of the conditions of Corporate Governance is the
accounting standards, applicable laws and regulations. responsibility of the management. Our examination was limited to a review
(b) There are, to the best of our knowledge and belief, no transactions of the procedures and implementation thereof, as adopted by the Company
entered into by the Company during the year which are fraudulent, for ensuring compliance with the conditions of Corporate Governance. It is
illegal or violative of the Company’s code of conduct. neither an audit nor an expression of opinion of the financial statements of
the Company.
(c) We accept responsibility for establishing and maintaining internal
controls for financial reporting and that we have evaluated the In our opinion and to the best of our information and according to the
effectiveness of the internal control systems of the Company explanations given to us, and the representations made by the Directors
pertaining to financial reporting and we have disclosed to the Auditors and the management, we certify that the Company has complied with
and the Audit Committee, deficiencies in the design or operation of the conditions of Corporate Governance as stipulated in the SEBI Listing
such internal controls, if any, of which we are aware and the steps we Regulations for the year ended on March 31, 2019.
have taken or propose to take to rectify these deficiencies. We further state that such compliance is neither an assurance as to the
(d) We have indicated to the Auditors and the Audit committee, wherever future viability of the Company nor the efficiency or effectiveness with which
applicable, the following: the management has conducted the affairs of the Company.

i. significant changes in internal control over financial reporting

during the year; For Grover Ahuja & Associates
Company Secretaries
ii. significant changes in accounting policies during the year and
that the same have been disclosed in the notes to the financial Akarshika Goel
statements; and (Partner)
iii. Instances of significant fraud of which we have become aware Place: New Delhi COP No. 12770
and the involvement therein, if any, of the management or an Date: May 24, 2019 Membership No. 29525
employee having a significant role in the Company’s internal
control system over financial reporting.
For The Hi-Tech Gears Limited

Dinesh Chand Sharma Pranav Kapuria

Chief Financial officer Chief Executive Officer

Place: New Delhi

Date: May 27, 2019

44
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS Compliance with Code of Conduct for Board of
Directors and Sr. Management Personnel
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)
(i) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015) The Board of Directors
To, The Hi-Tech Gears Limited
A-589, Industrial Complex,
The Members of
Dist. Alwar, Bhiwadi – 301019,
The Hi-Tech Gears Limited
Rajasthan.
Plot No. 24, 25, 26, Sector-7
IMT Manesar Gurgaon-122050 I, Pranav Kapuria, Chief Executive Officer of the Company hereby certify
that the Board of Directors and the Sr. Management Personnel have
We have examined the relevant registers, records, forms, returns and
affirmed compliance with the code of conduct for Board of Directors and Sr.
disclosures received from the Directors of The Hi-Tech Gears Limited
Management Personnel for the Financial Year 2018-19.
having CIN: L29130HR1986PLC081555 and having registered office at
Plot No. 24, 25, 26, Sector-7, IMT Manesar Gurgaon-122050 (hereinafter
referred to as ‘the Company’), produced before us by the Company for the For The Hi-Tech Gears Limited
purpose of issuing this Certificate, in accordance with Regulation 34(3) read
with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board Place : New Delhi Pranav Kapuria
of India (Listing Obligations and Disclosure Requirements) Regulations, Date : May 27, 2019 Chief Executive Officer
2015.
In our opinion and to the best of our information and according to the
verifications (including Directors Identification Number (DIN) status at
the portal www.mca.gov.in) as considered necessary and explanations
furnished to us by the Company & its officers, we hereby certify that none of
the Directors on the Board of the Company as stated below for the Financial
Year ending on 31st March, 2019 have been debarred or disqualified from
being appointed or continuing as Directors of companies by the Securities
and Exchange Board of India, Ministry of Corporate Affairs, or any such
other Statutory Authority.
Ensuring the eligibility for appointment / continuity of every Director on
the Board is the responsibility of the management of the Company. Our
responsibility is to express an opinion on these based on our verification.
This certificate is neither an assurance as to the future viability of the
Company nor of the efficiency or effectiveness with which the management
has conducted the affairs of the Company.
For Grover Ahuja & Associates
Company Secretaries

Akarshika Goel
(Partner)
Date : August 02, 2019 COP No. 12770
Place: New Delhi Membership No. 29525

45
SHAREHOLDERS’ INFORMATION
Corporate Identification Number : L29130HR1986PLC081555 PAN: AAACH0156K
Registered Office & Works II
Plot No. 24-26, Sector-7, IMT Manesar, Gurgaon-122050, Haryana
Tel No: (0124) – 4715200, Web site: www.thehitechgears.com
Previous Registered Office & Works I
A-589, Industrial Complex, Bhiwadi - 301019, District Alwar, (Rajasthan)
Tel No: (01493) – 265000/265050, Web site: www.thehitechgears.com
(The Registered Office of the Company has been shifted from the State of Rajasthan to the State of Haryana with effect from June 19, 2019)
Corporate Office
14th Floor, Tower-B, Unitech’s Millennium Plaza,
Sushant Lok-I, Sector – 27, Gurgaon, Haryana-122009
Tel No: (0124) – 4715100, Fax No: (0124) – 2806085
Email: [email protected]
Listing
The shares of the company are listed on the following Stock Exchanges:-
Stock Exchange Stock Code
(a) National Stock Exchange of India Limited HITECHGEAR
Exchange Plaza, Bandra Kurla Complex,
Bandra (E), Mumbai-400051.
(b) Bombay Stock Exchange Limited 522073
Phiroze Jeejeebhoy Towers
Dalal Street, Mumbai – 400001.
Interim Dividend for the year 2018-19
The Board of Directors in their meeting held on February 02, 2019 have approved an interim dividend of Rs 1.50/- (Rupee One and Paisa Fifty Only) per
equity shares of Rs 10/- (Rupees Ten only) each on the paid up Share Capital of the Company. The same was paid within stipulated time period.
33rd Annual General Meeting
Date & Time : Friday the 27th day of September, 2019 at 11:00 A.M.
Venue : Plot No. 24-26, Sector-7, IMT Manesar, Gurgaon-122050, Haryana
Book Closure Dates
September 21, 2019 to September 27, 2019 (both days inclusive)
Cut-off date for e-voting
September 20, 2019
E-Voting
The voting period begins on September 24, 2019 at 09:00 A.M. and ends on September 26, 2019 at 05:00 P.M.
EVEN (Electronic Voting Event Number)
EVEN of The Hi-Tech Gears Limited is 111428.
Final Dividend
The Board of Directors in their meeting held on May 27, 2019 have recommended final dividend of Rs. 2.00/- per equity share (@ 20%) subject to the
approval of the members in their Annual General Meeting.
If final dividend on shares as recommended by the Board of Directors is approved at the Annual General Meeting, payment of such dividend will be made
to those shareholders whose name appears on the Register of members as on September 27, 2019. In respect of the shares held in electronic form, to
those members whose names appear in the statements of beneficial ownership furnished by Depositories (NSDL/CDSL) as at the end of business hours
on September 20, 2019.
Dividend payment date
The management will organize the necessary documentations & manage the Schedule for payment of final dividend, if declared by the shareholders.
Estimate period of disbursement is 3rd week of October, 2019
Depository System
In view of the numerous advantages offered by the depository system, the members are requested to avail the facilities of dematerialization of the company’s
shares on either of the depositories viz., National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
Registrar and Share Transfer Agent
MAS Services Limited
(Unit: The Hi-Tech Gears Limited)
T-34, 2nd Floor, Okhla Industrial Area,
Phase –II, New Delhi – 110020
Ph.: 011 – 26387281, 82, 83
Fax: 011 – 26387384
Web site: www.masserv.com
Email: [email protected]; [email protected]

46
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF THE HI-TECH GEARS LIMITED Basis for Opinion
Report on the Audit of the Standalone Financial We conducted our audit of the standalone financial statements in accordance
Statements with the Standards on Auditing (SAs) specified under section 143(10) of
Opinion the Act. Our responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the Standalone Financial
We have audited the accompanying standalone financial statements of THE
Statements section of our report. We are independent of the Company in
HI-TECH GEARS LIMITED (“the Company”), which comprise the Balance
accordance with the Code of Ethics issued by the Institute of Chartered
Sheet as at March 31, 2019, the Statement of Profit and Loss (including
Accountants of India (ICAI) together with the ethical requirements that
Other Comprehensive Income), the Statement of Changes in Equity and
are relevant to our audit of the standalone financial statements under the
the Statement of Cash Flows for the year ended on that date, and notes to
provisions of the Act and the Rules made there under, and we have fulfilled
the financial statements including a summary of the significant accounting
our other ethical responsibilities in accordance with these requirements
policies and other explanatory information (hereinafter referred to as “the
and the ICAI’s Code of Ethics. We believe that the audit evidence we have
standalone financial statements”).
obtained is sufficient and appropriate to provide a basis for our audit opinion
In our opinion and to the best of our information and according to the on the standalone financial statements.
explanations given to us, the aforesaid standalone financial statements
Key Audit Matters
give the information required by the Companies Act, 2013 (“the Act”) in
the manner so required and give a true and fair view in conformity with Key audit matters are those matters that, in our professional judgment,
the Indian Accounting Standards prescribed under section 133 of the Act were of most significance in our audit of the standalone financial statements
read with the Companies (Indian Accounting Standards) Rules, 2015, as of the current period. These matters were addressed in the context of our
amended, (“Ind AS”) and other accounting principles generally accepted in audit of the standalone financial statements as a whole, and in forming
India, of the state of affairs of the Company as at March 31, 2019, its profit our opinion thereon, and we do not provide a separate opinion on these
and total comprehensive income, changes in equity and its cash flows for matters. We have determined the matters described below to be the key
the year ended on that date. audit matters to be communicated in our report.

Key audit matters Auditor’s Response

1. Contingent liabilities
There are legal and tax cases against the Audit procedures in respect of this area:
Company which have been identified as a • We gained an understanding of the process of identification of legal and tax cases and evaluated the
key audit matter due to the uncertainties design and implementation of controls in respect of these contingent liabilities.
involved in these tax and legal claims and • For legal and tax matters, our procedures included testing key controls surrounding litigation and
significant judgement is required. tax procedures; discussing matters with the Company’s litigation and tax teams; and assessing
Refer to the note no.38 “Contingent management’s conclusions through understanding precedents set in similar cases.
liabilities” to the notes to the standalone • Validated the completeness and appropriateness of the related disclosures with regard to the facts and
financial statements. circumstances of the legal and tax matters.
2. Borrowings
The Company had a borrowing liability Audit procedures in respect of this area:
(current and non-current) of Rs.2534.27 • We have gone through the agreements between the Company and its lenders.
million as at 31st March, 2019. • We obtained confirmations from the Company’s banks/financial institutions to confirm the outstanding
The borrowings are under agreements with balances.
terms and conditions detailed in notes no. • Where debt is regarded as non-current, we tested whether the Company has the unconditional right to
19A and 19B to the notes of the standalone defer payment such that there were no repayments required within 12 months from the balance date.
financial statements. • We further considered whether the disclosures related to the borrowings in the standalone financial
Keeping in view the size of the borrowings, statements are appropriate in all material respects.
the Company’s borrowings is considered as
key audit matter.
Information Other than the Standalone Financial Statements and When we read the Management Discussion & Analysis Report and Boards
Auditor’s Report Thereon Report, if we conclude that there is a material misstatement therein, we are
The Company’s Board of Directors is responsible for the other information. required to communicate the matter to those charged with governance.
The other information comprises the information included in the Management Management’s Responsibility for the Standalone Financial
Discussion & Analysis Report and Board’s Report, including Annexures to Statements
Board’s Report, but does not include the standalone financial statements and The Company’s Board of Directors is responsible for the matters stated in
our auditor’s report thereon. The Management Discussion & Analysis Report section 134(5) of the Act with respect to the preparation of these standalone
and Board’s Report, including Annexures to Board’s Report, is expected to be financial statements that give a true and fair view of the financial position,
made available to us after the date of this auditor’s report. financial performance, total comprehensive income, changes in equity
Our opinion on the standalone financial statements does not cover the and cash flows of the Company in accordance with the Ind AS and other
other information and we will not express any form of assurance conclusion accounting principles generally accepted in India.
thereon. This responsibility also includes maintenance of adequate accounting records
In connection with our audit of the standalone financial statements, our in accordance with the provisions of the Act for safeguarding the assets of the
responsibility is to read the other information identified above when it Company and for preventing and detecting frauds and other irregularities;
becomes available and, in doing so, consider whether the other information selection and application of appropriate accounting policies; making
is materially inconsistent with the standalone financial statements or our judgments and estimates that are reasonable and prudent; and design,
knowledge obtained in the audit, or otherwise appears to be materially implementation and maintenance of adequate internal financial controls, that
misstated. were operating effectively for ensuring the accuracy and completeness of

47
the accounting records, relevant to the preparation and presentation of the reasonably be thought to bear on our independence, and where applicable,
standalone financial statements that give a true and fair view and are free related safeguards.
from material misstatement, whether due to fraud or error. From the matters communicated with those charged with governance, we
In preparing the standalone financial statements, management is determine those matters that were of most significance in the audit of the
responsible for assessing the Company’s ability to continue as a going standalone financial statements of the current period and are therefore the
concern, disclosing, as applicable, matters related to going concern and key audit matters. We describe these matters in our auditor’s report unless
using the going concern basis of accounting unless management either law or regulation precludes public disclosure about the matter or when, in
intends to liquidate the Company or to cease operations, or has no realistic extremely rare circumstances, we determine that a matter should not be
alternative but to do so. communicated in our report because the adverse consequences of doing
The Board of Directors are also responsible for overseeing the Company’s so would reasonably be expected to outweigh the public interest benefits of
financial reporting process. such communication.
Auditor’s Responsibilities for the Audit of the Standalone Financial Report on Other Legal and Regulatory Requirements
Statements 1. As required by the Companies (Auditor’s Report) Order, 2016 (“the
Our objectives are to obtain reasonable assurance about whether Order”) issued by the Central Government in terms of Section 143(11)
the standalone financial statements as a whole are free from material of the Act, we give in “Annexure A” a statement on the matters specified
misstatement, whether due to fraud or error, and to issue an auditor’s in paragraphs 3 and 4 of the Order.
report that includes our opinion. Reasonable assurance is a high level of 2. As required by Section 143(3) of the Act, based on our audit, we report
assurance, but is not a guarantee that an audit conducted in accordance that:
with SAs will always detect a material misstatement when it exists. a) We have sought and obtained all the information and explanations
Misstatements can arise from fraud or error and are considered material which to the best of our knowledge and belief were necessary for
if, individually or in the aggregate, they could reasonably be expected to the purposes of our audit.
influence the economic decisions of users taken on the basis of these
b) In our opinion, proper books of account as required by law have
standalone financial statements.
been kept by the Company so far as it appears from our examination
As part of an audit in accordance with SAs, we exercise professional judgment of those books.
and maintain professional skepticism throughout the audit. We also: c) The Balance Sheet, the Statement of Profit and Loss including Other
● Identify and assess the risks of material misstatement of the standalone Comprehensive Income, Statement of Changes in Equity and the
financial statements, whether due to fraud or error, design and perform Statement of Cash Flow dealt with by this Report are in agreement
audit procedures responsive to those risks, and obtain audit evidence with the relevant books of account.
that is sufficient and appropriate to provide a basis for our opinion. The d) In our opinion, the aforesaid standalone financial statements comply
risk of not detecting a material misstatement resulting from fraud is with the Ind AS specified under Section 133 of the Act, read with
higher than for one resulting from error, as fraud may involve collusion, Rule 7 of the Companies (Accounts) Rules, 2014.
forgery, intentional omissions, misrepresentations, or the override of e) On the basis of the written representations received from the directors
internal control. as on March 31, 2019 taken on record by the Board of Directors,
● Obtain an understanding of internal controls relevant to the audit none of the directors is disqualified as on March 31, 2019 from being
in order to design audit procedures that are appropriate in the appointed as a director in terms of Section 164 (2) of the Act.
circumstances. Under section 143(3)(i) of the Act, we are also f) With respect to the adequacy of the internal financial controls over
responsible for expressing our opinion on whether the Company has financial reporting of the Company and the operating effectiveness
adequate internal financial controls system in place and the operating of such controls, refer to our separate Report in “Annexure B”.
effectiveness of such controls g) With respect to the other matters to be included in the Auditor’s
● Evaluate the appropriateness of accounting policies used and the Report in accordance with the requirements of section 197(16) of
reasonableness of accounting estimates and related disclosures the Act, as amended:
made by management In our opinion and to the best of our information and according to the
● Conclude on the appropriateness of management’s use of the going explanations given to us, the remuneration paid by the Company to
concern basis of accounting and, based on the audit evidence its directors during the year is in accordance with the provisions of
obtained, whether a material uncertainty exists related to events or section 197 of the Act.
conditions that may cast significant doubt on the Company’s ability to h) With respect to the other matters to be included in the Auditors’
continue as a going concern. If we conclude that a material uncertainty Report in accordance with Rule 11 of the Companies (Audit and
exists, we are required to draw attention in our auditor’s report to the Auditors) Rules, 2014, as amended, in our opinion and to the best
related disclosures in the standalone financial statements or, if such of our information and according to the explanations given to us:-
disclosures are inadequate, to modify our opinion. Our conclusions are
a) The Company has disclosed the impact of pending litigations on
based on the audit evidence obtained up to the date of our auditor’s
its financial position in its standalone financial statements-Refer
report. However, future events or conditions may cause the Company
Note 38 to the standalone financial statements;
to cease to continue as a going concern.
b) The Company did not have any long-term contracts including
● Evaluate the overall presentation, structure and content of the
derivative contracts for which there were any material foreseeable
standalone financial statements, including the disclosures, and
losses.
whether the standalone financial statements represent the underlying
c) There has been no delay in transferring amount, required to
transactions and events in a manner that achieves fair presentation.
be Transferred, to the Investor Education and Protection Fund
We communicate with those charged with governance regarding, among by the Company.
other matters, the planned scope and timing of the audit and significant
FOR O.P.DADU & CO.
audit findings, including any significant deficiencies in internal control that CHARTERED ACCOUNTANTS
we identify during our audit. FRN. 001201N
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, (AMIT GUPTA )
PLACE : NEW DELHI PARTNER
and to communicate with them all relationships and other matters that may
DATED : 27TH MAY, 2019 M.NO. 094202

48
Annexure ‘A’ To the Independent Auditors’ Report
The Annexure referred to in Independent Auditors’ Report to the members
covered under Section 186 of the Act.
of the Company on the standalone financial statements for the year ended
March 31, 2019, we report that: (v) In our opinion and according to the information and explanation given
to us, the Company has not accepted any deposits from the public in
(i)
accordance with the provisions of Sections 73 to 76 of the Act and the
(a) The Company has maintained proper records showing full particulars, rules framed there under. Accordingly, paragraph 3(v) of the Order is
including quantitative details and situation of fixed assets. not applicable to the Company.
(b) The Company has a regular programme of verification of fixed assets. (vi) We have broadly reviewed the books of account maintained by the
All the fixed assets except furniture and fixtures and office equipments Company pursuant to the rules prescribed by the Central Government
have been physically verified by the management during the year, which for the maintenance of cost records under sub­section (I) of Section
in our opinion is reasonable having regard to size of the Company and 148 of the Act and are of the opinion that, prima facie, the prescribed
nature of fixed assets. No material discrepancies were noticed on such accounts and records have been made and maintained. However, we
verification. have not made a detailed examination of the records.
(c) On the basis of information and explanation provided by the (vii) According to the information and explanations given to us, in respect of
management, the title deeds of immovable properties are held in the statutory dues:
name of the Company.
(a) The Company is generally regular in depositing undisputed statutory
(ii) According to information and explanation given to us inventories have dues including provident fund, employees’ state insurance, income tax,
been physically verified by the management during the year except sales tax, service tax, value added tax, duty of excise, duty of customs,
for stock-in-transit. In our opinion, the frequency of such verification goods and service tax, cess and other applicable statutory dues with
is reasonable. No material discrepancies were noticed on physical the appropriate authorities.
verification of inventories by the management.
There were no undisputed amounts payable in respect of provident
(iii) According to the information and explanations given to us, the Company fund, employees’ state insurance, income tax, sales tax, service tax,
has not granted any loan, secured or unsecured to companies, firms, value added tax, duty of excise, duty of customs, goods and service
Limited Liability Partnerships (LLPs) or other parties covered in the tax, cess and other applicable statutory dues in arrears as at March 31
register maintained under Section 189 of the Act. Accordingly, the 2019 for a period of more than six months from the date they became
provisions of paragraphs 3(iii)(a), 3(iii)(b) and 3(iii)(c) of the Order are payable.
not applicable to the Company.
(b) According to the information and explanations given to us, there are
(iv) According to the information and explanations given to us, the Company no dues of income tax, sales tax, value added tax, service tax, goods
has not entered into any transaction covered under Sections 185 of the and service tax, duty of customs, duty of excise which have not been
Act. The company has complied with the provisions of Sections 186 of deposited with the appropriate authorities on account of any dispute
the Act in respect of investments made. The Company has not granted other than those mentioned as under:
any loans, and has not provided any guarantees or securities to parties

Name of the Statue Nature of Dues Period to which the amount relates Amount (Rs. In Mn) Forum Where Dispute is Pending
Income Tax Act, 1961 Income Tax A.Y. 2012-13 0.23 Commissioner of Income Tax (Appeals), Delhi
Income Tax Act, 1961 Income Tax A.Y. 2010-11 2.54 Income Tax Appellate Tribunal, Delhi
Income Tax Act , 1961 Income Tax A.Y.2012-13 0.23 Commissioner of Income Tax (Appeals), Delhi
Income Tax Act , 1961 Income Tax A.Y. 2016-17 0.60 Commissioner of Income Tax (Appeals), Delhi
Income Tax Act, 1961 Income Tax A.Y 2019-20 0.08 Assistant Commissioner of Income Tax (TDS)

(viii) Based on our audit procedures and according to the information and related parties are in compliance with section 177 and 188 of the Act,
explanations given by the management, the Company has not defaulted where applicable and details of such transactions have been disclosed
in repayment of dues to any bank or to any financial institution. The in the standalone financial statements as required by the applicable
Company has not borrowed any loan from Government. The Company Indian Accounting Standards.
has not issued any debentures. (xiv) The Company has not made any preferential allotment or private
(ix) The Company has not raised any money by way of initial public offer placement of shares or fully or partly convertible debentures during the
or further public offer (including debt instruments). Based on our audit year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the
procedures and on the information given by the management, we report Company.
that term loans have been utilized for the purpose, for which they have (xv) According to the information and explanations given to us and based
been raised. on our examination of the records, the Company has not entered into
(x) According to the information and explanations given to us, no fraud non-cash transactions with directors or persons connected with him.
by the Company has been noticed or reported during the year, further Accordingly, paragraph 3(xv) of the Order is not applicable to the
the company has reported that one employee of the company has Company.
embezzled money by making unauthorised withdrawl of Rs. 2.23 Mn (xvi) The Company is not required to be registered under section 45-IA of
during the year. the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of
(xi) The Company has paid or provided for managerial remuneration in the Order is not applicable to the Company.
accordance with the requisite approvals mandated by the provisions of
FOR O.P.DADU & CO.
section 197 read with Schedule V to Act. CHARTERED ACCOUNTANTS
(xii) The Company is not a nidhi Company. Accordingly, paragraph 3(xii) of FRN. 001201N
the Order is not applicable to the Company.
(AMIT GUPTA
(xiii) According to the information and explanations given to us and based on PLACE : NEW DELHI PARTNER
our examination of the records of the Company, transactions with the DATED: 27TH MAY, 2019 M.NO. 094202

49
Annexure ‘B’ To the Independent Auditors’ Report and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use,
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory or disposition of the company’s assets that could have a material effect on
Requirements’ section of our report of even date to the Members of the the financial statements.
Company) Inherent Limitations of Internal Financial Controls Over Financial
Report on the Internal Financial Controls under Clause (i) of Sub- Reporting
section 3 of Section 143 of the Companies Act, 2013 (“the Act”) Because of the inherent limitations of internal financial controls over financial
We have audited the internal financial controls over financial reporting of reporting, including the possibility of collusion or improper management
The Hi-Tech Gears Limited (“the Company”) as of March 31, 2019 in override of controls, material misstatements due to error or fraud may occur
conjunction with our audit of the standalone financial statements of the and not be detected. Also, projections of any evaluation of the internal
Company for the year ended on that date. financial controls over financial reporting to future periods are subject
Management’s Responsibility for Internal Financial Controls to the risk that the internal financial control over financial reporting may
become inadequate because of changes in conditions, or that the degree of
The Company’s management is responsible for establishing and compliance with the policies or procedures may deteriorate.
maintaining internal financial controls based on “the internal control over
financial reporting criteria established by the Company considering the Opinion
essential components of internal control stated in the Guidance Note on In our opinion, to the best of our information and according to the
Audit of Internal Financial Controls over Financial Reporting issued by the explanations given to us, the Company has, in all material respects, an
Institute of Chartered Accountants of India (‘ICAl’). These responsibilities adequate internal financial controls system over financial reporting and such
include the design, implementation and maintenance of adequate internal internal financial controls over financial reporting were operating effectively
financial controls that were operating effectively for ensuring the orderly and as at March 31, 2019, based on “the internal control over financial reporting
efficient conduct of its business, including adherence to Company’s policies, criteria established by the Company considering the essential components
the safeguarding of its assets, the prevention and detection of frauds and of internal control stated in the Guidance Note on Audit of Internal Financial
errors, the accuracy and completeness of the accounting records, and the Controls Over Financial Reporting issued by the Institute of Chartered
timely preparation of reliable financial information, as required under the Accountants of India.
Companies Act, 2013. FOR O.P.DADU & CO.
Auditors’ Responsibility CHARTERED ACCOUNTANTS
FRN. 001201N
Our responsibility is to express an opinion on the Company’s internal
financial controls over financial reporting based on our audit. We conducted (AMIT GUPTA)
our audit in accordance with the Guidance Note on audit of Internal Financial PLACE : NEW DELHI PARTNER
Controls over Financial Reporting (the “Guidance Note”) and the Standards DATED: 27TH MAY, 2019 M.NO. 094202
on Auditing, issued by ICAI and deemed to be prescribed under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting
and their operating effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles.
A company’s internal financial control over financial reporting includes
those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorisations of management

50
 The Hi-Tech Gears Limited
Standalone Balance Sheet as at 31 March, 2019
(₹ in Mn)
Note 31 March 2019 31 March 2018
Assets
Non-current assets
Property, plant and equipment 6 1,740.67 1,678.08
Capital work-in-progress 6 138.04 21.13
Intangible assets 7 9.76 15.24
Financial assets
Investments 8 1,584.65 1,535.72
Loans 9 A 33.29 17.93
Other financial assets 10 A 5.22 0.14
Other non-current assets 11 A 324.40 40.30
Total non-current assets 3,836.03 3,308.54

Current assets
Inventories 12 739.73 457.06
Financial assets
Trade receivables 13 1,090.31 997.08
Cash and cash equivalents 14 293.69 75.20
Other bank balances 15 124.11 165.84
Loans 9 B 10.46 7.33
Other financial assets 10 B 66.34 70.42
Current tax assets (net) 16 19.71 21.12
Other current assets 11 B 144.99 104.91
Total current assets 2,489.34 1,898.96
Total assets 6,325.37 5,207.50

Equity and liabilities

Equity
Equity share capital 17 187.68 187.68
Other equity 18 2,494.11 2,216.68
Total equity 2,681.79 2,404.36

Liabilities
Non-current liabilities
Financial liabilities
Borrowings 19 A 1,641.25 1,222.42
Provisions 20 A 46.32 33.43
Deferred tax liabilities (net) 21 13.70 3.32
Other non-current liabilities 22 A 23.13 36.74
Total non-current liabilities 1,724.40 1,295.91

Current liabilities
Financial liabilities
Borrowings 19 B 715.59 568.70
Trade payables 23
- total outstanding dues of micro enterprises and small enterprises 35.81 16.44
- total outstanding dues of creditors other than micro enterprises and small enterprises 594.78 537.44
Other financial liabilities 24 459.25 260.98
Other current liabilities 22 B 77.96 89.22
Provisions 20 B 35.79 34.45
Total current liabilities 1,919.18 1,507.23
Total equity and liabilities 6,325.37 5,207.50

Summary of significant accounting policies and accompanying notes form an integral part of these financial statements.
This is the balance sheet referred to in our report of even date.

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

51
 The Hi-Tech Gears Limited
Standalone statement of Profit and Loss for the period ended 31 March, 2019

(₹ in Mn)
Note 31 March 2019 31 March 2018

Revenue
Revenue from operations 25 6,472.15 5,383.82
Other income 26 162.37 131.89
Total revenue 6,634.52 5,515.71

Expenses
Cost of materials consumed 27 3,234.03 2,537.09
Purchase of traded goods 28 316.20 312.28
Changes in inventories of finished goods and work-in-progress 29 (90.46) (45.05)
Excise duty on sale of goods - 111.17
Employee benefits expenses 30 1,005.41 792.91
Finance costs 31 184.10 90.57
Depreciation and amortisation expense 6&7 270.80 262.98
Other expenses 32 1,183.22 969.89
Total expenses 6,103.30 5,031.84

Profit before tax 531.22 483.87

Tax expense 33
Current tax 166.00 180.00
Deferred tax charged/(credit) 10.38 (15.25)
Profit for the year 354.84 319.12

Other comprehensive income

Items that will not be reclassified to profit or loss
Re-measurement gain on defined benefit plans 2.51 4.59
Fair Value of Equity Instruments through Other Comprehensive Income 0.15 (0.05)
Income tax relating to items that will not be reclassified to profit and loss (0.88) (1.59)
Total comprehensive income for the year 356.62 322.07

Earnings per equity share (₹ 10 per share) 34

Basic (₹) 18.91 17.00
Diluted (₹) 18.91 17.00

Summary of significant accounting policies and accompanying notes form an integral part of these financial statements.
This is the statement of profit or loss referred to in our report of even date.

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

52
 The Hi-Tech Gears Limited
Standalone statement of changes in Equity as at 31st March 2019

A. Equity share capital* (₹ in Mn)

Opening Changes Balance as Balance as
Changes
Particulars balance as at during the at 31 March at 31 March
during the year
1 April 2017 year 2018 2019

Equity share capital 187.68 - 187.68 - 187.68

B. Other equity** (₹ in Mn)

Other Comprehensive
Reserves and surplus
Income
Particulars Equity instrument Total
General Retained through Other
reserve earnings Comprehensive
Income
Balance as at 1 April 2017 308.08 1,648.12 0.53 1,956.73
Profit for the period - 319.12 - 319.12
Other comprehensive income (net of tax impact) - 3.00 (0.05) 2.95
Dividend paid during the year including tax impact, refer note 39 - (62.12) - (62.12)
Balance as at 31 March 2018 308.08 1,908.12 0.48 2,216.68
Profit for the period - 354.84 - 354.84
Other comprehensive income (net of tax impact) - 1.63 0.15 1.78
Dividend paid during the year including tax impact, refer note 39 - (79.19) - (79.19)
Balance as at 31 March 2019 308.08 2,185.40 0.63 2,494.11

*Refer note 17 for details

**Refer note 18 for details
Summary of significant accounting policies and accompanying notes form an integral part of these financial statements.
This is the statement of change in equity referred to in our report of even date.

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

53
 The Hi-Tech Gears Limited
Standalone Cash Flow Statement for the period ended 31 March 2019
(₹ in Mn)
Particulars 31 March 2019 31 March 2018
A Cash flow from operating activities
Profit before tax 531.22 483.87
Adjustments for:
Depreciation and amortisation expense 270.80 262.98
Gain on disposal of property, plant and equipment (net) (91.42) (3.64)
Interest income classified as investing cash flows (35.11) (5.09)
Income recognised on account of government assistance (13.62) (15.07)
Dividend income classified as investing cash flows - (0.01)
Provisions written back (21.87) (61.04)
Provision for doubtful debts 6.72 2.28
Unrealised foreign exchange (net) 16.01 0.17
Unrealised profit on mark to market of forward contracts - (0.30)
Finance cost paid 184.10 88.07
Operating profit before working capital changes 846.83 752.22

Movement in working capital

Increase in inventories (282.68) (109.98)
Decrease in other financial assets 4.08 6.02
Increase in trade receivables (112.71) (268.12)
(Increase)/decrease in other non-current assets (0.61) 0.23
(Increase)/decrease in other current assets (40.08) 1.14
Increase/(decrease) in other financial liability 20.84 (3.69)
Decrease in other current liability (12.47) (3.80)
Increase in provision 38.63 66.54
(Decrease)/Increase in other non-current liabilities (0.00) 7.69
Increase in trade and other payables 74.67 178.36
Cash flow from operating activities post working capital changes 536.50 626.61
Income tax paid (net) (165.46) (171.79)
Net cash flows from operating activities (A) 371.04 454.82

B Cash flows from investing activities

Payment for acquisition of subsidiary, net of cash acquired (35.01) (520.63)
Purchase of non-current investments (13.78) -
Payments for property, plant and equipment and capital work-in-progress (957.06) (278.22)
Proceeds from sale of property, plant and equipment 320.16 8.33
Payment for margin money and bank deposits 44.40 (91.82)
Repayment loans and advances (18.49) (3.33)
Interest received 27.36 3.83
Dividend received - 0.01
Net cash used in investing activities (B) (632.42) (881.83)

C Cash flows from financing activities*

Finance cost paid (150.74) (73.92)
Proceeds from borrowings 768.37 571.38
Repayment of borrowings (58.57) (1.47)
Dividends paid (including tax) (79.19) (62.12)
Net cash flow from financing activities (C) 479.87 433.87
 
Net increase (decrease) in cash and cash equivalents (A+B+C) 218.49 6.86
Cash and cash equivalents at the beginning of the year 75.20 68.34
Cash and cash equivalents at the end of the year 293.69 75.20
 
*Refer note 19 for reconciliation of liabilities arising from financing activities
This is the Cash Flow Statement referred to in our report of even date.
Note: The above cash flow statement has been prepared under the “Indirect method” as set out in Indian Accounting Standard (IND AS-7)
statement of cash flow

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

54
 Notes to the standalone financial statements for the year ended 31 March 2019
1. Nature of operations Lessor accounting under Ind AS 116 is substantially unchanged
The Hi-Tech Gears Limited (‘the Company’) is an auto component from today’s accounting under Ind AS 17. Lessors will continue to
manufacturer (a Tier 1 supplier).The Company is domiciled in India classify all leases using the same classification principle as in Ind
and its corporate office is situated at 14th Floor, Tower-B, Millennium AS 17 and distinguish between two types of leases: operating and
Plaza, Sushant Lok-I, Sector-27, Gurgaon-122002, Haryana, India. finance leases.

2. General information and compliance with Ind AS The standard permits two possible methods of transition:

These financial statements of the Company have been prepared • Full retrospective – Retrospectively to each prior period presented
in accordance with the Indian Accounting Standards (hereinafter applying Ind AS 8 Accounting Policies, Changes in Accounting
referred to as the ‘Ind AS’) as notified by Ministry of Corporate Estimates and Errors.
Affairs (‘MCA’) under section 133 of the Companies Act, 2013 (‘Act’) • Modified retrospective – Retrospectively, with the cumulative effect
read with the Companies (Indian Accounting Standards) Rules, of initially applying the Standard recognized at the date of initial
2015, as amended and other relevant provisions of the Act. The application
Company has uniformly applied the accounting policies for the Under modified retrospective approach, the lessee records the
periods presented. lease liability as the present value of the remaining lease payments,
These financial statements are separate financial statements of the discounted at the incremental borrowing rate and the right of use
Company. The Company has also prepared consolidated financial asset either as:
statements for the year ended 31 March 2019 in accordance with • Its carrying amount as if the standard had been applied since
Ind AS 110 and the same were also approved for issue by the Board the commencement date, but discounted at lessee’s incremental
of Directors on 27 May 2019. borrowing rate at the date of initial application or
3. Basis of preparation • An amount equal to the lease liability, adjusted by the amount
The financial statements have been prepared on going concern of any prepaid or accrued lease payments related to that lease
basis in accordance with generally accepted accounting principles recognized under Ind AS 17 immediately before the date of initial
in India. Further, the financial statements have been prepared on a application
historical cost basis except for following items: Ind AS 116, which is effective for annual periods beginning on or after
Items Measurement basis 01 April 2019, requires lessees and lessors to make more extensive
Certain financial assets and liabilities Fair value disclosures than under Ind AS 17. The Company is evaluating the
Net defined benefits (assets)/liability Fair value of plan assets requirements of this new standard on its financial statements.
less present value of defined Appendix C to Ind AS 12, Uncertainty over income tax
benefits obligations. treatment:
4. Recent accounting pronouncement The Interpretation addresses the accounting for income taxes when
In March 2019, the Ministry of Corporate Affairs issued the tax treatments involve uncertainty that affects the application of Ind
Companies (Indian Accounting Standards) (Amendments) Rules, AS 12 and does not apply to taxes or levies outside the scope of
2018, notifying amendments to Ind AS 12, ‘Income taxes’, Ind AS Ind AS 12, nor does it specifically include requirements relating to
19, ‘Employee benefits, Ind AS 23, ‘Borrowing costs and also Ind interest and penalties associated with uncertain tax treatments. The
AS 116 ‘Leases’. These amendments rules are applicable to the Interpretation specifically addresses the following:
Company from 1 April 2019. • Whether an entity considers uncertain tax treatments separately
Ind AS 116- Leases: • The assumptions an entity makes about the examination of tax
On 30 March 2019, MCA has notified Ind AS 116, Leases. Ind treatments by taxation authorities
AS 116 sets out the principles for the recognition, measurement, • How an entity determines taxable profit (tax loss), tax bases, unused
presentation and disclosure of leases and requires lessees to tax losses, unused tax credits and tax rates
account for all leases under a single on-balance sheet model similar
• How an entity considers changes in facts and circumstances
to the accounting for finance leases under Ind AS 17. The standard
includes two recognition exemptions for lessees – leases of ’low- An entity has to determine whether to consider each uncertain tax
value’ assets and short-term leases (i.e., leases with a lease term of treatment separately or together with one or more other uncertain
12 months or less). At the commencement date of a lease, a lessee tax treatments. The approach that better predicts the resolution of
will recognise a liability to make lease payments (i.e., the lease the uncertainty should be followed.
liability) and an asset representing the right to use the underlying The standard permits two possible methods of transition:
asset during the lease term (i.e., the right-of-use asset). Lessees • Full retrospective approach – Under this approach, Appendix C will
will be required to separately recognise the interest expense on be applied retrospectively to each prior reporting period presented
the lease liability and the depreciation expense on the right-of-use in accordance with Ind AS 8 – Accounting Policies, Changes in
asset. Accounting Estimates and Errors, without using hindsight and
Lessees will be also required to remeasure the lease liability upon • Retrospectively with cumulative effect of initially applying Appendix
the occurrence of certain events (e.g., a change in the lease term, C recognized by adjusting equity on initial application, without
a change in future lease payments resulting from a change in an adjusting comparatives.
index or rate used to determine those payments). The lessee will The interpretation is effective for annual reporting periods beginning
generally recognise the amount of the remeasurement of the lease on or after 01 April 2019. The Company is evaluating the impact of
liability as an adjustment to the right-of-use asset. this amendment on its financial statements.

55
 Amendments to Ind AS 19, Plan amendment, curtailment or The difference between the cash price equivalent and the amount
settlement: payable is recognised as interest expense over the deferred
The amendments to Ind AS 19 address the accounting when a plan payment period.
amendment, curtailment or settlement occurs during a reporting Spares having useful life of more than one year and having material
period. The amendments specify that when a plan amendment, value in each case, are capitalised under the respective heads as
curtailment or settlement occurs during the annual reporting period, and when available for use.
an entity is required to: Subsequent measurement (depreciation and useful lives)
• Determine current service cost for the remainder of the period after Property, plant and equipment are subsequently measured at cost
the plan amendment, curtailment or settlement, using the actuarial less accumulated depreciation and impairment losses. Depreciation
assumptions used to remeasure the net defined benefit liability on Buildings and Plant and Equipment is charged on pro-rata basis
(asset) reflecting the benefits offered under the plan and the plan on Straight Line Method based on the life assigned to each asset in
assets after that event accordance with Schedule II of Companies Act, 2013.Depreciation
• Determine net interest for the remainder of the period after the on rest of the property, plant and equipment has been provided on
plan amendment, curtailment or settlement using: the net defined Written Down Value basis based on the life assigned to each asset
benefit liability (asset) reflecting the benefits offered under the plan in accordance with Schedule II of Companies Act, 2013.
and the plan assets after that event; and the discount rate used to De-recognition
remeasure that net defined benefit liability (asset).
An item of property, plant and equipment and any significant
The amendments also clarify that an entity first determines any past component initially recognised is derecognised upon disposal or
service cost, or a gain or loss on settlement, without considering when no future economic benefits are expected from its use or
the effect of the asset ceiling. This amount is recognised in profit or disposal. Any gain or loss arising on de-recognition of the asset/
loss. An entity then determines the effect of the asset ceiling after significant component (calculated as the difference between the net
the plan amendment, curtailment or settlement. Any change in that disposal proceeds and the carrying amount of the asset/significant
effect, excluding amounts included in the net interest, is recognised component) is recognised in statement of profit and loss, when the
in other comprehensive income. asset is derecognised.
The amendments apply to plan amendments, curtailments, or 5.3 Intangible assets
settlements occurring on or after the beginning of the first annual
Recognition and initial measurement
reporting period that begins on or after 01 April 2019, with early
application permitted. These amendments will apply only to any Intangible assets are stated at their cost of acquisition. Any trade
future plan amendments, curtailments, or settlements of the discount and rebates are deducted in arriving at the purchase
Company. The Company does not expect any impact on its financial price.
statements of such amendment. Subsequent measurement (amortisation)
Amendments to Ind AS 23, Borrowing costs: Intangible assets are amortized over their respective individual
The amendments clarify that an entity treats as part of general estimated useful life on written down value basis commencing from
borrowings any borrowing originally made to develop a qualifying the date, the asset is available to the company for its use.
asset when substantially all of the activities necessary to prepare 5.4 Inventories
that asset for its intended use or sale are complete. Inventories are valued as follows:
An entity applies those amendments to borrowing costs incurred on Raw materials, loose tools and stores and spares
or after the beginning of the annual reporting period in which the entity
Raw materials, loose tools and stores and spares are valued at
first applies those amendments. An entity applies those amendments
lower of cost and net realizable value. Cost of raw materials, loose
for annual reporting periods beginning on or after 01 April 2019, with
tools and stores and spares is determined on a FIFO (First in first
early application permitted. The Company is evaluating the impact
out) basis.
of this amendment on its financial statements.
Work-in-progress and finished goods
5. Summary of significant accounting policies
Work-in-progress and finished goods is measured at lower of cost
The financial statements have been prepared using the significant
and net realizable value. Cost includes direct materials and labour
accounting policies and measurement bases summarised below.
and a proportion of manufacturing overheads based on normal
These were used throughout all periods presented in the financial
operating capacity.
statements.
Scrap
5.1 Current versus non-current classification
Scrap is measured at net realizable value.
All assets and liabilities have been classified as current or non-
current as per the Company’s operating cycle and other criteria set Net realizable value is the estimated selling price in the ordinary
out in the Companies Act, 2013. course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
5.2 Property, plant and equipment (PPE)
5.5 Revenue recognition
Recognition and initial measurement
Revenue arises mainly from the sale of manufactured and traded
Properties plant and equipment are stated at their cost of
goods.
acquisition. Any trade discount and rebates are deducted in arriving
at the purchase price. Property, plant and equipment purchased To determine whether to recognise revenue, the Company follows a
on deferred payment basis are recorded at equivalent cash price. 5-step process:

56
 1. Identifying the contract with a customer liability so as to achieve a constant rate of interest on the remaining
2. Identifying the performance obligations balance of the liability. Finance charges are recognised in finance
costs in the statement of profit and loss. Contingent rentals are
3. Determining the transaction price
recognised as expenses in the periods in which they are incurred.
4. Allocating the transaction price to the performance obligations Lease management fees, legal charges and other initial direct costs
5. Recognising revenue when/as performance obligation(s) are are capitalized.
satisfied. A leased asset is depreciated over the useful life of the asset.
Revenue is measured at fair value of consideration received or However, if there is no reasonable certainty that the Company
receivable, after deduction of any trade discounts, volume rebates will obtain ownership by the end of the lease term, the asset is
and any taxes or duties collected on behalf of the government which depreciated over the shorter of the estimated useful life of the asset
are levied on sales such as goods and service tax, etc. and the lease term.
Revenue is recognised either at a point in time or over time, when (or Operating lease payments are recognised as an expense in the
as) the Company satisfies performance obligations by transferring statement of profit and loss on a straight-line basis over the lease
the promised goods or services to its customers. term, except in case where lease rentals are structured to increase
Sale of goods in line with expected general inflation to compensate for the lessor’s
expected inflationary cost.
Revenue from sale of goods is recognised when the control of
goods is transferred to the buyer as per the terms of the contract, in 5.8 Impairment of non-financial assets
an amount that reflects the consideration the Company expects to At each reporting date, the Company assesses whether there is any
be entitled to in exchange for those goods. Control of goods refers indication based on internal/external factors, that an asset may be
to the ability to direct the use of and obtain substantially all of the impaired. If any such indication exists, the recoverable amount of the
remaining benefits from goods. asset or the cash generating unit is estimated. If such recoverable
Sale of services amount of the asset or cash generating unit to which the asset
belongs is less than its carrying amount. The carrying amount is
Revenue from services is recognised when Company satisfies the
reduced to its recoverable amount and the reduction is treated as
performance obligations by transferring the promised services to its
an impairment loss and is recognised in the statement of profit and
customers.
loss. If, at the reporting date there is an indication that a previously
Export benefits assessed impairment loss no longer exists, the recoverable amount
Export benefits constituting Duty Draw Back and Export Promotion is reassessed and the asset is reflected at the recoverable amount.
Capital Goods Scheme (EPCG) are accounted for on accrual basis Impairment losses previously recognized are accordingly reversed
when there is reasonable assurance that the company will comply in the statement of profit and loss.
with the conditions attached to them and the export benefits will be 5.9 Foreign currency
received. Export benefits under Duty Draw back scheme and EPCG
Functional and presentation currency
are considered as other operating income.
The financial statements are presented in Indian Rupee (‘`’) which
Interest income
is also the functional and presentation currency of the Company.
Interest income is recorded on accrual basis using the effective
Initial recognition
interest rate (EIR) method.
Foreign currency transactions are recorded in the functional
Dividend income
currency, by applying to the exchange rate between the functional
Dividend income is recognised at the time when right to receive the currency and the foreign currency at the date of the transaction.
payment is established, which is generally when the shareholders
Conversion
approve the dividend.
Foreign currency monetary items are converted to functional
5.6 Borrowing costs
currency using the closing rate. Non-monetary items denominated
Borrowing costs that are attributable to the acquisition, construction in a foreign currency which are carried at historical cost are reported
or production of qualifying assets are capitalized as part of the cost using the exchange rate at the date of the transaction.
of such assets. A qualifying asset is one that necessarily takes
Exchange difference
substantial period of time to get ready for its intended use. All other
borrowing costs are charged as expense to the statement of profit Exchange differences arising on monetary items on settlement, or
and loss in the period for which they relate to. restatement as at reporting date, at rates different from those at
which they were initially recorded, are recognised in the statement
5.7 Leases
of profit and loss in the year in which they arise.
Company as a lessee
5.10 Financial instruments
A lease is classified at the inception date as a finance lease or an
Initial recognition and measurement
operating lease. A lease that transfers substantially all the risks and
rewards incidental to ownership to the Company is classified as a Financial assets and financial liabilities are recognised when the
finance lease. Company becomes a party to the contractual provisions of the
financial instrument and are measured initially at fair value adjusted
Finance leases are capitalized at the commencement of the lease
for transaction costs, except for those carried at fair value through
at the inception date fair value of the leased property or, if lower, at
profit or loss which are measured initially at fair value. Subsequent
the present value of the minimum lease payments. Lease payments
measurement of financial assets and financial liabilities is described
are apportioned between finance charges and reduction of the lease
below.

57
 Non-derivative financial assets legal right to offset the recognised amounts and there is an intention
Subsequent measurement to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
i. Financial assets carried at amortised cost– A ‘financial asset’ is
measured at the amortised cost if both the following conditions are 5.11 Impairment of financial assets
met: In accordance with IndAS 109, the Company applies expected credit
• The asset is held within a business model whose objective is to hold loss (ECL) model for measurement and recognition of impairment
assets for collecting contractual cash flows, and loss for financial assets. The Company assesses on forward looking
• Contractual terms of the asset give rise on specified dates to cash basis the expected credit losses associated with its assets and
flows that are solely payments of principal and interest (SPPI) on impairment methodology applied depends on whether there has
the principal amount outstanding. been a significant increase in credit risk.
After initial measurement, such financial assets are subsequently Trade receivables
measured at amortised cost using the effective interest rate (EIR)
In respect of trade receivables, the Company applies the simplified
method.
approach of Ind AS 109, which requires measurement of loss
ii. Investments in equity instruments of subsidiary– Investments allowance at an amount equal to lifetime expected credit losses.
in equity instruments of subsidiary are accounted for at cost in Lifetime expected credit losses are the expected credit losses that
accordance with Ind AS 27 Separate Financial Statements. result from all possible default events over the expected life of a
iii. Investments in other equity instruments – Investments in equity financial instrument.
instruments which are held for trading are classified at Fair Value Other financial assets
Through Profit or Loss (FVTPL). For all other equity instruments,
In respect of its other financial assets, the Company assesses if the
the Company makes an irrevocable choice upon initial recognition,
credit risk on those financial assets has increased significantly since
on an instrument by instrument basis, to classify the same either
initial recognition. If the credit risk has not increased significantly
as at Fair Value through Other Comprehensive Income (FVOCI) or
since initial recognition, the Company measures the loss allowance
Fair Value Through Profit or Loss (FVTPL). Amounts presented in
at an amount equal to 12-month expected credit losses, else at an
other comprehensive income are not subsequently transferred to
amount equal to the lifetime expected credit losses.
profit or loss. However, the Company transfers the cumulative gain
or loss within equity. Dividends on such investments are recognized When making this assessment, , the Company compares the risk
in profit or loss unless the dividend clearly represents a recovery of of a default occurring on the financial asset as at the balance sheet
part of the cost of the investment. date with the risk of a default occurring on the financial asset as
at the date of initial recognition and considers reasonable and
De-recognition of financial assets
supportable information, that is available without undue cost or
A financial asset is primarily de-recognised when the contractual
effort.
rights to receive cash flows from the asset have expired or the
Company has transferred its rights to receive cash flows from the 5.12 Income taxes
asset. Tax expense recognized in statement of profit and loss comprises
Non-derivative financial liabilities the sum of deferred tax and current tax except the ones recognized
in other comprehensive income or directly in equity.
Subsequent measurement
Current tax is determined as the tax payable in respect of taxable
Subsequent to initial recognition, all non-derivative financial
income for the year and is computed in accordance with relevant
liabilities are measured at amortised cost using the effective interest
tax regulations. Current income tax relating to items recognised
method.
outside profit or loss is recognised outside profit or loss (either in
De-recognition of financial liabilities other comprehensive income or in equity).
A financial liability is de-recognised when the obligation under the Deferred tax liabilities are generally recognised in full for all taxable
liability is discharged or cancelled or expires. When an existing temporary differences. Deferred tax assets are recognised to the
financial liability is replaced by another from the same lender on extent that it is probable that the underlying tax loss or deductible
substantially different terms, or the terms of an existing liability are temporary difference will be utilised against future taxable income.
substantially modified, such an exchange or modification is treated This is assessed based on the Company’s forecast of future
as the de-recognition of the original liability and the recognition of operating results, adjusted for significant non-taxable income
a new liability. The difference in the respective carrying amounts is and expenses and specific limits on the use of any unused tax
recognised in the statement of profit and loss. loss. Unrecognised deferred tax assets are re-assessed at each
Forward contracts reporting date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax asset
The Company has entered into certain forward (derivative) contracts
to be recovered.
to hedge risks which are not designated as hedges. These derivatives
are initially recognised at fair value on the date a derivative contract Deferred tax assets and liabilities are measured at the tax rates that
is entered into and are subsequently re-measured to their fair value are expected to apply in the year when the asset is realised or the
at the end of each reporting period. Any profit or loss arising on liability is settled, based on tax rates (and tax laws) that have been
cancellation or renewal of such derivative contract is recognised as enacted or substantively enacted at the reporting date. Deferred
income or as expense in statement of profit and loss. tax relating to items recognised outside statement of profit and loss
is recognised outside statement of profit and loss (either in other
Offsetting of financial instruments
comprehensive income or in equity).
Financial assets and financial liabilities are offset and the net amount
is reported in the balance sheet if there is a currently enforceable

58
5.13 Cash and cash equivalents 5.16 Provisions
Cash and cash equivalents include cash in hand, balance with Provisions are recognized when the Company has a present
banks in current in current accounts and other short term highly obligation as a result of past events, for which it is probable that an
liquid investments with original maturity of three months and less. outflow of resources will be required to settle the obligation and a
5.14 Research and Development Costs reliable estimate of the amount can be made. Provisions required
to settle are reviewed regularly and are adjusted where necessary
Revenue expenditure incurred on research and development has
to reflect the current best estimates of the obligation. Provisions are
been charged to the statement of profit and loss for the year in
discounted to their present values, where the time value of money
which it is incurred. Capital expenditure is included in respective
is material.
heads under Property, plant and equipment.
5.17 Contingent liabilities and contingent assets
5.15 Employee benefits
A contingent liability is a possible obligation that arises from past
Short term employee benefits
events whose existence will be confirmed by the occurrence or
Employee benefits payable wholly within twelve months of receiving non-occurrence of one or more uncertain future events beyond the
employee services are classified as short-term employee benefits. control of the Company or a present obligation that is not recognized
These benefits include salaries and wages, bonus and ex-gratia. because it is not probable that an outflow of resources will be
The undiscounted amount of short term employee benefits to be required to settle the obligation. A contingent liability also arises
paid in exchange for employee services are recognised as an
in extremely rare cases where there is a liability that cannot be
expense as the related service is rendered by employees.
recognized because it cannot be measured reliably. The Company
Defined Contribution Plan does not recognize a contingent liability but discloses its existence
Contribution towards provident fund for certain employees is in the financial statements.
made to the regulatory authorities, where the Company has no Contingent assets are neither recognised nor disclosed except
further obligations. Payments to defined contribution retirement when realisation of income is virtually certain, related asset is
benefit schemes (such as Provident Fund, Employee’s State disclosed.
Insurance Corporation) are charged to the statement of profit and
5.18 Earnings per share
loss of the year in which contribution to such schemes becomes
due. Basic earnings per share are calculated by dividing the net profit
or loss for the period attributable to equity shareholders by the
Defined Benefit Plan
weighted average number of equity shares outstanding during the
For defined benefit schemes, the cost of providing benefits is period.
determined using Projected Unit Credit Method, with actuarial
For the purpose of calculating diluted earnings per share, the net
valuation being carried out at each balance sheet date. Actuarial
profit or loss for the period attributable to equity shareholders and
gains/losses resulting from re-measurements of the liability are
the weighted average number of shares outstanding during the
included in other comprehensive income.
period are adjusted for the effects of all dilutive potential equity
The retirement benefit obligation recognized in the Balance Sheet shares.
represents the present value of the defined benefit obligations as
5.19 Significant management judgement and estimates
adjusted for unrecognized past service cost, and as reduced by the
fair value of scheme assets. When preparing the financial statements, management makes
a number of judgements, estimates and assumptions about the
The Company makes annual contribution to the Employee’s
recognition and measurement of assets, liabilities, income and
Company Gratuity-cum-Life Assurance scheme of the Life
expenses
Insurance Corporation of India, a funded defined benefit plan for
qualifying employees. The scheme provides for lump sum payment Significant management judgements
to vested employees at retirement, death while in employment or The following are significant management judgements in applying
on termination of employment of an amount equivalent to 15 days the accounting policies of the Company that have the most
salary payable for each completed year of service or part thereof in significant effect on the financial statements.
excess of 6 months. Vesting occurs upon completion of 5 years of
Identification and Classification of leases-The Company enters
continued service.
into take or pay arrangements and leasing arrangements for use
Other long-term employee benefits of various assets. The identification of arrangement as a lease
Liability in respect of leave encashment becoming due or expected and subsequent classification of leasing arrangement as a finance
to be availed within one year from the balance sheet date is lease or operating lease is based on an assessment of several
recognised on the basis of discounted value of estimated amount factors, including, but not limited to, transfer of ownership of leased
required to be paid or estimated value of benefit expected to be asset at end of lease term, lessee’s option to purchase and
availed by the employees. Liability in respect of leave encashment estimated certainty of exercise of such option, proportion of
becoming due or expected to be availed more than one year after lease term to the asset’s economic life, proportion of present value
the balance sheet date is estimated on the basis of an actuarial of minimum lease payments to fair value of leased asset and extent
valuation performed by an independent actuary using the projected of specialized nature of the leased asset.
unit credit method. Recognition of deferred tax assets– The extent to which deferred
Actuarial gains and losses arising from past experience and changes tax assets can be recognized is based on an assessment of the
in actuarial assumptions are charged to statement of profit and loss probability of the Company’s future taxable income against which
in the year in which such gains or losses are determined. the deferred tax assets can be utilized.

59
 Evaluation of indicators for impairment of assets– The Defined benefit obligation (DBO)– Management’s estimate of the
evaluation of applicability of indicators of impairment of assets DBO is based on a number of underlying assumptions such as standard
requires assessment of several external and internal factors which rates of inflation, mortality, discount rate and anticipation of future salary
could result in deterioration of recoverable amount of the assets. increases. Variation in these assumptions may significantly impact the
Contingent liabilities– At each balance sheet date basis the DBO amount and the annual defined benefit expenses.
management judgment, changes in facts and legal aspects, Useful lives of depreciable/amortisable assets– Management
the Company assesses the requirement of provisions against reviews its estimate of the useful lives of depreciable/amortisable
the outstanding contingent liabilities. However, the actual future assets at each reporting date, based on the expected utility of the
outcome may be different from this judgement. assets. Uncertainties in these estimates relate to technical and
Significant estimates economic obsolescence that may change the utilisation of assets.

Information about estimates and assumptions that have the most Provisions– Estimate for provisions recognised is based on
significant effect on recognition and measurement of assets, management best estimate of the expenditure required to settle
liabilities, income and expenses is provided below. Actual results the present obligation at the year end and is based on historical
may be substantially different. experience, expected changes in economic conditions, changes in
exchange rates.
Government grants– Grants receivables are based on estimates
for utilisation of grant as per the regulations as well as analysing Fair value measurements– Management applies valuation
actual outcomes on a regular basis and compliance with stipulated techniques to determine the fair value of financial instruments such
conditions. Changes in estimates or non-compliance of stipulated as derivatives. This involves developing estimates and assumptions
conditions could lead to significant changes in grant income and are consistent with how market participants would price the instrument.
accounted prospectively over the balance life of asset. Estimated fair values may vary from the actual prices that would be
achieved in an arm’s length transaction at the reporting date.

(This space has been intentionally left blank)

60
 Note - 6
Property, plant and equipment (₹ in Mn)
Particulars Freehold Leasehold Residential Buildings Plant and Furniture Office Vehicles Total Capital work-
land land flats equipment and fixtures equipment in-progress
Gross carrying amount
At 1 April 2017 412.82 18.59 5.76 402.61 3,148.09 27.63 62.92 38.30 4,116.72 28.10
Additions - - - - 225.88 0.25 11.75 - 237.88 21.77
Disposals - - - - (43.44) - - (0.03) (43.47) (28.74)
Balance as at 31 March 2018 412.82 18.59 5.76 402.61 3,330.53 27.88 74.67 38.27 4,311.13 21.13

Additions 1.63 - - 5.55 509.99 4.47 4.15 30.47 556.26 673.17

Disposals (218.64) - (1.21) - (173.52) - (2.40) (5.18) (400.95) -
Capitalised during the year - - - - - - - - - (556.26)
Balance as at 31 March 2019 195.81 18.59 4.55 408.16 3,667.00 32.35 76.42 63.56 4,466.44 138.04

Accumulated depreciation
At 1 April 2017 - 0.77 1.64 107.09 2,194.17 24.21 56.40 31.25 2,415.53 -
Charge for the year - 0.18 0.09 12.23 233.86 0.73 7.11 2.11 256.31 -
Adjustments for disposals - - - - (38.77) - - (0.02) (38.79) -

61
Balance as at 31 March 2018 - 0.95 1.73 119.32 2,389.26 24.94 63.51 33.34 2,633.05 -
Charge for the year - 0.19 0.08 11.86 242.87 0.70 5.94 3.29 264.93 -
Adjustments for disposals - - (0.40) - (164.64) - (2.27) (4.90) (172.21) -
Balance as at 31 March 2019 - 1.14 1.41 131.18 2,467.49 25.64 67.18 31.73 2,725.77 -
 
Net carrying amount as at 31 March 2018 412.82 17.64 4.03 283.29 941.27 2.94 11.16 4.93 1,678.08 21.13

Net carrying amount as at 31 March 2019 195.81 17.45 3.14 276.98 1,199.51 6.71 9.24 31.83 1,740.67 138.04

(This space has been intentionally left blank)

Note - 7
Intangible assets (₹ in Mn)

Particulars Softwares Total

Gross carrying amount
At 1 April 2017 77.94 77.94
Additions 17.94 17.94
Balance as at 31 March 2018 95.88 95.88
Additions 0.39 0.39
Balance as at 31 March 2019 96.27 96.27

Accumulated amortisation
At 1 April 2017 73.97 73.97
Charge for the year 6.67 6.67
Balance as at 31 March 2018 80.64 80.64
Charge for the year 5.87 5.87
Balance as at 31 March 2019 86.51 86.51

Net carrying amount as at 31 March 2018 15.24 15.24

Net carrying amount as at 31 March 2019 9.76 9.76

Note - 8 (₹ in Mn)
31 March 2019 31 March 2018
A Investments - non current
Equity instruments
Investment in foreign subsidiary companies (unquoted, measured at cost)
2545887 Ontario Inc.
29,864,225 common shares of CAD $1 each (previous year 31 March 2018: 29,864,225 1,534.55 1,534.55
common shares).

Neo-Tech Auto System Inc.,USA

1,000,000 common shares of USD $0.01 each (previous year 31 March 2018: 1,000,000 0.64 0.64
common shares acquired on 21 September 2017) fully paid up.

Neo Tech Smart Solutions Inc., Canada*

250,000 common shares of CAD $ 1 each fully paid up (previous year Nil) 13.78 -

Other investment
(quoted, measured at FVOCI)
2100 Equity shares of Rs. 10/- each fully paid up of State Bank of India (previous year 0.67 0.53
31 March 2018 : 2100 Equity shares of Rs. 10/- each fully paid up).

(unquoted, measured at FVOCI)

8200 Equity shares of Rs. 1/- each fully paid up of Altigreen Propulsion Labs Pvt. Ltd. (previous 35.01 -
year Nil) **
1,584.65 1,535.72
Aggregate market value of quoted investments 0.67 0.53
Aggregate amount of unquoted investments and market value thereof 1,583.98 1,535.19
Aggregate value of impairment in the value of investments - -

Information about subsidiaries company

Particulars Principal place of business Ownership interests Accounted on
2545887 Ontario Inc Canada 100%
As per provision of Ind AS 27 ‘Separate
Neo-Tech Auto System Inc. USA 100%
Financial Statements’
Neo-Tech Smart Solutions Inc. Canada 100%
*During the current financial year, the Company has incorporated a Wholly Owned Subsidiary Company in Canada viz. Neo-Tech Smart Solutions Inc.
by acquiring its 100% common shares on 22 October 2018.
** During the current financial year, the Company has made investment in equity shares of Altigreen Propulsion Labs Pvt. Ltd. amounting to Rs. 35.01
Mn (including a security premium of Rs. 35.01 Mn).

62
Note - 9 (₹ in Mn)

31 March 2019 31 March 2018

A Loans - non current
(Unsecured, considered good)
Security deposits with government bodies 32.36 16.64
Loan to employees 0.93 1.29
33.29 17.93
B Loans - current
(Unsecured, considered good)
Security deposits - others 4.05 3.46
Loan to employees 6.41 3.87
10.46 7.33

Note - 10 (₹ in Mn)

31 March 2019 31 March 2018

A Other financial assets - non current
Balance held as margin money (against letter of credit and bank guarantees)* 5.22 0.14
5.22 0.14
*Margin money deposits having remaining maturity of more than 12 months.

B Other financial assets - current

Earnest money deposit 0.04 0.04
Derivative assets- foreign exchange forward contracts - 0.30
Other receivable*
Considered good 66.30 70.08
Considered credit impaired (refer note below) 2.05 -
Less: Impairment allowance (allowance for bad and doubtful debts) (2.05) -
66.34 70.42
*It includes amount receivable from customers for new product development like making, changing in nature of specific components on demand of
customers, insurance claim receivable, provision for rate revision in case of steel cost.

Note: One employee (Mr. K. P. Yadav, Assistant Manager in finance & accounts) had embezzled money by making unauthorised withdrawal of Rs.2.23
Mn in his personal account during the period December 2017 to April 2018. On detecting the above fraud, the Company immediately terminated him from
his services and lodged the FIR against him. Till now, the Company had made recovery of Rs.0.18 Mn out of above amount and created the provision
for the balance amount as on 31 March 2019. Appropriate actions for discovery, prevention of fraud and strengthening of Internal controls has been put
in place by the Company.

Note - 11 (₹ in Mn)
A Other non-current assets 31 March 2019 31 March 2018
Capital advance* 322.11 38.62
Prepaid expenses 2.29 1.68
324.40 40.30
*For capital commitments refer note - 38 B

B Other current assets 31 March 2019 31 March 2018

Advances to suppliers 46.66 20.18
Advances to employees 1.02 -
Prepaid expenses 21.64 15.58
Balance with statutory authorities 75.67 69.15
144.99 104.91

63
Note - 12 (₹ in Mn)

31 March 2019 31 March 2018

Inventories
(Valued at lower of cost or net realisable value)
Finished goods (goods in transit) 61.37 48.11
Raw materials and components 238.33 104.78
Stores and spares 195.38 136.61
Work-in-progress 244.11 166.91
Scrap (at realisable value) 0.54 0.65
739.73 457.06

Note - 13 (₹ in Mn)

Trade receivables* 31 March 2019 31 March 2018

(Unsecured)
Considered good 1,095.60 998.75
Having significant increase in credit risk 6.45 5.40
Credit impaired 4.06 4.06
Less: Impairment loss allowance (15.80) (11.13)
1,090.31 997.08
*for related party balances refer note 36

Note - 14 (₹ in Mn)

Cash and cash equivalents 31 March 2019 31 March 2018

Cash on hand 0.51 0.71
Balances with banks
In current accounts 69.49 74.49
Bank deposits with original maturity less than three months 223.69 -
293.69 75.20

Note - 15 (₹ in Mn)

31 March 2019 31 March 2018

Other bank balances
Margin money - 9.20
Standard Chartered Bank - DSRA a/c* - 63.70
Deposits with Standard Chartered Bank (DSRA) maturity of more than three months and upto twelve months** 77.40 -
Bank deposits with maturity of more than three months and upto twelve months 45.52 91.67
Unclaimed dividend 1.19 1.27
124.11 165.84

*Balance lying in Debt Service Reserve Account (DSRA) a/c, which is charged to lender pursuant to the facility agreement (refer note 19 borrowings
current for details).
**Amount deposited in fixed deposits of Rs.77.40 Mn which is Charged to Lender persuant to the facility agreement (refer note 19 borrowings current
for details).

64
Note - 16 (₹ in Mn)
31 March 2019 31 March 2018
Current tax assets (net)
Advance income tax 186.59 315.71
Less: Provision for taxation (166.88) (294.59)
19.71 21.12

Note - 17 (₹ in Mn)
31 March 2019 31 March 2018
Equity share capital
i Authorised Number Amount Number Amount
20,000,000 equity shares of ₹ 10/- each with voting rights 2,00,00,000 200.00 2,00,00,000 200.00
200.00 200.00
ii Issued, subscribed and fully paid up
Equity share capital of face value of ₹ 10/- each 1,87,68,000 187.68 1,87,68,000 187.68
187.68 187.68
iii Reconciliation of number of equity shares outstanding at
the beginning and at the end of the year
Equity shares
Balance at the beginning of the year 1,87,68,000 187.68 1,87,68,000 187.68
Add : Shares issued during the year - - - -
Balance at the end of the year 1,87,68,000 187.68 1,87,68,000 187.68

iv Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares with paid up value of ₹ 10 per share. Each holder of equity shares is entitled to one vote per share
on all resolutions submitted to shareholders. They have right to participate in the profits of the company, if declared by the Board as interim
dividend and recommended by the Board and declared by the members as final dividend. They are also entitled to bonus/right issue, as declared
by Company from time to time. They have right to receive annual report of the Company, beside other rights available under the Companies Act
and Listing Regulations.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company, beside other
rights available under the Companies Act.
The distribution will be in proportion to the number of equity shares held by the shareholders.

v Details of shareholders holding more than 5% share capital

31 March 2019 31 March 2018
Name of the equity shareholders Number % Number %
Vulcan Electro Controls Limited 10,82,000 5.77% 10,82,000 5.77%
Olympus Electrical Industries Private Limited 17,45,200 9.30% 17,45,200 9.30%
Hi Tech Portfolio Investments Limited 19,71,876 10.51% 19,71,876 10.51%
Mr. Deep Kapuria 31,17,461 16.61% 31,17,461 16.61%

vi Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way
of bonus shares and shares bought back for the period of 5 years immediately preceding the balance sheet date
The Company has not issued any shares pursuant to contract(s) without payment being received in cash.
No bonus shares have been issued in preceding 5 years.
The Company has not undertaken any buy back of shares.

65
Note - 18*
Other equity
(i) Nature and purpose of other reserves
General reserve
General reserve is created out of the accumulated profits of the Company as per the provisions of Companies Act.

Retained earnings
All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

Other comprehensive income

Other comprehensive income represents balance arising on account of changes in fair value of equity instruments carried at fair value through
other comprehensive income and gain/(loss) booked on re-measurement of defined benefit plans.

*Refer Part B (Other equity) of standalone statement of changes in equity as at 31 March 2019.

Note - 19 (₹ in Mn)
31 March 2019 31 March 2018
A Borrowings non-current
Secured
Term loans
From banks
External commercial borrowing 1,101.30 1,200.79
Rupee Loan 503.83 -
From others
Vehicle loan 19.51 -
Long term maturities of finance lease obligations 16.61 21.63
1,641.25 1,222.42

Particulars Nature of security Terms of repayment Interest rate Maturity 31 March 2019 31 March 2018
Secured  First pari pasu charge on the following Quarterly repayment 3 Month February, 828.49 802.44
immovable fixed assets of the Company: starts from February LIBOR+3.29% 2024
External commercial A-589, Industrial Complex, Bhiwadi, 2019. p.a.
borrowing District, Alwar, Rajasthan-301019. 5 instalments @ 2.25% (previous
of loan amount year 3 Month
Standard Chartered 2) Plot No 24-26, Sector 7, IMT Manesar, 4 instalments @ 3.00% LIBOR+3.29%
Bank Gurgaon, Haryana 122050 of loan amount. p.a.)
(USD 12,000,000) 3) SPL-146, Industrial Complex, Bhiwadi- 12 instalment @ 6.40%
through IDBI Trusteeship 304019, District Alwar, Rajasthan of loan amount.
Limited.
 First pari pasu charge on movable
fixed assets (except those specifically
charged) situated at following locations:
1) A-589, Industrial Complex, Bhiwadi,
District, Alwar, Rajasthan-301019.
2) Plot No. 24-26, Sector 7, IMT Manesar,
Gurgaon, Haryana 122050
3) SPL-146, Industrial Complex, Bhiwadi-
301019, District Alwar, Rajasthan
Standard Chartered  First pari pasu charge on the following Quarterly repayment 3 Month February, 505.38 505.66
Bank (USD 7,561,789) immovable fixed assets of the company: starts from February LIBOR+3.00% 2024
through IDBI Trusteeship 1) A-589, Industrial Complex, Bhiwadi, 2019. p.a.
Limited. District, Alwar, Rajasthan-301019. 5 instalments @ (previous
5.375% of loan amount year 3 Month
2) Plot No 24-26, Sector 7, IMT Manesar, 4 instalments @ 5.5% LIBOR+3.00%
Gurgaon, Haryana 122050 of loan amount p.a.)
3) SPL-146, Industrial Complex, Bhiwadi- 12 instalments @4.26%
304019, District Alwar, Rajasthan of loan amount
 First pari pasu charge on movable fixed
assets (except those specifically charged)
situated at following locations:
1) A-589, Industrial Complex, Bhiwadi,
District, Alwar, Rajasthan-301019.
2) Plot No. 24-26, Sector 7, IMT Manesar,
Gurgaon, Haryana 122050
3) SPL-146, Industrial Complex, Bhiwadi-
301019, District Alwar, Rajasthan

66
Particulars Nature of security Terms of repayment Interest rate Maturity 31 March 2019 31 March 2018
Term loan            
HDFC Bank Ltd - Rupee 1) First mortgage and charge in favour Repayment in 16 9.2% /9.3% December, 505.00 -
Loan of lender, on company’s immovable quarterly instalment /9.35% p.a. 2024
properties in new plant at Trichy, present starts from
and future. December,2020
2) First charge by way of hypothecation
in favour of the Lender, of company’s
movables including movable plant and
machinery, machinery spares, tools and
accessories, furniture, fixtures and all
other movable assets, present and future
for new plant at Trichy.
3) First charge by way of assignment or
creation of charge in favour of the lenders
of (i) all the right, title, interest, benefits,
claims and demands whatsoever of the
company in the project documents, duly
acknowledged and consented to by the
relevant counter parties to such project
documents, all as amended, varied or
supplemented from time to time in respect
to new plant at Trichy;
4) First pari passu charge by way of
hypothecation in favour of the Lender, of
company’s movables including movable
plant and machinery, machinery spares,
tools and accessories, furniture, fixtures
and all other movable assets, present and
future which are not exclusively charged
to any other lenders.
5) First pari passu mortgage and charge
in favour of lender, on company’s
immovable properties at A-589, Industrial
Area, Bhiwadi Plant.
The aforesaid mortgage assignment and
charges mentioned in point no. 1, 2, 3 shall
be on exclusive basis with the lender.
Vehicle loan
From bank
ICICI bank Hypothecation of specific car. 60 monthly equal (previous year January, - 0.50
instalments of ₹ 53,871. 10.50% p.a.) 2019
Interest rate            
Kotak Mahindra Prime Hypothecation of specific car. 36 monthly equal (previous year January, - 0.83
Limited instalments of ₹ 87,461. 10.30% p.a.) 2019
Vehicle loan
From others
BMW Financial Service Hypothecation of specific car. 47 monthly equal 9.75% p.a. August, 6.69 -
instalments of ₹ 132,801 2022
& 48th instalment of
₹ 30,21,700.
Daimler Financial Hypothecation of specific car. 35 monthly equal 11.74% p.a. October, 17.33 -
Services Pvt Ltd instalments of ₹ 4,51,854 2021
& 36th instalment of
₹ 82,25,900.
Finance lease Lease liabilities are effectively secured as Monthly instalments 6.25% p.a. 19.36 24.68
obligation the rights to the leased assets recognised (previous year
in the financial statements revert to the 6.25% p.a.)
lessor in the event of default.
Unamortised upfront fees (63.57) (83.31)
on borrowing
Total borrowings 1,818.68 1,250.80
Less : Current maturities 177.43 28.38
of long term borrowings
Non current borrowings 1,641.25 1,222.42

67
 (₹ in Mn)
31 March 2019 31 March 2018
B Borrowings - current
Secured
Working capital loans repayable on demand from banks 715.59 568.70
715.59 568.70

Particulars Nature of security Interest rate 31 March 2019 31 March 2018

Citi bank, N.A.  First pari passu charge on present and future stocks and 9.75% p.a. 158.57 201.88
book debts of the Company. (previous year 9.75% p.a.)
 Second pari passu charge on present and future fixed
assets excluding assets specifically charged to other
lenders.
Citi bank-packing credit  Second pari passu charge by way of equitable mortgage 6.10% p.a. 50.00 120.00
on land and building located at A-589, Industrial Complex, (previous year 5.20% p.a.)
Bhiwadi.
Standard chartered bank-  First pari passu charge over stock and book debts of the 6.00% p.a. 11.22 90.00
packing credit borrower both present and future. (previous year 5.20% p.a.)
Standard chartered bank-  Second pari passu charge on movable Fixed assets 10.95% p.a. 37.88 -
Working capital loan (excluding the assets specifically charged to other
Standard chartered bank- lenders). 9.40% p.a. 60.00 -
Working capital demand  Second pari passu charge on immovable fixed assets at
loan A-589, RIICO, Bhiwadi.
State Bank of India-  First pari passu charge on all the current assets with 8.30% p.a. 120.00 60.33
packing credit working capital lender banks under multiple banking (previous year 5.55% p.a.)
arrangement.
State Bank of India-  Second pari passu charge on Fixed assets (movable and 9.25% p.a. - 90.50
Working capital loan immovable at factory A-589, Industrial Complex, Bhiwadi, (previous year 9.25% p.a.)
Rajasthan-3010019) with working capital lender banks
under multiple banking arrangement.
Kotak Mahindra bank-  1st PP charge on all existing and future current assets of 8.65% p.a. 50.00 -
PCRE the Company.
 2nd PP charge on all existing and future Movable Fixed
Assets (other than those exclusively charged to other
lenders, (if any) of the Company.
 2nd PP charge on immovable property being land and
building situated at A-589, RIICO Bhiwadi, Alwar belonging
to the Company.   
HDFC Bank Ltd-Working  First pari passu charge by way of hypothecation on entire 9.2% p.a. 192.70 -
capital loan current assets of the Company, both present and future.
 Second pari passu charge by way of hypothecation on
entire movable fixed assets (Other than those exclusively
charged to other lenders, if any) of the Company.
ICICI Bank Limited-  First charge by way of hypothecation of the Company’s 9.75% p.a. 35.22 5.99
Working capital loan entire stocks of raw materials, semi finished and finished (previous year 9.75% p.a.)
goods, consumables stores and spares and such other
movables including book-debts, bills whether documentary
or clean, outstanding monies, receivables, both present
and future, in a form and manner satisfactory to the Bank,
ranking pari passu with other participating banks.
 Second pari passu charge on immovable fixed assets of
the company by way of equitable mortgage on property
situated at A-589, Industrial Complex, Bhiwadi.
Total 715.59 568.70

68
Reconciliation of liabilities arising from financing activities
The changes in the Company’s liabilities arising from financing activities can be classified as follows:

(₹ in Mn)
Particulars Long-term Short-term Lease Total
borrowings borrowings obligations
01 April 2017 721.57 513.88 - 1,235.45
Cash flows:      
- Repayment (1.47) (40.94) - (42.41)
- Proceeds 520.17 95.76 24.68 640.61
- Foreign exchange (14.15) - - (14.15)
31 March 2018 1,226.12 568.70 24.68 1,819.50
Cash flows:
- Repayment (53.25) (4.09) (5.32) (62.66)
- Proceeds 529.62 150.98 - 680.60
- Foreign exchange 75.36 - - 75.36
- Amortisation 21.47 - - 21.47
31 March 2019 1,799.32 715.59 19.36 2,534.27

Note - 20 (₹ in Mn)
31 March 2019 31 March 2018
A Provisions - non current
Provisions for employee benefits
Compensated absences 46.32 33.43
46.32 33.43
For movements in provision during the financial year, refer note 41
(₹ in Mn)
B Provisions - current 31 March 2019 31 March 2018
Provisions for employee benefits
Gratuity 1.32 1.44
Compensated absences 6.67 5.21
Provision on rate difference 27.80 27.80
35.79 34.45
For movements in each class of provision during the financial year, refer note 41 & 43

Note - 21 (₹ in Mn)
31 March 2019 31 March 2018
Deferred tax liabilities (net)
Deferred tax liabilities arising on account of :
Depreciation 60.46 40.71
Deferred government grant 13.62 5.22
Derivatives not designated as hedges - 0.10
Deferred tax assets arising on account of :
Provision for rate difference (9.71) (9.62)
Provision for leave encashment (18.52) (13.38)
Plant and machinery recognised on account of government grant (13.62) (5.22)
Provision for bonus (12.29) (10.64)
Provision for doubtful debts and advances (6.24) (3.85)
13.70 3.32

69
(i) Movement in deferred tax liabilities (net) (₹ in Mn)
Particulars 31 March 2018 Recognised/ 31 March 2019
reversed through
profit and loss
Liabilities      
Depreciation 40.71 19.75 60.46
Deferred government grant 5.22 8.40 13.62
Derivatives not designated as hedges 0.10 (0.10) -
Assets      
Provision for rate difference (9.62) (0.09) (9.71)
Provision for leave encashment (13.38) (5.14) (18.52)
Plant and machinery recognised on account of government grant (5.22) (8.40) (13.62)
Provision for bonus (10.64) (1.65) (12.29)
Provision for doubtful debts and advances (3.85) (2.39) (6.24)
Total 3.32 10.38 13.70

(₹ in Mn)
Particulars 01 April 2017 Recognised/ 31 March 2018
reversed through
profit and loss
Liabilities      
Deferred government grant 15.27 25.44 40.71
Depreciation 50.67 (45.45) 5.22
Derivatives not designated as hedges 3.04 (2.94) 0.10
Assets      
Provision for leave encashment (13.28) 3.66 (9.62)
Provision for bonus (10.29) (3.09) (13.38)
Provision for doubtful debts and advances (3.17) (2.05) (5.22)
Provision for rate difference (8.40) (2.24) (10.64)
Plant and machinery recognised on account of government grant (15.27) 11.42 (3.85)
Total 18.57 (15.25) 3.32

Note - 22 (₹ in Mn)
31 March 2019 31 March 2018
A Other non - current liabilities
Deferred income* 23.13 36.74
23.13 36.74

* Represents government assistance in the form of the duty benefit availed under Export Promotion Capital Goods (EPCG) Scheme on purchase of
property, plant and equipment accounted for as government grant and being amortised over the useful life of such assets.

31 March 2019 31 March 2018

B Other current liabilities
Payable to statutory authorities 27.71 26.57
Advance received from customers 50.25 62.65
77.96 89.22

Note - 23 (₹ in Mn)
31 March 2019 31 March 2018
Trade payables
- total outstanding dues of micro enterprises and small enterprises 35.81 16.44
- total outstanding dues of creditors other than micro enterprises and small enterprises 594.78 537.44
630.59 553.88

70
*Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”) as at 31 March 2019 and 31 March 2018:
      (₹ in Mn.)
Particulars 31 March 2019 31 March 2018
i Principal amount remaining unpaid to any supplier as at the end of the accounting year; 35.81 16.18
ii Interest due thereon remaining unpaid to any supplier as at the end of the accounting year; - 0.26
iii The amount of interest paid by the buyer in terms of section 16, along with the amounts of the - -
payment made to the supplier beyond the appointed day during each accounting year;
iv The amount of interest due and payable for the period of delay in making payment (which - -
have been paid but beyond the appointed day during the year) but without adding the interest
specified under this Act;
v The amount of interest accrued and remaining unpaid at the end of each accounting year; and - -
vi The amount of further interest remaining due and payable even in the succeeding years, until - -
such date when the interest dues as above are actually paid to the small enterprise, for the
purpose of disallowance as a deductible expenditure under section 23.
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis
of information available with the Company.

Note - 24 (₹ in Mn.)
31 March 2019 31 March 2018
Other financial liabilities
Current maturities of long term borrowings 174.68 25.33
Current maturities of finance lease obligations 2.75 3.05
Interest accrued but not due 15.00 11.75
Earnest money and security deposits 2.15 1.25
Unclaimed dividend 1.19 1.28
Others* 263.48 218.32
459.25 260.98
*Others include reimbursement of expenses, provision for expenses, liabilities related to compensation/claim, etc.

Note - 25 (₹ in Mn)
31 March 2019 31 March 2018
Revenue from operations
Sale of products
Transmission gears and shafts-domestic 4,336.85 3,927.76
Transmission gears and shafts-export 1,906.34 1,298.63
Sale of services
Software export 5.76 5.75
Software services - 0.26
Sales jobwork 8.12 14.80
Other operating income
Export incentives 72.24 37.57
Scrap sales 142.84 99.05
6,472.15 5,383.82

Note - 26 (₹ in Mn)
Other income 31 March 2019 31 March 2018
Interest income
Bank deposits 11.85 4.15
Others 23.25 0.95
Provision written Back 21.87 61.04
Dividend income - 0.01
Net gain on exchange fluctuations - 3.15
Net gain on disposal of property, plant and equipment 91.42 3.64
Fair value gain on derivatives not designated as hedges 0.25 34.52
Income recognised on account of government assistance 13.62 15.07
Miscellaneous income 0.11 9.36
162.37 131.89

71
Note - 27 (₹ in Mn)
31 March 2019 31 March 2018
Cost of materials consumed
Opening stock of raw material (steel rod and forgings) 104.78 42.08
Add: Purchase during the year (net of discount) 3,367.58 2,599.79
3,472.36 2,641.87
Less: Closing stock of raw material (steel rod and forgings) 238.33 104.78
3,234.03 2,537.09

Note - 28 (₹ in Mn)
31 March 2019 31 March 2018
Purchase of traded goods
Opening stock of purchase of traded goods (transmission gears and shafts) - -
Add: Purchase during the year (transmission gears and shafts) 316.20 312.28
316.20 312.28
Less: Closing stock of purchase of traded goods (transmission gears and shafts) - -
316.20 312.28

Note - 29 (₹ in Mn)
31 March 2019 31 March 2018
Changes in inventories of finished goods and work-in-progress
Inventories at the end of the year:
Finished goods (transmission gears and shafts) 61.37 48.11
Work-in-progress (transmission gears and shafts) 244.11 166.91
Inventories at the beginning of the year:
Finished goods (transmission gears and shafts) 48.11 40.87
Work-in-progress (transmission gears and shafts) 166.91 129.10
(90.46) (45.05)

Note - 30 (₹ in Mn)
31 March 2019 31 March 2018
Employee benefits expense
Salaries, wages and other benefits 904.28 709.72
Contributions to provident and other funds 33.64 28.89
Gratuity fund contributions 12.18 12.03
Staff welfare expenses 55.31 42.27
1,005.41 792.91

Note - 31 (₹ in Mn)
Finance costs 31 March 2019 31 March 2018
Interest on
Loan from banks 139.54 84.91
Others 4.02 1.24
Bank commission and charges 6.74 4.42
Loss on exchange rate fluctuation 33.80 -
184.10 90.57

Note - 32 (₹ in Mn)
Other expenses 31 March 2019 31 March 2018
Water, electricity and allied charges 333.75 301.07
Stores and spares consumed 425.03 333.59
Professional expenses 72.25 76.45
Repair and maintenance
Plant and machinery 25.27 30.12
Buildings 7.72 5.96

72
 (₹ in Mn.)

31 March 2019 31 March 2018

Rent 20.57 18.89
Insurance 20.80 17.06
Corporate social responsibility expenses 7.78 6.22
Rates and taxes 3.56 4.86
Provision for doubtful debts 6.72 2.28
Auditor’s remuneration* 1.65 1.85
Balance written off 0.49 1.29
Director’s sitting fees 0.69 0.57
Freight and handling expenses 87.31 45.37
Charity and donation 0.46 0.25
Loss on exchange fluctuation other than finance cost 7.83 -
Miscellaneous expenses 161.34 124.06
1,183.22 969.89

*Remuneration to auditors comprises of:

Audit fees 1.20 1.21
Reimbursement of expenses 0.07 0.31
Certification fees 0.08 -
Other services 0.30 0.33
1.65 1.85

i Corporate social responsibility expenses

The requisite disclosure relating to CSR expenditure in terms on Guidance Note on Corporate Social Responsibility (CSR) issued by Institute of Chartered
Accountants of India:
a) Gross amount required to be spent by the Company during the year is Rs. 7.65 Mn (previous year 6.22 Mn).
b) Amount spent during the financial year ended 31 March 2019 and 31 March 2018 on:
(₹ in Mn.)
Particulars Period Bank payment Yet to be paid Total
in cash
Education, technical education including research and development 31 March 2019 4.75 - 4.75
31 March 2018 5.50 - 5.50
Health 31 March 2019 0.50 - 0.50
31 March 2018 0.50 - 0.50
Integrity community development 31 March 2019 1.33 - 1.33
31 March 2018 0.22 - 0.22
Disaster management 31 March 2019 0.20 - 0.20
31 March 2018 - - -
Prime Minister National Relief Fund 31 March 2019 1.00 - 1.00
31 March 2018 - - -
Total 31 March 2019 7.78 - 7.78
31 March 2018 6.22 - 6.22

Note - 33 (₹ in Mn.)
31 March 2019 31 March 2018
Income tax
Tax expense comprises of:
Current tax 166.00 180.00
Deferred tax credit 10.38 (15.25)
Earlier years tax adjustments (net) - -
Income tax expense reported in the statement of profit and loss 176.38 164.75

73
The major components of income tax expense and the reconciliation of expected tax expense based on the domestic effective tax rate of the Company
at 34.944% (31 March 2018: 34.608%) and the reported tax expense in profit or loss are as follows:
(₹ in Mn.)
Accounting profit before income tax 531.22 483.87
At India’s statutory income tax rate of 34.944% (31 March 2018: 34.608%) 185.63 167.46

Tax effect of amounts which are not deductible (taxable) in calculating

taxable income:
Tax impact of exempted income - -
Effect of tax incentive - (0.97)
Impact of different tax rate on certain items (35.74) -
Tax impact of expenses which will never be allowed 27.78 -
Earlier years tax adjustments (net) 0.14 -
Others (1.43) (1.74)
Income tax expense 176.38 164.75

Note - 34 (₹ in Mn.)
Earnings per share 31 March 2019 31 March 2018
Net profit attributable to equity shareholders
Net profit for the year 354.84 319.12
Nominal value of equity share (₹) 10 10
Total number of equity shares outstanding at the beginning of the year 1,87,68,000 1,87,68,000
Total number of equity shares outstanding at the end of the year 1,87,68,000 1,87,68,000
Weighted average number of equity shares 1,87,68,000 1,87,68,000
(1) Basic (₹) 18.91 17.00
(2) Diluted (₹) 18.91 17.00

Note - 35A
Financial instruments
i) Fair values hierarchy
Financial assets and liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The
three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the
use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

ii) Financial instruments by category

For amortised cost instruments, carrying value represents the best estimate of fair value. (₹ in Mn)
Particulars 31 March 2019 31 March 2018
FVTPL FVOCI Amortised FVTPL FVOCI Amortised
cost cost
Financial assets              
Investment in equity instrument through OCI - 35.68 - - 0.53 -
Trade receivables   - - 1,090.31 - - 997.08
Loans   - - 7.33 - - 5.15
Cash and cash equivalents   - - 293.69 - - 75.20
Other bank balances     - 124.11 - - 165.84
Other financial assets   - - 71.55 0.30 - 70.26
Security deposits   - - 36.42 - - 20.11
Total financial assets   - 35.68 1,623.41 0.30 0.53 1,333.65
Financial liabilities            
Borrowings   - - 2,534.27 - - 1,819.50
Trade payables   - - 630.59 - - 553.88
Other financial liabilities   - - 281.82 - - 232.59
Total financial liabilities   - - 3,446.68 - - 2,605.97

74
 Investment in subsidiaries are measured at cost and hence are not required to be disclosed as per Ind AS 107 “Financial Instruments Disclosures”.
Hence, the same have been excluded from the above table.
Valuation process and technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
(a) the use of quoted market prices for quoted equity instruments.
(b) for unquoted equity instruments, the Company has used earning capitalisation method (fair value approach) discounted at a rate to reflect the
risk involved in the business.

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements.
(₹ in Mn)
Particulars Fair value Significant unobservable Data inputs
31 March 31 March inputs 31 March 2019 31 March 2018
2019 2018
Unquoted equity investments 35.01 - Earnings growth rate 5.00% NA
Risk adjusted 21.18% NA
discount rate
              
Sensitivity analysis                (₹ in Mn)
Description         31 March 2019 31 March 2018
Impact on fair value if change in earnings growth rate          
- Impact of increase in discount rate by 0.5 %         36.28 -
- Impact of decrease in discount rate by 0.5 %         33.83 -
Impact on fair value if change in risk adjusted discount rate          
- Impact of increase in discount rate by 0.5 %         33.17 -
- Impact of decrease in discount rate by 0.5 %         37.00 -
                  
The following table presents the changes in level 3 items for the periods ended 31 March 2019 and 31 March 2018: (₹ in Mn)
Particulars                Unquoted
equity shares
As at 31 March 2018                -
Acquisition                35.01
Gain/(loss) recognised in other comprehensive income           -
As at 31 March 2019                35.01

iii) Financial assets measured at fair value - recurring fair value measurements
The following table shows the levels within the hierarchy of financial assets measured at fair value on a recurring basis at 31 March 2019 and 31
March 2018:
(₹ in Mn)
Particulars       Period Level 1 Level 2 Level 3 Total
Financial assets          
Investments at fair value through other          
comprehensive income
Equity investments 31 March 2019 0.67 - 35.01 35.68
31 March 2018 0.53 - - 0.53
At fair value through profit or loss          
Derivative financial assets 31 March 2019 - - - -
31 March 2018 - 0.30 - 0.30

iv) Fair value of instruments measured at amortised cost

Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows:
(₹ in Mn)
Particulars Level 31 March 2019 31 March 2018
Carrying value Fair value Carrying value Fair value
Financial assets              
Loans   Level 3 33.29 33.29 17.93 17.93
Other financial assets   Level 3 5.22 5.22 0.14 0.14
Total financial assets       38.51 38.51 18.07 18.07
Financial liabilities            
Borrowings   Level 3 2,534.27 2,534.27 1,819.50 1,819.50
Total financial liabilities       2,534.27 2,534.27 1,819.50 1,819.50
           
The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities
is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale. The following methods and assumptions were used to estimate the fair values:
(i)  The fair values of the Company’s interest-bearing borrowings, loans and receivables are determined by applying discounted cash flows (‘DCF’)
method, using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31
March 2019 was assessed to be insignificant.

75
Note - 35B
Financial risk management
The Company’s activities expose it to credit risk, liquidity risk and market risk. The Company’s board of directors has overall responsibility for the
establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and
how the entity manages the risk and the related impact in the financial statements.

Risk Exposure arising Measurement Management

from
Credit risk Cash and cash Ageing analysis Bank deposits, diversification of asset base,
equivalents, trade credit limits and collateral.
receivables, other
financial assets
Liquidity risk Borrowings and other Rolling cash flow forecasts Availability of committed credit lines and
liabilities borrowing facilities.
Market risk - foreign exchange Recognised financial Cash flow forecasting Forward contract/hedging, if required.
assets and liabilities
not denominated in
Indian rupee (INR)
Market risk - interest rate Long-term borrowings Sensitivity analysis Negotiation of terms that reflect the market
at variable rates factors.
Market risk - security price Investments in equity Sensitivity analysis Portfolio diversification.
securities.

A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly
by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of
customers and other counterparties and incorporates this information into its credit risk controls.

a) Credit risk management

i) Credit risk rating
The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and
factors specific to the class of financial assets. The Company assigns the following credit ratings to each class of financial assets based on the
assumptions, inputs and factors specific to the class of financial assets.
A: Low
B: Medium
C: High

The Company provides for expected credit loss based on the following:
Asset groups Basis of categorisation Provision for expected credit loss
Low Cash and cash equivalents, other bank balances, 12 month expected credit loss
loans, trade receivables and other financial assets
Medium Trade receivables and other financial asset Life time expected credit loss or 12 month
expected credit loss
High Trade receivables and other financial asset Life time expected credit loss

Life time expected credit loss is provided for trade receivables.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make
payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering
differences between current and historical economic conditions.
Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the
Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are
recognised in statement of profit and loss.
(₹ in Mn)
Credit rating Particulars   31 March 2019 31 March 2018
A: Low Cash and cash equivalents, other bank balances, loans and other 533.10 336.86
financial assets
B: Medium Trade receivables and other financial asset   1,095.60 998.75
C: High Trade receivables and other financial asset   12.56 9.46

ii) Concentration of trade receivables

The Company’s exposure to credit risk for trade receivables is presented as below. Loans and other financial assets majorly represents loans to
employees and deposits given for business purposes.
(₹ in Mn)
Particulars 31 March 2019 31 March 2018
Original equipment manufacturer 705.64 627.10
Others 400.47 381.11
Total 1,106.11 1,008.21
     

76
b) Credit risk exposure
i) Provision for expected credit losses
  The Company provides for 12 month expected credit losses for following financial assets –

As at 31 March 2019 (₹ in Mn)

Particulars       Estimated gross Expected credit Carrying amount net of
carrying amount at default losses impairment provision
Cash and cash equivalents   293.69 - 293.69
Other bank balances   129.32 - 129.32
Loans   43.75 - 43.75
Other financial assets       68.39 2.05 66.34

As at 31 March 2018 (₹ in Mn)

Particulars       Estimated gross Expected credit Carrying amount net of
carrying amount at default losses impairment provision
Cash and cash equivalents   75.20 - 75.20
Other bank balances   165.98 - 165.98
Loans   25.26 - 25.26
Other financial assets       70.42 - 70.42

ii) Expected credit loss for trade receivables under simplified approach
As at 31 March 2019 (₹ in Mn)
Period Gross carrying value Expected credit loss Carrying amount (net of
(provision) impairment)
0 - 90 Days 934.74 2.99 931.75
90 - 180 Days 128.36 2.80 125.56
180 - 270 Days 28.35 3.30 25.05
270 - 360 Days 4.18 0.42 3.76
More than 360 Days 10.48 6.30 4.18

As at 31 March 2018 (₹ in Mn)

Period Gross carrying value Expected credit loss Carrying amount (net of
(provision) impairment)
0 - 90 Days 871.52 1.23 870.29
90 - 180 Days 102.28 3.23 99.05
180 - 270 Days 19.52 1.40 18.12
270 - 360 Days 6.05 0.07 5.98
More than 360 Days 8.84 5.20 3.64

Reconciliation of loss provision – lifetime expected credit losses (₹ in Mn)

Reconciliation of loss allowance             Trade Other financial
receivables asset
Loss allowance as on 31 March 2017     9.15 -
Impairment loss recognised/reversed during the year 2.28 -
Amounts written off (0.30) -
Loss allowance on 31 March 2018           11.13 -
Impairment loss recognised during the year 4.67 2.05
Loss allowance on 31 March 2019           15.80 2.05

B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due.
Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The
Company takes into account the liquidity of the market in which the entity operates.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.
(₹ in Mn)
31 March 2019            Less than More than 1 Total
1 year year
Non-derivatives                 
Borrowings   989.93 1,842.65 2,832.58
Trade payable   630.59 - 630.59
Other financial liabilities   266.82 - 266.82
Total            1,887.34 1,842.65 3,729.99

77
 (₹ in Mn)
31 March 2018            Less than More than 1 Total
1 year year
Non-derivatives                 
Borrowings   689.59 1,460.47 2,150.06
Trade payable   553.88 - 553.88
Other financial liabilities   220.85 - 220.85
Total            1,464.32 1,460.47 2,924.79

The Company had access to following funding facilities :

As at 31 March 2019     (₹ in Mn)
Funding facilities Total facility Drawn Undrawn
Less than 1 year       825.00 715.59 109.41
Total 825.00 715.59 109.41
     
As at 31 March 2018     (₹ in Mn)
Funding facilities Total facility Drawn Undrawn
Less than 1 year     655.00 568.70 86.30
Total 655.00 568.70 86.30
     
C) Market risk
i) Foreign exchange risk
The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions (imports and exports).
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the
Company’s functional currency. The Company does not hedge its foreign exchange receivables/payables.
ii) Derivative financial instrument
The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency exchange rates. The Company does
not acquire or issue derivative financial instruments for trading or speculative purposes. The Company does not enter into complex derivative transactions
to manage the risks. The derivative transactions are normally in the form of forward contracts and these are subject to the Company guidelines and policies.
The fair values of all derivatives are separately recorded in the balance sheet within current financial assets. Derivatives that are designated as hedges
are classified as current depending on the maturity of the derivative. The use of derivatives can give rise to credit and market risk. The Company tries
to control credit risk as far as possible by only entering into contracts with reputable banks and financial institutions. The use of derivative instruments
is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are
periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets,
liabilities or transactions, as derivatives are used only for risk management purposes.
a) Fair value hedge
The fair value hedges relate to forward covers taken to hedge currency exposure risks.
The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. Fair value
changes on such forward contracts are recognized in profit or loss.
b) Non-qualifying/economic hedge
The Company enters into derivative contracts which are not designated as hedges for accounting purposes, but provide an economic hedge of a
particular transaction risk or a risk component of a transaction. Fair value changes on such derivative instruments are recognized in profit or loss.
(₹ in Mn)
Derivative financial instruments   31 March 2019 31 March 2018
Current                 
Non Qualifying hedges                 
- Derivative assets              - 0.30
Total              - 0.30

Foreign currency risk exposure: (₹ in Mn)

Particulars Currency Amount in foreign currency Amount in INR
31 March 31 March 31 March 31 March
2019 2018 2019 2018
Receivables          
Export trade receivable USD 4.20 4.26 284.61 271.65
EURO 0.70 0.66 53.04 52.40
GBP 0.04 0.04 3.36 3.44
Payables          
Payable for imports and others USD (0.13) (0.60) (8.84) (39.83)
EURO (0.03) (0.05) (2.66) (4.31)
           
Foreign currency loans USD (11.73) (12.00) (828.49) (802.44)
USD (7.16) (7.56) (505.38) (505.66)
           
Interest on foreign currency loans USD (0.08) (0.13) (5.32) (8.84)
USD (0.04) (0.04) (3.09) (2.48)

78
Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.
(₹ in Mn)
Exchange rate increase Exchange rate decrease
by 5% by 5%
Particulars Currency
31 March 31 March 31 March 31 March
2019 2018 2019 2018
Receivables          
Export trade receivable USD 14.23 13.58 (14.23) (13.58)
EURO 2.65 2.62 (2.65) (2.62)
GBP 0.17 0.17 (0.17) (0.17)
Payables          
Payable for imports and others USD 0.44 1.99 (0.44) (1.99)
EURO 0.13 0.22 (0.13) (0.22)
Foreign currency loans          
USD 41.42 40.12 (41.42) (40.12)
USD 25.27 25.28 (25.27) (25.28)
Interest on foreign currency loans          
USD 0.27 0.44 (0.27) (0.44)
USD 0.15 0.12 (0.15) (0.12)
 
ii) Interest rate risk
The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since
neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company’s variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing: (₹ in Mn)
Particulars   31 March 2019 31 March 2018
Variable rate borrowing   1,275.99 1,226.12
Fixed rate borrowing   1,258.28 593.38
Total borrowings   2,534.27 1,819.50

Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.
(₹ in Mn)
Particulars 31 March 2019 31 March 2018
Interest rates – increase by 50 basis points (6.38) (6.13)
Interest rates – decrease by 50 basis points 6.38 6.13

iii) Price risk                 

The Company’s exposure to price risk arises from investments held and classified as FVOCI/ FVTPL. To manage the price risk arising from investments,
the Company diversifies its portfolio of assets.

Sensitivity analysis
Profit or loss and equity is sensitive to higher/lower prices of instruments on the Company’s profit for the year - (₹ in Mn)
Particulars 31 March 2019 31 March 2018
Price sensitivity    
  Price increase by (5%) - FVOCI* 0.03 0.03
  Price decrease by (5%) - FVOCI   (0.03) (0.03)
         
Price increase by (5%) - FVTPL - 0.01
Price decrease by (5%) - FVTPL         - (0.01)

* For sensitivity analysis in equity investment in shares of Altigreen, refer note 35 A, level 3 disclosure.
(This space has been intentionally left blank)

79
Note - 36
Related party disclosures
List of related parties and relationships

i) Parties where control exists:

Subsidiary Company:
(a) 2545887 Ontario Inc., Canada
Step down subsidiaries:
(i) The Hi-Tech Gears Canada Inc. (iv) Teutech Leasing Corporation, USA
(ii) Teutech Holding Corporation, USA (v) 2504584 Ontario Inc., Canada
(iii) Teutech LLC, USA (vi) 2323532 Ontario Inc., Canada

(b) Neo Tech Auto Systems Inc., USA

(C) Neo Tech Smart Solutions Inc., Canada

Key Management Personnel (KMP) and their Relatives

(i) Mr. Deep Kapuria (Executive Chairman and Whole Time Director) (viii) Mr. Prosad Dasgupta (Independent Director)
(ii) Mr. Pranav Kapuria (Managing Director) (ix) Mr. Vinit Taneja (Independent Director)
(iii) Mr. Anuj Kapuria (Whole Time Director) (x) Mr. Ramesh Chandra Jain (Non Executive Director)
(iv) Mr. Sandeep Dinodia (Independent Director) (xi) Mr. Bidadi Anjani Kumar (Non Executive Director)
(v) Mr. Anil Kumar Khanna (Independent Director) (xii) Mr. Anant Jaivant Talaulicar (Non Executive Director)
(vi) Mr. Krishna Chandra Verma (Independent Director) (xiii) Mr. Dinesh Chand Sharma (Chief Financial Officer)*
(vii) Ms. Malini Sud (Independent Director) (xiv) Mr. Shital Kumar Khatri (Company Secretary)
(xv) Mr. Vijay Mathur (Chief Financial Officer)*
* Mr. Dinesh Chand Sharma has been appointed(from 25/02/2019) as Chief Financial Officer in place of Mr. Vijay Mathur(till 22/02/2019)

Enterprises over which key management personnel and relatives of such personnel exercise significant influence with whom transactions
has been undertaken:-
(i) Aquarian Fibrecement Private Limited
(ii) Vulcan Electro Controls Limited
(iii) The Hi-Tech Robotic Systemz Limited
(iv) The Hi-Tech Engineering Systems Private Limited

(This space has been intentionally left blank)

80
 (a) Transactions with related parties carried out in the ordinary course of business: (₹ in Mn.)

Related Parties
Enterprise over which Key Management personnel and
Year Subsidiary Company
their relatives exercise significant influence Key
S.
Particulars Neo Tech Aquarian Vulcan The Hi-Tech The Hi-Tech Management Total
No 2545887 The Hi-
Smart Fibrecement Electro Engineering Robotic Personnel and its
  Ontario Inc., Tech Gears relatives
Solutions Private Controls Systems Systemz
Canada Canada Inc.
Inc. Limited Limited Private Limited Limited
1 Purchase of goods 31 March 2019 - - - - 1,358.50 329.05 - - 1,687.55
31 March 2018 - - - - 925.79 301.17 - - 1,226.96
2 Sale of goods 31 March 2019 - - 77.55 - 1.68 117.94 - - 197.18
31 March 2018 - - 7.18 - 0.06 78.13 - - 85.37
3 Rendering of job 31 March 2019 - - - - 4.55 3.54 - - 8.08
work/services 31 March 2018 - - - - 5.50 7.64 - - 13.14
4 Sale of assets 31 March 2019 - - - - 1.00 - - - 1.00
31 March 2018 - - 6.91 - 1.04 0.10 - - 8.06
5 Purchase of asset 31 March 2019 - - - - - - - - -
31 March 2018 - - - - - - 4.41 - 4.41

81
6 Receiving of job 31 March 2019 - - - - 173.31 - 46.20 - 219.51
work/services 31 March 2018 - - - - 186.87 - 45.11 - 231.98
7 Leasing or 31 March 2019 - - - 18.00 - - - - 18.00
hire purchase
31 March 2018 - - - 18.00 - - - - 18.00
arrangements
8 Remuneration paid* 31 March 2019 - - - - - - - 53.01 53.01
31 March 2018 - - - - - - - 57.80 57.80
9 Sitting fees 31 March 2019 - - - - - - - 0.69 0.69
31 March 2018 - - - - - - - 0.57 0.57
10 Re-imbursement 31 March 2019   - 3.71 - 4.40 - - - 8.12
paid 31 March 2018 - - - - 0.20 - - - 0.20
11 Re-imbursement 31 March 2019 - - 1.60 - 0.24 1.17 - - 3.01
received 31 March 2018 - - 10.54 - 1.38 1.83 0.92 - 14.66
12 Investment in equity 31 March 2019 - 13.78 - - - - - - 13.78
instrument 31 March 2018 520.64 - - - - - - - 520.64
 *The remuneration of Key Managerial Personnel included in various schedules to statement of profit and loss is as under:
(₹ in Mn.)
Particulars* 31 March 2019 31 March 2018
Short term employee benefits 51.34 56.29
Defined contribution plan 1.67 1.86
   
* Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees together.

(b) Closing balance with related parties in the ordinary course of business : (₹ in Mn.)
Related Parties
Enterprise over which Key Management personnel and
Subsidiary Company
their relatives exercise significant influence Key
S.
Particulars Neo Tech Aquarian Vulcan The Hi-Tech The Hi-Tech Management Total
No Year 2545887 The Hi-
Smart Fibrecement Electro Engineering Robotic Personnel and its
Ontario Inc., Tech Gears relatives
Solutions Private Controls Systems Systemz
Canada Canada Inc.
Inc. Limited Limited Private Limited Limited
1 Trade receivable 31 March 2019 3.05 - 1.04 - - - - - 4.09
31 March 2018 2.86 - 12.46 - - - - - 15.32
2 Trade payable 31 March 2019 - - - 1.62 64.42 72.12 2.80 - 140.96
31 March 2018 - - - - 64.99 110.87 1.79 - 177.65
3 Other payable 31 March 2019 - - - - - - - 20.07 20.07
31 March 2018 - - - - - - - 28.45 28.45

(This space has been intentionally left blank)

82
Note - 37
Capital management
The Company’s objectives when managing capital are to:
- To ensure Company’s ability to continue as a going concern, and
- To provide adequate return to shareholders

Management assesses the capital requirements in order to maintain an efficient overall financing structure. The Company manages the capital
structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The
Company manages its capital requirements by overseeing the following ratios -
(₹ in Mn)
Particulars   31 March 2019 31 March 2018
Net debt*   2,255.58 1,756.05
Total equity   2,681.79 2,404.36
Net debt to equity ratio     0.84 0.73
*Net debt = non-current borrowings + current borrowings + current maturities of non-current borrowings + interest accrued - cash and cash
equivalents

Note - 38
Contingent liabilities and commitments
(to the extent not provided for)

A Contingent liabilities

1) Details of bank guarantees are as under:- (₹ in Mn.)

S. Name of the beneficiary   31 March 2019 31 March 2018
No
1 Dy. Commissioner Customs Export, Tughlakabad, Delhi   0.15 0.15
2 Deputy Commissioner of Customs   1.18 1.18
3 The President of India (Through Asstt./Dy Commissioner of Customs)   0.06 0.06
4 Commissioner of Custom   0.03 0.03
5 Dy. Commissioner Customs Export   0.13 0.13
6 The President of India (Through Asstt./Dy Commissioner of Customs)   0.48 0.48
7 The Assessing Authority Sales Tax Department, Haryana   0.05 0.05
8 Deputy Commissioner of Customs   0.84 0.84
9 The Assessing Authority Sales Tax Department, Haryana   0.05 0.05
10 GST Gurgaon   - 1.00
  Total   2.97 3.97

2) Contingent liabilities on account of disputed statutory demands not provided for in the books of account are in appeals, as follows:-
(₹ in Mn)
S. Particulars Period to which the 31 March 2019 31 March 2018
No amount relates
1 Income Tax Act, 1961 (Commissioner of Income Tax/Income Tax Appellate Assessment Year 2012-13 0.23 0.35
Tribunal)
2 Income Tax Act, 1961 (Income Tax Appellate Tribunal) Assessment Year 2008-09 - 0.26
3 Income Tax Act, 1961 (Income Tax Appellate Tribunal, Delhi) Assessment Year 2010-11 2.54 2.54
4 Income Tax Act, 1961(Commissioner of Income Tax (Appeals), Delhi-4) Assessment Year 2012-13 0.23 -
5 Income Tax Act, 1961(Commissioner of Income Tax (Appeals), Delhi-4) Assessment Year 2016-17 0.60 -
6 Income Tax Act, 1961 (Assistant Commissioner of Income Tax(TDS) ) Assessment Year 2019-20 0.08 -
  Total   3.68 3.15

83
Statutory demands for which showcause notice issued to the Company: (₹ in Mn)
S. Particulars Period to which the 31 March 2019 31 March 2018
No amount relates
1 Central Excise Act, 1944 (Additional Commissioner, Central Excise, April 2005 to March 2018 1.04 1.04
Gurgaon, Haryana)
2 Central Excise Act, 1944 (Additional Commissioner, Central Excise, August 2014 to July 2015 2.02 2.02
Gurgaon, Haryana)
3 Central Excise Act, 1944 (Joint Commissioner, Central Excise, Gurgaon, August 2015 to February 3.62 3.62
Haryana) 2017
4 Central Excise Act, 1944 (Deputy Commissioner, CGST, Gurugram, March 2017 to June 2017 1.60 -
Haryana)
  Total   8.28 6.68

3) There are five legal cases filed by past employees against the Company for re-instatement/settlement of their dues/remuneration related matters.
Out of the aforesaid five cases, four cases are pending at various stages at Camp Court, Bhiwadi, Rajasthan and one case is pending at District
Court, Gurgaon, Haryana. The financial impact of these cases, if any, is not identifiable and hence the same has not been provided in the financial
statements of the Company.

B Commitments (Net of Advance):

Estimated amount of contracts remaining to be executed on capital accounts Rs 582.39 Mn net of advances (Previous years: 31 March 2018:
Rs 101.92 Mn).

Note - 39
Dividends
A The Board of directors at their meeting held on 27 May 2019 has proposed a final dividend of ₹ 2 per share for financial year 31 March 2019
(previous year: ₹ 2.00 per share) subject to approval of shareholders in annual general meeting. The above is in addition to an interim dividend of
₹ 1.5 per share for financial year 31 March 2019 (previous year ₹ 1.5 per share) declared and already paid.
B Dividend declared and paid in earlier years are as follows –
(₹ in Mn.)
Nature 31 March 2019 31 March 2018
Interim dividend (including dividend tax) 33.94 33.88
Final dividend (including dividend tax) 45.25 28.24
 
Note - 40
Leases disclosure as lessee
Operating leases
The Company has leased facilities under operating leases. Rentals are expensed with reference to lease terms and other considerations. The future
lease payments in respect of these leases are as at under:
(₹ in Mn)
Particulars     31 March 2019 31 March 2018
Within one year   20.63 12.00
Later than one year but not later than five years   63.00 2.63
Later than five years     - -

Finance leases
The Company had taken solar power plant on finance lease. The Company’s obligations under finance leases are secured by the lessor’s title to
the leased assets. Future minimum lease payments under finance lease are, as follows:

(₹ in Mn)
Particulars     31 March 2019 31 March 2018
Within one year   2.75 6.59
Later than one year but not later than five years   10.71 13.46
Later than five years     13.37 13.37

(₹ in Mn)
Particulars     31 March 2019 31 March 2018
Within one year   2.45 6.39
Later than one year but not later than five years   8.17 10.62
Later than five years   7.16 7.16
Amounts representing finance charges     9.05 9.25

84
Note - 41
Employee benefits

A Compensated absences - earned leave

Risk
Salary Increases Actual salary increases will increase the plan’s liability. Increase in
salary increase rate assumption in future valuations will also increase
the liability.
Investment Risk If plan is funded then assets liabilities mismatch & actual investment
return on assets lower than the discount rate assumed at the last
valuation date can impact the liability.
Discount Rate Reduction in discount rate in subsequent valuations can increase the
plan’s liability.
Mortality & disability Actual deaths & disability cases proving lower or higher than assumed
in the valuation can impact the liabilities.
Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals
and change of withdrawal rates at subsequent valuations can impact
Plan’s liability.

i) Amounts recognised in the balance sheet: (₹ in Mn)

Particulars    31 March 2019 31 March 2018
Present value of the obligation   52.99 38.65
Fair value of plan assets   - -
Net obligation recognised in balance sheet as provision   52.99 38.65
Current liability (amount due within one year)   6.67 5.22
Non-current liability (amount due over one year)   46.32 33.43

ii) Expenses recognised in statement of profit and loss: (₹ in Mn)

Particulars  31 March 2019 31 March 2018
Current service cost 15.99 7.93
Interest cost 2.99 2.83
Actuarial (gain)/loss net on account of:    
- Changes in demographic assumptions - -
- Changes in financial assumptions 1.77 (1.48)
- Changes in experience adjustment 3.77 0.70
Cost recognised during the year     24.52 9.98

iii) Movement in the liability recognised in the balance sheet is as under: (₹ in Mn)
Particulars  31 March 2019 31 March 2018
Present value of defined benefit obligation at the beginning of the year 38.65 38.36
Current service cost 15.99 7.93
Interest cost 2.99 2.83
Actuarial (gain)/loss net 5.54 (0.78)
Benefits paid (10.18) (9.69)
Present value of defined benefit obligation at the end of the year   52.99 38.65

iv) (a) For determination of the liability of the Company the following actuarial assumptions were used:
Particulars    31 March 2019 31 March 2018
Discount rate   7.66% 7.73%
Salary escalation rate   9.25% 9.00%
Retirement Age (years)   58.00 58.00
Ages   Withdrawal rate (%)
Up to 30 Years   3.00% 3.00%
From 31 to 44 years   2.00% 2.00%
Above 44 years   1.00% 1.00%
Leave      
Leave availment rate   5.00% 5.00%
Leave lapse rate while in service   - -
Leave lapse rate on exit   - -
Leave encashment rate while in service     5.00% 5.00%
Mortality rates inclusive of provision for disability -100% of IALM (2006 – 08)

85
 iv) (b) Maturity profile of defined benefit obligation (₹ in Mn)
Particulars 31 March 2019 31 March 2018
0 to 1 year 6.67 5.22
1 to 2 year 1.57 1.86
2 to 3 year 2.02 0.96
3 to 4 year 1.60 1.39
4 to 5 year 1.56 1.20
5 to 6 year 3.09 1.58
6 year onwards 36.47 26.45

v) Sensitivity analysis for compensated absences liability (₹ in Mn)

Particulars  31 March 2019 31 March 2018
a) Impact of the change in discount rate    
Present value of obligation at the end of the year 52.99 38.65
Impact due to increase of 0.50 % (2.76) (1.91)
Impact due to decrease of 0.50 % 3.00 2.08
     
b) Impact of the change in salary increase    
Present value of obligation at the end of the year 52.99 38.65
Impact due to increase of 0.50 % 2.94 2.04
Impact due to decrease of 0.50 %     (2.73) (1.90)

Sensitivities due to mortality and withdrawals are not material. Hence impact of change is not calculated.
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are
not applicable being a lump sum benefit on retirement.

B Gratuity
Risk
Salary Increases Actual salary increases will increase the Plan’s liability. Increase in
salary increase rate assumption in future valuations will also increase
the liability.
Investment Risk If Plan is funded then assets liabilities mismatch & actual investment
return on assets lower than the discount rate assumed at the last
valuation date can impact the liability.
Discount Rate Reduction in discount rate in subsequent valuations can increase the
plan’s liability.
Mortality & disability Actual deaths & disability cases proving lower or higher than assumed
in the valuation can impact the liabilities.
Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals
and change of withdrawal rates at subsequent valuations can impact
Plan’s liability.

i) Amounts recognised in the balance sheet: (₹ in Mn)

Particulars    31 March 2019 31 March 2018
Present value of the obligation   137.14 122.12
Fair value of plan assets   135.82 120.68
Net obligation recognised in balance sheet as provision   (1.32) (1.44)
Current liability (amount due within one year)   (1.32) (1.44)
Non-current liability (amount due over one year)   - -

ii) Gain recognised in other comprehensive income: (₹ in Mn)

Particulars 31 March 2019 31 March 2018
Actuarial gain/(loss) on asset     (0.02) (7.33)
Actuarial gain on PBO   2.54 11.92
Gain recognised in other comprehensive income 2.52 4.59

86
iii) Actuarial (gain)/loss on obligation: (₹ in Mn)
Particulars  31 March 2019 31 March 2018
Actuarial (gain)/loss net on account of:    
-Changes in demographic assumptions - -
-Changes in financial assumptions 3.31 (3.83)
-Changes in experience adjustment     (5.85) (8.09)

iv) Expenses recognised in statement of profit and loss (₹ in Mn)

Particulars  31 March 2019 31 March 2018
Current service cost 12.46 12.37
Interest cost (0.53) 0.15
Cost recognised during the year     11.93 12.52

v) Major categories of plan assets (as percentage of total plan assets)

Particulars  31 March 2019 31 March 2018
Government of India Securities - -
State Government securities - -
High Quality Corporate Bonds - -
Equity Shares of listed companies - -
Property - -
Funds managed by insurer 100% 100%
Bank Balance - -
Total     100% 100%

vi) Change in plan assets is as under: (₹ in Mn)

Particulars      31 March 2019 31 March 2018
Fair value of plan assets at the beginning of the period   120.68 115.66
Difference in Opening Fund   8.34 -
Actual return on plan assets   9.95 1.20
Employer contribution   1.44 8.73
Fund management charges   (0.25) (0.23)
Benefits paid   (4.34) (4.68)
Fair value of plan assets at the end of the period     135.82 120.68

vii) Movement in the liability recognised in the balance sheet is as under: (₹ in Mn)
Particulars  31 March 2019 31 March 2018
Present value of defined benefit obligation at the beginning of the year 122.12 117.68
Current service cost 12.46 10.12
Past service cost - 2.25
Interest cost 9.44 8.67
Actuarial (gain)/loss net (2.54) (11.92)
Benefits paid (4.34) (4.68)
Present value of defined benefit obligation at the end of the year   137.14 122.12

viii) (a) For determination of the liability of the Company the following actuarial assumptions were used:
Particulars    31 March 2019 31 March 2018
Discount rate   7.66% 7.73%
Salary escalation rate   9.25% 9.00%
Retirement Age (Years)   58.00 58.00
Withdrawal rate      
Up to 30 Years   3.00% 3.00%
From 31 to 44 years   2.00% 2.00%
Above 44 years   1.00% 1.00%
Weighted average duration of PBO     14.24 13.68
Mortality rates inclusive of provision for disability -100% of IALM (2006 – 08)

87
 viii) (b) Maturity profile of defined benefit obligation: (₹ in Mn)
Particulars 31 March 2019 31 March 2018
0 to 1 year 16.78 14.43
1 to 2 year 1.87 1.74
2 to 3 year 1.97 1.81
3 to 4 year 2.35 2.93
4 to 5 year 2.02 2.14
5 to 6 year 2.31 2.45
6 year onwards 109.83 96.61

ix) Sensitivity analysis for gratuity liability: (₹ in Mn)

Particulars  31 March 2019 31 March 2018
a) Impact of the change in discount rate    
Present value of obligation at the end of the year 137.14 122.12
Impact due to increase of 0.50 % (5.49) (5.06)
Impact due to decrease of 0.50 % 5.88 5.42
b) Impact of the change in salary increase    
Present value of obligation at the end of the year 137.14 122.12
Impact due to increase of 0.50 % 5.47 5.17
Impact due to decrease of 0.50 %     (5.24) (4.88)
Sensitivities due to mortality and withdrawals are not material .Hence impact of change is not calculated
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are
not applicable being a lump sum benefit on retirement

Note - 42
Segment information
In line with the provisions of Ind AS 108 – operating segments, the operations of the Company fall primarily under manufacturing of gears and
transmissions , which is considered to be the only reportable segment by the management.
Since all the manufacturing activity is done at India, therefore segregation of expenses/result/assets/liabilities to each of the geographic location is
not practicable. The geographic segments individually contributing 10 percent or more of the Company’s revenues are given below:
(₹ in Mn.)
Geographical Segment Revenue
31 March 2019 31 March 2018
America 749.62 555.38
India 4,568.31 4,079.43
Others 1,154.22 749.01
Total 6,472.15 5,383.82

Information about major customer

During the year ended 31 March 2019 revenue of approximately 43.4% are derived from one external customer (previous year: 46.93%) from one
external customers.

Note - 43
Disclosure under Ind AS - 37 “Provisions, Contingent Liabilities and Contingent Assets”: Movements in each class of provision during
the financial year, are set out below:
        (₹ in Mn.)
Particulars   Provision on rate
differences*
As at 31 March 2017   24.28
Additional provision recognised   3.52
     
As at 31 March 2018   27.80
Additional provision recognised   -
As at 31 March 2019   27.80
 *This provision reflects the amount that could be payable on account of foreign exchange adjustment on export.  

88
Note - 44
Research and development expenditure includes employee benefits expenses amounting to ₹ 16.14 Mn (31 March 2018: ₹ 15.12 Mn),
material consumed amounting to ₹ 1.40 Mn (31 March 2018: ₹ 0.99 Mn) and stores and spares consumed of ₹ 8.46 Mn (31 March 2018:
₹ 6.02 Mn).

Note - 45
New standards adopted - Revenue from Contracts with Customers
Indian Accounting Standard 115 Revenue from Contracts with Customers (“Ind AS 115”), establishes a framework for determining whether, how
much and when revenue is recognised and requires disclosures about the nature, amount, timing and uncertainty of revenues and cash flows
arising from customer contracts. Under Ind AS 115, revenue is recognised through a 5-step approach:
(i) Identify the contract(s) with customer;
(ii) Identify separate performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations; and
(v) Recognise revenue when a performance obligation is satisfied.
The Company has adopted the standard on 1 April 2018 using modified retrospective approach with a cumulative catch-up adjustment made in
retained earnings at the beginning of the current financial year, i.e., 1 April 2018 as if the standard had always been in effect. The standard is applied
only to contracts that are not completed as at 1 April 2018. Comparative information has not been restated and continues to be reported under the
accounting standards in effect for those periods. The adoption of the new standard did not result in any adjustments to the Company’s revenue or
net income.

Significant changes in contract assets and liabilities

There has been no significant changes in contact assets/contract liabilities during the year.

Revenue recognised in relation to contract liabilities

Ind AS 115 also requires disclosure of major changes on account of revenue recognised in the reporting period from the contract liability balance at
the beginning of the period and other changes, as summarised below:
(₹ in Mn.)
Description       Year ended
31 March 2019
Contract liabilities at the beginning of the year   62.65
Less: performance obligations satisfied in current year   (17.57)
Add: advance received during the year.   5.17
      50.25

Disaggregation of revenue
Revenue arises mainly from the sale of manufactured and traded goods, sale of software, and jobwork services.
(₹ in Mn.)
Description Year ended
31 March 2019
     
Sale of goods   6,458.27
Sale of softwares   5.76
Job work   8.12
        6,472.15

(₹ in Mn.)
Description Year ended
31 March 2019
America       749.62
India   4,568.31
Others   1,154.22
        6,472.15

89
 Reconcile the amount of revenue recognised in the statement of profit and loss with the contracted price (₹ in Mn.)
Description Year ended
31 March 2019
Revenue recognised during the year       6,487.04
Less: Discount, rebates, credits etc.   (14.89)
Revenue as per the contact       6,472.15

Assets and liabilities related to contracts with customers

(₹ in Mn.)
Description     As at 31 March As at 31 March
2019 2018
         
Contract assets related to sale of service      
Current assets      
Trade receivables   1,090.31 997.08
       
Contract liabilities related to sale of service      
Current liabilities      
Advance from customers   50.25 62.65
Deferred income   23.13 36.74
         

Note - 46
Other matters
(i) In the opinion of the Board of Directors, the current assets, loans and advances are having the value at which they are stated in the balance
sheet, if realised in the ordinary course of business.
(ii) Claims received against shortage/damage of materials which are not of significant values are not being shown separately. The same are
accounted for on receipt basis.

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

90
INDEPENDENT AUDITOR’S REPORT consolidated changes in equity and its consolidated cash flows for the year
TO THE MEMBERS OF THE HI-TECH GEARS LIMITED then ended.
Report on the Audit of the Consolidated Financial Basis for Opinion
Statements We conducted our audit of the consolidated financial statements in
Opinion accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those Standards are further
We have audited the accompanying consolidated financial statements of described in the Auditor’s Responsibilities for the Audit of the Consolidated
The HI-TECH GEARS LIMITED (hereinafter referred to as the “Holding Financial Statements section of our report. We are independent of the Group
Company”) and its subsidiaries (Holding Company and its subsidiaries in accordance with the Code of Ethics issued by the Institute of Chartered
together referred to as the “Group”), which comprise the consolidated Accountants of India (ICAI) together with the ethical requirements that are
Balance Sheet as at March 31, 2019, and the consolidated Statement of relevant to our audit of the consolidated financial statements under the
Profit and Loss (including Other Comprehensive Income), the consolidated provisions of the Act and the Rules made thereunder, and we have fulfilled
Statement of Changes in Equity and the consolidated Statement of Cash our other ethical responsibilities in accordance with these requirements
Flows for the year then ended, and notes to the consolidated financial and the ICAI’s Code of Ethics. We believe that the audit evidence we have
statements, including a summary of significant accounting policies obtained is sufficient and appropriate to provide a basis for our audit opinion
(hereinafter referred to as “the consolidated financial statements”). on the consolidated financial statements.
In our opinion and to the best of our information and according to the Key Audit Matters
explanations given to us, the aforesaid consolidated financial statements
give the information required by the Companies Act, 2013 (the “Act”) in Key audit matters are those matters that, in our professional judgment, were
the manner so required and give a true and fair view in conformity with of most significance in our audit of the consolidated financial statements of
the Indian Accounting Standards prescribed under section 133 of the Act the current period. These matters were addressed in the context of our
read with the Companies (Indian Accounting Standards) Rules 2015, as audit of the consolidated financial statements as a whole, and in forming
amended (“Ind AS”) and other accounting principles generally accepted our opinion thereon, and we do not provide a separate opinion on these
in India, of the consolidated state of affairs of the Group as at March 31, matters. We have determined the matter described below to be the key
2019, the consolidated profit, consolidated total comprehensive income, audit matters to be communicated in our report.

Key audit matters Auditor’s Response

1. Contingent liabilities
There are legal and tax cases against the Audit procedures in respect of this area:
Group which have been identified as a key • We gained an understanding of the process of identification of legal and tax cases and evaluated
audit matter due to the uncertainties involved the design and implementation of controls in respect of these contingent liabilities.
in these tax and legal claims and significant • For legal and tax matters, our procedures included testing key controls surrounding litigation
judgement is required. and tax procedures; discussing matters with the Group’s litigation and tax teams; and assessing
Refer to the note no.40 “Contingent liabilities” management’s conclusions through understanding precedents set in similar cases.
to the notes to the consolidated financial • Validated the completeness and appropriateness of the related disclosures with regard to the facts
statements. and circumstances of the legal and tax matters.
2. Borrowings
The Group had a borrowing liability (current Audit procedures in respect of this area:
and non-current) of Rs.4401.35 million as at • We have gone through the agreements between the Holding Company and its lenders.
31st March, 2019. • We obtained confirmations from the Holding Company’s banks/financial institutions to confirm the
The borrowings are under agreements with outstanding balances.
terms and conditions detailed in notes no. • Where debt is regarded as non-current, we tested whether the Holding Company has the
19A and 19B to the notes of the consolidated unconditional right to defer payment such that there were no repayments required within 12 months
financial statements. from the balance date.
Keeping in view the size of the borrowings, • We further considered whether the disclosures related to the borrowings in the consolidated financial
the Group’s borrowings is considered as key statements are appropriate in all material respects.
audit matter.
Information Other than the Consolidated Financial Statements and
Auditor’s Report Thereon
When we read Management Discussion & Analysis Report and Boards
The Holding Company’s Board of Directors is responsible for the preparation Report, if we conclude that there is a material misstatement therein, we are
of the other information. The other information comprises the information required to communicate the matter to those charged with governance.
included in the Management Discussion & Analysis Report and Board’s
Management’s Responsibility for the Consolidated Financial Statements
Report including Annexures to Board’s Report, but does not include the
consolidated financial statements and our auditor’s report thereon. The The Holding Company’s Board of Directors is responsible for the matters
Management Discussion & Analysis Report and Board’s Report including stated in section 134(5) of the Act with respect to preparation of these
Annexures to Board’s Report, are expected to be made available to us after consolidated financial statements that give a true and fair view of the
the date of this auditors’ report. consolidated financial position, consolidated financial performance,
consolidated total comprehensive income, consolidated changes in equity
Our opinion on the consolidated financial statements does not cover the
and consolidated cash flows of the Group in accordance with the Ind AS
other information and we will not express any form of assurance conclusion
and other accounting principles generally accepted in India. The respective
thereon.
Board of Directors of the companies included in the Group are responsible
In connection with our audit of the consolidated financial statements, our for maintenance of the adequate accounting records in accordance with
responsibility is to read the other information identified above when it the provisions of the Act for safeguarding the assets of the Group and
becomes available and, in doing so, consider whether the other information for preventing and detecting frauds and other irregularities; selection and
is materially inconsistent with the consolidated financial statements or our application of appropriate accounting policies; making judgments and
knowledge obtained during the course of our audit, or otherwise appears to estimates that are reasonable and prudent; and the design, implementation
be materially misstated. and maintenance of adequate internal financial controls, that were operating
91
effectively for ensuring accuracy and completeness of the accounting which have been audited by other auditors, such other auditors remain
records, relevant to the preparation and presentation of the consolidated responsible for the direction, supervision and performance of the audits
financial statements that give a true and fair view and are free from material carried out by them. We remain solely responsible for our audit opinion.
misstatement, whether due to fraud or error. We communicate with those charged with governance regarding, among
In preparing the consolidated financial statements, the respective Board other matters, the planned scope and timing of the audit and significant
of Directors of the companies included in the Group are responsible for audit findings, including any significant deficiencies in internal control that
assessing the ability of the Group to continue as a going concern, disclosing, we identify during our audit.
as applicable, matters related to going concern and using the going concern We also provide those charged with governance with a statement that we
basis of accounting unless management either intends to liquidate the have complied with relevant ethical requirements regarding independence,
Group or to cease operations, or has no realistic alternative but to do so. and to communicate with them all relationships and other matters that may
The respective Board of Directors of the companies included in the Group are reasonably be thought to bear on our independence, and where applicable,
responsible for overseeing the financial reporting process of the Group. related safeguards.
Auditor’s Responsibilities for the Audit of the Consolidated Financial From the matters communicated with those charged with governance, we
Statements determine those matters that were of most significance in the audit of the
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements of the current period and are therefore
consolidated financial statements as a whole are free from material the key audit matters. We describe these matters in our auditor’s report
misstatement, whether due to fraud or error, and to issue an auditor’s unless law or regulation precludes public disclosure about the matter or
report that includes our opinion. Reasonable assurance is a high level of when, in extremely rare circumstances, we determine that a matter should
assurance, but is not a guarantee that an audit conducted in accordance not be communicated in our report because the adverse consequences
with SAs will always detect a material misstatement when it exists. of doing so would reasonably be expected to outweigh the public interest
Misstatements can arise from fraud or error and are considered material benefits of such communication.
if, individually or in the aggregate, they could reasonably be expected to Other Matters
influence the economic decisions of users taken on the basis of these (a) We did not audit the financial statements/financial information of
consolidated financial statements. one subsidiary (and its six step down subsidiaries), whose financial
As part of an audit in accordance with SAs, we exercise professional judgment statements/financial information reflect total assets of Rs.3,915.47
and maintain professional skepticism throughout the audit. We also: million as at 31st March, 2019, total revenues of Rs.2,742.27 million
● Identify and assess the risks of material misstatement of the consolidated and net cash flows amounting to (Rs1.85) million for the year ended
financial statements, whether due to fraud or error, design and perform on that date, as considered in the consolidated financial statements.
audit procedures responsive to those risks, and obtain audit evidence These financial statements/financial information have been audited
that is sufficient and appropriate to provide a basis for our opinion. The by other auditor whose report have been furnished to us by the
risk of not detecting a material misstatement resulting from fraud is Management and our opinion on the consolidated financial statements,
higher than for one resulting from error, as fraud may involve collusion, in so far as it relates to the amounts and disclosures included in respect
forgery, intentional omissions, misrepresentations, or the override of of this subsidairy and our report in terms of sub-sections (3) and (11) of
internal control. Section 143 of the Act, in so far as it relates to the aforesaid subsidiary,
is based solely on the reports of the other auditor.
● Obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. (b) We did not audit the financial statements/financial information of two
Under section 143(3)(i) of the Act, we are also responsible for subsidiaries, whose financial statements/financial information reflect
expressing our opinion on whether the holding company, which is a total assets of Rs.12.67 million as at 31st March, 2019, total revenues
company incorporated in India, has adequate internal financial controls Rs.7.57 million and net cash flows amounting to Rs7.57 million for the
system in place and the operating effectiveness of such controls. year ended on that date, as considered in the consolidated financial
statements. These financial statements/financial information are
● Evaluate the appropriateness of accounting policies used and the
unaudited and have been furnished to us by the Management and our
reasonableness of accounting estimates and related disclosures made
opinion on the consolidated financial statements, in so far as it relates to
by management.
the amounts and disclosures included in respect of these subsidiaries
● Conclude on the appropriateness of management’s use of the going and our report in terms of sub-sections (3) and (11) of Section 143 of
concern basis of accounting and, based on the audit evidence the Act in so far as it relates to the aforesaid subsidiaries, is based
obtained, whether a material uncertainty exists related to events or solely on such unaudited financial statements/financial information.
conditions that may cast significant doubt on the ability of the Group to
Our opinion on the consolidated financial statements, and our report on
continue as a going concern. If we conclude that a material uncertainty
Other Legal and Regulatory Requirements below, is not modified in respect
exists, we are required to draw attention in our auditor’s report to the
of the above matters with respect to our reliance on the work done and
related disclosures in the consolidated financial statements or, if such
the reports of the other auditors and the financial statements/financial
disclosures are inadequate, to modify our opinion. Our conclusions are
information certified by the Management.
based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to Report on Other Legal and Regulatory Requirements
cease to continue as a going concern. As required by Section 143(3) of the Act, based on our audit we report
● Evaluate the overall presentation, structure and content of the that:
consolidated financial statements, including the disclosures, and (a) We have sought and obtained all the information and explanations which
whether the consolidated financial statements represent the underlying to the best of our knowledge and belief were necessary for the purposes
transactions and events in a manner that achieves fair presentation. of our audit of the aforesaid consolidated financial statements.
● Obtain sufficient appropriate audit evidence regarding the financial (b) In our opinion, proper books of account as required by law relating
information of the entities or business activities within the Group to to preparation of the aforesaid consolidated financial statements have
express an opinion on the consolidated financial statements. We are been kept so far as it appears from our examination of those books and
responsible for the direction, supervision and performance of the audit the reports of the other auditors.
of the financial statements of such entities included in the consolidated (c) The Consolidated Balance Sheet, the Consolidated Statement of Profit
financial statements of which we are the independent auditors. For and Loss (including Other Comprehensive Income), Consolidated
the other entities included in the consolidated financial statements,

92
 Statement of Changes in Equity and the Consolidated Cash Flow Company to its directors during the year is in accordance with the
Statement dealt with by this Report are in agreement with the relevant provisions of section 197 of the Act.
books of account maintained for the purpose of preparation of the (h) With respect to the other matters to be included in the Auditor’s Report
consolidated financial statements. in accordance with Rule 11 of the Companies (Audit and Auditor’s)
(d) In our opinion, the aforesaid consolidated financial statements comply Rules, 2014, in our opinion and to the best of our information and
with the Ind AS specified under Section 133 of the Act, read with Rule 7 according to the explanations given to us:
of the Companies (Accounts) Rules, 2014. i. The consolidated financial statements disclose impact of pending
(e) On the basis of the written representations received from the directors litigations on the consolidated financial position of the Group. -
of the Holding Company as on 31st March, 2019 taken on record by Refer Note 40 to the consolidated financial statements.
the Board of Directors of the Holding Company, none of the directors of ii. The Group did not have any long-term contracts including derivative
the Holding Company is disqualified as on 31st March, 2019 from being contracts for which there were any material foreseeable losses.
appointed as a director in terms of Section 164 (2) of the Act.
iii. There has been no delay in transferring amounts, required to be
(f) With respect to the adequacy of internal financial controls over financial transferred, to the Investor Education and Protection Fund by the
reporting of the Group and the operating effectiveness of such controls, Holding Company.
refer to our separate report in “Annexure A”.
FOR O.P.DADU & CO.
(g) With respect to the other matters to be included in the Auditor’s Report CHARTERED ACCOUNTANTS
in accordance with the requirements of section 197(16) of the Act, as FRN. 001201N
amended:
In our opinion and to the best of our information and according to
(AMIT GUPTA )
the explanations given to us, the remuneration paid by the Holding
PLACE : NEW DELHI PARTNER
DATED : 27TH MAY, 2019 M.NO. 094202

93
Annexure ‘A’ To the Independent Auditors’ Report of are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts
even date on the Consolidated Financial Statement
and expenditures of the Company are being made only in accordance with
of The Hi-Tech Gears Limited authorisations of management and directors of the Company; and (3)
(Referred to in paragraph 1(f) under “Report on Other Legal and Regulatory provide reasonable assurance regarding prevention or timely detection of
Requirements‟ section of our report of even date to the Members of The unauthorised acquisition, use, or disposition of the Company’s assets that
Hi-Tech Gears Limited) could have a material effect on the financial statements.
Report on the Internal Financial Controls under Clause (i) of Sub- Inherent Limitations of Internal Financial Controls Over Financial
section 3 of Section 143 of the Companies Act, 2013 (“the Act”) Reporting
In conjunction with our audit of the consolidated financial statements of the Because of the inherent limitations of internal financial controls over financial
Company for the year ended March 31, 2019, we have audited the internal reporting, including the possibility of collusion or improper management
financial controls over financial reporting of The Hi-Tech Gears Limited override of controls, material misstatements due to error or fraud may occur
(hereinafter referred to as “the Company” or the “Holding Company”) which and not be detected. Also, projections of any evaluation of the internal
is a company incorporated in India, as of that date. financial controls over financial reporting to future periods are subject
Management’s Responsibility for Internal Financial Controls to the risk that the internal financial control over financial reporting may
become inadequate because of changes in conditions, or that the degree of
The Board of Directors of the Holding Company, which is a company
compliance with the policies or procedures may deteriorate.
incorporated in India, are responsible for establishing and maintaining
internal financial controls based on “the internal control over financial Opinion
reporting criteria established by the respective Companies considering the In our opinion, the Holding Company, which is a company incorporated in
essential components of internal control stated in the Guidance Note on India, has, in all material respects, an adequate internal financial controls
Audit of Internal Financial Controls over Financial Reporting issued by the system over financial reporting and such internal financial controls over
Institute of Chartered Accountants of India (‘ICAl’). These responsibilities financial reporting were operating effectively as at March 31, 2019, based
include the design, implementation and maintenance of adequate internal on “the internal control over financial reporting criteria established by the
financial controls that were operating effectively for ensuring the orderly respective companies considering the essential components of internal
and efficient conduct of its business, including adherence to respective control stated in the Guidance Note on Audit of Internal Financial Controls
Company’s policies, the safeguarding of its assets, the prevention and Over Financial Reporting issued by the Institute of Chartered Accountants
detection of frauds and errors, the accuracy and completeness of the of India”.
accounting records, and the timely preparation of reliable financial Other Matter
information, as required under the Companies Act, 2013.
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy
Auditors’ Responsibility and operating effectiveness of the internal financial controls over financial
Our responsibility is to express an opinion on the Company’s internal financial reporting insofar as it relates to the Holding Company, which is a Company
controls over financial reporting of based on our audit. We conducted our incorporated in India. We did not audit the internal financial controls over
audit in accordance with the Guidance Note on audit of Internal Financial financial reporting in so far as it relates to the subsidiary companies, which
Controls over Financial Reporting (the “Guidance Note”) and the Standards are companies incorporated outside India and whose financial statements/
on Auditing, issued by ICAI and deemed to be prescribed under section financial information reflect total assets of Rs.3,928.14 million as at March
143(10) of the Companies Act, 2013, to the extent applicable to an audit of 31, 2019, total revenue of Rs.2749.84 million and net cash inflows amounting
internal financial controls, both applicable to an audit of Internal Financial to Rs. 5.72 million for the year ended March 31, 2019, as considered in the
Controls and, both issued by the Institute of Chartered Accountants of consolidated financial statements.
India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial FOR O.P.DADU & CO.
reporting was established and maintained and if such controls operated CHARTERED ACCOUNTANTS
effectively in all material respects. FRN. 001201N

Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting
and their operating effectiveness. Our audit of internal financial controls over (AMIT GUPTA)
financial reporting included obtaining an understanding of internal financial PLACE : NEW DELHI PARTNER
controls over financial reporting, assessing the risk that a material weakness DATED: 27TH MAY, 2019 M.NO. 094202
exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company’s internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A Company’s
internal financial control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that transactions

94
 The Hi-Tech Gears Limited
Consolidated Balance Sheet as at 31 March 2019
(₹ in Mn)
Note 31 March 2019 31 March 2018
Assets
Non-current assets
Property, plant and equipment 6 3,334.44 3,083.90
Capital work-in-progress 6 194.23 129.08
Goodwill 7 472.88 463.33
Other intangible assets 7 633.92 683.85
Financial assets
Investments 8 35.68 0.52
Loans 9 A 35.07 17.93
Other financial assets 10 A 5.21 0.14
Deferred tax assets (net) 21 2.41 -
Other non-current assets 11 A 324.40 66.37
Total non-current assets 5,038.24 4,445.12

Current assets
Inventories 12 1,070.25 669.63
Financial assets
Trade receivables 13 1,692.91 1,535.04
Cash and cash equivalents 14 469.55 245.34
Other bank balances 15 124.11 165.85
Loans 9 B 10.46 7.79
Other financial assets 10 B 66.34 70.42
Current tax assets (net) 16 22.97 58.97
Other current assets 11 B 181.19 143.48
Total current assets 3,637.78 2,896.52
Total assets 8,676.02 7,341.64

Equity and liabilities

Equity
Equity share capital 17 187.68 187.68
Other equity 18 2,529.70 2,220.69
Total equity 2,717.38 2,408.37

Liabilities
Non-current liabilities
Financial liabilities
Borrowings 19 A 3,093.81 2,844.41
Provisions 20 A 46.32 33.43
Deferred tax liabilities (net) 21 94.21 32.69
Other non-current liabilities 22 A 23.13 36.74
Total non-current liabilities 3,257.47 2,947.27

Current liabilities
Financial liabilities
Borrowings 19 B 927.44 585.20
Trade payables 23
- total outstanding dues of micro enterprises and small enterprises 35.81 16.44
- total outstanding dues of creditors other than micro enterprises and small enterprises 934.82 740.34
Other financial liabilities 24 683.90 510.23
Other current liabilities 22 B 83.41 99.34
Provisions 20 B 35.79 34.45
Total current liabilities 2,701.17 1,986.00
Total equity and liabilities 8,676.02 7,341.64

Summary of significant accounting policies and accompanying notes form an integral part of these consolidated financial statements.
This is the consolidated balance sheet referred to in our report of even date.

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

95
 The Hi-Tech Gears Limited
Consolidated statement of Profit and Loss for the year ended 31 March 2019
(₹ in Mn)
Note 31 March 2019 31 March 2018
Revenue
Revenue from operations 25 9,137.22 7,596.81
Other income 26 169.59 198.10
Total revenue 9,306.81 7,794.91

Expenses
Cost of materials consumed 27 4,334.60 3,425.08
Purchase of traded goods 28 323.72 312.28
Changes in inventories of finished goods and work-in-progress 29 (165.71) (55.04)
Excise duty on sale of goods - 111.17
Employee benefits expense 30 1,921.71 1,504.60
Finance costs 31 294.81 235.12
Depreciation and amortisation expense 6&7 421.91 394.25
Other expenses 32 1,590.50 1,352.27
Total expenses 8,721.54 7,279.73

Profit before tax 585.27 515.18

Tax expense 33
Current tax 176.56 190.80
Deferred tax charge/(credit) 52.93 (18.05)
Earlier years tax adjustments (net) - -
Profit for the year 355.78 342.43

Other comprehensive income

Items that will not be reclassified to profit or loss
Re-measurement gain on defined benefit plans 2.51 4.59
Equity Instruments through Other Comprehensive Income 0.15 (0.05)
Income tax relating to items that will not be reclassified to profit and loss (0.88) (1.59)
Items that will be reclassified to profit or loss
Exchange differences on translating foreign operations 35.70 150.25
Income tax relating to items that will be reclassified to profit and loss (5.06) (39.81)
Total comprehensive income for the year 388.20 455.82

Earnings per equity share (₹ 10 per share) 34

Basic (₹ ) 18.96 18.25
Diluted (₹ ) 18.96 18.25

Summary of significant accounting policies and accompanying notes form an integral part of these consolidated financial statements.
This is the consolidated statement of profit or loss referred to in our report of even date

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

96
 The Hi-Tech Gears Limited
Consolidated statement of changes in equity as at 31 March 2019

(₹ in Mn)
A. Equity share capital*
Opening Changes Balance as Balance as
Changes
Particulars balance as at during the at 31 March at 31 March
during the year
1 April 2017 year 2018 2019
           
Equity share capital 187.68 - 187.68 - 187.68

B. Other equity** (₹ in Mn)

Other Comprehensive
Reserves and surplus
Income
Particulars Foreign Total
General Retained currency FVOCI - equity
reserve earnings translation investments
reserve
Balance as at 1 April 2017 308.08 1,640.75 (122.31) 0.53 1,827.05
Profit for the period - 342.43 - - 342.43
Acquisition through business combination - (0.06) - - (0.06)
Other comprehensive income for the year (net of tax impact) - 3.00 110.44 (0.05) 113.39
Dividend paid during the year including tax impact refer note no.43 - (62.12) - - (62.12)
Balance as at 31 March 2018 308.08 1,924.00 (11.87) 0.48 2220.69
Profit for the period - 355.78 - - 355.78
Other comprehensive income (net of tax impact) - 1.63 30.64 0.15 32.42
Dividend paid during the year including tax impact (refer note no.43) - (79.19) - - (79.19)
Balance as at 31 March 2019 308.08 2,202.22 18.77 0.63 2,529.70

*Refer note 17 for details

**Refer note 18 for details

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

97
 The Hi-Tech Gears Limited
Consolidated Cash Flow Statement for the year ended 31 March 2019
(₹ in Mn)
A Cash flow from operating activities 31 March 2019 31 March 2018
Profit before tax 585.27 515.18
Adjustments for:
Depreciation and amortisation expense 421.91 394.25
Gain on disposal of property, plant and equipment (net) (91.42) -
Interest income classified as investing cash flows (36.27) (6.52)
Income recognised on account of government assistance (13.62) (15.08)
Dividend income classified as investing cash flows - (0.01)
Provisions written back (21.87) (61.04)
Provision for doubtful debts 6.72 2.28
Unrealised (profit)/loss foreign exchange (net) (67.71) (3.27)
Unrealised (profit)/loss on mark to market of forward contracts 3.80 6.45
Finance costs 294.81 232.62
Operating profit before working capital changes 1,081.62 1,064.86

Movement in working capital

Increase in inventories (400.62) (106.37)
Decrease in other financial assets 0.31 3.87
Increase in trade receivables (53.37) (474.17)
(Increase)/decrease in other non-current assets (0.61) 0.23
(Increase)/decrease in other current assets (37.71) 6.70
(Decrease) in other financial liability (206.42) (532.14)
(Decrease)/increase in other current liability (17.14) 0.81
Decrease in provision 74.32 217.34
Increase in other non-current liabilities - 7.69
Increase in trade and other payables 171.55 184.75
Cash flow from operating activities post working capital changes 611.93 373.57
Income tax paid (net) (140.31) (220.43)
Net cash flows from operating activities (A) 471.62 153.14

B Cash flows from investing activities

Purchase of non-current investments (35.01) 0.64
Payments for property, plant and equipment and capital work-in-progress (1,183.40) (662.11)
Proceeds from sale of property, plant and equipment 320.16 32.51
Payment for margin money and bank deposits 36.66 (93.09)
Repayment of loans and advances (19.81) (3.26)
Interest received 36.27 6.52
Dividend received - 0.01
Net cash used in investing activities (B) (845.13) (718.78)

C Cash flows from financing activities*

Finance cost paid (261.44) (227.62)
Proceeds from borrowings 1,201.54 487.00
Repayment of borrowings (263.19) (18.26)
Dividends paid (including tax) (79.19) (62.12)
Net cash flow from financing activities (C) 597.72 179.00
 
Net (decrease)/increase in cash and cash equivalents (A+B+C) 224.21 (386.63)
Cash and cash equivalents at the beginning of the year 245.34 631.97
Cash and cash equivalents at the end of the year 469.55 245.34
 
*Refer note 19 for reconciliation of liabilities arising from financing activities
Note: The above consolidated cash flow statement has been prepared under the “Indirect method” as set out in the Indian Accounting
Standard (IND AS-7) statement of cash flow.
This is the consolidated cash flow statement referred to in our report of even date.

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary

98
 The Hi-Tech Gears Limited
Notes to the consolidated financial statements for the year ended 31 March 2019
1. Nature of operations Lessor accounting under Ind AS 116 is substantially unchanged
The Hi-Tech Gears Limited (‘the Company’) together with its from today’s accounting under Ind AS 17. Lessors will continue to
subsidiaries (collectively referred to as ‘Group’) is an auto component classify all leases using the same classification principle as in Ind
manufacturer (a Tier 1 supplier).The Company is domiciled in India AS 17 and distinguish between two types of leases: operating and
and its corporate office is situated at 14th Floor, Tower-B, Millennium finance leases.
Plaza, Sushant Lok-I, Sector-27, Gurgaon-122002, Haryana, India. The standard permits two possible methods of transition:
General information and compliance with Ind AS • Full retrospective – Retrospectively to each prior period presented
The consolidated financial statements of the Group have been applying Ind AS 8 Accounting Policies, Changes in Accounting
prepared in accordance with the Indian Accounting Standards Estimates and Errors.
(hereinafter referred to as the ‘Ind AS’) as notified by Ministry of • Modified retrospective – Retrospectively, with the cumulative effect
Corporate Affairs (‘MCA’) under section 133 of the Companies Act, of initially applying the Standard recognized at the date of initial
2013 (‘Act’) read with the Companies (Indian Accounting Standards) application
Rules, 2015, as amended and other relevant provisions of the Act. Under modified retrospective approach, the lessee records the
The Group has uniformly applied the accounting policies for the lease liability as the present value of the remaining lease payments,
periods presented. discounted at the incremental borrowing rate and the right of use
The consolidated financial statements for the year ended 31 asset either as:
March 2019 along with the comparative financial information were • Its carrying amount as if the standard had been applied since
authorized and approved for issue by the Board of Directors on 27 the commencement date, but discounted at lessee’s incremental
May 2019. The revisions to the consolidated financial statements borrowing rate at the date of initial application or
are permitted by the Board of Directors after obtaining necessary • An amount equal to the lease liability, adjusted by the amount of any
approvals or at the instance of regulatory authorities as per prepaid or accrued lease payments related to that lease recognized
provisions of the Act. under Ind AS 17 immediately before the date of initial application
2. Basis of preparation Ind AS 116, which is effective for annual periods beginning on or
The consolidated financial statements have been prepared on going after 01 April 2019, requires lessees and lessors to make more
concern basis in accordance with generally accepted accounting extensive disclosures than under Ind AS 17. The Group is evaluating
principles in India. Further, the consolidated financial statements the requirements of this new standard on its financial statements.
have been prepared on a historical cost basis except for following Appendix C to Ind AS 12, Uncertainty over income tax
items: treatment:
Items Measurement basis The Interpretation addresses the accounting for income taxes when
Certain financial assets and liabilities Fair value tax treatment involve uncertainty that affects the application of Ind
Net defined benefits (assets)/liability Fair value of plan assets AS 12 and does not apply to taxes or levies outside the scope of
less present value of defined Ind AS 12, nor does it specifically include requirements relating to
benefits obligations. interest and penalties associated with uncertain tax treatments. The
3. Recent accounting pronouncement Interpretation specifically addresses the following:
In March 2019, the Ministry of Corporate Affairs issued the • Whether an entity considers uncertain tax treatments separately
Companies (Indian Accounting Standards) (Amendments) Rules, • The assumptions an entity makes about the examination of tax
2018, notifying amendments to Ind AS 12, ‘Income taxes’, Ind AS treatments by taxation authorities
19, ‘Employee benefits, Ind AS 23, ‘Borrowing costs and also Ind AS • How an entity determines taxable profit (tax loss), tax bases, unused
116 ‘Leases’. These amendments rules are applicable to the Group tax losses, unused tax credits and tax rates
from 1 April 2019. • How an entity considers changes in facts and circumstances
Ind AS 116- Leases: An entity has to determine whether to consider each uncertain tax
On 30 March 2019, MCA has notified Ind AS 116, Leases. Ind AS 116 treatment separately or together with one or more other uncertain
sets out the principles for the recognition, measurement, presentation tax treatments. The approach that better predicts the resolution of
and disclosure of leases and requires lessees to account for all leases the uncertainty should be followed.
under a single on-balance sheet model similar to the accounting The standard permits two possible methods of transition:
for finance leases under Ind AS 17. The standard includes two • Full retrospective approach – Under this approach, Appendix C will
recognition exemptions for lessees – leases of ‘low-value’ assets be applied retrospectively to each prior reporting period presented
and short-term leases (i.e., leases with a lease term of 12 months or in accordance with Ind AS 8 – Accounting Policies, Changes in
less). At the commencement date of a lease, a lessee will recognise Accounting Estimates and Errors, without using hindsight and
a liability to make lease payments (i.e., the lease liability) and an • Retrospectively with cumulative effect of initially applying Appendix
asset representing the right to use the underlying asset during the C recognized by adjusting equity on initial application, without
lease term (i.e., the right-of-use asset). Lessees will be required to adjusting comparatives.
separately recognise the interest expense on the lease liability and
The interpretation is effective for annual reporting periods beginning
the depreciation expense on the right-of-use asset.
on or after 01 April 2019. The Group is evaluating the impact of this
Lessees will be also required to remeasure the lease liability upon amendment on its financial statements.
the occurrence of certain events (e.g., a change in the lease term,
Amendments to Ind AS 19, Plan amendment, curtailment or
a change in future lease payments resulting from a change in an
settlement:
index or rate used to determine those payments). The lessee will
generally recognise the amount of the remeasurement of the lease The amendments to Ind AS 19 address the accounting when a plan
liability as an adjustment to the right-of-use asset. amendment, curtailment or settlement occurs during a reporting

99
 period. The amendments specify that when a plan amendment, portion of a subsidiary’s statement of profit and loss and net assets
curtailment or settlement occurs during the annual reporting period, that is not held by the Group. Statement of profit and loss (including
an entity is required to: other comprehensive income (‘OCI’)) is attributed to the equity
• Determine current service cost for the remainder of the period after holders of the Company and to the non-controlling interests’ basis
the plan amendment, curtailment or settlement, using the actuarial their respective ownership interests and such balance is attributed
assumptions used to remeasure the net defined benefit liability even if this results in controlling interests having a deficit balance.
(asset) reflecting the benefits offered under the plan and the plan Non-controlling interests, presented as part of equity, represents the
assets after that event portion of a subsidiary’s statement of profit and loss and net assets
• Determine net interest for the remainder of the period after the that is not held by the Group. Statement of profit and loss (including
plan amendment, curtailment or settlement using: the net defined other comprehensive income (‘OCI’)) is attributed to the equity
benefit liability (asset) reflecting the benefits offered under the plan holders of the Company and to the non-controlling interests’ basis
and the plan assets after that event; and the discount rate used to their respective ownership interests and such balance is attributed
remeasure that net defined benefit liability (asset). even if this results in controlling interests having a deficit balance.

The amendments also clarify that an entity first determines any past 5. Summary of significant accounting policies
service cost, or a gain or loss on settlement, without considering The consolidated financial statements have been prepared using the
the effect of the asset ceiling. This amount is recognised in profit or significant accounting policies and measurement bases summarised
loss. An entity then determines the effect of the asset ceiling after below. These were used throughout all periods presented in the
the plan amendment, curtailment or settlement. Any change in that consolidated financial statements.
effect, excluding amounts included in the net interest, is recognised 5.1 Current versus non-current classification
in other comprehensive income.
All assets and liabilities have been classified as current or non-
The amendments apply to plan amendments, curtailments, or current as per the Group’s operating cycle and other criteria set out
settlements occurring on or after the beginning of the first annual in the Companies Act, 2013.
reporting period that begins on or after 01 April 2019, with early
5.2 Property, plant and equipment (PPE)
application permitted. These amendments will apply only to any
future plan amendments, curtailments, or settlements of the Group. Recognition and initial measurement
The Group does not expect any impact on its financial statements Properties plant and equipment are stated at their cost of
of such amendment. acquisition. Any trade discount and rebates are deducted in arriving
Amendments to Ind AS 23, Borrowing costs: at the purchase price. Property, plant and equipment purchased
on deferred payment basis are recorded at equivalent cash price.
The amendments clarify that an entity treats as part of general
The difference between the cash price equivalent and the amount
borrowings any borrowing originally made to develop a qualifying
payable is recognised as interest expense over the deferred
asset when substantially all of the activities necessary to prepare
payment period.
that asset for its intended use or sale are complete.
Spares having useful life of more than one year and having material
An entity applies those amendments to borrowing costs incurred
value in each case, are capitalised under the respective heads as
on or after the beginning of the annual reporting period in which
and when available for use.
the entity first applies those amendments. An entity applies those
amendments for annual reporting periods beginning on or after 01 Subsequent measurement (depreciation and useful lives)
April 2019, with early application permitted. The Group is evaluating Property, plant and equipment are subsequently measured at cost
the impact of this amendment on its financial statements. less accumulated depreciation and impairment losses.Taking into
4. Basis of consolidation account these factors, the Group have decided to applydepreciation
on Buildings and Plant and Equipment on pro-rata basis on Straight
Subsidiaries
Line Method based on the life assigned to each asset in accordance
Subsidiaries are all entities (including structured entities) over which with Schedule II of Companies Act, 2013 and on rest of the property,
the Group has control. The Group controls an entity when the Group plant and equipment has been provided on Written Down Value
is exposed to, or has rights to, variable returns from its involvement basis based on the life assigned to each asset in accordance with
with the entity and has the ability to affect those returns through Schedule II of Companies Act, 2013.
its power to direct the relevant activities of the entity. The Group
De-recognition
can have power over the investee even if it owns less than majority
voting rights i.e. rights arising from other contractual arrangements. An item of property, plant and equipment and any significant
Subsidiaries are fully consolidated from the date on which control component initially recognised is derecognised upon disposal or
is transferred to the Group. They are deconsolidated from the date when no future economic benefits are expected from its use or
that control ceases. Statement of profit and loss (including other disposal. Any gain or loss arising on de-recognition of the asset/
comprehensive income (‘OCI’)) of subsidiaries acquired or disposed significant component (calculated as the difference between the net
of during the period are recognized from the effective date of disposal proceeds and the carrying amount of the asset/significant
acquisition, or up to the effective date of disposal, as applicable. component) is recognised in statement of profit and loss, when the
asset is derecognised.
The Group combines the financial statements of the Company and
its subsidiaries line by line adding together like items of assets, In respect of subsidiary companies, Property, plant and equipment
liabilities, equity, income and expenses. Intercompany transactions, are recorded at cost less applicable investment tax credits and
balances and unrealised gains on transactions between group accumulated amortisation.
companies are eliminated. Accounting policies of subsidiaries have Depreciation is recorded over the estimated useful lives of the
been changed where necessary to ensure consistency with the assets at the following annual rates:
policies adopted by the Group. Buildings - 4% declining balance
Non-controlling interests, presented as part of equity, represents the Automobiles - 20% declining balance

100
 Dies and tooling - 10% declining balance 1. Identifying the contract with a customer
Manufacturing equipment - 10% declining balance 2. Identifying the performance obligations
Office equipment - 20% declining balance 3. Determining the transaction price
Leasehold improvements - As per term of the lease 4. Allocating the transaction price to the performance obligations
Furniture & Fixtures - 20% declining balance 5. Recognising revenue when/as performance obligation (s) are
satisfied.
5.3 Intangible assets
Revenue is measured at fair value of consideration received or
Goodwill
receivable, after deduction of any trade discounts, volume rebates
Goodwill is an asset that represents the future economic benefits and any taxes or duties collected on behalf of the government which
arising from other assets acquired in a business combination that are levied on sales such as goods and service tax, etc.
are not individually identified and separately recognized. Goodwill
Revenue is recognised either at a point in time or over time, when
is assigned as of the date of acquisition. Goodwill is not amortized.
(or as) the Group satisfies performance obligations by transferring
Goodwill is tested for impairment at least annually. When the carrying
the promised goods or services to its customers.
amount exceeds its recoverable amount, which is the higher of fair
value less cost of disposal and value-in-use, an impairment loss is Sale of goods
recognized in an amount equal to the excess. The impairment loss, Revenue from sale of goods is recognised when the control of
however, cannot exceed the carrying amount of goodwill. goods is transferred to the buyer as per the terms of the contract,
Other intangible assets in an amount that reflects the consideration the Group expects to
be entitled to in exchange for those goods. Control of goods refers
Recognition and initial measurement
to the ability to direct the use of and obtain substantially all of the
Intangible assets purchased, including those acquired in business remaining benefits from goods.
combinations, are measured at cost or fair value as of the date of
Sale of services
acquisition where applicable less accumulated amortization and
accumulated impairment, if any. Revenue from services is recognised when Group satisfies the
performance obligations by transferring the promised services to its
Subsequent measurement (amortisation)
customers.
Computer Software are amortized over their respective individual
Export benefits
estimated useful life on written down value basis commencing
Export benefits constituting Duty Draw Back and Export Promotion
from the date, the asset is available to the Group for its use.In
Capital Goods Scheme (EPCG) are accounted for on accrual basis
respect of subsidiary companies, Customer relationships, non-
when there is reasonable assurance that the Group will comply
competition arrangements and brand names are recorded at cost
with the conditions attached to them and the export benefits will be
less accumulated amortisation and are amortised on a straight line
received. Export benefits under Duty Draw back scheme and EPCG
basis over their estimated useful lives as follows:
are considered as other operating income.
Estimated useful lives of assets are as follows:
Interest income
Type of asset Estimated useful life Interest income is recorded on accrual basis using the effective
Computer software 5 years interest rate (EIR) method.
Customer relationship 16 years Dividend income
Non-compete arrangement 5 years Dividend income is recognised at the time when right to receive the
Brand name 2 years payment is established, which is generally when the shareholders
approve the dividend.
5.4 Inventories
5.6 Borrowing costs
Inventories are valued as follows:
Raw materials, loose tools and stores and spares Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
Raw materials, loose tools and stores and spares are valued at
of such assets. A qualifying asset is one that necessarily takes
lower of cost and net realizable value. Cost of raw materials, loose
substantial period of time to get ready for its intended use. All other
tools and stores and spares is determined on a FIFO (First in first
borrowing costs are charged as expense to the statement of profit
out) basis.
and loss in the period for which they relate to.
Work-in-progress and finished goods
5.7 Leases
Work-in-progress and finished goods is measured at lower of cost
Group as a lessee
and net realizable value. Cost includes direct materials and labour
A lease is classified at the inception date as a finance lease or an
and a proportion of manufacturing overheads based on normal
operating lease. A lease that transfers substantially all the risks
operating capacity.
and rewards incidental to ownership to the Group is classified as a
Scrap finance lease.
Scrap is measured at net realizable value.
Finance leases are capitalized at the commencement of the lease
Net realizable value is the estimated selling price in the ordinary at the inception date fair value of the leased property or, if lower, at
course of business, less estimated costs of completion and the present value of the minimum lease payments. Lease payments
estimated costs necessary to make the sale. are apportioned between finance charges and reduction of the lease
5.5 Revenue recognition liability so as to achieve a constant rate of interest on the remaining
Revenue arises mainly from the sale of manufactured and traded balance of the liability. Finance charges are recognised in finance
goods. costs in the statement of profit and loss. Contingent rentals are
recognised as expenses in the periods in which they are incurred.
To determine whether to recognise revenue, the Group follows a
Lease management fees, legal charges and other initial direct costs
5-step process:
are capitalized.

101
 A leased asset is depreciated over the useful life of the asset. 5.10 Financial instruments
However, if there is no reasonable certainty that the Group will obtain Initial recognition and measurement
ownership by the end of the lease term, the asset is depreciated
Financial assets and financial liabilities are recognised when the
over the shorter of the estimated useful life of the asset and the
Group becomes a party to the contractual provisions of the financial
lease term.
instrument and are measured initially at fair value adjusted for
Operating lease payments are recognised as an expense in the transaction costs, except for those carried at fair value through
statement of profit and loss on a straight-line basis over the lease profit or loss which are measured initially at fair value. Subsequent
term, except in case where lease rentals are structured to increase measurement of financial assets and financial liabilities is described
in line with expected general inflation to compensate for the lessor’s below.
expected inflationary cost. Non-derivative financial assets
Group as a lessor Subsequent measurement
Leases in which the Group does not transfer substantially all i. Financial assets carried at amortised cost– A ‘financial asset’ is
the risks and rewards of ownership of an asset are classified as measured at the amortised cost if both the following conditions are
operating leases. Rental income from operating lease is recognised met:
on a straight-line basis over the term of the relevant lease except
• The asset is held within a business model whose objective is to hold
in case where lease rentals are structured to increase in line with
assets for collecting contractual cash flows, and
expected general inflation to compensate for the lessor’s expected
• Contractual terms of the asset give rise on specified dates to cash
inflationary cost. Contingent rents are recognised as revenue in
flows that are solely payments of principal and interest (SPPI) on
the period in which they are earned.
the principal amount outstanding.
Leases are classified as finance leases when substantially all of the
After initial measurement, such financial assets are subsequently
risks and rewards of ownership transfer from the Group to the lessee.
measured at amortised cost using the effective interest rate (EIR)
Amounts due from lessees under finance leases are recorded as
method.
receivables at the Group’s net investment in the leases. Finance
lease income is allocated to accounting periods so as to reflect a ii. Investments in equity instruments – Investments in equity
instruments which are held for trading are classified at Fair Value
constant periodic rate of return on the net investment outstanding in
Through Profit or Loss (FVTPL). For all other equity instruments,
respect of the lease.
the Group makes an irrevocable choice upon initial recognition, on
5.8 Impairment of non-financial assets an instrument by instrument basis, to classify the same either as
At each reporting date, the Group assesses whether there is any at Fair Value through Other Comprehensive Income (FVOCI) or
indication based on internal/external factors, that an asset may be Fair Value Through Profit or Loss (FVTPL). Amounts presented in
impaired. If any such indication exists, the recoverable amount of the other comprehensive income are not subsequently transferred to
asset or the cash generating unit is estimated. If such recoverable profit or loss. However, the Group transfers the cumulative gain or
amount of the asset or cash generating unit to which the asset loss within equity. Dividends on such investments are recognized
belongs is less than its carrying amount. The carrying amount is in profit or loss unless the dividend clearly represents a recovery of
reduced to its recoverable amount and the reduction is treated as part of the cost of the investment.
an impairment loss and is recognised in the statement of profit and De-recognition of financial assets
loss. If, at the reporting date there is an indication that a previously
A financial asset is primarily de-recognised when the contractual
assessed impairment loss no longer exists, the recoverable amount
rights to receive cash flows from the asset have expired or the Group
is reassessed and the asset is reflected at the recoverable amount. has transferred its rights to receive cash flows from the asset.
Impairment losses previously recognized are accordingly reversed
Non-derivative financial liabilities
in the statement of profit and loss.
Subsequent measurement
5.9 Foreign currency Subsequent to initial recognition, all non-derivative financial
Functional and presentation currency liabilities are measured at amortised cost using the effective interest
The consolidated financial statements are presented in Indian method.
Rupee (‘`’) which is also the functional and presentation currency of De-recognition of financial liabilities
the Company. A financial liability is de-recognised when the obligation under the
Initial recognition liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on
Foreign currency transactions are recorded in the functional substantially different terms, or the terms of an existing liability are
currency, by applying to the exchange rate between the functional substantially modified, such an exchange or modification is treated
currency and the foreign currency at the date of the transaction. as the de-recognition of the original liability and the recognition of
Conversion a new liability. The difference in the respective carrying amounts is
Foreign currency monetary items are converted to functional recognised in the statement of profit and loss.
currency using the closing rate. Non-monetary items denominated Forward contracts
in a foreign currency which are carried at historical cost are reported The Group has entered into certain forward (derivative) contracts to
using the exchange rate at the date of the transaction. hedge risks which are not designated as hedges. These derivatives
Exchange difference are initially recognised at fair value on the date a derivative contract
Exchange differences arising on monetary items on settlement, or is entered into and are subsequently re-measured to their fair value
restatement as at reporting date, at rates different from those at at the end of each reporting period. Any profit or loss arising on
which they were initially recorded, are recognised in the statement cancellation or renewal of such derivative contract is recognised as
income or as expense in statement of profit and loss.
of profit and loss in the year in which they arise.

102
 Offsetting of financial instruments 5.14 Research and Development Costs
Financial assets and financial liabilities are offset and the net amount Revenue expenditure incurred on research and development has
is reported in the balance sheet if there is a currently enforceable been charged to the statement of profit and loss for the year in
legal right to offset the recognised amounts and there is an intention which it is incurred. Capital expenditure is included in respective
to settle on a net basis, to realise the assets and settle the liabilities heads under Property, plant and equipment.
simultaneously.
5.15 Employee benefits
5.11 Impairment of financial assets
Short term employee benefits
In accordance with IndAS 109, the Group applies expected credit Employee benefits payable wholly within twelve months of receiving
loss (ECL) model for measurement and recognition of impairment employee services are classified as short-term employee benefits.
loss for financial assets. The Group assesses on forward looking These benefits include salaries and wages, bonus and ex-gratia.
basis the expected credit losses associated with its assets and The undiscounted amount of short term employee benefits to be
impairment methodology applied depends on whether there has paid in exchange for employee services are recognised as an
been a significant increase in credit risk. expense as the related service is rendered by employees.
Trade receivables Defined Contribution Plan
In respect of trade receivables, the Group applies the simplified Contribution towards provident fund for certain employees is
approach of Ind AS 109, which requires measurement of loss made to the regulatory authorities, where the Group has no further
allowance at an amount equal to lifetime expected credit losses. obligations. Payments to defined contribution retirement benefit
Lifetime expected credit losses are the expected credit losses that schemes (such as Provident Fund, Employee’s State Insurance
result from all possible default events over the expected life of a Corporation) are charged to the statement of profit and loss of the
financial instrument. year in which contribution to such schemes becomes due.
Other financial assets
Defined Benefit Plan
In respect of its other financial assets, the Group assesses if the
For defined benefit schemes, the cost of providing benefits is
credit risk on those financial assets has increased significantly since
determined using Projected Unit Credit Method, with actuarial
initial recognition. If the credit risk has not increased significantly
valuation being carried out at each balance sheet date. Actuarial
since initial recognition, the Group measures the loss allowance at
gains/losses resulting from re-measurements of the liability are
an amount equal to 12-month expected credit losses, else at an
included in other comprehensive income.
amount equal to the lifetime expected credit losses.
The retirement benefit obligation recognized in the Consolidated
When making this assessment, the Group compares the risk of a
Balance Sheet represents the present value of the defined benefit
default occurring on the financial asset as at the balance sheet date
obligations as adjusted for unrecognized past service cost, and as
with the risk of a default occurring on the financial asset as at the
reduced by the fair value of scheme assets.
date of initial recognition and considers reasonable and supportable
information, that is available without undue cost or effort. The Company in India makes annual contribution to the Employee’s
Gratuity-cum-Life Assurance scheme of the Life Insurance
5.12 Income taxes
Corporation of India, a funded defined benefit plan for qualifying
Tax expense recognized in statement of profit and loss comprises employees. The scheme provides for lump sum payment to
the sum of deferred tax and current tax except the ones recognized vested employees at retirement, death while in employment or on
in other comprehensive income or directly in equity. termination of employment of an amount equivalent to 15 days
Current tax is determined as the tax payable in respect of taxable salary payable for each completed year of service or part thereof in
income for the year and is computed in accordance with relevant excess of 6 months. Vesting occurs upon completion of 5 years of
tax regulations. Current income tax relating to items recognised continued service.
outside profit or loss is recognised outside profit or loss (either in
Other long-term employee benefits
other comprehensive income or in equity).
Liability in respect of leave encashment becoming due or expected
Deferred tax liabilities are generally recognised in full for all taxable to be availed within one year from the balance sheet date is
temporary differences. Deferred tax assets are recognised to the recognised on the basis of discounted value of estimated amount
extent that it is probable that the underlying tax loss or deductible required to be paid or estimated value of benefit expected to be
temporary difference will be utilised against future taxable income. availed by the employees. Liability in respect of leave encashment
This is assessed based on the Group’s forecast of future operating becoming due or expected to be availed more than one year after
results, adjusted for significant non-taxable income and expenses the balance sheet date is estimated on the basis of an actuarial
and specific limits on the use of any unused tax loss. Unrecognised valuation performed by an independent actuary using the projected
deferred tax assets are re-assessed at each reporting date and are unit credit method.
recognised to the extent that it has become probable that future
Actuarial gains and losses arising from past experience and changes
taxable profits will allow the deferred tax asset to be recovered.
in actuarial assumptions are charged to statement of profit and loss
Deferred tax assets and liabilities are measured at the tax rates that
in the year in which such gains or losses are determined.
are expected to apply in the year when the asset is realised or the
liability is settled, based on tax rates (and tax laws) that have been 5.16 Provisions
enacted or substantively enacted at the reporting date. Deferred Provisions are recognized when the Group has a present obligation
tax relating to items recognised outside statement of profit and loss as a result of past events, for which it is probable that an outflow
is recognised outside statement of profit and loss (either in other of resources will be required to settle the obligation and a reliable
comprehensive income or in equity). estimate of the amount can be made. Provisions required to settle
5.13 Cash and cash equivalents are reviewed regularly and are adjusted where necessary to
reflect the current best estimates of the obligation. Provisions are
Cash and cash equivalents include cash in hand, balance with banks
discounted to their present values, where the time value of money
in current in current accounts and other short term highly liquid
is material.
investments with original maturity of three months and less.

103
5.17 Contingent liabilities and contingent assets probability of the Group’s future taxable income against which the
A contingent liability is a possible obligation that arises from past deferred tax assets can be utilized.
events whose existence will be confirmed by the occurrence or Evaluation of indicators for impairment of assets – The
non-occurrence of one or more uncertain future events beyond the evaluation of applicability of indicators of impairment of assets
control of the Group or a present obligation that is not recognized requires assessment of several external and internal factors which
because it is not probable that an outflow of resources will be could result in deterioration of recoverable amount of the assets.
required to settle the obligation. A contingent liability also arises Contingent liabilities– At each balance sheet date basis the
in extremely rare cases where there is a liability that cannot be management judgment, changes in facts and legal aspects,
recognized because it cannot be measured reliably. The Group the Group assesses the requirement of provisions against the
does not recognize a contingent liability but discloses its existence outstanding contingent liabilities. However, the actual future
in the consolidated financial statements. outcome may be different from this judgement.
Contingent assets are neither recognised nor disclosed except when Significant estimates
realisation of income is virtually certain, related asset is disclosed.
Information about estimates and assumptions that have the most
5.18 Earnings per share significant effect on recognition and measurement of assets,
Basic earnings per share are calculated by dividing the net profit liabilities, income and expenses is provided below. Actual results
or loss for the period attributable to equity shareholders by the may be substantially different.
weighted average number of equity shares outstanding during the Government grants – Grants receivables are based on estimates
period for utilisation of grant as per the regulations as well as analysing
For the purpose of calculating diluted earnings per share, the net actual outcomes on a regular basis and compliance with stipulated
profit or loss for the period attributable to equity shareholders and conditions. Changes in estimates or non-compliance of stipulated
the weighted average number of shares outstanding during the conditions could lead to significant changes in grant income and are
period are adjusted for the effects of all dilutive potential equity accounted prospectively over the balance life of asset.
shares. Defined benefit obligation (DBO) – Management’s estimate of
5.19 Significant management judgement and estimates the DBO is based on a number of underlying assumptions such as
When preparing the consolidated financial statements, management standard rates of inflation, mortality, discount rate and anticipation
makes a number of judgements, estimates and assumptions about of future salary increases. Variation in these assumptions may
the recognition and measurement of assets, liabilities, income and significantly impact the DBO amount and the annual defined benefit
expenses expenses.

Significant management judgements Useful lives of depreciable/amortisable assets – Management

reviews its estimate of the useful lives of depreciable/amortisable
The following are significant management judgements in applying
assets at each reporting date, based on the expected utility of the
the accounting policies of the Group that have the most significant
assets. Uncertainties in these estimates relate to technical and
effect on the consolidated financial statements.
economic obsolescence that may change the utilisation of assets.
Identification and Classification of leases-The Group enters
Provisions – estimate for provisions recognised is based on
into take or pay arrangements and leasing arrangements for use
management best estimate of the expenditure required to settle
of various assets. The identification of arrangement as a lease
the present obligation at the year end and is based on historical
and subsequent classification of leasing arrangement as a finance
experience, expected changes in economic conditions, changes in
lease or operating lease is based on an assessment of several
exchange rates.
factors, including, but not limited to, transfer of ownership of leased
asset at end of lease term, lessee’s option to purchase and Fair value measurements– Management applies valuation
estimated certainty of exercise of such option, proportion of techniques to determine the fair value of financial instruments such
lease term to the asset’s economic life, proportion of present value as derivatives. This involves developing estimates and assumptions
of minimum lease payments to fair value of leased asset and extent consistent with how market participants would price the instrument.
of specialized nature of the leased asset. Estimated fair values may vary from the actual prices that would be
achieved in an arm’s length transaction at the reporting date.
Recognition of deferred tax assets– The extent to which deferred
tax assets can be recognized is based on an assessment of the

(This space has been intentionally left blank)

104
 The Hi-Tech Gears Limited
Notes to the consolidated financial statements for the year ended 31 March 2019
Note - 6
Property, plant and equipment (₹ in Mn)
Particulars Freehold Leasehold Residential Buildings Plant and Furniture Office Vehicles Total Capital work-
land land flats equipment and fixtures equipment in-progress
Gross carrying amount
At 1 April 2017 796.14 18.59 5.76 810.54 4,321.82 27.63 87.42 53.95 6,121.85 109.04
Additions - - - - 225.88 0.25 11.74 - 237.87 14.86
Acquisition through business combination 28.14 - - 84.48 78.08 5.47 0.23 10.44 206.84 28.53
Net exchange differences 23.31 - - 24.75 69.71 0.10 1.47 1.14 120.48 5.39
Disposals - - - - (42.53) - - (0.03) (42.56) (28.74)
Balance as at 31 March 2018 847.59 18.59 5.76 919.77 4,652.96 33.45 100.86 65.50 6,644.48 129.08

Additions 1.63 - - 9.49 751.43 4.53 5.84 30.47 803.39 735.63

Net exchange differences 9.43 - - 14.16 35.33 0.11 0.56 0.56 60.15 1.82
Disposals (218.64) - (1.21) - (173.52) - (2.40) (5.18) (400.95) -
Capitalised during the year - - - - - - - - - (672.30)
Balance as at 31 March 2019 640.01 18.59 4.55 943.42 5,266.20 38.09 104.86 91.35 7,107.07 194.23

Accumulated depreciation

105
At 1 April 2017 - 0.77 1.64 158.13 2,914.84 24.21 79.98 41.68 3,221.25 -
Charge for the year - 0.18 0.09 31.09 285.20 1.82 7.53 4.63 330.54 -
Net exchange differences - - - 3.23 42.24 0.02 1.42 0.67 47.58 -
Adjustments for disposals - - - - (38.77) - - (0.02) (38.79) -
Balance as at 31 March 2018 - 0.95 1.73 192.45 3,203.51 26.05 88.93 46.96 3,560.58 -
Charge for the year - 0.19 0.08 31.83 310.19 1.81 7.46 6.84 358.40 -
Net exchange differences - - - 2.47 22.49 0.03 0.55 0.32 25.86 -
Adjustments for disposals - - (0.40) - (164.64) - (2.27) (4.90) (172.21) -
Balance as at 31 March 2019 - 1.14 1.41 226.75 3,371.55 27.89 94.67 49.22 3,772.63 -
 
Net carrying amount as at 31 March 2018 847.59 17.64 4.03 727.32 1,449.45 7.40 11.93 18.54 3,083.90 129.08
Net carrying amount as at 31 March 2019 640.01 17.45 3.14 716.67 1,894.65 10.20 10.19 42.13 3,334.44 194.23

(This space has been intentionally left blank)

 The Hi-Tech Gears Limited
Notes to the consolidated financial statements for the year ended 31 March 2019
Note - 7
Goodwill & Other Intangible Assets (₹ in Mn)
Particulars Other intangible assets Goodwill
Customer relationship Non-compete Softwares Total
and brand name fees
Gross carrying amount
At 1 April 2017 680.82 9.52 77.94 768.28 437.16
Additions - - 17.95 17.95 -
Net exchange differences 40.75 0.57 - 41.32 26.17
Balance as at 31 March 2018 721.57 10.09 95.89 827.55 463.33
Additions - - 0.39 0.39 -
Net exchange differences 14.87 0.21 - 15.08 9.55
Balance as at 31 March 2019 736.44 10.30 96.28 843.02 472.88

Accumulated amortisation
At 1 April 2017 4.50 0.16 73.97 78.63 -
Amortisation charge for the year 55.06 1.98 6.67 63.71 -
Net exchange differences 1.31 0.05 - 1.36 -
Balance as at 31 March 2018 60.87 2.19 80.64 143.70 -
Amortisation charge for the year 55.60 2.04 5.87 63.51 -
Net exchange differences 1.82 0.07 - 1.89 -
Balance as at 31 March 2019 118.29 4.30 86.51 209.10 -
     
Net carrying amount as at 31 March 2018 660.70 7.90 15.25 683.85 463.33
Net carrying amount as at 31 March 2019 618.15 6.00 9.77 633.92 472.88

Note - 8 (₹ in Mn)
31 March 2019 31 March 2018
A Investments - non current
Investment in Equity Instrument (quoted, measured at FVOCI)
2100 Equity shares of Rs. 10/- each fully paid up of State Bank of India (previous year 31 0.67 0.52
March 2018 : 2100 Equity shares of Rs. 10/- each fully paid up)
Other Investment (un quoted, at measured at fair value)*
8200 Equity shares of Rs. 1/- each fully paid up including security premium of Altigreen 35.01 -
Propulsion Labs Pvt. Ltd. (previous year NIL)
35.68 0.52

Aggregate amount of quoted investments 0.04 0.04

Aggregate market value of quoted investments 0.67 0.52
Aggregate amount of unquoted investments 35.01 -
Aggregate value of impairment in the value of investments - -

‘* During the current financial year, Company has made investment in equity shares of Altigreen Propulsion Labs Pvt. Ltd. during the year
amounting to ₹. 35.01 Mn. (including a security premium of ₹. 35.01 Mn.)

Note - 9 (₹ in Mn)
31 March 2019 31 March 2018
A Loans - non current
(Unsecured, considered good)
Security deposits with government bodies 32.36 16.64
Loan to employees 2.71 1.29
35.07 17.93
B Loans - current
(Unsecured, considered good)
Security deposits - others 4.05 3.46
Loan to employees 6.41 4.33
10.46 7.79

(This space has been intentionally left blank)

106
Note - 10 (₹ in Mn)
31 March 2019 31 March 2018
A Other financial assets - non current
Balance held as margin money (against letter of credit and bank guarantees)* 5.21 0.14
5.21 0.14
*Margin money deposits having remaining maturity of more than 12 months.

B Other financial assets - current

Earnest money deposit 0.04 0.04
Derivative assets- foreign exchange forward contracts - 0.30
Other receivable*
Considered good 66.30 70.08
Considered credit impaired 2.05 -
Less: Impairment loss allowance (2.05) -
66.34 70.42
*It includes amount receivable from customers for new product development like making, changing in nature of specific components on demand of
customers, insurance claim receivable, provision for rate revision in case of steel cost.

Note: One employee (Mr. K. P. Yadav, Assistant Manager in finance & accounts) had embezzled money by making unauthorised withdrawal of Rs.2.23
Mn in his personal account during the period December 2017 to April 2018. On detecting the above fraud, the Company immediately terminated him from
his services and lodged the FIR against him. Till now, the Company has made recovery of Rs.0.18 Mn out of above amount and created the provision
for the balance amount as on 31.03.2019. Appropriate actions for discovery, prevention of fraud and strengthening of Internal controls has been put in
place by the Company.

Note - 11 (₹ in Mn)
A Other non-current assets 31 March 2019 31 March 2018
Capital advance* 322.11 64.69
Prepaid expenses 2.29 1.68
324.40 66.37
*For capital commitments refer Note - 40

B Other current assets 31 March 2019 31 March 2018

Advances to suppliers 46.66 20.18
Advances to employees 1.02 -
Prepaid expenses 34.37 28.53
Balance with statutory authorities 99.14 94.77
181.19 143.48

Note - 12 (₹ in Mn)
31 March 2019 31 March 2018
Inventories
(Valued at lower of cost or net realisable value)
Finished goods (Goods in transit) 96.22 57.96
Raw materials and components 325.87 154.41
Stores and spares 279.83 216.27
Work-in-progress 367.79 240.34
Scrap (at realizable value) 0.54 0.65
1,070.25 669.63

107
Note - 13 (₹ in Mn)
Trade receivables* 31 March 2019 31 March 2018
(Unsecured)
Considered good 1,698.20 1,536.71
Having significant increase in credit risk 6.45 5.40
Credit impaired 4.06 4.06
Less: Impairment loss allowance (15.80) (11.13)
1,692.91 1,535.04
*For related party balances refer note Note - 37

Note - 14 (₹ in Mn)

Cash and cash equivalents 31 March 2019 31 March 2018

Cash on hand 0.56 0.72
Balances with banks
In current accounts 245.30 244.62
Bank deposits with original maturity less than three months 223.69 -
469.55 245.34

Note - 15 (₹ in Mn)

31 March 2019 31 March 2018

Other bank balances
Margin money 0.00 9.20
Standard Chartered Bank- DSRA a/c* - 63.70
Deposits with Standard Chartered Bank (DSRA) maturity having more than three months and up to twelve months** 77.40 -
Bank deposits with maturity of more than three months and up to twelve months 45.52 91.67
Unpaid dividend 1.19 1.28
124.11 165.85

*Balance lying in Debt Service Reserve Account (DSRA) a/c, which is charged to lender pursuant to the facility agreement (refer note 19 borrowings
current for details)
**Amount deposited in fixed deposits of ₹.77.4 Mn which is Charged to Lender pursuant to the facility agreement (refer note no borrowings current for
details)

Note - 16 (₹ in Mn)
31 March 2019 31 March 2018
Current tax assets (net)
Advance income tax 189.85 353.56
Less: Provision for taxation (166.88) (294.59)
22.97 58.97

Note - 17 (₹ in Mn)
31 March 2019 31 March 2018
Equity share capital
i Authorised Number Amount Number Amount
20,000,000 Equity shares of ₹ 10/- each with voting rights 20000000 200.00 20000000 200.00
200.00 200.00
ii Issued, subscribed and fully paid up 18768000 18768000
Equity share capital of face value of ₹ 10 /- each 187.68 187.68
187.68 187.68
iii Reconciliation of number of equity shares outstanding at
the beginning and at the end of the year
Equity shares
Balance at the beginning of the year 18768000 187.68 18768000 187.68
Add : Shares issued during the year - - - -
Balance at the end of the year 18768000 187.68 18768000 187.68

108
iv Rights, preferences and restrictions attached to equity shares
The Company has one class of equity shares with paid up value of ₹ 10 per share. Each holder of equity shares is entitled to one vote per share
on all resolutions submitted to shareholders. They have right to participate in the profits of the Company, if declared by the Board as interim
dividend and recommended by the Board and declared by the members as final dividend. They are also entitled to bonus/right issue, as declared
by Company from time to time. They have right to receive annual report of the Company, beside other rights available under the Companies Act
and Listing Regulations.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, beside other
rights available under the Companies Act.
The distribution will be in proportion to the number of equity shares held by the shareholders.

v Details of shareholders holding more than 5% share capital

Name of the equity shareholders 31 March 2019 31 March 2018
Number % Number %
Vulcan Electro Controls Limited 1082000 5.77% 1082000 5.77%
Olympus Electrical Industries Private Limited 1745200 9.30% 1745200 9.30%
Hi-Tech Portfolio Investments Limited 1971876 10.51% 1971876 10.51%
Mr. Deep Kapuria 3117461 16.61% 3117461 16.61%

vi Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, by way
of bonus shares and shares bought back for the period of 5 years immediately preceding the balance sheet date
The Company has not issued any shares pursuant to contract(s) without payment being received in cash.
The bonus issue is made by capitalisation of profit. However no bonus issues have been done in preceding 5 years
The Company has not undertaken any buy back of shares.

Note - 18
Other equity*
(i) Nature and purpose of other reserves
General reserve
General reserve is created out of the accumulated profits of the Company as per the provisions of Companies Act.

Retained earnings
All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

Other comprehensive income

Other comprehensive income represents balance arising on account of changes in fair value of equity instruments carried at fair value through
other comprehensive income, gain/(loss) booked on re-measurement of defined benefit plans and exchange differences on translating foreign
operations.

*Refer Part B (Other equity) of consolidated statement of changes in equity as at 31 March 2019.

Note - 19 (₹ in Mn)
31 March 2019 31 March 2018
A Borrowings non-current
Secured
Term loans
From banks
External commercial borrowing 2,480.08 2,746.05
Rupee Loan 503.83 -
Housing loan 73.78 67.41
From others
Long term maturities of finance lease obligations 16.61 21.63
Vehicle loan 19.51 9.32
3,093.81 2,844.41

109
Particulars Nature of security Terms of repayment Interest rate Maturity 31 March 2019 31 March 2018
Secured  First pari pasu charge on the following Quarterly repayment 3 Month February, 828.49 802.44
immovable fixed assets of the Company: starts from February LIBOR+3.29% 2024
External commercial 1) A-589, Industrial Complex, Bhiwadi, 2019. p.a.
borrowing District, Alwar, Rajasthan-301019. 5 instalments @ 2.25% (previous
of loan amount year 3 Month
Standard Chartered 2) Plot No 24-26, Sector 7, IMT Manesar, 4 instalments @ 3.00% LIBOR+3.29%
Bank (USD 12,000,000) Gurgaon, Haryana 122050 of loan amount. p.a.)
through IDBI Trusteeship 3) SPL-146, Industrial Complex, Bhiwadi- 12 instalment @ 6.40%
Limited. 304019, District Alwar, Rajasthan of loan amount.
 First pari pasu charge on movable fixed
assets (except those specifically charged)
situated at following locations:
1) A-589, Industrial Complex, Bhiwadi,
District, Alwar, Rajasthan-301019.
2) Plot No. 24-26, Sector 7, IMT Manesar,
Gurgaon, Haryana 122050
3) SPL-146, Industrial Complex, Bhiwadi-
301019, District Alwar, Rajasthan
IAM - Security assets First fixed charge on all fixed assets 108 equal monthly 6 % p.a. February, 1,585.53 1,749.75
dealt along with their of the Company, 2545887 Ontario Inc. instalments of CAD (previous year 2027
value as on closing date. and working capital assets except that 3,24,074.00 starting 6 % p.a.)
bank operating facility will rank senior on from March 2018
accounts receivable and Inventory.
Standard Chartered  First pari pasu charge on the following Quarterly repayment 3 Month February, 505.38 505.66
Bank (USD 7,561,789) immovable fixed assets of the Company: starts from February LIBOR+3.00% 2024
through IDBI Trusteeship 1) A-589, Industrial Complex, Bhiwadi, 2019. p.a.
Limited. District, Alwar, Rajasthan-301019. 5 instalments @ (previous
5.375% of loan amount year 3 Month
2) Plot No 24-26, Sector 7, IMT Manesar, 4 instalments @ 5.5% LIBOR+3.00%
Gurgaon, Haryana 122050 of loan amount p.a.)
3) SPL-146, Industrial Complex, Bhiwadi- 12 instalments @4.26%
304019, District Alwar, Rajasthan of loan amount
 First pari pasu charge on movable fixed
assets (except those specifically charged)
situated at following locations:
1) A-589, Industrial Complex, Bhiwadi,
District, Alwar, Rajasthan-301019.
2) Plot No. 24-26, Sector 7, IMT Manesar,
Gurgaon, Haryana 122050
3) SPL-146, Industrial Complex, Bhiwadi-
301019, District Alwar, Rajasthan
Housing Loan Hypothecation of residential house 300 monthly 2.89 % p.a. May, 2042 70.87 71.52
Canadian Imperial Bank property at 6 Carlaw Place, Guelph, instalments of CAD (previous year
of Commerce Ontario, Canada. 6,784.22 @ 2.89% 2.89 % p.a.)
p.a. interest is fixed
@2.89% p.a for 60
months starting May
2017, thereafter will
become floating rate
Term loan            
HDFC Bank Ltd - Rupee 1) First mortgage and charge in favour Repayment in 16 9.2%/9.3%/ Dec, 2024 505.00 -
Loan. of lender, on Company’s immovable quarterly instalment 9.35% p.a.
properties in new plant at Trichy, present starts from
and future. December,2020
2) First charge by way of hypothecation
in favour of the Lender, of Company’s
movables including movable plant and
machinery, machinery spares, tools and
accessories, furniture, fixtures and all
other movable assets, present and future
for new plant at Trichy.

110
Particulars Nature of security Terms of repayment Interest rate Maturity 31 March 2019 31 March 2018
3) First charge by way of assignment or
creation of charge in favour of the lenders
of (i) all the right, title, interest, benefits,
claims and demands whatsoever of the
Company in the project documents, duly
acknowledged and consented to by the
relevant counter parties to such project
documents, all as amended, varied or
supplemented from time to time in respect
to new plant at Trichy;
4) First pari passu charge by way of
hypothecation in favour of the Lender, of
Company’s movables including movable
plant and machinery, machinery spares,
tools and accessories, furniture, fixtures
and all other movable assets, present and
future which are not exclusively charged
to any other lenders.
5) First pari passu mortgage and charge
in favour of lender, on Company’s
immovable properties at A-589, Industrial
Area, Bhiwadi Plant.
The aforesaid mortgage assignment and
charges mentioned in point no. 1, 2, 3 shall
be on exclusive basis with the lender.
Vehicle loan
Travellers finance Hypothecation of specific car. 60 monthly instalments 4.88 % p.a. Jun, 2022 4.14 5.30
of CAD 2324.61 (previous year
4.88 % p.a.)
Audi finance Hypothecation of specific car. 60 monthly instalments 3.90 % p.a. Jul, 2022 3.15 4.02
of CAD 1686.77 (previous year
3.90 % p.a.)
ICICI bank Hypothecation of specific car. 60 monthly equal (previous year Jan, 2019 - 0.50
instalments of ₹ 53,871. 10.50% p.a.)
Kotak Mahindra Prime Hypothecation of specific car. 36 monthly equal (previous year Jan, 2019 - 0.83
Limited instalments of ₹ 87,461. 10.30% p.a.)
BMW Financial Service Hypothecation of specific car. 47 monthly equal 9.75% p.a. Aug, 2022 6.69 -
instalments of ₹ 132,801
& 48th instalment of
₹ 30,21,700.
Daimler Financial Hypothecation of specific car. 35 monthly equal 11.74% p.a. Oct, 2021 17.33 -
Services Pvt Ltd instalments of
₹4,51,854 & 36th
instalment of
₹82,25,900.
Long term maturities of Lease liabilities are effectively secured as Monthly instalments 19.36 24.68
finance lease obligation the rights to the leased assets recognised
in the financial statements revert to the
lessor in the event of default.
Unamortised upfront fees on borrowing (72.03) (93.79)
Total borrowings 3,473.91 3,070.91
Less: Current maturities of long term borrowings 380.09 226.50
Non current borrowings 3,093.82 2,844.41

(₹ in Mn)
31 March 2019 31 March 2018
B Borrowings - current
Secured loans
Working capital loans repayable on demand
From banks 927.44 585.20
927.44 585.20

111
Particulars Nature of security Interest rate 31 March 2019 31 March 2018

Citi bank, N.A.  First parri passu charge on present and future stocks and 9.75% p.a 158.57 201.88
book debts of the Company. (previous year 9.75% p.a.)
 Second pari passu charge on present and future fixed
assets excluding assets specifically charged to other
lenders.
 Second pari passu charge by way of equitable mortgage
Citi bank - Packing credit on land and building located at A-589, Industrial Complex, 6.10% p.a 50.00 120.00
Bhiwadi. (previous year 5.20% p.a)

Standard chartered bank  First pari passu charge over stock and book debts of the 6.00% p.a 11.22 90.00
- Packing credit borrower both present and future. (previous year 5.20% p.a)
 Second pari passu charge on movable Fixed assets
Standard chartered bank (excluding the assets specifically charged to other 10.95%p.a 37.88 -
- Working capital loan lenders) for working capital facilities.
 Second pari passu charge on immovable fixed assets at
Standard chartered bank 9.40% p.a 60.00 -
A-589, RIICO, Bhiwadi.
- Working capital demand
loan

State Bank of India- First pari passu charge on all present and future current 8.30% p.a 120.00 60.33
packing credit asset of the Company. (previous year 5.55% p.a)
Second pari passu charge over the present and future Fixed
State Bank of India- 9.25% p.a (previous year - 90.50
assets of the Company.
Working capital loan 9.25% p.a)

Kotak Mahindra bank-  1st PP charge on all existing and future current assets of 8.65% p.a 50.00 -
PCRE the Company.
 2nd PP charge on all existing and future Movable Fixed
Assets (other than those exclusively charged to other
lenders, (if any) of the Company.
 2nd PP charge on immovable property being land
and building situated at A-589, RIICO Bhiwadi, Alwar
belonging to the Company.  

HDFC Bank Ltd-Working  First pari pasu charge by way of hypothecation on entire 9.2% p.a. 192.70 -
capital loan assets of the borrower, both present and future.
 Second pari passu charge by way of hypothecation on
entire movable fixed assets (Other than those exclusively
charged to other lenders, if any) of the borrower.

ICICI Bank Limited-  First charge by way of hypothecation of the Company’s 9.75% p.a 35.22 5.99
Working capital loan entire stocks of raw materials, semi finished and finished (Previous year 9.75% p.a)
goods, consumables stores and spares and such other
movables including book-debts, bills whether documentary
or clean, outstanding monies, receivables, both present
and future, in a form and manner satisfactory to the Bank,
ranking pari passu with other participating banks.
 Second pari passu charge on immovable fixed assets of
the company by way of equitable mortgage on property
situated at A-589, Industrial Complex, Bhiwadi.

CIBC Canada - First charge on accounts receivable and inventory of The Prime rate +0.5%. 211.85 16.50
Hi-Tech Gears Canada Inc. currently prime rate is
around 3.45% p.a.
(Previous year prime rate
+0.5%. currently prime
rate is around 3.45% p.a.)

Total 927.44 585.20

112
Reconciliation of liabilities arising from financing activities
The changes in the Company’s liabilities arising from financing activities can be classified as follows:
(₹ in Mn)
31 March 2019 31 March 2018
Particulars Long-term Short-term Lease Total
borrowings borrowings obligations
01 April 2017 2,443.19 743.73 - 3,186.92
Cash flows:
- Repayment (18.26) (40.94) - (59.20)
- Proceeds 621.29 (117.60) 24.68 528.37
31 March 2018 3,046.22 585.19 24.68 3,656.09
Cash flows:
- Repayment (268.51) (4.09) (5.32) (277.92)
- Proceeds 529.62 346.33 - 875.95
- Foreign exchange 123.50 - - 123.50
- Amortisation charge of transaction cost 23.71 - - 23.71
31 March 2019 3,454.54 927.43 19.36 4,401.33

Note - 20 (₹ in Mn)
31 March 2019 31 March 2018
A Provisions - non current
Provisions for employee benefits
Compensated absences 46.32 33.43
46.32 33.43
For movements in each class of provision during the financial year, refer note 43
(₹ in Mn)
B Provisions - current 31 March 2019 31 March 2018
Provisions for employee benefits
Gratuity 1.32 1.43
Compensated absences 6.67 5.22
Provision on rate difference 27.80 27.80
35.79 34.45
For movements in each class of provision during the financial year, refer note 43 & 44

Note - 21 (₹ in Mn)
31 March 2019 31 March 2018
Deferred tax assets (net)
Deferred tax asset arising on account of :
Processing fee netted off from borrowing 1.34 -
Derivatives not designated as hedges 0.77 -
Foreign currency translation reserve 0.30 -
2.41 -

Deferred tax liabilities (net) 31 March 2019 31 March 2018

Deferred tax liabilities arising on account of :
Depreciation and amortisation 140.97 77.90
Deferred government grant 13.62 5.22
Derivatives not designated as hedges - (1.64)

Deferred tax asset arising on account of :

Employee benefits:
Provision for leave encashment (18.52) (13.37)
Provision for bonus (12.29) (10.64)
Plant and machinery recognised on account of government grant (13.62) (5.22)
Provision for doubtful debts and advances (6.24) (3.85)
Provision for rate difference (9.71) (10.35)
Foreign currency translation reserve - (5.36)
94.21 32.69

113
(i) Movement in deferred tax liabilities (net) (₹ in Mn)
Particulars 1 Apr 2018 Recognised/ Recognised/ Exchange 31 March 2019
reversed reversed differences
through profit in other on foreign
and loss comprehensive operation
income
Liabilities
Deferred government grant 5.22 8.40 - - 13.62
Depreciation and amortisation 77.90 63.07 - (1.19) 140.97
Derivatives not designated as hedges (1.64) 0.87 - 0.03 (0.77)
Assets
Provision for leave encashment (13.37) (5.15) - - (18.52)
Provision for bonus (10.64) (1.65) - - (12.29)
Provision for doubtful debts and advances (3.85) (2.39) - - (6.24)
Provision for rate difference (10.35) 0.64 - - (9.71)
Foreign currency translation reserve (5.36) - 5.06 - (0.30)
Plant and machinery recognised on account of (5.22) (8.40) - - (13.62)
government grant
Processing fee netted off from borrowing - (1.33) - 0.02 (1.33)
Total 32.69 54.06 5.06 (1.14) 91.81

Particulars 01 April 2017 Recognised/ Recognised/ 31 March 2018

reversed reversed
through profit in other
and loss comprehensive
income
Liabilities
Deferred government grant 15.27 (10.05) - 5.22
Depreciation and amortisation 86.63 (9.40) 0.67 77.90
Derivatives not designated as hedges 4.07 (5.68) (0.03) (1.64)
Assets
Provision for leave encashment (13.27) (0.10) - (13.37)
Provision for bonus (10.28) (0.35) - (10.64)
Provision for doubtful debts and advances (3.17) (0.69) - (3.85)
Provision for rate difference (8.40) (1.95) - (10.35)
Foreign currency translation reserve (45.15) - 39.19 (5.36)
Plant and machinery recognised on account of government grant (15.27) 10.05 - (5.22)
Financial instruments measured at amortised cost (0.10) 0.11 (0.01) -
Total 10.32 (18.05) 39.81 32.69

Note - 22 (₹ in Mn)
31 March 2019 31 March 2018
A Other non - current liabilities
Deferred income* 23.13 36.74
23.13 36.74

* Represents government assistance in the form of the duty benefit availed under Export Promotion Capital Goods (EPCG) Scheme on purchase of
property, plant and equipment accounted for as government grant and being amortised over the useful life of such assets.

31 March 2019 31 March 2018

B Other current liabilities
Payable to statutory authorities 33.16 36.68
Advance from customers 50.25 62.66
83.41 99.34

114
Note - 23 (₹ in Mn)
31 March 2019 31 March 2018
Trade payables
- Total outstanding dues of micro enterprises and small enterprises 35.81 16.44
- Total outstanding dues of creditors other than micro enterprises and small enterprises 934.82 740.34
970.63 756.78
*Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”) as at 31 March 2019 and 31 March 2018:

      (₹ in Mn.)
Particulars 31 March 2019 31 March 2018
i Principal amount remaining unpaid to any supplier as at the end of the accounting year; 35.81 16.18
ii Interest due thereon remaining unpaid to any supplier as at the end of the accounting year; - 0.26
iii The amount of interest paid by the buyer in terms of section 16, along with the amounts of the - -
payment made to the supplier beyond the appointed day during each accounting year;
iv The amount of interest due and payable for the period of delay in making payment (which - -
have been paid but beyond the appointed day during the year) but without adding the interest
specified under this Act;
v the amount of interest accrued and remaining unpaid at the end of each accounting year; and - -
vi the amount of further interest remaining due and payable even in the succeeding years, until - -
such date when the interest dues as above are actually paid to the small enterprise, for the
purpose of disallowance as a deductible expenditure under section 23.
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis
of information available with the Group.

Note - 24 (₹ in Mn.)
31 March 2019 31 March 2018
Other financial liabilities - current
Current maturities of long term debts 377.34 223.45
Current maturities of finance lease obligations 2.75 3.05
Interest accrued but not due 19.13 16.38
Earnest money and security deposits 2.15 1.25
Derivative liability 2.89 6.57
Unpaid dividend 1.19 1.28
Others* 278.45 258.25
683.90 510.23
*Others include reimbursement of expenses, provision for expenses, liabilities related to compensation/claim, etc.

Note - 25 (₹ in Mn)
31 March 2019 31 March 2018
Revenue from operations
Sale of products:
Transmission gears and shafts - domestic net of discount 4,903.80 4,095.24
Transmission gears and shafts - export 3,978.81 3,032.00
Sale of Services:
Software export 5.76 5.75
Software -services - 0.26
Sales job work 8.12 309.68
Other operating income:
Export incentives 72.24 37.57
Scrap sales 168.49 116.31
9,137.22 7,596.81

115
Note - 26 (₹ in Mn)
Other income 31 March 2019 31 March 2018
Interest income
Bank deposits 13.02 5.57
Security deposits 23.25 0.94
Provision written Back 21.87 -
Rent 5.68 10.57
Allowance for doubtful debts written back - 61.04
Dividend income - 0.01
Gain on foreign exchange fluctuations (Net) - 58.88
Gain on sale of property, plant and equipment (Net) 91.42 -
Fair value gain on derivatives not designated as hedges 0.25 34.52
Income recognised on account of government assistance 13.62 15.08
Miscellaneous income 0.48 11.49
169.59 198.10

Note - 27 (₹ in Mn)
31 March 2019 31 March 2018
Cost of materials consumed
Opening stock of raw material (steel rod and forgings) 154.41 111.08
Add: Purchase during the year (net of discount) 4,506.06 3,468.41
4,660.47 3,579.49
Less: Closing stock of raw material (steel rod and forgings) 325.87 154.41
Materials consumed (steel rod and forgings) 4,334.60 3,425.08

Note - 28 (₹ in Mn)
31 March 2019 31 March 2018
Purchase of traded goods
Opening stock of purchase of traded goods (transmission gears and shafts) - -
Add: Purchase during the year (transmission gears and shafts) 323.72 312.28
323.72 312.28
Less: Closing stock of purchase of traded goods (transmission gears and shafts) - -
323.72 312.28

Note - 29 (₹ in Mn)
31 March 2019 31 March 2018
Changes in inventories of finished goods and work-in-progress
Inventories at the end of the year:
Finished goods (transmission gears and shafts) 96.22 57.96
Work-in-progress (transmission gears and shafts) 367.79 240.34
Acquisition through business combination
Finished goods (transmission gears and shafts) - 6.01
Work-in-progress (transmission gears and shafts) - 67.29
Inventories at the beginning of the year:
Finished goods (transmission gears and shafts) 57.96 40.86
Work-in-progress (transmission gears and shafts) 240.34 129.10
(165.71) (55.04)

Note - 30 (₹ in Mn)
31 March 2019 31 March 2018
Employee benefits expense
Salaries, wages and other benefits 1,818.27 1,420.52
Contributions to provident and other funds 33.64 28.89
Gratuity fund contributions 12.18 12.03
Staff welfare expenses 57.62 43.16
1,921.71 1,504.60

116
Note - 31 (₹ in Mn)
Finance costs 31 March 2019 31 March 2018
Interest on
Term and working capital loans from banks 244.80 200.73
Financial instruments carried at amortised cost - 24.76
Others 4.56 2.45
Bank commission and charges 11.65 7.18
Loss on exchange rate fluctuation 33.80 -
294.81 235.12

Note - 32 (₹ in Mn)
Other expenses 31 March 2019 31 March 2018
Water electricity and allied charges 409.81 377.26
Stores and spares consumed 620.42 468.20
Professional charges 72.25 76.45
Repair and maintenance
Plant and machinery 66.78 73.15
Buildings 7.72 5.96
Insurance 36.19 33.62
Rates and taxes 24.34 22.73
Rent 20.60 19.19
Loss on mark to market of forward contracts 2.86 6.45
Corporate social responsibility 7.78 6.22
Loss on sale of property, plant and equipment (Net) - 2.35
Provision for doubtful debts 6.72 2.28
Auditor's remuneration* 1.65 1.85
Balance written off 0.49 1.29
Director's sitting fee 0.69 0.57
Freight and handling expenses 87.31 -
Charity and donation 0.56 0.26
Loss on exchange fluctuation other than finance cost 14.85 -
Miscellaneous expenses 209.48 254.44
1,590.50 1,352.27

*Remuneration to auditors comprises of:

Audit fees 1.20 1.21
Reimbursement of expenses 0.07 0.31
Certification fees 0.08 -
Other services 0.30 0.33
1.65 1.85

i Corporate social responsibility expenses

The requisite disclosure relating to CSR expenditure in terms on Guidance Note on Corporate Social Responsibility (CSR) issued by Institute of Chartered
Accountants of India:
a) Gross amount required to be spent by the Group during the year is Rs. 7.65 Mn (previous year 6.22 Mn).
b) Amount spent during the financial year ended 31 March 2019 and 31 March 2018 on:
(₹ in Mn.)
Particulars Period Bank payment Yet to be paid Total
in cash
Education, technical education including research and development 31 March 2019 4.75 - 4.75
31 March 2018 5.50 - 5.50
Health 31 March 2019 0.50 - 0.50
31 March 2018 0.50 - 0.50

117
 Particulars Period Bank payment Yet to be paid Total
in cash
Integrity community development 31 March 2019 1.33 - 1.33
31 March 2018 0.23 - 0.23
Disaster management 31 March 2019 0.20 - 0.20
31 March 2018 - - -
Prime Minister National Relief Fund 31 March 2019 1.00 - 1.00
31 March 2018 - - -
Total 31 March 2019 7.78 - 7.78
31 March 2018 6.22 - 6.22

Note - 33 (₹ in Mn.)
31 March 2019 31 March 2018
Income tax
Tax expense comprises of:
Current tax 176.56 190.80
Deferred tax credit 52.93 (18.05)
Earlier years tax adjustments (net) - -
Income tax expense reported in the statement of profit and loss 229.49 172.75

The major components of income tax expense and the reconciliation of expected tax expense based on the domestic effective tax rate of the Company
at 34.944% (Previous year 34.608%) and the reported tax expense in profit or loss are as follows:
(₹ in Mn.)
Accounting profit before income tax 585.27 515.18
At India’s statutory income tax rate of 34.944% (31 March 2018: 34.608%) 204.52 178.29
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Tax impact of exempted income 7.88 (7.63)
Effect of tax incentive - (3.25)
Impact of different tax rate on certain items (35.73) -
Tax impact of expenses which will never be allowed 49.60 -
Earlier years tax adjustments (net) 0.14 0.49
Others (1.43) -
Allowable expenses - 0.54
Difference in overseas tax rate 4.51 4.31
Income tax expense 229.49 172.75

Note - 34 (₹ in Mn.)
Earnings per share 31 March 2019 31 March 2018
Net profit attributable to equity shareholders
Net profit for the year 355.78 342.43
Nominal value of equity share (₹) 10 10
Total number of equity shares outstanding at the beginning of the year 1,87,68,000 1,87,68,000
Total number of equity shares outstanding at the end of the year 1,87,68,000 1,87,68,000
Weighted average number of equity shares 1,87,68,000 1,87,68,000
(1) Basic (₹) 18.96 18.25
(2) Diluted (₹) 18.96 18.25

Note - 35A
Financial instruments
i) Fair values hierarchy
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value
hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: Quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the
use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

118
ii) Financial instruments by category
For amortised cost instruments, carrying value represents the best estimate of fair value. (₹ in Mn)
Particulars 31 March 2019 31 March 2018
FVTPL FVOCI Amortised cost FVTPL FVOCI Amortised cost
Financial assets  
Investment in equity instrument through OCI - 35.68 - - 0.52 -
Trade receivables   - - 1,692.91 - - 1,535.04
Loans   - - 9.12 - - 5.62
Cash and cash equivalents   - - 469.55 - - 245.34
Other bank balances   - - 124.11 - - 165.85
Other financial assets   - - 71.55 0.30 - 70.26
Security deposits   - - 36.42 - - 20.11
Total financial assets - 35.68 2,403.66 0.30 0.52 2,042.22
Financial liabilities            
Borrowings   - - 4,401.34 - - 3,656.11
Trade payables   - - 970.63 - - 756.78
Other financial liabilities   2.89 - 300.92 - - 277.16
Total financial liabilities 2.89 - 5,672.89 - - 4,690.05

Valuation process and technique used to determine fair value

Specific valuation techniques used to value financial instruments include:
(a) the use of quoted market prices for quoted equity instruments.
(b) for unquoted equity instruments, the Group’s has used earning capitalisation method (fair value approach) discounted at a rate to reflect the risk
involved in the business.

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value
measurements.
(₹ in Mn)
Particulars Fair value Significant unobservable Data inputs
31 March 31 March inputs 31 March 31 March
2019 2018 2019 2018
Earnings growth rate 5.00% NA
Unquoted equity investments 35.01 - Risk adjusted discount rate 21.18% NA
              
Sensitivity analysis                (₹ in Mn)
Description              31 March 2019 31 March 2018
Impact on fair value if change in earnings growth rate          
- Impact of increase in discount rate by 0.5 %         36.28 -
- Impact of decrease in discount rate by 0.5 %         33.83 -
Impact on fair value if change in risk adjusted discount rate          
- Impact of increase in discount rate by 0.5 %         33.17 -
- Impact of decrease in discount rate by 0.5 %       37.00 -
                  
The following table presents the changes in level 3 items for the periods ended 31 March 2019 and 31 March 2018: (₹ in Mn)
Particulars                Unquoted
equity shares
As at 31 March 2018                -
Acquisition             35.01
Gain/(loss) recognised in other comprehensive income         -
As at 31 March 2019             35.01

iii) Financial assets measured at fair value - recurring fair value measurements
The following table shows the levels within the hierarchy of financial assets measured at fair value on a recurring basis at 31 March 2019 and 31
March 2018:
(₹ in Mn)
Particulars Period Level 1 Level 2 Level 3 Total
Financial assets          
Investments at fair value through other          
comprehensive income
Equity investments 31 March 2019 0.67 - 35.01 35.68
31 March 2018 0.52 - - 0.52
At fair value through profit or loss
Derivative financial assets 31 March 2019 - - -
31 March 2018 0.30 - 0.30
Derivative financial liability 31 March 2019 - 2.89 - 2.89
31 March 2018 6.57 - - 6.57

119
iv) Fair value of instruments measured at amortised cost
Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows:
(₹ in Mn)
Particulars Level 31 March 2019 31 March 2018
Carrying value Fair value Carrying value Fair value
Financial assets              
Loans   Level 3 35.07 35.07 17.93 17.93
Other financial assets   Level 3 5.21 5.21 0.14 0.14
Total financial assets       40.28 40.28 18.07 18.07
Financial liabilities            
Borrowings   Level 3 4,401.34 4,401.34 3,656.11 3,656.11
Total financial liabilities       4,401.34 4,401.34 3,656.11 3,656.11
           
The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities
is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or
liquidation sale. The following methods and assumptions were used to estimate the fair values:
(i)  The fair values of the Group’s interest-bearing borrowings, loans and receivables are determined by applying discounted cash flows (‘DCF’)
method, using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31
March 2019 was assessed to be insignificant.

Note - 35B
Financial risk management
The Group’s activities expose it to credit risk, liquidity risk and market risk. The respective group companies board of directors has overall responsibility
for the establishment and oversight of the risk management framework. This note explains the sources of risk which the entity is exposed to and how the
entity manages the risk and the related impact in the financial statements.

Risk Exposure arising Measurement Management

from
Credit risk Cash and cash Ageing analysis Bank deposits, diversification of asset base,
equivalents, trade credit limits and collateral.
receivables, other
financial assets
Liquidity risk Borrowings and other Rolling cash flow forecasts Availability of committed credit lines and
liabilities borrowing facilities.
Market risk - foreign exchange Recognised financial Cash flow forecasting Forward contract/hedging, if required.
assets and liabilities
not denominated in
Indian rupee (INR)
Market risk - interest rate Long-term borrowings Sensitivity analysis Negotiation of terms that reflect the market
at variable rates factors.
Market risk - security price Investments in equity Sensitivity analysis Portfolio diversification.
securities.

A) Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Group. The Group's exposure to credit risk is influenced mainly by cash
and cash equivalents, trade receivables and financial assets measured at amortised cost. The Group continuously monitors defaults of customers
and other counterparties and incorporates this information into its credit risk controls.

a) Credit risk management

i) Credit risk rating
The Group assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors
specific to the class of financial assets. The Group assigns the following credit ratings to each class of financial assets based on the assumptions,
inputs and factors specific to the class of financial assets.
A: Low
B: Medium
C: High

The Group provides for expected credit loss based on the following:
Asset groups Basis of categorisation Provision for expected credit loss
Low credit risk Cash and cash equivalents, other bank balances, 12 month expected credit loss
loans, trade receivables and other financial assets
Moderate credit risk Trade receivables and other financial asset Life time expected credit loss or 12 month
expected credit loss
High credit risk Trade receivables and other financial asset Life time expected credit loss fully provided for

Life time expected credit loss is provided for trade receivables.

Based on business environment in which the Group operates, a default on a financial asset is considered when the counter party fails to make
payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering
differences between current and historical economic conditions.

120
 Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against
the Group. The Group continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are
recognised in statement of profit and loss.
(₹ in Mn)
Credit rating Particulars   31 March 2019 31 March 2018
A: Low credit risk Cash and cash equivalents, other bank balances, loans and other 710.74 507.47
financial assets
B: Moderate credit risk Trade receivables and other financial asset   1,698.20 1,536.71
C: High credit risk Trade receivables and other financial asset   12.56 9.46

ii) Concentration of trade receivables

The Group's exposure to credit risk for trade receivables is presented as below. Loans and other financial assets majorly represents loans to
employees and deposits given for business purposes.
(₹ in Mn)
Particulars 31 March 2019 31 March 2018
Original equipment manufacturer 705.64 627.10
Others 1,003.08 919.07
Total 1,708.72 1,546.17
     
     
b) Credit risk exposure
i) Provision for expected credit losses
  The Group provides for 12 month expected credit losses for following financial assets –

As at 31 March 2019 (₹ in Mn)

Particulars       Estimated gross Expected credit Carrying amount net of
carrying amount at default losses impairment provision
Cash and cash equivalents   469.55 - 469.55
Other bank balances   129.32 - 129.32
Loans   45.54 - 45.54
Other financial assets       68.39 2.05 66.34

As at 31 March 2018 (₹ in Mn)

Particulars       Estimated gross Expected credit Carrying amount net of
carrying amount at default losses impairment provision
Cash and cash equivalents   245.34 - 245.34
Other bank balances   165.99 - 165.99
Loans   25.72 - 25.72
Other financial assets       70.42 - 70.42

ii) Expected credit loss for trade receivables under simplified approach
As at 31 March 2019 (₹ in Mn)
Period Gross carrying value Expected credit loss Carrying amount (net of
(provision) impairment)
0 - 90 Days 1,524.18 2.99 1,521.19
90 - 180 Days 139.69 2.80 136.89
180 - 270 Days 30.19 3.30 26.89
270 - 360 Days 4.18 0.42 3.76
More than 360 Days 10.48 6.30 4.18

As at 31 March 2018 (₹ in Mn)

Period Gross carrying value Expected credit loss Carrying amount (net of
(provision) impairment)
0 - 90 Days 1,409.10 1.23 1,407.87
90 - 180 Days 102.61 3.23 99.38
180 - 270 Days 19.58 1.40 18.18
270 - 360 Days 6.05 0.07 5.98
More than 360 Days 8.84 5.20 3.64

Reconciliation of loss provision – lifetime expected credit losses (₹ in Mn)

Reconciliation of loss allowance         Trade Other financial
receivables asset
Loss allowance on 1 Apr 2017     9.15 -
Impairment loss recognised/reversed during the year 2.28 -
Amounts written off (0.30) -
Loss allowance on 31 March 2018           11.13 -
Impairment loss recognised/reversed during the year 4.67 2.05
Loss allowance on 31 March 2019           15.80 2.05

121
B) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity
to meet its liabilities when they are due.
Management monitors rolling forecasts of the Group’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The
Group takes into account the liquidity of the market in which the entity operates.

Maturities of financial liabilities

The tables below analyse the Group's financial liabilities into relevant maturity groupings based on their contractual maturities.
(₹ in Mn)
31 March 2019       Less than More than 1 Total
1 year year
Borrowings   1,286.50 3,617.41 4,903.91
Trade payable   970.63 - 970.63
‘Derivative financial liabilities 2.89 - 2.89
Other financial liabilities   281.79 - 281.79
Total       2,541.81 3,617.41 6,159.22

(₹ in Mn)
31 March 2018       Less than More than 1 Total
1 year year
Borrowings   1,006.43 3,482.29 4,488.72
Trade payable   756.78 - 756.78
‘Derivative financial liabilities 6.57 - 6.57
Other financial liabilities   260.78 - 260.78
Total       2,030.56 3,482.29 5,512.85

‘The Group had access to following funding facilities :

As at 31 March 2019     (₹ in Mn)
Funding facilities Total Drawn Undrawn
facility
Less than 1 year       1,159.75 927.44 232.31
Above 1 year - - -
Total 1,159.75 927.44 232.31
     
As at 31 March 2018     (₹ in Mn)
Funding facilities Total Drawn Undrawn
facility
Less than 1 year       982.99 585.20 397.79
Above 1 year - - -
Total 982.99 585.20 397.79
     
C) Market risk
i) Foreign exchange risk
The Group has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions (imports and exports).
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the
Group’s functional currency. The Group does not hedge its foreign exchange receivables/payables.
ii) Derivative financial instrument
The Group uses derivative instruments as part of its management of exposure to fluctuations in foreign currency exchange rates. The Group does not
acquire or issue derivative financial instruments for trading or speculative purposes. The Group does not enter into complex derivative transactions to
manage the risks. The derivative transactions are normally in the form of forward contracts and these are subject to the Group guidelines and policies.
The fair values of all derivatives are separately recorded in the balance sheet within current financial assets. Derivatives that are designated as
hedges are classified as current depending on the maturity of the derivative. The use of derivatives can give rise to credit and market risk. The
Group tries to control credit risk as far as possible by only entering into contracts with reputable banks and financial institutions. The use of derivative
instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring
systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the
underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.
a) Fair value hedge
The fair value hedges relate to forward covers taken to hedge currency exposure risks.
The Group uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. Fair value
changes on such forward contracts are recognized in profit or loss.
b) Non-qualifying/economic hedge
The Group enters into derivative contracts which are not designated as hedges for accounting purposes, but provide an economic hedge of a
particular transaction risk or a risk component of a transaction. . Fair value changes on such derivative instruments are recognized in profit or loss.
(₹ in Mn)
Derivative financial instruments 31 March 2019 31 March 2018
Current    
Non Qualifying hedges    
Derivative assets - 0.30
Derivative liability 2.89 6.57
Total 2.89 6.87

122
 Foreign currency risk exposure: (₹ in Mn)
Particulars Currency Amount in foreign currency Amount in ₹
31 March 31 March 31 March 31 March
2019 2018 2019 2018
Receivables          
Export trade receivable USD 4.20 4.26 284.61 271.65
EURO 0.70 0.66 53.04 52.40
GBP 0.04 0.04 3.36 3.44
Payables          
Payable for imports and others USD (0.13) (0.60) (8.84) (39.83)
EURO (0.03) (0.05) (2.66) (4.31)
           
Foreign currency loans USD (11.73) (12.00) (828.49) (802.44)
USD (7.16) (7.56) (505.38) (505.66)
           
Interest on foreign currency loans USD (0.08) (0.13) (5.32) (8.84)
USD (0.04) (0.04) (3.09) (2.48)

Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.
(₹ in Mn)
Exchange rate increase Exchange rate decrease
by 5% by 5%
Particulars Currency
31 March 31 March 31 March 31 March
2019 2018 2019 2018
Receivables          
Export trade receivable USD 14.23 13.58 (14.23) (13.58)
EURO 2.65 2.62 (2.65) (2.62)
GBP 0.17 0.17 (0.17) (0.17)
Payables          
Payable for imports and others USD 0.44 1.99 (0.44) (1.99)
EURO 0.13 0.22 (0.13) (0.22)
Foreign currency loans          
USD 41.42 40.12 (41.42) (40.12)
USD 25.27 25.28 (25.27) (25.28)
Interest on foreign currency loans          
USD 0.27 0.44 (0.27) (0.44)
USD 0.15 0.12 (0.15) (0.12)
 
ii) Interest rate risk
The Group's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since
neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Group's variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing: (₹ in Mn)
Particulars   31 March 2019 31 March 2018
Variable rate borrowing   2,857.42 2,969.50
Fixed rate borrowing   1,543.92 686.62
Total borrowings   4,401.34 3,656.12

Sensitivity
Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.
(₹ in Mn)
Particulars 31 March 2019 31 March 2018
Interest rates – increase by 50 basis points 14.29 (14.85)
Interest rates – decrease by 50 basis points (14.29) 14.85

iii) Price risk                 

The Group's exposure to price risk arises from investments held and classified as FVOCI/ FVTPL. To manage the price risk arising from investments,
the Group diversifies its portfolio of assets.

Sensitivity analysis
Profit or loss and equity is sensitive to higher/lower prices of instruments on the Group's profit for the year - (₹ in Mn)
Particulars 31 March 2019 31 March 2018
Price sensitivity    
  Price increase by (5%) - FVOCI* 0.03 0.03
  Price decrease by (5%) - FVOCI   (0.03) (0.03)
     
Price increase by (5%) - FVTPL 0.14 0.34
Price decrease by (5%) - FVTPL            (0.14) (0.34)

‘* For sensitivity analysis in equity investment in shares of Altigreen, refer note 35 A, level 3 disclosure.

123
 Note - 36
Disclosures as per Indian Accounting Standard (Ind AS) 108 “Operating Segments”
a) Operating segments
Management currently identifies the Group’s two service areas as its operating segments as follows:
India
Canada
b) Segment revenue and expenses
Revenue and expenses directly attributable to the segment is considered as ‘Segment Revenue and Segment Expenses’.
c) Segment assets and liabilities
Segment assets and liabilities include the respective directly identifiable to each of the segments.
These operating segments are monitored by the chief operating decision maker and strategic decisions are made on the basis of segment operating results. Segment performance is evaluated
based on the profit of each segment.
The following tables present revenue and profit information and certain asset and liability information regarding the reportable segments for the years ended 31 March 2019 and 31 March
2018.
(₹ in Mn)
Particulars India Canada Others Total
31 March 2019 31 March 2018 31 March 2019 31 March 2018 31 March 2019 31 March 2018 31 March 2019 31 March 2018
Revenue
Sales to external customers 6,257.07 5,247.19 2,490.90 2,048.93 226.08 153.98 8,974.05 7,450.10
Inter-segment sale (77.55) (7.18) - - - - (77.55) (7.18)
Segment revenue 6,179.52 5,240.01 2,490.90 2,048.93 226.08 153.98 8,896.50 7,442.92
               
Interest revenue 35.11 5.09 1.17 1.43 - - 36.28 6.52
Interest expense 143.57 90.57 105.80 144.43 - 0.12 249.37 235.12

124
Depreciation and amortisation  270.80 262.98 141.59 126.67 9.51 4.60 421.90 394.25
Reversal of provisions 21.87 61.04 - - - - 21.87 61.04
Dividend revenue - 0.01 - - - - - 0.01
Disposals of property, plant and equipment 91.42 3.65 - (6.45) - - 91.42 (2.80)
Segment result (profit before tax) 531.21 470.69 34.84 31.54 19.22 12.95 585.27 515.18
Income tax expense 176.38 164.75 53.10 8.00 - - 229.48 172.75
               
Segment assets 4,772.32 3,657.58 3,336.20 3,206.28 567.53 477.77 8,676.05 7,341.63
Segment liabilities 3,643.59 2,803.15 1,954.01 1,802.94 361.04 327.17 5,958.64 4,933.26
               
Additions to non-current assets other than financial 556.65 277.59 247.13 371.26 - 0.87 803.78 649.72
instruments, deferred tax assets, net defined benefit
assets.

Information about major customer

During the year ended 31 March 2019 revenue of approximately 63.49% are derived from three external customers (previous year: 66.93% are derived from three external customers).
Note - 37
Related party disclosures
List of related parties and relationships

i) Parties where control exists:

Subsidiary Company:
(a) 2545887 Ontario Inc., Canada
Step down subsidiaries:
(i) The Hi-Tech Gears Canada Inc. (iv) Teutech Leasing Corporation, USA
(ii) Teutech Holding Corporation, USA (v) 2504584 Ontario Inc., Canada
(iii) Teutech LLC, USA (vi) 2323532 Ontario Inc., Canada

(b) Neo Tech Auto Systems Inc., USA

(C) Neo Tech Smart Solutions Inc., Canada

Key Management Personnel (KMP) and their Relatives

(i) Mr. Deep Kapuria (Executive Chairman and Whole Time Director) (viii) Mr. Prosad Dasgupta (Independent Director)
(ii) Mr. Pranav Kapuria (Managing Director) (ix) Mr. Vinit Taneja (Independent Director)
(iii) Mr. Anuj Kapuria (Whole Time Director) (x) Mr. Ramesh Chandra Jain (Non Executive Director)
(iv) Mr. Sandeep Dinodia (Independent Director) (xi) Mr. Bidadi Anjani Kumar (Non Executive Director)
(v) Mr. Anil Kumar Khanna (Independent Director) (xii) Mr. Anant Jaivant Talaulicar (Non Executive Director)
(vi) Mr. Krishna Chandra Verma (Independent Director) (xiii) Mr. Dinesh Chand Sharma (Chief Financial Officer)*
(vii) Ms. Malini Sud (Independent Director) (xiv) Mr. Shital Kumar Khatri (Company Secretary)
(xv) Mr. Vijay Mathur (Chief Financial Officer)*
* Mr. Dinesh Chand Sharma has been appointed(from 25/02/2019) as Chief Financial Officer in place of Mr. Vijay Mathur(till 22/02/2019)

Enterprises over which key management personnel and relatives of such personnel exercise significant influence with whom transactions
has been undertaken:-
(i) Aquarian Fibrecement Private Limited
(ii) Vulcan Electro Controls Limited
(iii) The Hi-Tech Robotic Systemz Limited
(iv) The Hi-Tech Engineering Systems Private Limited

125
 (a) Transactions with related parties carried out in the ordinary course of business: (₹ in Mn.)

Related Parties
Enterprise over which Key Management personnel and their relatives exercise significant
S. influence Key Management
Particulars Year Total
No The Hi-Tech Personnel and its
  Aquarian Fibrecement Vulcan Electro The Hi-Tech Robotic
Engineering Systems relatives
Private Limited Controls Limited Systemz Limited
Private Limited
1 Purchase of 31 March 2019 - 1,358.50 329.05 7.51 - 1,695.06
goods 31 March 2018 - 925.79 301.17 - - 1,226.96
2 Sale of goods 31 March 2019 - 1.68 117.94 - - 119.62
31 March 2018 - 0.06 78.13 - - 78.19
3 Rendering of job 31 March 2019 - 4.55 3.54 - - 8.09
work/services 31 March 2018 - 5.50 7.64 - - 13.14
4 Sale of assets 31 March 2019 - 1.00 - - - 1.00
31 March 2018 - 1.04 0.10 - - 1.14
5 Purchase of 31 March 2019 - - - - - -
asset 31 March 2018 - - - 4.41 - 4.41
6 Receiving of job 31 March 2019 - 173.31 - 46.20 219.51
work/services
31 March 2018 - 186.87 - 45.11 - 231.98
7 Leasing or 31 March 2019 18.00 - - - - 18.00
hire purchase
31 March 2018 18.00 - - - - 18.00
arrangements

126
8 Remuneration 31 March 2019 - - - 70.02 70.02
paid* 31 March 2018 - - - - 71.66 71.66
9 Sitting fees 31 March 2019 - - - 0.69 0.69
31 March 2018 - - - - 0.57 0.57
10 Re-imbursement 31 March 2019 - 4.40 - - - 4.40
paid 31 March 2018 - 0.20 - - - 0.20
11 Re-imbursement 31 March 2019 - 0.24 1.17 - - 1.41
received 31 March 2018 - 1.38 1.83 0.92 - 4.13

*The remuneration of Key Managerial Personnel included in various schedules to statement of profit and loss is as under:
(₹ in Mn.)
Particulars* 31 March 2019 31 March 2018
Short term employee benefits 68.35 69.65
Defined contribution 1.67 1.52
plan
   
* Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees together.
 (b) Closing balance with related parties in the ordinary course of business : (₹ in Mn.)
Related Parties
Enterprise over which Key Management personnel and their relatives exercise significant influence
S. Key Management
Particulars The Hi-Tech Total
No Year Aquarian Fibrecement Vulcan Electro The Hi-Tech Robotic Personnel and its
Engineering Systems relatives
Private Limited Controls Limited Systemz Limited
Private Limited
1 Trade receivable 31 March 2019 - - - - - -
31 March 2018 - - - - - -
2 Trade payable 31 March 2019 1.62 64.42 72.12 5.46 - 143.62
31 March 2018 - 64.99 110.87 1.79 - 177.65
3 Other payable 31 March 2019 - - - - 20.07 20.07
31 March 2018 - - - - 28.45 28.45

127
Note - 38
Interest in other entities
The Group’s subsidiaries at 31 March 2019 are set out below. Unless otherwise stated, they have share capital consisting solely of equity shares that
are held directly by the Group.
Name of entity Country of Functional Ownership interest held by Principal activities
incorporation currency the Group
31 March 2019 31 March 2018
2545887 Ontario Inc Canada CAD 100% 100% Asset ownership, real estate.
Neo-Tech Auto System Inc. USA USD 100% 100% Manufacturing and sales of auto components.
The Hi-Tech Gears Canada Inc. Canada CAD 100% 100% Manufacturing and sales of automotive parts/
components.
Teutech Holding Corporation USA USD 100% 100% Asset ownership.
Teutech LLC USA USD 100% 100% Machining and job work of automotive
components.
Teutech Leasing Corporation USA USD 100% 100% Asset ownership, real estate.
2504584 Ontario Inc Canada CAD 100% 100% Real estate.
Neo-Tech Smart Solutions Inc. Canada CAD 100% NA Manufacturing and sales of General Engineering,
Industrial Components and Automotive Industry.
2323532 Ontario Inc Canada CAD 100% 100% Asset ownership, real estate.

Note - 39
Capital management
The Group’s objectives when managing capital are to:
- To ensure Group’s ability to continue as a going concern, and
- To provide adequate return to shareholders

Management assesses the capital requirements in order to maintain an efficient overall financing structure. The Group manages the capital structure
and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The Group manages its
capital requirements by overseeing the following ratios -
(₹ in Mn)
Particulars   31 March 2019 31 March 2018
Net debt*   3,950.92 3,427.16
Total equity   2,717.38 2,408.37
Net debt to equity ratio     1.45 1.42
*Net debt = non-current borrowings + current borrowings + current maturities of non-current borrowings + interest accrued - cash and cash equivalents

Note - 40
Contingent liabilities and commitments
(to the extent not provided for)
A Contingent liabilities
1) Details of bank guarantees are as under:- (₹ in Mn.)
S. Name of the beneficiary 31 March 2019 31 March 2018
No
1 Dy. Commissioner Customs Export, Tughlakabad, Delhi 0.15 0.15
2 Deputy Commissioner of Customs 1.18 1.18
3 The President of India (Through Asstt./Dy Commissioner of Customs) 0.06 0.06
4 Commissioner of Custom 0.03 0.03
5 Dy. Commissioner Customs Export 0.13 0.13
6 The President of India (Through Asstt./Dy Commissioner of Customs) 0.48 0.48
7 The Assessing Authority Sales Tax Department, Haryana 0.05 0.05
8 Deputy Commissioner of Customs 0.84 0.84
9 The Assessing Authority Sales Tax Department, Haryana 0.05 0.05
10 GST Gurgaon - 1.00
  Total   2.97 3.97

128
 2) Contingent liabilities on account of disputed statutory demands not provided for in the books of account are in appeals, as follows:-
(₹ in Mn)
S. Particulars Period to which the 31 March 2019 31 March 2018
No amount relates
1 Income Tax Act, 1961 (Income Tax Appellate Tribunal) Assessment year 2008-09 - 0.26
2 Income Tax Act, 1961 (Deputy Commissioner of Income Tax (Appeals), Delhi) Assessment year 2012-13 0.23 0.35
3 Income Tax Act, 1961 (Income Tax Appellate Tribunal, Delhi) Assessment year 2010-11 2.54 2.54
4 Income Tax Act, 1961 (Commissioner of Income Tax (Appeals), Delhi-4) Assessment Year 2012-13 0.23 -
5 Income Tax Act, 1961 (Commissioner of Income Tax (Appeals), Delhi-4) Assessment Year 2016-17 0.60 -
6 Income Tax Act, 1961 (Assistant Commissioner of Income Tax (TDS) ) Assessment Year 2019-20 0.08 -
  Total   3.68 3.15

Statutory demands for which show - cause notice issued to the Group: (₹ in Mn)
S. Particulars Period to which the 31 March 2019 31 March 2018
No amount relates
1 Central Excise Act, 1944 (Additional Commissioner, Central Excise, April 2005 to March 2018 1.04 1.04
Gurgaon, Haryana)
2 Central Excise Act, 1944 (Additional Commissioner, Central Excise, August 2014 to July 2015 2.02 2.02
Gurgaon, Haryana)
3 Central Excise Act, 1944 (Additional Commissioner, Central Excise, August 2015 to February 3.62 3.62
Gurgaon, Haryana) 2017
4 Central Excise Act, 1944 (Deputy Commissioner, CGST, Gurugram, March 2017 to June 2017 1.60 -
Haryana)
  Total   8.28 6.68

3) There are five legal cases filed by past employees against the Company for re-instatement/settlement of their dues/remuneration related matters.
Out of the aforesaid five cases, four cases are pending at various stages at Camp Court, Bhiwadi, Rajasthan and one case is pending at District
Court, Gurgaon, Haryana. The financial impact of these cases, if any, is not identifiable and hence the same has not been provided in the financial
statements of the Company.

B Commitments (Net of Advance):

Estimated amount of contracts remaining to be executed on capital accounts ₹ 589.08 Mn net of advances (Previous years: 31 March 2018:
₹ 101.92 Mn).

Note - 41
Dividends
A The Board of directors at their meeting held on 27 May 2019 has proposed a final dividend of ₹ 2 per share for financial year 31 March 2019
(previous year: ₹ 2.00 per share) subject to approval of shareholders in annual general meeting. The above is in addition to an interim dividend of
₹ 1.5 per share for financial year 31 March 2019 (previous year ₹ 1.5 per share) declared and already paid.
B Dividend declared and paid in earlier years are as follows –
(₹ in Mn.)
Particulars 31 March 2019 31 March 2018
Interim dividend (including dividend tax) 33.94 33.88
Final dividend (including dividend tax) 45.25 28.24
 
Note - 42
Leases disclosure as lessee
Operating leases
The Group has leased facilities under operating leases. Rentals are expensed with reference to lease terms and other considerations. The future
lease payments in respect of these leases are as at under:
(₹ in Mn)
Particulars     31 March 2019 31 March 2018
Within one year   20.63 18.00
Later than one year but not later than five years   63.00 9.00
Later than five years     - -

129
 Finance leases
The Group's had taken solar power plant on finance lease. The Group's obligations under finance leases are secured by the lessor’s title to the
leased assets. Future minimum lease payments under finance lease are, as follows:

(₹ in Mn)
Particulars     31 March 2019 31 March 2018
Within one year   2.75 6.59
Later than one year but not later than five years   10.71 13.46
Later than five years     13.37 13.37

(₹ in Mn)
Particulars     31 March 2019 31 March 2018
Within one year   2.45 6.39
Later than one year but not later than five years   8.17 10.62
Later than five years   7.16 7.16
Amounts representing finance charges     9.05 9.25

Note - 43
Employee benefits

A Compensated absences - earned leave

Risk
Salary Increases Actual salary increases will increase the plan’s liability. Increase in
salary increase rate assumption in future valuations will also increase
the liability.
Investment Risk If plan is funded then assets liabilities mismatch and actual investment
return on assets lower than the discount rate assumed at the last
valuation date can impact the liability.
Discount Rate Reduction in discount rate in subsequent valuations can increase the
plan’s liability.
Mortality and disability Actual deaths and disability cases proving lower or higher than
assumed in the valuation can impact the liabilities.
Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals
and change of withdrawal rates at subsequent valuations can impact
plan’s liability.

i) Amounts recognized in the consolidated balance sheet (₹ in Mn)

Particulars    31 March 2019 31 March 2018
Present value of the obligation at end 52.99 38.65
Fair value of plan assets - -
Net obligation recognised in balance sheet as provision 52.99 38.65
Current liability (amount due within one year)   6.67 5.22
Non-current liability (amount due over one year)   46.32 33.43

ii) Expenses recognized in consolidated statement of profit and loss (₹ in Mn)

Particulars  31 March 2019 31 March 2018
Current service cost 15.99 7.93
Interest cost 2.99 2.83
Actuarial (gain)/loss net on account of:
Changes in demographic assumptions - -
Changes in financial assumptions 1.77 (1.48)
Changes in experience adjustment 3.77 0.70
Cost recognised during the year     24.52 9.98

iii) Movement in the liability recognized in the consolidated balance sheet is as under: (₹ in Mn)
Particulars  31 March 2019 31 March 2018
Present value of defined benefit obligation at the beginning of the year 38.65 38.36
Current service cost 15.99 7.93
Interest cost 2.99 2.83
Actuarial (gain)/loss net 5.54 (0.78)
Benefits paid (10.18) (9.69)
Present value of defined benefit obligation at the end of the year   52.99 38.65

130
 iv) (a) For determination of the liability of the Group the following actuarial assumptions were used:
Particulars    31 March 2019 31 March 2018
Discount rate   7.66% 7.37%
Salary escalation rate   9.25% 9.00%
Retirement Age (years)   58.00 58.00
Ages   Withdrawal rate (%)
Up to 30 Years   3.00% 3.00%
From 31 to 44 years   2.00% 2.00%
Above 44 years   1.00% 1.00%
Leave      
Leave availment rate   5.00% 5.00%
Leave lapse rate while in service   - -
Leave lapse rate on exit   - -
Leave encashment rate while in service     5.00% 5.00%
Mortality rates inclusive of provision for disability -100% of IALM (2006 – 08)

iv) (b) Maturity Profile of defined benefit obligation (₹ in Mn)

Particulars 31 March 2019 31 March 2018
0 to 1 year 6.67 5.22
1 to 2 year 1.57 1.86
2 to 3 year 2.02 0.96
3 to 4 year 1.60 1.39
4 to 5 year 1.56 1.20
5 to 6 year 3.09 1.58
6 year onwards 36.47 26.45

v) Sensitivity analysis for compensated absences liability (₹ in Mn)

Particulars  31 March 2019 31 March 2018
a) Impact of the change in discount rate    
Present value of obligation at the end of the year 52.99 38.65
Impact due to increase of 0.50 % (2.76) (1.91)
Impact due to decrease of 0.50 % 3.00 2.08
     
b) Impact of the change in salary increase    
Present value of obligation at the end of the year 52.99 38.65
Impact due to increase of 0.50 % 2.94 2.04
Impact due to decrease of 0.50 %     (2.73) (1.90)

Sensitivities due to mortality and withdrawals are not material. Hence impact of change is not calculated.
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are
not applicable being a lump sum benefit on retirement.

B Gratuity
Risk
Salary Increases Actual salary increases will increase the plan’s liability. Increase in
salary increase rate assumption in future valuations will also increase
the liability.
Investment Risk If plan is funded then assets liabilities mismatch and actual investment
return on assets lower than the discount rate assumed at the last
valuation date can impact the liability.
Discount Rate Reduction in discount rate in subsequent valuations can increase the
plan’s liability.
Mortality & disability Actual deaths and disability cases proving lower or higher than
assumed in the valuation can impact the liabilities.
Withdrawals Actual withdrawals proving higher or lower than assumed withdrawals
and change of withdrawal rates at subsequent valuations can impact
plan’s liability.

131
i) Amounts recognized in the consolidated balance sheet (₹ in Mn)
Particulars    31 March 2019 31 March 2018
Present value of the obligation   137.14 122.12
Fair value of plan assets   135.82 120.68
Net obligation recognised in balance sheet as provision   (1.32) 1.44
Current liability (amount due within one year)   (1.32) 1.44
Non-current liability (amount due over one year)   - -

ii) Expenses recognized in other comprehensive income (₹ in Mn)

Particulars 31 March 2019 31 March 2018
Actuarial gains/(loss) on asset     (0.02) (7.33)
Actuarial gains/(loss) on PBO   2.54 11.92
Expenses recognized in other comprehensive income 2.52 4.59

iii) Actuarial (gain)/loss on obligation (₹ in Mn)

Particulars  31 March 2019 31 March 2018
Actuarial (gain)/loss net on account of:    
- Changes in demographic assumptions - -
- Changes in financial assumptions 3.31 (3.83)
- Changes in experience adjustment     (5.85) (8.09)

iv) Expenses recognized in consolidated statement of profit and loss (₹ in Mn)

Particulars  31 March 2019 31 March 2018
Current service cost 12.46 12.37
Interest cost (0.53) 0.15
Cost recognised during the year     11.93 12.52

v) Major categories of plan assets (as percentage of total plan assets)

Particulars  31 March 2019 31 March 2018
Funds managed by insurer 100% 100%
Total     100% 100%

vi) Change in plan assets is as under: (₹ in Mn)

Particulars      31 March 2019 31 March 2018
Fair value of plan assets at the beginning of the period   120.68 115.66
Difference in Opening Fund   8.34 -
Actual return on plan assets   9.95 1.20
Employer contribution   1.44 8.73
Fund management charges   (0.25) (0.23)
Benefits paid   (4.34) (4.68)
Present value of defined benefit obligation at the end of the year     135.82 120.68

vii) Movement in the liability recognised in the consolidated balance sheet is as under: (₹ in Mn)
Particulars  31 March 2019 31 March 2018
Present value of defined benefit obligation at the beginning of the year 122.12 117.68
Current service cost 12.46 10.12
Past service cost - 2.25
Interest cost 9.44 8.67
Actuarial (gain)/loss net (2.54) (11.92)
Benefits paid (4.34) (4.68)
Present value of defined benefit obligation at the end of the year   137.14 122.12

132
 viii) (a) For determination of the liability of the Group the following actuarial assumptions were used:
Particulars    31 March 2019 31 March 2018
Discount rate   7.66% 7.73%
Salary escalation rate   9.25% 9.00%
Retirement Age (Years)   58.00 58.00
Withdrawal rate      
Up to 30 Years   3.00% 3.00%
From 31 to 44 years   2.00% 2.00%
Above 44 years   1.00% 1.00%
Weighted average duration of PBO     14.24 13.68
Mortality rates inclusive of provision for disability -100% of IALM (2006 – 08)

viii) (b) Maturity profile of defined benefit obligation: (₹ in Mn)

Particulars 31 March 2019 31 March 2018
0 to 1 year 16.78 144.31
1 to 2 year 1.87 17.38
2 to 3 year 1.97 18.15
3 to 4 year 2.35 29.32
4 to 5 year 2.02 21.39
5 to 6 year 2.31 24.54
6 year onwards 109.83 966.10

viii) Sensitivity analysis for compensated absences liability (₹ in Mn)

Particulars  31 March 2019 31 March 2018
a) Impact of the change in discount rate    
Present value of obligation at the end of the year 137.14 122.12
Impact due to increase of 0.50 % (5.49) (5.06)
Impact due to decrease of 0.50 % 5.88 5.42
b) Impact of the change in salary increase    
Present value of obligation at the end of the year 137.14 122.12
Impact due to increase of 0.50 % 5.47 5.17
Impact due to decrease of 0.50 %     (5.24) (4.88)
Sensitivities due to mortality and withdrawals are not material. Hence impact of change is not calculated.
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and life expectancy are
not applicable being a lump sum benefit on retirement.

Note - 44
Disclosure under Ind AS - 37 “Provisions, Contingent Liabilities and Contingent Assets”: Movements in each class of provision during the
financial year, are set out below:
        (₹ in Mn.)
Particulars   Provision on rate
differences*
As at 01 April 2017   24.28
Amounts used during the year   3.51
As at 31 March 2018   27.80
Additional provision recognised   -
As at 31 March 2019   27.80
         
*This provision reflects the amount that could be payable on account of foreign exchange adjustment on export.

Note - 45
Research and development expenditure includes employee benefits expenses amounting to ₹ 16.14 Mn (31 March 2018: ₹ 15.12 Mn), material
consumed amounting to ₹ 1.40 Mn (31 March 2018: ₹ 0.99 Mn) and stores and spares consumed of ₹ 8.46 Mn (31 March 2018: ₹ 6.02 Mn).

133
Note - 46
New standards adopted - Revenue from Contracts with Customers
Indian Accounting Standard 115 Revenue from Contracts with Customers (“Ind AS 115”), establishes a framework for determining whether, how
much and when revenue is recognised and requires disclosures about the nature, amount, timing and uncertainty of revenues and cash flows
arising from customer contracts. Under Ind AS 115, revenue is recognised through a 5-step approach:
(i) Identify the contract(s) with customer;
(ii) Identify separate performance obligations in the contract;
(iii) Determine the transaction price;
(iv) Allocate the transaction price to the performance obligations; and
(v) Recognise revenue when a performance obligation is satisfied.
The Company has adopted the standard on 1 April 2018 using modified retrospective approach with a cumulative catch-up adjustment made in
retained earnings at the beginning of the current financial year, i.e., 1 April 2018 as if the standard had always been in effect. The standard is
applied only to contracts that are not completed as at 1 April 2018. Comparative information has not been restated and continues to be reported
under the accounting standards in effect for those periods. The adoption of the new standard did not result in any adjustments to the Company’s
revenue or net income.

Significant changes in contract assets and liabilities

There has been no significant changes in contact assets/contract liabilities during the year.

Revenue recognised in relation to contract liabilities

Ind AS 115 also requires disclosure of major changes on account of revenue recognised in the reporting period from the contract liability balance at
the beginning of the period and other changes, as summarised below:
(₹ in Mn)
Description       Year ended
31 March 2019
Contract liabilities at the beginning of the year   62.66
Less: performance obligations satisfied in current year   (17.58)
Add: advance received during the year.   5.17
        50.25

Disaggregation of revenue
Revenue arises mainly from the sale of manufactured and traded goods, sale of software, and job work services.
(₹ in Mn)
Description Year ended
31 March 2019
Sale of goods   9,123.34
Sale of softwares   5.76
Job work   8.12
        9,137.22
(₹ in Mn)
Description Year ended
31 March 2019
America       2,745.86
India   4,568.31
Others   2,030.15
        9,344.32

Reconcile the amount of revenue recognised in the statement of profit and loss with the contracted price
Description Year ended
31 March 2019
Revenue recognised during the year       9,359.21
Less: Discount, rebates, credits etc. (14.89)
Add/Less: Any adjustment during the year   -
Revenue as per the contact       9,344.32

134
 Assets and liabilities related to contracts with customers (₹ in Mn)
Description As at 31 March 2019 As at 31 March 2018
Non-current Current Non-current Current
Contract assets related to sale of service
Trade receivables - 1,692.91 - 1,535.04
Contract liabilities related to sale of service
Advance from customers - 50.25 - 62.66
Deferred income - 23.13 - 36.74
     

Note - 47
Other matters
(i) In the opinion of the Board of Directors, the current assets, loans and advances are having the value at which they are stated in the consolidated
balance sheet, if realized in the ordinary course of business.
(ii) C laims received against shortage/ damage of materials which are not of significant values are not being shown separately. The same are accounted
for on receipt basis.

135
 Note - 48
Notes to the consolidated financial statements for the year ended 31 March 2019

FORM AOC -1
Pursuant to first proviso to sub- section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules, 2014. Statement containing salient features of the financial statement
of subsidiaries
Part - “A” : Subsidiaries   (₹ in Mn)
2545887 2504584 2323532 The Hi-Tech Teutech Holding Teutech Leasing Teutech LLC Neo-Tech Auto Neo-Tech
Ontario Inc. Ontario Inc. Ontario Inc. Gears Canada Corp. (‘Teutech Corporation Systemz, Inc. Smart
(‘254’) (‘250’) (‘232’) Inc (Formerly Holding’) Solutions Inc.
S.
Name of Subsidiary known as
No
Teutech
Industries Inc.)
(‘Teutech’)
1 Reporting period April 18 to April 18 to April 18 to April 18 to April 18 to April 18 to April 18 to April 18 to April 18 to
March 19 March 19 March 19 March 19 March 19 March 19 March 19 March 19 March 19
2 Reporting currency CAD CAD CAD CAD USD USD USD USD CAD
3 Exchange rate Rs 51.5/CAD Rs 51.5/CAD Rs 51.5/CAD Rs 51.5/CAD CAD 1.34/USD CAD 1.34/USD CAD 1.34/USD Rs 69.21/USD Rs 51.5/CAD
for BS for BS for BS for BS and then Rs and then Rs 51.5/ and then Rs 51.5/ for BS for BS
Rs 50.98/CAD Rs 50.98/CAD Rs 50.98/CAD Rs 50.98/CAD 51.5/CAD for BS CAD for BS CAD for BS Rs 67.08/USD Rs 50.98/CAD
for PL for PL for PL for PL Rs 50.98/CAD Rs 50.98/CAD Rs 50.98/CAD for PL for PL
for PL for PL for PL
4 Share Capital 1,534.55 0.01 0.01 2,456.99 162.03 0.00 - 0.64 13.78
5 Reserves & Surplus (182.88) - 57.32 (874.53) 163.53 (6.40) (112.67) (0.06) (24.05)
6 Total Liabilities 1,746.34 - 102.85 633.00 - 116.05 243.77 - 22.36

136
7 Total Assets 3,098.01 0.01 160.18 2,215.46 325.56 109.65 131.10 0.58 12.09
8 Investments 2,619.96 0.01 - 162.03 - - - - -
9 Turnover 35.72 - 29.95 2,514.45 - 32.58 226.10 - 7.57
10 Profit/(Loss) before (73.63) - 25.78 157.64 (0.03) 26.89 25.04 (0.03) (23.22)
Taxation
11 Provision for Taxation - - 6.99 63.05 - 4.43 - - -
12 Profit/(Loss) after (73.63) - 18.79 94.59 (0.03) 22.46 25.04 (0.03) (23.22)
Taxation
13 Proposed dividend NIL NIL NIL NIL NIL NIL NIL NIL NIL
14 % of shareholding 100% 100% (step 100% (step 100% (step 100% (step down 100% (step down 100% (step down 100% 100%
down down down subsidiary) subsidiary) subsidiary)
subsidiary) subsidiary) subsidiary)
 Comparative period 17-18
2545887 2504584 2323532 The Hi-Tech Teutech Holding Teutech Leasing Teutech LLC Neo-Tech
Ontario Inc. Ontario Inc. Ontario Inc. Gears Canada Corp. (‘Teutech Corporation Auto
(‘254’) (‘250’) (‘232’) Inc (Formerly Holding’) Systemz, Inc.
S.
Name of Subsidiary known as
No
Teutech
Industries Inc.)
(‘Teutech’)
1 Reporting period April 17 to April 17 to April 17 to April 17 to March April 17 to March April 17 to March April 17 to April 17 to
March 18 March 18 March 18 18 18 18 March 18 March 18
2 Reporting currency CAD CAD CAD CAD USD USD USD USD
3 Exchange rate Rs 50.46/CAD Rs 50.46/CAD Rs 50.46/CAD Rs 50.46/CAD CAD 1.29/USD CAD 1.29/USD CAD 1.29/USD Rs 64.29/USD
for BS for BS for BS for BS and then Rs and then Rs and then Rs for BS
Rs 49.52/CAD Rs 49.52/CAD Rs 49.52/CAD Rs 49.52/CAD 50.46/CAD for BS 50.46/CAD for BS 50.46/CAD for Rs 64.88/USD
for PL for PL for PL for PL Rs 49.52/CAD Rs 49.52/CAD BS for PL
for PL for PL
4 Share capital 1,534.55 0.01 0.01 2,407.37 158.76 0.00 - 0.64
5 Reserves & surplus (137.79) - 37.56 (962.77) 149.31 (27.53) (129.93) (0.06)
6 Total assets 3,143.73 0.01 160.01 1,927.05 308.07 110.94 58.77 -
7 Total liabilities 1,746.97 - 122.44 482.45 - 138.47 188.70 -
8 Investments   2,567.05 0.01 - 158.76 - - - -
9 Turnover   32.47 - 31.20 2,132.42 - 35.60 154.00 -
10 Profit/(loss) before taxation (92.68) - 27.59 168.58 (0.01) 30.81 17.83 (0.02)
11 Provision for taxation (0.62) - 7.31 14.25 - 1.46 - -
12 Profit/(loss) after taxation (92.06) - 20.28 154.33 (0.01) 29.35 17.83 (0.02)
13 Proposed dividend NIL NIL NIL NIL NIL NIL NIL NIL

137
14 % of shareholding 100% 100% 100% 100% 100% (step 100% (step 100% (step 100%
(step down (step down (step down down down down
subsidiary) subsidiary) subsidiary) subsidiary) subsidiary) subsidiary)

Notes:
a) Subsidiary Company(ies) do not have any investment in the Holding Company.
b) Though, the reporting period is different from the Holding Company, however the consolidated financials statements have been drawn as per the financial year of the Holding Company.
c) There are no associate or joint venture of the Holding Company, hence Part - B of AOC - 1 is not applicable.
 Note - 49
Additional information in pursuant to Schedule III of the Companies Act, 2013
Net assets (total assets Share in profit or (loss) Share in other comprehensive Share in total comprehensive
minus total liabilities) income income
S.
Name of the entity in the group % of Amount % of Amount % of Amount % of Amount
No
consolidated (₹ in Mn) consolidated (₹ in Mn) consolidated (₹ in Mn) consolidated (₹ in Mn)
net assets net assets OCI total OCI
1 Parent 98.69% 2,681.78 99.73% 354.83 5.50% 1.78 91.86% 356.61
2 Subsidiaries            
  2545887 Ontario Inc. -10.47% (284.52) -20.69% (73.63) 84.53% 27.41 -11.91% (46.22)
  The Hi-Tech Gears Canada Inc. 10.02% 272.29 8.88% 31.58 0.00% - 8.14% 31.58
  Teutech Holding Corporation 0.20% 5.37 -0.01% (0.04) 25.07% 8.13 2.08% 8.09
  Teutech LLC 1.18% 31.97 7.04% 25.04 -11.94% (3.87) 5.45% 21.17
  Teutech Leasing Corporation 0.92% 25.06 6.31% 22.46 -0.70% (0.23) 5.73% 22.24
  2504584 Ontario Inc 0.00% - 0.00% - 0.00% - 0.00% -
  2323532 Ontario Inc 0.35% 9.54 5.28% 18.78 0.00% - 4.84% 18.78
  Neo-Tech Smart Solutions Inc., Canada -0.89% (24.11) -6.52% (23.21) -2.59% (0.84) -6.19% (24.05)
  Neo-Tech Auto System, Inc., USA 0.00% 0.00 -0.01% (0.03) 0.11% 0.04 0.00% 0.00
  Total 100% 2,717.38 100% 355.78 100% 32.42 100% 388.20

Comparative period 17-18

Net assets (total assets Share in profit or (loss) Share in other comprehensive Share in total comprehensive
minus total liabilities) income income
S.
Name of the entity in the group % of Amount (₹ in % of Amount % of Amount % of Amount
No
consolidated Mn) consolidated (₹ in Mn) consolidated (₹ in Mn) consolidated (₹ in Mn)
net assets net assets OCI total OCI

138
1 Parent 99.83% 2,404.36 93.19% 319.12 2.60% 2.95 70.66% 322.07
2 Subsidiaries            
  2545887 Ontario Inc. -9.89% (238.30) -57.73% (197.68) 98.03% 111.16 -18.98% (86.53)
  The Hi-Tech Gears Canada Inc. 9.99% 240.71 63.70% 218.13 -0.05% (0.06) 47.84% 218.08
  Teutech Holding Corporation -0.11% (2.72) 0.00% (0.01) -2.61% (2.96) -0.65% (2.97)
  Teutech LLC 0.45% 10.80 2.49% 8.54 1.36% 1.54 2.21% 10.07
  Teutech Leasing Corporation 0.12% 2.82 0.78% 2.68 0.66% 0.75 0.75% 3.43
  2504584 Ontario Inc 0.00% - 0.00% - 0.00% - 0.00% -
  2323532 Ontario Inc -0.38% (9.24) -2.43% (8.32) 0.00% - -1.83% (8.32)
  Neo-Tech Auto System, Inc., USA 0.00% (0.06) 0.00% (0.02) 0.01% 0.01 0.00% (0.01)
  Total 100.00% 2,408.37 100.00% 342.44 99.99% 113.39 100.00% 455.82

For O. P. Dadu & Co. For and on behalf of

Chartered Accountants The Hi-Tech Gears Limited
Firm Registration No. 001201N

CA. Amit Gupta Deep Kapuria Pranav Kapuria

Partner Executive Chairman Managing Director
Membership No. 094202 DIN 00006185 DIN 00006195

Place: New Delhi Dinesh Chand Sharma S. K. Khatri

Date: 27 May 2019 Chief Financial Officer Company Secretary
NOTICE
NOTICE is hereby given that the Thirty Third Annual General Meeting of of the Company, not liable to retire by rotation and to hold office for
the Members of The Hi-Tech Gears Limited will be held on Friday, 27th another term of five consecutive years effective from September 18,
September, 2019 at 11.00 A.M at the registered office of the Company 2019 till the date of 38th Annual General Meeting.
at Plot No. 24-26, Sector-7, IMT Manesar, Gurgaon-122050, Haryana to RESOLVED FURTHER THAT Board of Directors of the Company be
transact the following businesses: and is hereby authorized to do all such acts, deeds and things as may
ORDINARY BUSINESS: be deemed proper and expedient to give effect to this Resolution,
1. To receive, consider and adopt the Audited Standalone and including necessary documentations such as issuance of appointment
Consolidated Financial Statements of the Company for the financial letter detailing the terms & conditions, duties & responsibilities
year ended March 31, 2019, together with the Report of the Directors’ be issued by the Board of Directors (including a duly constituted
and Auditors’ thereon. Committee), filing of necessary returns/forms to the appropriate
authorities."
2. To confirm the payment of Interim Dividend and to declare the Final
Dividend on equity shares for the financial year 2018-19. 6. Re-appointment of Ms. Malini Sud (DIN: 01297943) as an
Independent Director
3. To appoint a director in place of Mr. Anuj Kapuria (DIN-00006366),
who retires by rotation and being eligible, offers himself for re- To consider and, if thought fit, to pass with or without modification(s),
appointment. the following Resolution as a Special Resolution:

SPECIAL BUSINESS: “RESOLVED THAT pursuant to the provision of section 149, 152 and
any other applicable provisions of Companies Act, 2013 (“the Act”) read
4. Re-appointment of Mr. Sandeep Dinodia ( DIN-00005395) as an with the Companies (Appointment & Qualification of Directors) Rules,
Independent Director 2014 & Schedule IV of the Act and the SEBI (Listing Obligations and
To consider and if thought fit to pass with or without modification(s), Disclosure Requirements) Regulations, 2015 (including any statutory
the following resolution as a Special Resolution: modification(s) or re-enactment thereof for the time being in force),
“RESOLVED THAT pursuant to the provision of section 149, 152 and Ms. Malini Sud (DIN: 01297943), who holds the office as Independent
any other applicable provisions of Companies Act, 2013 (“the Act”) Director upto February 11, 2020 and who is eligible for re-appointment for
read with the Companies (Appointment & Qualification of Directors) another term of five years and who meets the criteria for independence
Rules, 2014 & Schedule IV of the Act and the SEBI (Listing Obligations as provided in Section 149(6) of the Act and Regulation 16(1)(b) of
and Disclosure Requirements) Regulations, 2015 (including any SEBI Listing Regulations and in respect of whom the Company has
statutory modification(s) or re-enactment thereof for the time being in received a notice in writing under section 160 of the Act, from a member
force), Mr. Sandeep Dinodia (DIN – 00005395), who was appointed proposing her candidature for the office of Director be and is hereby re-
as Independent Director in 28th Annual General Meeting and who is appointed as an Independent Director of the Company, not liable to
eligible for re-appointment for another term of five years and who meets retire by rotation and to hold office for another term of five consecutive
years effective from February 12, 2020 to February 11, 2025.
the criteria for independence as provided in Section 149(6) of the Act
and Regulation 16(1)(b) of SEBI Listing Regulations and in respect RESOLVED FURTHER THAT Board of Directors of the Company be
of whom the Company has received a notice in writing under section and is hereby authorized to do all such acts, deeds and things as may
160 of the Act, from a member proposing his candidature for the office be deemed proper and expedient to give effect to this Resolution,
of Director be and is hereby re-appointed as an Independent Director including necessary documentations such as issuance of appointment
of the Company, not liable to retire by rotation and to hold office for letter detailing the terms & conditions, duties & responsibilities
another term of five consecutive years effective from September 18, be issued by the Board of Directors (including a duly constituted
2019 till the date of 38th Annual General Meeting. Committee), filing of necessary returns/forms to the appropriate
authorities."
RESOLVED FURTHER THAT Board of Directors of the Company be
and is hereby authorized to do all such acts, deeds and things as 7. Re-appointment of Mr. Vinit Taneja (DIN – 02647727) as an
may be deemed proper and expedient to give effect to this resolution, Independent Director
including necessary documentations such as issuance of appointment To consider and, if thought fit, to pass with or without modification(s),
letter detailing the terms & conditions, duties & responsibilities the following Resolution as a Special Resolution:
be issued by the Board of Directors (including a duly constituted “RESOLVED THAT pursuant to the provision of section 149, 152
Committee), filing of necessary returns/forms to the appropriate and any other applicable provisions of Companies Act, 2013 (“the
authorities." Act”) read with the Companies (Appointment & Qualification of
5. Re-appointment of Mr. Anil Kumar Khanna (DIN – 00207839) as Directors) Rules, 2014 & Schedule IV of the Act and the SEBI
an Independent Director (Listing Obligations and Disclosure Requirements) Regulations, 2015
To consider and, if thought fit, to pass with or without modification(s), (including any statutory modification(s) or re-enactment thereof for
the following Resolution as a Special Resolution: the time being in force), Mr. Vinit Taneja (DIN – 02647727), who was
appointed as Independent Director in 28th Annual General Meeting
“RESOLVED THAT pursuant to the provision of section 149, 152 and and who is eligible for re-appointment for another term of five years
any other applicable provisions of Companies Act, 2013 (“the Act”) and who meets the criteria for independence as provided in Section
read with the Companies (Appointment & Qualification of Directors) 149(6) of the Act and Regulation 16(1)(b) of SEBI Listing Regulations
Rules, 2014 & Schedule IV of the Act and the SEBI (Listing Obligations and in respect of whom the Company has received a notice in
and Disclosure Requirements) Regulations, 2015 (including any writing under section 160 of the Act, from a member proposing his
statutory modification(s) or re-enactment thereof for the time being in candidature for the office of Director be and is hereby re-appointed
force), Mr. Anil Kumar Khanna (DIN – 00207839), who was appointed as an Independent Director of the Company, not liable to retire by
as Independent Director in 28th Annual General Meeting and who is rotation and to hold office for another term of five consecutive years
eligible for re-appointment for another term of five years and who meets effective from September 18, 2019 till the date of 38th Annual General
the criteria for independence as provided in Section 149(6) of the Act Meeting.
and Regulation 16(1)(b) of SEBI Listing Regulations and in respect
RESOLVED FURTHER THAT Board of Directors of the Company be
of whom the Company has received a notice in writing under section
and is hereby authorized to do all such acts, deeds and things as may
160 of the Act, from a member proposing his candidature for the office
be deemed proper and expedient to give effect to this Resolution,
of Director be and is hereby re-appointed as an Independent Director

139
 including necessary documentations such as issuance of appointment RESOLVED FURTHER THAT pursuant to the provisions of Regulation
letter detailing the terms & conditions, duties & responsibilities 17(1A) of SEBI (Listing Obligations and Disclosure Requirements)
be issued by the Board of Directors (including a duly constituted Regulations, 2015 as amended and other applicable provisions if any,
Committee), filing of necessary returns/forms to the appropriate consent of members of the Company be and is hereby accorded for
authorities." continuation of Directorship of Mr. Prosad Dasgupta (DIN: 00243254),
8. Re-appointment of Mr. Krishna Chandra Verma (DIN – 03636488) who is proposed to be reappointed as Independent Directors of the
as an Independent Director Company aforesaid for an another period of 5 years and who will
attain the age of 75 years during the term of his proposed tenure of
To consider and, if thought fit, to pass with or without modification(s), Directorship as Independent Director of the Company.
the following Resolution as a Special Resolution:
RESOLVED FURTHER THAT Board of Directors of the Company
“RESOLVED THAT pursuant to the provision of section 149, 152 and be and is hereby authorized to do all such acts, deeds and things as
any other applicable provisions of Companies Act, 2013 (“the Act”) may be deemed proper and expedient to give effect to this Resolution,
read with the Companies (Appointment & Qualification of Directors) including necessary documentations such as issuance of appointment
Rules, 2014 & Schedule IV of the Act and the SEBI (Listing Obligations letter detailing the terms & conditions, duties & responsibilities be issued
and Disclosure Requirements) Regulations, 2015 (including any by the Board of Directors (including a duly constituted Committee),
statutory modification(s) or re-enactment thereof for the time being filing of necessary returns/forms to the appropriate authorities."
in force), Mr. Krishna Chandra Verma (DIN – 03636488), who was
10. Appointment of Mr. Neville D’Souza (DIN: 08536411) as
appointed as Independent Director in 28th Annual General Meeting
Independent Director of the Company
and who is eligible for re-appointment for another term of five years
and who meets the criteria for independence as provided in Section To consider and if thought fit to pass with or without modification(s),
149(6) of the Act and Regulation 16(1)(b) of SEBI Listing Regulations the following resolution as an Ordinary Resolution:
and in respect of whom the Company has received a notice in “RESOLVED THAT pursuant to the provisions of Sections 149, 152
writing under section 160 of the Act, from a member proposing his read with Schedule IV and other applicable provisions, if any, of the
candidature for the office of Director be and is hereby re-appointed Companies Act, 2013 (“the Act”) and the Companies (Appointment
as an Independent Director of the Company, not liable to retire by and Qualification of Directors) Rules, 2014 and the SEBI (Listing
rotation and to hold office for another term of five consecutive years Obligations and Disclosure Requirements) Regulations, 2015
effective from September 18, 2019 till the date of 38th Annual General (including any statutory modification, amendment or re-enactment
Meeting. thereof for the time being in force and as may be enacted from time
to time), and the provisions of Articles of Association of the Company,
RESOLVED FURTHER THAT pursuant to the provisions of Regulation
Mr. Neville D’Souza (DIN- 08536411), who was appointed as an
17 (1A) of SEBI (Listing Obligations and Disclosure Requirements)
Additional Director in the capacity of Independent Director by the
Regulations, 2015 as amended and other applicable provisions if any,
Board of Directors in their meeting held on August 14, 2019, to hold
consent of members of the Company be and is hereby accorded for
the office till the date of this Annual General Meeting and who qualifies
continuation of Directorship of Mr. Krishna Chandra Verma, who is
for being appointed as an Independent Director and in respect of
proposed to be reappointed as Independent Directors of the Company whom the Company has received a notice in writing under section
aforesaid for an another period of 5 years and who will attain the age 160 of the Act from a member proposing his candidature for the office
of 75 years during the term of his proposed tenure of Directorship as of Director, be and is hereby appointed as an Independent Director
Independent Director of the Company. of the Company, not liable to retire by rotation and to hold office for a
RESOLVED FURTHER THAT Board of Directors of the Company term of five consecutive years effective from August 14, 2019.
be and is hereby authorized to do all such acts, deeds and things as RESOLVED FURTHER THAT Board of Directors of the Company be
may be deemed proper and expedient to give effect to this Resolution, and is hereby authorized to do all such acts, deeds and things as
including necessary documentations such as issuance of appointment may be deemed proper and expedient to give effect to this resolution,
letter detailing the terms & conditions, duties & responsibilities be issued including necessary documentations such as issuance of appointment
by the Board of Directors (including a duly constituted Committee), letter detailing the terms & conditions, duties & responsibilities
filing of necessary returns/forms to the appropriate authorities." be issued by the Board of Directors (including a duly constituted
9. Re-appointment of Mr. Prosad Dasgupta (DIN – 00243254) as an Committee), filing of necessary returns/forms to the appropriate
Independent Director authorities."
To consider and, if thought fit, to pass with or without modification(s), 11. To approve the payment of remuneration to Non-Executive
the following Resolution as a Special Resolution: Directors
“RESOLVED THAT pursuant to the provision of section 149, To consider and, if thought fit, to pass with or without modification(s),
152 and any other applicable provisions of Companies Act, 2013 the following Resolution as an Ordinary Resolution:
(“the Act”) read with the Companies (Appointment & Qualification “RESOLVED THAT pursuant to the provisions of SEBI (Listing
of Directors) Rules, 2014 & Schedule IV of the Act and the SEBI Obligation and Disclosure Requirements) Regulation, 2015 as
(Listing Obligations and Disclosure Requirements) Regulations, amended from time to time, Articles of Association of the Company
2015 (including any statutory modification(s) or re-enactment thereof and in accordance with the provisions of Companies Act, 2013 (‘Act’)
for the time being in force), Mr. Prosad Dasgupta (DIN – 00243254), and other applicable Laws, if any, consent be and is hereby accorded
who was appointed as Independent Director in 28th Annual General to the Board of Directors (including a duly constituted committee) to
Meeting and who is eligible for re-appointment for another term of pay remuneration including commission, sitting fees for attending
five years and who meets the criteria for independence as provided Board and Committee Meetings etc. to all the Non-Executive Directors
in Section 149(6) of the Act and Regulation 16(1)(b) of SEBI Listing including Independent Directors of the Company up to the maximum
Regulations and in respect of whom the Company has received rate as mentioned/provided in above provisions, of the net profits of
a notice in writing under section 160 of the Act, from a member the Company in each financial year to be calculated in accordance
proposing his candidature for the office of Director be and is hereby with the provisions of Section 197, 198 & other applicable provision
re-appointed as an Independent Director of the Company, not of the Act read with its Rules & Schedules made thereunder to be
liable to retire by rotation and to hold office for another term of five divided between such Directors in such manner as the Board of
consecutive years effective from September 18, 2019 till the date of Directors (including a duly constituted Committee) may determine
38th Annual General Meeting. from time to time.

140
 RESOLVED FURTHER THAT pursuant to the provisions of the Act RESOLVED FURTHER THAT pursuant to the provisions of Section
read with its Rules & Schedules made thereunder, the Non-Executive 196 of the Companies Act, 2013, Rules made thereunder and other
Directors including Independent Directors be paid/reimbursed applicable provisions, if any, consent of the Company be and is
expenses for attending Board & Committee Meetings or for company hereby accorded to continue the employment of Mr. Deep Kapuria as
work.” Executive Chairman after attaining the age of 70 years.
12. Approval of remuneration of Cost Auditor for the financial year RESOLVED FURTHER THAT the Board be and is hereby authorised
2019-20 to make a proper remuneration package consisting of various
To consider and if thought fit, to pass with or without modification(s), component within the overall aforesaid limit and to do all such
the following resolution as an Ordinary Resolution: acts, deeds, matters and things as may be necessary, expedient or
desirable including seeking approval of the other authorities as may
“RESOLVED THAT pursuant to the provisions of Section 148 and
be applicable and to settle any question that may arise in relation
other applicable provisions, if any, of the Companies Act, 2013 and the
thereto, in order to give effect to this resolution.”
Companies (Audit and Auditors) Rules, 2014 (including any statutory
modification(s) or re-enactment(s) thereof, for the time being in force), 14. Re-appointment & Remuneration of Mr. Pranav Kapuria (DIN-
M/s Kabra & Associates, Cost Accountant appointed by the Board of 00006195) as Managing Director
Directors of the Company, to conduct the audit of the cost records of To consider and if thought fit, to pass with or without modification(s),
the Company for the financial year ending March 31, 2020, be paid the following resolution as a Special Resolution:
the remuneration as set out in the Statement annexed to the Notice “RESOLVED THAT in supersession to the earlier resolution passed
convening this Meeting. by the members of the Company, pursuant to the provisions of
RESOLVED FURTHER THAT the Board be and is hereby authorized Sections 196, 197, 198 and 203 read with Schedule V (Part II,
to take all steps as may be necessary, proper or expedient to give Section II) and other applicable provisions, if any, of the Companies
effect to the above Resolution.” Act, 2013 and the rules made thereunder and applicable provisions of
13. Re-appointment & Remuneration of Mr. Deep Kapuria (DIN- SEBI (Listing Obligations and Disclosure Requirements) Regulations,
00006185) as Chairman & Whole Time Director of the Company, 2015, and subject to the other statutory approvals, if any, approval
to be designated as Executive Chairman of the Members of the Company be and is hereby accorded to the
re-appointment of Mr. Pranav Kapuria (DIN:00006195) as Managing
To consider and if thought fit, to pass with or without modification(s),
Director of the Company, liable to retire by rotation, for a period of
the following resolution as a Special Resolution:
three years effective from October 01, 2019 to September 30, 2022.
“RESOLVED THAT in supersession to the earlier resolution passed
RESOLVED FURTHER THAT Mr. Pranav Kapuria, Managing Director
by the members of the Company, pursuant to the provisions of
of the Company be paid the following remuneration effective from
Sections 196, 197, 198 and 203 read with Schedule V (Part II,
October 01, 2019, for a period of three years (i.e. October 01, 2019,
Section II) and other applicable provisions, if any, of the Companies
to September 30, 2022):
Act, 2013 and the rules made thereunder and applicable provisions of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, Salary, Allowances & Perquisites (all together) not to exceed as
2015, and subject to the other statutory approvals, if any, approval under:
of the Members of the Company be and is hereby accorded to the From October 01, 2019 to Upto Rs.16.00 Million per
re-appointment of Mr. Deep Kapuria (DIN:00006185) as Chairman & Septemebr 30, 2020 annum
Whole Time Director of the Company, to be designated as Executive From October 01, 2020 to Upto Rs. 20.00 Million per
Chairman of the Company, not liable to retire by rotation, for a period September 30, 2021 annum
of three years effective from October 01, 2019 to September 30, From October 01, 2021 to Upto Rs. 24.00 Million per
2022. September 30, 2022 annum
RESOLVED FURTHER THAT Mr. Deep Kapuria, Executive Chairman The allowances and perquisites payable shall include accommodation
be paid the following remuneration effective from October 01, 2019, (furnished or otherwise) or house rent allowance in lieu thereof; house
for a period of three years (i.e. October 01, 2019, to September 30, maintenance allowance together with reimbursement of expenses
2022): and/or allowance for utilisation of gas, electricity, water, furnishing
Salary, Allowances & Perquisites (all together) not to exceed as and repairs; medical reimbursement and leave travel concession for
under: self and family including dependents, club fees, medical insurance
and personal accident insurance; and such other perquisites and/
From October 01, 2019 to Upto Rs.25.00 Million per annum or allowances as may be determined from time to time up to the
Septemebr 30, 2020 amounts specified above. The said allowances and perquisites shall
From October 01, 2020 to Upto Rs.30.00 Million per annum be evaluated, wherever applicable, as per the Income Tax Act, 1961
September 30, 2021 or any rules thereunder [including any statutory modification(s) or re-
From October 01, 2021 to Upto Rs. 36.00 Million per annum enactment(s) thereof, for the time being in force].
September 30, 2022
RESOLVED FURTHER THAT the Board be and is hereby authorised
The allowances and perquisites payable shall include accommodation
to make a proper remuneration package consisting of various
(furnished or otherwise) or house rent allowance in lieu thereof; house
component within the overall aforesaid limit and to do all such
maintenance allowance together with reimbursement of expenses
acts, deeds, matters and things as may be necessary, expedient or
and/or allowance for utilisation of gas, electricity, water, furnishing
desirable including seeking approval of the other authorities as may
and repairs; medical reimbursement and leave travel concession for
be applicable and to settle any question that may arise in relation
self and family including dependents, club fees, medical insurance
thereto, in order to give effect to this resolution.”
and personal accident insurance; and such other perquisites and/
or allowances as may be determined from time to time up to the 15. Re-appointment & Remuneration of Mr. Anuj Kapuria (DIN-
amounts specified above. The said allowances and perquisites shall 00006366) as Executive Director
be evaluated, wherever applicable, as per the Income Tax Act, 1961 To consider and if thought fit, to pass with or without modification(s),
or any rules thereunder [including any statutory modification(s) or re- the following resolution as a Special Resolution:
enactment(s) thereof, for the time being in force]. “RESOLVED THAT in supersession to the earlier resolution passed
by the members of the Company, pursuant to the provisions of

141
 Sections 196, 197, 198 and 203 read with Schedule V (Part II, RESOLVED FURTHER THAT the Board be and is hereby authorised
Section II) and other applicable provisions, if any, of the Companies to make a proper remuneration package consisting of various
Act, 2013 and the rules made thereunder and applicable provisions of component within the overall aforesaid limit and to do all such
SEBI (Listing Obligations and Disclosure Requirements) Regulations, acts, deeds, matters and things as may be necessary, expedient or
2015, and subject to the other statutory approvals, if any, approval of desirable including seeking approval of the other authorities as may
the Members of the Company be and is hereby accorded to the re- be applicable and to settle any question that may arise in relation
appointment of Mr. Anuj Kapuria (DIN:00006366) as Executive Whole thereto, in order to give effect to this resolution.”
Time Director of the Company to be designated as Executive Director, 16. To approve continuation of payment of remuneration to
liable to retire by rotation, for a period of three years effective from Executive Directors who are Promoters pursuant to SEBI (LODR)
October 01, 2019 to September 30, 2022. (Amendment) Regulations, 2018
RESOLVED FURTHER THAT Mr. Anuj Kapuria, Executive Director To consider and if thought fit, to pass with or without modification (s),
of the Company be paid the following remuneration effective from the following resolution as a Special Resolution:
October 01, 2019, for a period of three years (i.e. October 01, 2019,
“RESOLVED THAT pursuant to Regulation 17(6)(e) of SEBI (Listing
to September 30, 2022):
Obligations and Disclosure Requirements) Regulations, 2015,
Salary, Allowances & Perquisites (all together) not to exceed as [including any statutory modification(s) or re-enactment(s) thereof, for
under: the time being in force], approval of the Members be and is hereby
From October 01, 2019 to Septemebr 30, Upto Rs.16.00 Million accorded for payment of remuneration to one or more Executive
2020 per annum Directors of the company, who are promoters of the Company,
From October 01, 2020 to September 30, Upto Rs. 20.00 Million notwithstanding that the remuneration payable to them in any
2021 per annum financial year exceeds the aggregate annual remuneration as per the
From October 01, 2021 to September 30, Upto Rs. 24.00 Million limits stipulated under the said regulations, during the tenure of their
2022 per annum appointment.
The allowances and perquisites payable shall include accommodation RESOLVED FURTHER THAT the Board be and is hereby authorized
(furnished or otherwise) or house rent allowance in lieu thereof; house to do all acts and take such steps as may be necessary, proper or
maintenance allowance together with reimbursement of expenses expedient to give effect to this resolution.”
and/or allowance for utilisation of gas, electricity, water, furnishing By order of the Board of Directors
and repairs; medical reimbursement and leave travel concession for The Hi-Tech Gears Limited
self and family including dependents, club fees, medical insurance
and personal accident insurance; and such other perquisites and/
or allowances as may be determined from time to time up to the S.K. Khatri
amounts specified above. The said allowances and perquisites shall Place: New Delhi Company Secretary
be evaluated, wherever applicable, as per the Income Tax Act, 1961 Date : August 14, 2019 Membership No: - F5459
or any rules thereunder [including any statutory modification(s) or re-
enactment(s) thereof, for the time being in force]. Registered Office:
Plot No. 24,25,26, Sector-7,
IMT Manesar, Gurgaon
Haryana 122050

142
NOTES: submit the changes in above particulars to the Company’s RTA. The
1. The Statement pursuant to Section 102 of the Companies Act, 2013, request form for providing the above details (in case if shares are
which sets out details relating to Special Business at the meeting, is in physical form) is available on website of the Company i.e. www.
annexed hereto. thehitechgears.com.
2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL 10. Pursuant to the provision of SEBI (Listing Obligations and Disclosure
GENERAL MEETING IS ENTITLED TO APPOINT A PROXY/ Requirements) (Fourth Amendment) Regulations, 2018 dated June
PROXIES TO ATTEND AND VOTE (ON A POLL ONLY) INSTEAD 08, 2018, which provides that with effect from December 05, 2018, no
OF HIMSELF/HERSELF AND THE PROXY NEED NOT TO BE A request for transfer of securities shall be processed by the Company
MEMBER OF THE COMPANY. or RTA, as the case may be, until and unless the securities are held
in the dematerialized form with a depository.
3. A person can act as proxy on behalf of members not exceeding fifty
(50) and holding in the aggregate not more than 10 (ten) % of the In view of above, the Members holding shares in physical form
total share capital of the Company carrying voting rights. A member are requested to consider the same and convert their holding into
holding more than 10% of the total share capital of the company dematerialized form to eliminate all risk associated with the physical
carrying voting rights may appoint a single person as proxy, provided shares. Members can contact the Company or RTA for any further
that the person does not act as proxy for any other shareholder. assistance in this regard.
Proxies submitted on behalf of the companies, societies etc., must be 11. Pursuant to the provision of Section 124, 125 and other applicable
supported by an appropriate certified copy of the Board resolution to provisions, if any, of the Companies Act, 2013 read with Investor
the Company. Education and Protection Fund Authority (Accounting, Audit, Transfer
4. Corporate Members intending to send their authorized representatives and Refund) Rules, 2016, the amount of dividend which remains
to attend the meeting are requested to send a duly certified copy of unpaid or unclaimed for a period of 7 (Seven) years from the date of
the Board Resolution to the Company, pursuant to Section 113 & transfer of the amount to unpaid dividend account would be transferred
other applicable provisions of the Companies Act, 2013 and Rules to the “Investor Education and Protection Fund (IEPF)” constituted by
made thereunder. the Central Government and the shareholders would not be able to
make any claims as to the amount of dividend so transferred to the
5. The instrument of Proxy in order to be effective, should be deposited
fund from the Company.
at the Registered Office of the Company, duly completed and signed,
not less than 48 (forty eight) hours before the commencement of the Accordingly, in respect of Dividend for the financial year 2011-12
meeting. A proxy form for the AGM is enclosed. (Final Dividend) the shareholders who have not yet encashed their
dividend warrants are requested in their own interest to write to the
6. Pursuant to Section 91 of the Companies Act, 2013 and Regulation
Company or its RTA (M/s Mas Services Limited) immediately for
42 of the SEBI (Listing Obligations and Disclosure Requirements)
claiming outstanding dividends. The proposed date for the transfer of
Regulations, 2015, the Register of Members and the Share Transfer
unclaimed final dividend for the year 2011-12 to IEPF by the Company
books of the Company will remain closed from Saturday, September
is November 03, 2019. In case valid claim is not received by that date,
21, 2019 to Friday, September 27, 2019 (both days inclusive) for
the Company will proceed to transfer the respective shares to the
annual closing and determining the entitlement of shareholders to the
IEPF Account in terms of the IEPF Rules.
Final Dividend for the financial year 2018-19, as may be approved by
the members at the meeting. Further all shares, in respect of which dividends remain unclaimed/
unpaid for seven consecutive years or more, are also required to be
7. The Directors have recommended to the shareholders a final dividend
transferred to IEPF Authority. Accordingly, the Company identified 4
@ 20%, i.e. Rs. 2.00 per equity share. If final dividend on shares is
cases, total consisting of 570 shares which are to be transferred to
approved at the Annual General Meeting (AGM), payment of such
the demat account of IEPF Authority after following due process. A list
dividend will be made to those members whose names appear in
of such cases is available on the company website.
the Register of Members on September 27, 2019. In respect of the
shares held in electronic form, the dividend will be payable to the 12. Pursuant to the provisions of Section 72 of the Companies Act 2013,
beneficial owners of the shares as on the closing hours of business the member(s) holding shares in physical form may nominate, in the
on September 20, 2019, as per the details to be furnished by the prescribed manner, a person to whom all the rights in the shares shall
depositories for this purpose. vest in the event of death of the sole holder or all the joint holders.
Member(s) holding shares in demat form may contact their respective
8. The relevant details under Regulation 36(3) of SEBI (Listing
Depository Participants for availing this facility.
Obligation & Disclosure Requirements) Regulation, 2015 in respect
of the Directors seeking appointment/reappointment at the Annual 13. As per the provision of Section 89 read with Section 90 of the
General Meeting, forms integral part of the Notice. The Directors Companies Act, 2013, the combined effect of both the sections is
have furnished the requisite declarations for their appointment/re- that every person who is holding a beneficial interest in the shares
appointment. of the Company shall submit his/her declaration to the Company in
the prescribed form and thereafter the Company shall intimate to the
9. Pursuant to the SEBI Circular No SEBI/HO/MIRSD/DOP1/CIR/
Registrar in the prescribed form along with such declaration.
P/2018/73 dated April 20, 2018, every listed company has to update
the Bank Account details and PAN of all the members of the Company. For the purpose of the above provisions every person means an
In view of above, members are requested to intimate changes, if individual who holds, directly or indirectly, beneficial interest of not less
any, pertaining to their name, postal address, email address (if any) than 10% in the shares of the Company. Therefore every members
telephone and mobile number, Permanent Account Number (PAN), of the Company is requested to provide the declaration(s) regarding
mandates, nomination, power of attorney, Bank details such as, their beneficial interest, if any in the shares of the Company under
Name of the Bank and Branch, Bank Account Number, MICR code, the said provision of Act. The shareholders are further advised to
IFSC code etc. to their respective Depository Participants (DPs) in refer Companies (Significant Beneficial Owners) Amendment Rules,
case if share are held in electronic form. The Company or its Register 2019 before making declaration in respect of Beneficial Owner and
and Share Transfer Agent (RTA)(Mas Services Limited) cannot act on Significant Beneficial Owner.
any request received directly from members for any change of bank 14. To prevent fraudulent transactions, members are advised to exercise
particulars. Such changes are to be intimated only to the Depository due diligence and notify the Company of any change in address or
Participants of the members. demise of any member as soon as possible.
In case, members holding shares in physical form are requested to 15. Electronic copy of the Annual Report for 2018-19 along with the

143
 Notice of the 33rd Annual General Meeting of the Company (including by NSDL for voting after 05:00 p.m (IST) on September 26,
Attendance Slip and Proxy Form) are being sent to all the members 2019.
whose email ids are registered with the Registrar/ Depository d. Ms. Akarshika Goel, partner of M/s Grover Ahuja & Associates,
Participants(s) unless any member has requested for a hard copy Practicing Company Secretaries have been appointed as the
of the same. For members who have not registered their email ids, Scrutinizer to scrutinize the voting and remote e-voting process
physical copies of the Annual Report for the FY 2018-19 along with in a fair and transparent manner.
Notice of the 33rd Annual General Meeting of the Company inter alia
e. The facility for voting through ballot paper shall be made
indicating the process and manner of e-voting along with Attendance
available at the AGM and the Members attending the meeting
Slip and Proxy Form is being sent by other permissible modes.
who have not cast their vote by remote e-voting shall be able
16. Members may also note that the Notice of the 33rd Annual General to exercise their right at the meeting through ballot paper. Once
Meeting and the Annual Report for 2018-19 will also be available the vote on a resolution is cast by the Member, the Member
on the Company’s website www.thehitechgears.com. The physical shall not be allowed to change it subsequently.
copies of the documents will also be available at the Company’s
f. The Members who have cast their vote by remote e-voting prior
Registered Office for inspection during 11:00 A.M. to 1:00 P.M on
to the AGM may also attend the AGM but shall not be entitled to
any working day except Saturdays and Sundays upto the date of the
cast their votes again.
meeting. Even after registering for e-communication, members are
entitled to receive such communication in physical form, upon making g. Members can opt for only one mode of voting, i.e., either by
a request for the same, by any permissible mode free of cost. For Ballot Form or remote e-voting. In case Members cast their
any communication, the shareholders may also send requests to the votes through both the modes, voting done by remote e-voting
Company’s investor email id: [email protected]. shall prevail and votes cast through Ballot Form shall be treated
as invalid.
17. The SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 have mandated that for making dividend payments, h. The process and manner for remote e-voting are as under:
companies whose securities are listed on the stock exchanges shall 1. (I) In case of Members receiving e-mail from NSDL/RTA/
use electronic clearing services (local, regional or national), direct Company (For those members whose e- mail addresses are
credit, real time gross settlement, national electronic funds transfer registered with Company/Depositories):
etc. The companies and the registrar and share transfer agents i. Open the PDF file attached to the email, using your Client Id/
are required to seek relevant bank details of shareholders from Folio No. as password. The PDF file contains your User Id and
depositories/ investors for making payment of dividends in electronic Password for remote e-voting. Please note that the password
mode. It is also mandatory to print the bank details on the physical provided in PDF file is ‘Initial Password’.
instrument if the payment is made in physical mode. Accordingly,
ii. Launch internet browser and open https://www.evoting.nsdl.
shareholders are requested to provide or update (as the case may
com/
be) their bank details with the respective Depository Participants
for the shares held in dematerialized form and with the Registrar in iii. Click on Shareholder – Login.
respect of shares held in physical form. iv. If you are already registered with NSDL for remote e-voting then
18. A member can inspect the proxies lodged at any time during the you can use your existing User Id and Password/PIN for casting
business hours of the Company from the period beginning 24 (twenty your vote.
four) hours before the time fixed for the commencement of the meeting v. If you are logging in for the first time, please enter the ‘User Id’
and ending with the conclusion of the meeting, provided that not less and ‘Initial Password’ as noted in step (i) above and click on
than 3 (three) days of notice in writing is given to the Company before ‘Login’.
the commencement of the meeting. vi. Password change menu will appear. Change the ‘Initial Password’
19. Route Map and details of Prominent Landmarks of the venue of the with a new Password of your choice with minimum 8 digits/
meeting is annexed with this notice. characters or combination thereof. Note the new Password.
It is strongly recommended not to share your password with
20. Voting through electronic means:
any other person and take utmost care to keep your password
a. Pursuant to section 108 of the Companies Act, 2013 and the confidential.
Rules framed thereunder and as per Regulation 44 of SEBI vii. Home page of remote e-voting will open. Click on remote
(Listing Obligation & Disclosure Requirements) Regulations, e-voting: Active Voting Cycles.
2015, members are provided with the facility to cast their
viii. Select ‘EVEN’ i.e. 111428 of ‘THE HI-TECH GEARS LIMITED’.
vote electronically, through the e-voting services provided by
NSDL, on all the resolutions set forth in this 33rd AGM Notice ix. Now you are ready for remote e-voting as ‘Cast Vote’ page
of the Company. The members may cast their votes using an opens.
electronic voting system from a place other than the venue of x. Cast your vote by selecting appropriate option and click on
the meeting (‘remote e-voting’). ‘Submit’. Click on ‘Confirm’ when prompted.
b. The Company has fixed September 20, 2019 as the Cut –off xi. Upon confirmation, the message ‘Vote cast successfully’ will be
Date for remote e-voting. The remote-evoting/ voting rights of displayed.
the shareholders/ beneficial owners shall be reckoned on the xii. Once you have confirmed your vote on the resolution, you
equity shares held by them as at close of business hours on cannot modify your vote.
the Cut-off Date i.e, September 20, 2019 only. A person who is xiii. Institutional shareholders (i.e. other than individuals, HUF, NRI,
not a member as on the Cut-Off date should treat this Notice for etc.) are required to send scanned copy (PDF/JPG Format) of
information purposes only. the relevant Board Resolution/Authority letter, etc. together with
c. The remote e-voting period commences on September 24, attested specimen signature of the duly authorized signatory(ies)
2019 (9:00 A.M. IST) and ends on September 26, 2019 (5:00 who are authorized to vote, to the Scrutinizer through e-mail
P.M. IST). During this period, Members of the Company, holding to [email protected] with a copy marked to
shares either in physical form or in dematerialized form, as on [email protected].
the Cut-off Date of September 20, 2019, may cast their vote (II) In case of Members receiving Physical copy of Notice of 33rd
by remote e-voting. The E-voting module shall be disabled Annual General Meeting (for members whose email IDs are

144
 not registered with the Company/Depository Participants(s) communicated to the Stock Exchanges.
or requesting physical copy)
a. Initial password is provided in the communication leaf. STATEMENT ANNEXED TO THE NOTICE IN RESPECT OF THE SPECIAL
b. Please follow all steps from Sr. No. (i) to Sr. No. (xiii) as BUSINESSES PURSUANT TO SECTION 102 OF THE COMPANIES ACT,
mentioned in (I) above, to cast your vote. 2013
2. In case of any queries, you may refer the Frequently Asked Item No.4 to 9
Questions (FAQs) for Members and remote e-voting user Pursuant to the provisions of Section 149, Schedule IV and any other
manual for Members available at downloads section of www. applicable provisions of Companies Act, 2013 (‘Act’) read with Rules made
evoting.nsdl.com or call on toll free no.: 1800-222-990. thereunder and SEBI (Listing Obligations and Disclosure Requirements)
3. If you are already registered with NSDL for remote e-voting then Regulations, 2015, an Independent Director shall hold office for a term of
you can use your existing user ID and password/PIN for casting upto five consecutive years on the Board of a Company, but shall be eligible
your vote. for re-appointment on passing a special resolution by the Company for
4. You can also update your mobile number and e-mail id in the another term of upto five consecutive years on the Board of a Company.
user profile details of the folio which may be used for sending Mr. Sandeep Dinodia, Mr. Anil Kumar Khanna, Mr. Krishna Chandra
future communication(s). Verma, Mr. Vinit Taneja and Mr. Prosad Dasgupta were appointed as an
5. The voting rights of members shall be in proportion to their Independent Directors of the Company by the members at their 28th Annual
shares of the paid up equity share capital of the Company as on General Meeting held on September 18, 2014 for a term of five consecutive
the cut-off date i.e. Friday, September 20, 2019. years. Ms. Malini Sud was appointed as an Women Independent Director
by the Board in its meeting held on February 12, 2015 and was confirmed
6. Any person, who acquires shares and becomes member of the
as Director, by the shareholders in their meeting held on September 29,
Company after dispatch of the notice and holding shares as on
2015.
the cut-off date, i.e. Friday, September 20, 2019 (end of day),
may obtain the login ID and password by sending a request to In view of the aforesaid provision, the term of five consecutive years of
NSDL at [email protected] or to the Company’s Registrar - the aforementioned Independent Directors have come to an end except
Mas Services Limited at [email protected] . of Ms. Malini Sud, who would complete her term as Independent Director
on February 11, 2020. Based on recommendation of Nomination and
However, if you are already registered with NSDL for remote e-voting,
Remuneration Committee (N&R Committee) and pursuant of provisions
then you can use your existing user ID and password for casting your
of Section 149, 150, 152, Schedule IV and other applicable provisions of
vote.
the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Note: If you forgot your password, you can reset your password Requirements) Regulations 2015, the Board has proposed their re-
by using “Forgot User Details/Password” or “Physical User Reset appointment as an Independent Director at this Annual General Meeting
Password” option directly available on www.evoting.nsdl.com or of the Company for second term of five years effective from September
contact NSDL at the following toll free no.: 1800-222-990. 18, 2019 till the date of 38th Annual General Meeting and re-appointment
In case Shareholders are holding shares in demat mode, USER-ID is of Ms. Malini Sud as an Independent Director for second term of five years
the combination of (DPID+ClientID). effective from February 12, 2020 to February 11, 2025, not liable to retire
by rotation.
In case Shareholders are holding shares in physical mode, USER-ID
is the combination of (Even No+Folio No). They are not disqualified from being appointed as Directors in terms of
Section 164 of the Companies Act, 2013 and have given their consent to
7. A member may participate in the AGM even after exercising his right
act as Directors. The Company has received notices under Section 160
to vote through remote e-voting but shall not be allowed to vote again
of the Companies Act, 2013 proposing their candidature for the office of
at the AGM.
Independent Director of the Company.
8. A person, whose name is recorded in the register of members or in
The Company has also received declaration(s) from them that they meet
the register of beneficial owners maintained by the depositories as
with the criteria of independence as prescribed under Section 149(6) of the
on the cut-off date only shall be entitled to avail the facility of remote
Act & Rules framed thereunder and Regulation 16(1)(b) of the SEBI (Listing
e-voting as well as voting at the AGM through ballot paper.
Obligations and Disclosure Requirements) Regulations, 2015.
9. The Chairman shall, at the AGM, at the end of discussion on
Further, in terms of the recently notified Regulation 17(1A) of SEBI (Listing
the resolutions on which voting is to be held, allow voting with
Obligations and Disclosure Requirements) Regulations, 2015, prescribes
the assistance of scrutinizer, by use of “Ballot Paper” for all those
that consent of the Members by way of Special Resolution is required for
members who are present at the AGM but have not cast their votes
continuation of a Non-Executive Director beyond the age of seventy five
by availing the remote e-voting facility.
years. During the proposed term of re-appointment, Mr. Prosad Dasgupta
10. The Scrutinizer shall after the conclusion of voting at the AGM, will and Mr. Krishna Chandra Verma will attain the age of seventy five years.
first count the votes cast at the meeting and thereafter unblock the The respective Special Resolutions once passed, shall also be regarded
votes cast through remote e-voting in the presence of at least two as your approval under the aforesaid Regulation, for continuation of Mr.
witnesses not in the employment of the Company and shall make, Prosad Dasgupta and Mr. Krishna Chandra Verma as an Independent
not later than three days of the conclusion of the AGM, a consolidated Directors beyond the age of seventy five years.
scrutinizer’s report of the total votes cast in favour or against, if any,
In the opinion of the Board, all the Directors aforesaid fulfill the conditions
to the Chairman or a person authorized by him in writing, who shall
for appointment as an Independent Director as specified in the Act & SEBI
countersign the same and declare the result of the voting forthwith.
Listing Regulations and are independent of the management. The terms and
11. The Results declared along with the report of the Scrutinizer shall conditions of their appointment shall be open for inspection by the Members
be placed on the website of the Company www.thehitechgears.com at the Registered Office of the Company during the normal business hours
and on the website of NSDL immediately after the declaration of on any working day (except Saturday and Sunday) and will also be kept
result by the Chairman or a person authorized by him in writing and open at the venue of the AGM till the conclusion of the AGM.
The Board considers that their continued association would be of immense
benefit to the Company and it is desirable to continue to avail services of above
mentioned as an Independent Directors. Accordingly, the Board recommends

145
the resolutions set forth in item no. 4 to 9 as the Special Resolution in Except, Mr. Sandeep Dinodia, Mr. Anil Kumar Khanna, Mrs. Malini Sud, Mr.
relation to re-appointment of Independent Directors for another term of five Vinit Taneja, Mr. Krishna Chandra Verma and Mr. Prosad Dasgupta, being
consecutive years for the approval by the members of the Company. appointees in their respective resolutions, none of the Directors and Key

Managerial Personnel of the Company and their relatives are concerned or interested, financial or otherwise, in the agenda as set out in item no. 4 to 9.
The Brief profiles of the Directors are as under:-
Particulars Mr. Sandeep Dinodia Mr. Anil Kumar Ms. Malini Sud Mr. Krishna Chandra Mr. Vinit Taneja Mr. Prosad
Khanna Verma Dasgupta
Directors Identification 00005395 00207839 01297943 03636488 02647727 00243254
Number (DIN)
Date of Birth & Age 04/04/1962 17/07/1953 06/03/1956 30/08/1949 15/10/1957 26/02/1947
57 Years 66 Years 63 Years 70 years 61 Years 72 Years
Date of Initial 28/10/2002 17/09/1987 12/02/2015 12/11/2011 23/05/2009 14/02/2012
Appointment
Experience & Expertise Mr. Dinodia has rich Mr. Khanna having a Ms. Malini Sud, has He joined the Indian Mr. Taneja is Mr. Dasgupta possess
experience in the fields wide base of clients rich experience in the Police Service in 1971 the Founder key competencies
of Audits, Assurance, in diverse business / fields of Corporate and was selected to of Tresonance such as strategic
Regulatory and  Financial  industry segments. Law, regulatory join the Intelligence Consulting, an international
Consulting.  Additionally he He has over 30 years matters, commercial Bureau in 1976. organization engaged partnerships,
possesses expertise in Direct of rich experience transactions and Over the next thirty in leadership acquisitions and
& Indirect taxes, National & in managing contracts, sales tax years, he served in development and mergers, leadership
International taxations. He business strategies, and excise as well many states within change management developments,
has more than thirty years successfully as as aspects of civil the country as well as facilitation for managing the larger
experience in his areas well as handling litigation. Additionally, abroad. He headed organizations. policy framing
of  practice and has been complexities of she regularly the Narcotics Control Mr. Taneja has environment and
instrumental in the setting up finances. appears before all Bureau from late 2005 more than 18 years interface with
of various enterprises in India courts, tribunals till 2008. Mr. Verma of experience in various Government
with the collaboration from Mr. Khanna has and commissions also led several sales, supply chain, Ministries. He has
International companies. been associated in Delhi as well as Indian delegations HR, customer Public & Private
with administration before the Supreme to bilateral and service in reputed P a r t n e r s h i p
He is the Chairman of Audit of various sports at Court of India. Ms. international organizations like framework by
Committee and ensures the regional / national Sud specializes in conferences. Metal Box, Johnson adapting the best
various Rules & Regulations and International international equity During 2008, he & Johnson, Gillette of the public sector
mandated by Companies levels for a very and debt offerings and was Secretary and Bharti Airtel. He practices and private
Act, 2013 and SEBI Listing long time. His focus has been engaged in (Security) in the also has a Consulting sector efficiencies.
Regulations are complied has mainly been in the capital markets Cabinet Secretariat experience of 20
with. the administration of practice. and supervised the years in Institute He was associated
Tennis and he has security of the senior of Quality Limited with Hero Honda as
He provides valuable long association with She has been involved most leaders in the (IQL), Prerna CFO of the Company
insights into how companies International Tennis in innumerable civil country and also Centre of Learning from 1988 to 1997.
can grow, diversify, and Federation, Asian and commercial functioned as Internal and Tresonance Mr. Dasgupta also
prosper to maximize their Tennis Association litigations with broad Security Adviser to Consulting. Mr. Taneja occupied the position
shareholder’s wealth. as well as All India experience in a wide the Union Home focuses on holistic of CFO in Essar Tele
Tennis Association. range of substantive Minister. personal well being Holdings, Appollo
areas including Before he retired, he and competency Tyres.
International headed the RAW in development of
C o m m e r c i a l 2010. He is recipient leaders through He joined Petronet-
Arbitrations. of the Police Medal for training and coaching, LNG Ltd. as Director
Ms. Sud also has Meritorious Service and developing and (F&C) in 2003 & was
vide experience in and the President’s deploying long term elevated to MD &
strategic counsel, Police Medal for institutional building CEO in 2005.
mergers and Distinguished strategies for his
acqisitons, joint Service. client organizations.
ventures, financing
transactions, Mr. Verma has
e x e c u t i v e had vast exposure
compensation and
to organizational
corporate governance issues, including
matters. planning, personnel,
administration and
training. He has
expertise in crisis
management,
systemic reforms,
calibrated expansion
and greater efficiency.
Qualification 1 Bachelor of Commerce 1. Economics 1. B.A. from Delhi 1. Graduation from St. 1. Graduate Fellow member of the
from Shriram College of Graduate from St. University Stephen’s College, in Mechanical Institute of Chartered
Commerce, Delhi University. Stephen’s College, 2. LL.B from Faculty University of Delhi. Engineering from IIT Accountants of India
2. L.L.B. from Delhi Delhi University of Law, Delhi 2. Indian Police Delhi
University 3. Fellow member 2. Fellow Member University. Service in 1971 2. Post Graduate
of the Institute of Chartered of the Institute Diploma in
Accountants of India. of Chartered Management from
Accountants of India IIM Calcutta.
3. Fellow Member
of the Institute
of Chartered
Accountants
(England & Wales).

146
Particulars Mr. Sandeep Dinodia Mr. Anil Kumar Ms. Malini Sud Mr. Krishna Chandra Mr. Vinit Taneja Mr. Prosad
Khanna Verma Dasgupta
Board Membership of 1.Ester Industries Limited 1. SU Sampark 1. Capex Enterprises - - -
other Companies as on Private Limited Private Limited.
31/03/2019. 2. All India Tennis 2. Boutique Holdings
Association Private Limited
3. Telecom Finance 3. Sterling Tools
(India) Ltd. Limited
4. JMD Exports
Private Limited.
5. AsahiComponents
Limited
6. Aquarius Travels
Pvt Ltd.
7. Chitra Utsav Video
Pvt Ltd
8. ULL Securities Pvt
Ltd
9. RLF Securities Pvt
Ltd
10. Chene Capital Pvt
Ltd
Chairman/Member of The Hi-Tech Gears Limited The Hi-Tech Gears Sterling Tools The Hi-Tech Gears The Hi-Tech Gears -
the Committee of the Audit Committee (Chairman) Limited Limited Limited Limited
Board of Directors as on Nomination and Audit Committee Audit Committee Audit Committee Nomination and
31/03/2019 Remuneration Committee (Member) (Member) (Member) Remuneration
(Member) Nomination and Nomination and Corporate Social C o m m i t t e e
Stakeholder Relationship Remuneration Remuneration Responsibility (Chairman)
Committee (Member) Committee (Member) Committee (Member) (Chairman) S t a k e h o l d e r
Ester Industries Limited S t a k e h o l d e r Relationship
Audit Committee (Chairman) Relationship Committee (Member)
Committee (Chairman)
Number of shares held - - - - 5600 Equity Shares 2000 Equity Shares
in the Company as on
31/03/2019
Relationship with None None None None None None
Directors

Your Directors recommend the resolutions set forth in Item No. 4 to 9 for appropriate skills, experience & knowledge. His appointment as an
approval of the members as Special Resolution. Independent Director will be in the interest of the Company and the Company
Item No. 10 will be benefited with his contribution in the Board process, Governance
and overall working.
The Board of Directors (“the Board”), upon the recommendation of the
Nomination and Remuneration Committee, appointed Mr. Neville D’Souza He is not related to any other Director of the Company.
as an Additional Director in the capacity of Independent Director. His Your Directors recommend the resolution set forth in item no. 10 for approval
appointment is effective from August 14, 2019 for a period of 5 (five) years by the members as an Ordinary Resolution.
not liable to retire by rotation. In first instance, he holds the office till the Except Mr. Neville D’Souza, none of the Directors, Key Managerial Personnel
date of present meeting, but the members may appoint him as a regular of the Company and their relatives are concerned or interested, financial or
director. otherwise, in the agenda as set out at Item No. 10 of the Notice
Nomination and Remuneration Committee has recommended his Item No.11
appointment as regular director. Further, the Company has received a
Notice in writing from a Member of the Company under Section 160 of The Compliance of various provisions of corporate governance and
the Act proposing the candidature of Mr. Neville D’Souza for the office Companies Act, 2013 (“the Act”) requires the Non- Executive directors to
of Director of the Company. Mr. Neville D’Souza is not disqualified from devote extra time. They are required to formulate various strategies and
being appointed as a Director in terms of Section 164 of the Act and has policies in the interest of the Company.
given his consent to act as a Director of the Company .The Company has Therefore, it has been prudent and fair to compensate the Non- Executive
received a declaration from Mr. Neville D’Souza that he meets the criteria Directors for their services to the Company. It is proposed that the Non-
of independence as provided under Section 149(6) of the Act and under the Executive Directors may be paid commission, sitting fee and expenses for
Securities and Exchange Board of India (Listing Obligations and Disclosure Company work upto maximum limit as mentioned in section 197 & 198
Requirements) Regulations, 2015 (“Listing Regulations”). of the Act and Rules made thereunder as amended from time to time, for
A brief resume & additional information of Mr. Neville D’Souza is annexed the period of their term of appointment. The net profit of the Company in
herewith in Annexure A, mentioning therein the nature of his expertise in each financial year to be calculated in accordance with the provisions of
specific functional areas and the name of the companies in which he holds section 197, 198 and other applicable provisions of the Act & Rules made
the position of a Director as per the Listing Regulations. thereunder and other regulations, if any.

Copy of the draft letter for appointment having the term and conditions of The members in their meeting held on September 18, 2014, approved, by
appointment of Mr. Neville D’Souza as an Independent Director are open way of Special resolution, payment of Commission to all Non-Executive
for inspection by Members at the Registered Office of the Company during Directors of the Company for a period of 5 years. Therefore, Company
normal working hours between 11.00 A.M. and 1.00 P.M. on all working needs to renew the approval for payment to Non-Executive Directors.
days (except Saturdays & Sundays). The Board accordingly recommends to pass resolution set forth in item no.
In the opinion of the Nomination and Remuneration Committee and the 11 as an Ordinary Resolution.
Board, Mr. Neville D’Souza fulfils the conditions for his appointment as an All the Non-Executive Directors may be considered interested or concerned
Independent Director as specified in the Act and the Listing Regulations. in the resolution to the extent of commission, fees etc, they will receive.
Mr. Neville D’Souza is independent of the management and possesses

147
Item No. 12 Except Mr. Deep Kapuria, Mr. Pranav Kapuria and Mr. Anuj Kapuria,
The Board, on the recommendation of the Audit Committee, has approved Directors, being related to each other, none of the Directors and Key
the appointment and remuneration of M/s Kabra & Associates, Cost Managerial Personnel of the Company and their relatives are concerned
Accountants as the Cost Auditors of the Company to conduct the audit of or interested, financial or otherwise, in the agenda as set out at item no. 13
the cost records of the Company for the financial year 2019-20 at a fee of of the notice.
upto Rs. 0.15 million plus Service Tax and out of pocket expenses. Your Directors recommend the resolution set forth in item no. 13 for approval
In accordance with the provisions of Section 148 of the Act read with the of the members as Special Resolution.
Companies (Audit and Auditors) Rules, 2014, the remuneration payable Item No.14
to the Cost Auditors, has to be ratified by the members of the Company. Mr. Pranav Kapuria was re-appointed in his present term as Managing
Accordingly, consent of the members is sought for passing an Ordinary Director of the Company for a period of 5 years. The appointment was
Resolution for ratification of the remuneration payable to the Cost Auditors effective from August 1, 2015. The approval for the same was accorded
for the financial year ending March 31, 2020. by the members in their 29th Annual General Meeting held on September
Your Directors recommend the resolution set forth in item no. 12 for approval 29, 2015.
of the members as an Ordinary Resolution. In terms of the provisions of sections 196, 197, 198, Schedule V and other
None of the Directors, Key Managerial Personnel of the Company and their applicable provisions, if any, of the Companies Act, 2013 and rules made
relatives are concerned or interested, financial or otherwise, in the agenda thereunder, re-appointment of the Managing Director and payment of
as set out at Item No. 12 of the Notice. remuneration requires approval of the members of the Company where the
Item No.13 Company has inadequate profit or no profit. In view of this, in supersession
to the earlier resolution passed by the same authority, the reappointment
Mr. Deep Kapuria was re-appointed in his present term as Chairman &
and remuneration payable to Mr. Pranav Kapuria as Managing Director
Whole Time Director designated as Executive Chairman of the Company
shall require a fresh approval of shareholders of the company.
for a period of 5 years. The appointment was effective from January 1,
2017. The approval for the same was accorded by the members in their 30th Further, the company has not committed any default in payment of dues
Annual General Meeting held on September 23, 2016. to any bank or public financial institutions or non -convertible debentures
holders or any other secured creditor.
In terms of the provisions of sections 196, 197, 198, Schedule V and other
applicable provisions, if any, of the Companies Act, 2013 and rules made Taking into consideration of his managerial expertise, the size of the
thereunder, re-appointment of the Whole Time Director and payment of Company, future growth plans & remarkable contribution for the growth of
remuneration requires approval of the members of the Company where the the Company made by Mr. Pranav Kapuria, your Board of Directors upon
Company has inadequate profit or no profit. In view of this, in supersession the recommendation of the Nomination & Remuneration Committee, in
to the earlier resolution passed by the same authority, the re-appointment its meeting held on August 14, 2019, have considered & approved the re-
and remuneration payable to Mr. Deep Kapuria as Chairman & Whole Time appointment and remuneration payable to Mr. Pranav Kapuria as Managing
Director shall require a fresh approval of shareholders of the Company. Director for a period of three years w.e.f. October 01, 2019 subject to the
approval of shareholders of the Company and other concerned statutory &
Further, the company has not committed any default in payment of dues
other authorities, if applicable.
to any bank or public financial institutions or non -convertible debentures
holders or any other secured creditor. Keeping in view the contribution Further, Mr Pranav Kapuria is not debarred or disqualified from being
made by Mr. Deep Kapuria since inception of the Company, your Board appointed or continuing as Directors of Companies by the SEBI, Ministry of
of Directors upon the recommendation of the Nomination & Remuneration Corporate Affairs or any other Statutory Authority.
Committee, in its meeting held on August 14, 2019, have considered The particulars as required to be disclosed in accordance with the provisions
& approved the re-appointment and remuneration payable to Mr. Deep of Section II of Part II of Schedule V of the Companies Act, 2013 and
Kapuria as Executive Chairman for a period of three years w.e.f. October information/details as required by SEBI (Listing Obligations and Disclosure
01, 2019 subject to the approval of shareholders of the Company and other Requirements) Regulations, 2015 and Secretarial Standard-2 on General
concerned statutory & other authorities, if applicable. Meetings are given in Annexure -B
In terms of provisions of section 196 of Companies Act, 2013, Mr. Deep Except Mr. Deep Kapuria, Mr. Pranav Kapuria and Mr. Anuj Kapuria,
Kapuria has attained the age of 70 years. Hence continuation of his Directors, being related to each other, none of the Directors and Key
employment as Executive Chairman requires the approval of Shareholders Managerial Personnel of the Company and their relatives are concerned
by way of a special resolution. The Board of Directors of the Company or interested, financial or otherwise, in the agenda as set out at item no. 14
recommends to continue the employment of Mr. Deep Kapuria as Executive of the notice.
Chairman after attaining the age of 70 years. He is founder director of the Your Directors recommend the resolution set forth in item no. 14 for approval
Company and associated with the company since inception. He is a technocrat of the members as Special Resolution.
and expert in Gear Manufacturing & Designing, Business Management &
Item No.15
Finance. He has great experience of dealing with customers, both domestic
& overseas and understanding their requirements. Mr. Deep Kapuria has Mr. Anuj Kapuria was re-appointed in his present term as Executive Director
rich and varied experience in the Industry and has been involved in the of the Company for a period of 5 years. The appointment was effective from
operations of the Company over a long period of time; it would be in the May 15, 2015. The approval for the same was accorded by the members in
interest of the Company to continue the engagement of Mr. Deep Kapuria their 29th Annual General Meeting held on September 29, 2015.
as Chairman & Whole Time Director, designated as Executive Chairman, In terms of the provisions of sections 196, 197, 198, Schedule V and
even after attaining the age of 70 years. Further, Mr Deep Kapuria is not other applicable provisions, if any, of the Companies Act, 2013 and rules
debarred or disqualified from being appointed or continuing as Directors of made thereunder, re-appointment of the Executive Whole Time Director
Companies by the SEBI, Ministry of Corporate Affairs or any other Statutory to be designated as Executive Director and payment of remuneration
Authority. requires approval of the members of the Company where the Company
The particulars as required to be disclosed in accordance with the provisions has inadequate profit or no profit. In view of this, in supersession to the
of Section II of Part II of Schedule V of the Companies Act, 2013 and earlier resolution passed by the same authority, the re-appointment and
information/details as required by SEBI (Listing Obligations and Disclosure remuneration payable to Mr. Anuj Kapuria as Executive Whole Time Director
Requirements) Regulations, 2015 and Secretarial Standard-2 on General shall require a fresh approval of shareholders of the company.
Meetings are given in Annexure -B

148
In view of his experience & valuable contribution made by him towards Regulations, 2015, (Listing Regulations), effective from 1st April, 2019, the
the growth of the Company & the job responsibilities handled by Mr. Anuj remuneration payable to all Executive Directors, who are Promoters, shall
Kapuria, your Board of Directors upon the recommendation of the Nomination be subject to the approval of the shareholders by way of special resolution
& Remuneration Committee, in its meeting held on August 14, 2019, have if the aggregate annual remuneration to such Directors exceeds 5 (five)
considered & approved the re-appointment and remuneration payable to percent of the net profits of the Company in any financial year.
Mr. Anuj Kapuria as Executive Whole Time Director for a period of three The shareholders have already approved remuneration payable to aforesaid
years w.e.f. October 01, 2019 subject to the approval of shareholders of the Directors within the overall limit as prescribed as per Companies Act, 2013,
Company and other concerned statutory & other authorities, if applicable. which exceeds the limits of amended Listing Regulation. However, the
Further, the company has not committed any default in payment of dues amendment necessitates seeking fresh approval of the shareholders by
to any bank or public financial institutions or non -convertible debentures way of special resolution for payment of remuneration beyond 5% to all
holders or any other secured creditor. Mr. Anuj Kapuria is not debarred or Executive Directors.
disqualified from being appointed or continuing as Directors of Companies The Board, therefore, recommends the Special Resolution as set out at
by the SEBI, Ministry of Corporate Affairs or any other Statutory Authority. Item No.16 for your approval.
The particulars as required to be disclosed in accordance with the provisions Except Mr. Deep Kapuria, Mr. Pranav Kapuria, and Mr. Anuj Kapuria being
of Section II of Part II of Schedule V of the Companies Act, 2013 and Promoter Executive directors and relative to each other, none of the Directors
information/details as required by SEBI (Listing Obligations and Disclosure / Key Managerial Personnel of the Company or their relatives are concerned
Requirements) Regulations, 2015 and Secretarial Standard-2 on General or interested, financially or otherwise, in the aforesaid resolution.
Meetings are given in Annexure -B
By order of the Board of Directors
Except Mr. Deep Kapuria, Mr. Pranav Kapuria and Mr. Anuj Kapuria,
The Hi-Tech Gears Limited
Directors, being related to each other, none of the Directors and Key
Managerial Personnel of the Company and their relatives are concerned
or interested, financial or otherwise, in the agenda as set out at item no. 15 S.K. Khatri
of the notice. Place: New Delhi Company Secretary
Your Directors recommend the resolution set forth in item no. 15 for approval Date: August 14, 2019 Membership No: - F5459
of the members as Special Resolution.
Registered Office:
Item No. 16 Plot No. 24,25,26, Sector-7,
In terms of amended SEBI (Listing Obligations and Disclosure Requirements) IMT Manesar, Gurgaon
Haryana 122050

ANNEXURE-A
Particulars Mr. Anuj Kapuria Mr. Neville D’Souza
Directors Identification Number (DIN) 00006366 08536411
Date of Birth & Age 26/08/1978, 41 years 28/04/1953, 66 years
Date of Initial appointment 30/05/2005 14/08/2019
Date of current re-appointment 27/09/2019 ( being proposed)* To be regularized in the ensuing annual general meeting.
Experience & Expertise Mr. Anuj Kapuria began his professional career early Mr. Neville D’Souza is an experienced and successful
as a Trainee Engineer with Hero Honda Ltd, where outside-the-box strategic thinker with a comprehensive
he was part of a team for maintaining the existing exposure to the functioning of business and government
in the field of trade and investment development. He has
welding/painting robots and assisting with integration
of new robots in their assembly line. an outstanding knowledge of international commerce
He has come a long way in the field of computer across multi sectors and multi markets.
vision, artificial intelligence and robotics. His collaborative leadership style focused on achieving
A technology freak, has to his credit, modernization objectives through teamwork and to take projects
of old plants, training, development & research in through from concept to reality.
ongoing projects. He was awarded the “D” Group award for “Outstanding
He has also filed for more than 17 patents in India Export Achievement” presented by Mr. Derek
and abroad Fatchett, former UK Minister of State for Foreign &
Commonwealth Affairs.
He was also elected member of the British Embassy
Post Management Committee.
Qualification He is an Engineer with a Master’s degree in Robotics He has done Bachelor of Commerce from ST
with specialization in Computer Vision, Artificial Joseph’s College, Bangalore
Intelligence and Intelligent Robotics from Carnegie
Mellon University (CMU), U.S.A.
Board Membership of other 1. Manu Farms Private Limited -
Companies as on 31/03/2019** 2. Chetana Inlease Pvt. Limited
3. Summit Inport Services Limited
4. Ultimate Fincap Limited
5. Vulcan Electro Controls Limited
6. The Hitech and Associates Limited
7. The Hi-Tech Robotic Systemz Limited
8. Novus Autotech Pvt. Ltd. (Formerly known as
Hi-Tech Esoft Engineering Pvt. Ltd)
9. Hi-Tech Portfolio Investments Limited

149
Particulars Mr. Anuj Kapuria Mr. Neville D’Souza
Chairman/Member of the Committee The Hi-Tech Gears Limited -
of the Board of Directors as on Audit Committee (Member)
31/03/2019** The Hi-Tech Robotic Systemz Limited
Corporate Social Responsibility (Member)
Vulcan Electro Controls Limited
Audit Committee (Member)
Number of shares held in the Company 844,062 NIL
as on 31/03/2019
Relationship with Directors Mr. Deep Kapuria- Father None
Mr. Pranav Kapuria- Brother
** For the purpose of Board and Membership/Chairman of Committees, Indian Companies are considered.
* Mr. Anuj Kapuria was re-appointed as Whole Time Director on May 15, 2015, which was confirmed at the 29th Annual General Meeting held on
September 29, 2015. His appointment is liable to retire by rotation.

ANNEXURE B
Statement/Disclosure as required under Part II, Section II of the Schedule V to the Companies Act, 2013 with respect to the Special Resolutions
at Item No.13, 14 & 15 of this Notice
I. General Information
Nature of Industry The Company is an auto component manufacturer (Tier 1 supplier) of world class repute and is engaged in the business
of manufacturing, selling, exporting, and dealing automobile parts. The Company spans a spectrum of products, including
transmission and engine components, driveline components, engines design services and advanced technology-
enabled products and solutions at the fore front of cutting edge technology.
Date of Commercial Commercial production has already commenced.
Production
Financial Performance The financial performance of the Company during the last three financial years is as under:
(Amount in million except per share data)
Financial Parameters Year ended 31.03.2017 Year ended 31.03.2018 Year ended
31.03.2019
Total Revenue 4978.38 5515.70 6634.52
Net Profit before Tax 325.79 483.87 531.22
Net Profit after tax 208.75 319.12 354.84
Paid Up Capital 187.68 187.68 187.68
Other Equity 1956.73 2216.68 2494.11
Dividend ( Interim & Final ) 51.61 51.61 65.69
Earnings Per Share ( EPS ) 11.12 17.00 18.91
Financial Performance The Company is a Tier-1 manufacturer of Auto components. Auto component industry is directly connected to the
based on given indicators growth of automobile manufacturers (OEMs). Hence, Company’s sales are impacted corresponding to growth of
Indian Auto Component Industry
Foreign Investments or The Company has nine Foreign Wholly Owned Subsidiaries namely:
Collaboration, if any i. 2545887 Ontario Inc., Canada
ii. 2504584 Ontario Inc., Canada
iii. 2323532 Ontario Inc., Canada
iv. The Hi-Tech Gears Canada Inc., Canada
v. Teutech Holding Corporation, USA
vi. Teutech, L.L.C., USA
vii. Teutech Leasing Corp, USA
viii. Neo-Tech Auto Systemz Inc., USA
ix. Neo –Tech Smart Solutions Inc., Canada
Non- resident holding in the Company is 1.24 % (as on March 31, 2019). Further, the Company has no foreign
collaboration/Joint Venture as on date.
II. Information About the appointee
Particulars Mr. Deep Kapuria Mr. Pranav Kapuria Mr. Anuj Kapuria
Background details Mr. Deep Kapuria born on August Mr. Pranav Kapuria, aged 44 years Mr. Anuj Kapuria born on 26th August,
5, 1949 is founder Director of is presently designated as Managing 1978, joined the Company in the year
the Company and designated as Director of the Company. He joined the 2005.He was re-appointed as Executive
the Executive Chairman of the company as a Whole Time Director- (Whole Time Director) w.e.f May 15,
Company. operations in the year 2000. Taking into 2015.
He is a technocrat and expert in consideration the contribution made by He is an Engineer with a Master’s degree
Gear Manufacturing & Designing, him for the growth of business, he was in Robotics with specialization in Computer
Business Management & promoted as Deputy Managing Director Vision, Artificial Intelligence and Intelligent
Finance. of the Company on 1st August 2005 & Robotics from Carnegie Mellon University
thereafter as Managing Director w.e.f (CMU), U.S.A.
He possesses the following 01.08.2010.
qualifications:

150
Particulars Mr. Deep Kapuria Mr. Pranav Kapuria Mr. Anuj Kapuria

1. Bachelor of Engineering (Honors’) He has done Bachelor of Commerce Mr. Anuj Kapuria has been contributing
from B.I.T.S., Pilani; with Honors from Delhi University, also in the growth of the company through
2. Advance Management holds Masters Degree in Business his enhanced knowledge in the field of
Programme from Indian Institute Administration from Cardiff Business Robotic & Artificial Intelligence.
of Management, Ahmedabad School, University of Cardiff, U.K.
and Certificate program on Lean
3. Lead Assessor Course for ISO Manufacturing from University of
9000 from P.E. Batalas Ltd., UK Michigan, College of Engineering,
4. Owner Management Programme USA.
from Harvard Business School, Because of his sustained efforts, the
USA Company has sustained a growth
Mr. Deep Kapuria has vast experience pattern and has achieved success
of decades in the industry and has in creating a brand image in the
been instrumental in the growth of the Automotive Parts Industry
Company.

Past Remuneration The remuneration drawn by Mr. Deep The remuneration drawn by Mr. Pranav The remuneration drawn by Mr. Anuj
Kapuria during the past three financial Kapuria during the past three financial Kapuria during the past three financial
years is as under: years is as under: years is as under::

Financial year Amount in million Financial year Amount in million Financial year Amount in million
2016-17 15.25 2016-17 7.98 2016-17 7.27
2017-18 24.11 2017-18 12.45 2017-18 11.66
2018-19 21.23 2018-19 10.98 2018-19 10.25

Recognition and Awards Mr. Deep Kapuria has the distinction Distinction in lean Manufacturing and He has many registered patents in his
of being President of ACMA twice TPM processes. name.
and has led various overseas CII/
ACMA Delegations including at WTO Instrumental in achieving ACMA Export Visiting faculty for Robotics at Crnegie
ministerial. Awards for the Company. Mallon university
He regularly represents Indian Industry
at the Indian Government/Ministerial Resonsible for the inorganic growth Young entrepreneur Award from
Business Delegation across the through acquisition of entities in US Honorable Prime Minster of India.
globe. and Canada.
He is Co-Chairman of CII Trade Fairs
Council & Advance Manufacturing and
Indo-UK Working Group-JETCO (Joint
Economic and Trade Committee),
Chairman of CII Regional Committee
on Central Europe and Globalization
Committee of ACMA and immediate
past president of CII MSME Council.

Job Profile & Suitability Mr. Deep Kapuria is member of Board Mr. Pranav Kapuria, Managing Director Mr. Anuj Kapuria has been instrumental
of Director since October 23, 1986. in keeping abreast with the latest
is vested with substantial powers of the
He has vast experience of decades Company under the superintendence, technology for delivering the highest
in the field of business strategy and control and directions of the Board of quality of products. He has inherited
development, planning, marketing Directors. an enormous legacy and shouldered
and distribution, finance, production The Company has been substantially higher assignments during his tenure
technology etc. benefitted by his vision, professional with the Company.
He has wholesome exposure on all knowledge and managerial expertise His sincerity, commitment and ideas
aspects of business of the Company and has made enormous progress. have resulted in opening up of new
and is engaged in supervision & Your Company explored new avenues opportunities of the Company.
conduct of business of all the industrial of further inorganic growth by way Mr. Anuj Kapuria is a technology freak,
units of Company. of mergers and also tapping new has to his credit, modernisation of
Mr. Deep Kapuria is a think tanker and geographies, such as Canada and old plant's training, development &
plays a major role in providing thought US. Despite headwinds being faced, research in ongoing projects.
leadership and strategic inputs to the Company made continued progress In view of his enriched experience,
Company. under his leadership. appreciable contribution and enlarged
Considering the performance of leadership, he is proposed by the
existing projects and expansion plans, Board of Directors for re-appointment.
the Company is expected to register a
growth in the years to come.

151
Particulars Mr. Deep Kapuria Mr. Pranav Kapuria Mr. Anuj Kapuria
Under his vision and leadership, He is devoting his full time in managing
company has made its presence the business of the Company. He is,
globally thru successful acquisition therefore, best suitable for the job.
of some entities in Canada and
the US. Company is not confined
to only domestic manufacturing
facilities and exposure to global
environment will lead to strong
growth opportunities.
Remuneration Proposed Salary, Allowances & Salary, Allowances & Perquisites (all Salary, Allowances & Perquisites (all
(01/10/2019 to 30/09/2022) Perquisites (all together) not to together) not to exceed as under: together) not to exceed as under:
exceed as under:
From 01.10.2019 Upto Rs.25.00 From 01.10.2019 to Upto Rs. 16.00 From 01.10.2019 to Upto Rs. 16.00 million
to 30.09.2020 million per annum 30.09.2020 million per annum 30.09.2020 per annum
From 01.10.2020 Upto Rs. 30.00 From 01.10.2020 to Upto Rs. 20.00 From 01.10.2020 to Upto Rs. 20.00 million
to 30.09. 2021 million per annum 30.09. 2021 million per annum 30.09. 2021 per annum
From 01.10. 2021 Upto Rs. 36.00 From 01.10. 2021 to Upto Rs. 24.00 million
From 01.10. 2021 to Upto Rs. 24.00
to 30.09. 2022 million per annum 30.09. 2022 per annum
30.09. 2022 million per annum

Comparative Remuneration The remuneration proposed to be paid to the above appointees are in line with the remuneration paid to the
Profile with respect to managerial personnel in other Companies engaged in the similar Industry. Keeping in view their job profiles, positions
industry, size of the and responsibilities remuneration being given or proposed is not even close to or higher than that prevailing in the
Company, profile of the market. The Nomination and Remuneration Committee while recommending the proposed resolution has taken into
position and person account all these factors.
Pecuniary relationship Besides the remuneration Besides the remuneration proposed Besides the remuneration proposed
directly or indirectly with the proposed herein, Mr. Deep herein, Mr. Pranav Kapuria has no herein, Mr. Anuj Kapuria has no other
Company, or relationship with Kapuria has no other pecuniary other pecuniary relationship with the pecuniary relationship with the Company
the managerial personnel, if relationship with the Company Company (Other than the dividend to (Other than the dividend to the extent of
any (Other than the dividend to the the extent of his shareholding). his shareholding).
extent of his shareholding). Further, he is related to Mr. Deep Further, he is related to Mr. Deep
Further, he is related to Mr. Pranav Kapuria, Executive Chairman and Mr. Kapuria, Executive Chairman and Mr.
Kapuria, Managing Director and Anuj Kapuria, Whole Time Director of Pranav Kapuria, Managing Director of
Mr. Anuj Kapuria, Whole Time the Company as per the Companies the Company as per the Companies Act,
Director of the Company as per Act, 2013 read with Rules made 2013 read with Rules made thereunder.
the Companies Act, 2013 read thereunder.
with Rules made thereunder.
Board Meeting Attended and During the year 2018-19, he During the year 2018-19, he attended 6 During the year 2018-19, he attended 6
Shareholding attended 6 Board Meetings and Board Meetings and is holding 8,48,102 Board Meetings and is holding 8,44,062
is holding 31,17,461 (16.61%) (4.52%) equity shares of Rs. 10/- each. (4.50%) equity shares of Rs. 10/- each.
equity shares of Rs. 10/- each.
III. Other Information
Reasons of Loss or The Company has a consistent profit and dividend track record. The Company has registered a net profit of 354.84
Inadequate Profits million for the F.Y. March 31, 2019 despite the turmoil in the auto component segment. Currently, the Company is into
growth phase and investing on additional capacity & technical knowledge build up. However, the financial performance
of the Company is being impacted due to the slowdown in the Auto Industry and the Economy. Further, the challenges
& risks which are discussed in Management Discussion & Analysis, despite of Company's best efforts, the Company
may not be able to earn adequate profits for some time to come.
Steps taken or proposed to The Company is taking series of strategic and operational measures to tackle the adverse market scenario and to
be taken for improvement improve the profitability. Following measures has been adopted to improve the profitability:
• Widening of customer base and better market penetration, especially in overseas market.
• Conscious effort to develop products/customers base in alternate market segments.
• Technology upgradation by way of investing in state of the art machinery to meet stringent quality requirements of
customers.
• Focus on significant improvements in operating costs.
• Cost control in all areas
• Modernisation of existing facilities to improve overall operating efficiency and gear up for catering to higher demand
from OEMs
• Improvement in export sales
• Improving the quality of product to make to competitive in Indian and overseas market
Expected increase in The aforesaid steps being taken by the Company would increase the productivity and profits of the Company. The
Productivity and Profits in Company would continue its endeavour to increase the revenues & to improve the Profitability in the coming years.
Measurable Terms
IV. DISCLOSURES
The requisite disclosures of remuneration package, details of fixed component and performance linked incentive etc are duly disclosed in the Board
of Director under the heading of ‘Corporate Governance’ forming part of Annual Report. At present, there is no stock option scheme available in the
Company.

152
 The Hi-Tech Gears Limited
Registered Office: - Plot No. 24-26, Sector-7,IMT Manesar, Gurgaon Haryana 122050
CIN- L29130HR1986PLC081555, Website: - www.thehitechgears.com
Tel.: +91(124)4715100, Fax: +91(124)2806085, e-mail id: [email protected]

FORM NO. MGT-11

PROXY FORM
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name of the member(s): .............................................................................................................................................
Registered Address: ………………………………………………………………………………………………………………………
E-mail id:...........................................................Folio No. / DP ID-Client ID……………………..………………………........

I/We, being the member (s) of ............................... shares of the The Hi-Tech Gears Limited, hereby appoint:

1. Name:........................................of....................................having an E-mail id: …………................... failing him / her;

2. Name:........................................of....................................having an E-mail id: …………................... failing him / her;

3. Name:........................................of....................................having an E-mail id: …………................... failing him / her;

whose signatures are appended below as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 33rd Annual General Meeting of the Company, to be
held on Friday the 27th day of September, 2019 at 11:00 A.M. at registered office at Plot No. 24-26, Sector-7, IMT Manesar, Gurgaon Haryana 122050 and at any adjournment
thereof in respect of such resolutions as are indicated below:

S. No. Resolutions No. of shares For* Against*

Ordinary Business:

1 To receive, consider and adopt the Standalone and Consolidated Audited Financial Statements of the Company for the financial year
ended March 31, 2019, together with the reports of the Director’s and Auditor’s thereon – Ordinary Resolution
2 To confirm the interim dividend & to declare the final dividend on equity shares for the financial year 2018-19 – Ordinary Resolution
3 To appoint a director in place of Mr. Anuj Kapuria (DIN-00006366) who retires by rotation and being eligible has offered himself for re-
appointment – Ordinary Resolution
Special Business:
4 Re-appointment of Mr. Sandeep Dinodia (DIN-00005395) as an Independent Director – Special Resolution
5 Re-appointment of Mr. Anil Kumar Khanna (DIN – 00207839) as an Independent Director – Special Resolution
6 Re-appointment of Ms. Malini Sud (DIN: 01297943) as an Independent Director – Special Resolution
7 Re-appointment of Mr. Vinit Taneja (DIN – 02647727) as an Independent Director – Special Resolution
8 Re-appointment of Mr. Krishna Chandra Verma (DIN – 03636488) as an Independent Director – Special Resolution
9 Re-appointment of Mr. Prosad Dasgupta (DIN – 00243254) as an Independent Director – Special Resolution
10 Appointment of Mr. Neville D’Souza (DIN:08536411) as Independent Director of the Company – Ordinary Resolution
11 To approve the payment of remuneration to Non-Executive Directors – Ordinary Resolution
12 Approval of remuneration of Cost Auditor for the financial year 2019-20 – Ordinary Resolution
13 Re-appointment & Remuneration of Mr. Deep Kapuria (DIN-00006185) as Chairman & Whole Time Director of the Company to be
designated as Executive Chairman – Special Resolution
14 Re-appointment & Remuneration of Mr. Pranav Kapuria (DIN-00006195) as Managing Director – Special Resolution
15 Re-appointment & Remuneration of Mr. Anuj Kapuria (DIN-00006366) as Executive Director – Special Resolution
16 To approve continuation of payment of remuneration to Executive Directors who are Promoters pursuant to SEBI (LODR) (Amendment)
Regulations, 2018 – Special Resolution

Signed this ............................. day of…................................ 2019.

(Date) (Month)

Signature of the Shareholder(s)

Affix
Signatures of: Revenue
Stamp
.............................. .............................. ..............................
First Proxy Holder Second Proxy Holder Third Proxy Holder

Notes:-
*1. Please put a‘√’ ’in the Box in the appropriate column. If you leave ’For’ or ‘Against’ column blank in respect of any or all of the resolutions, your proxy will be entitled to vote
in the matter as he/she thinks appropriate.
2. Proxy needs not to be a member of the Company. A person can act as proxy on behalf of for a maximum of fifty members and holding in the aggregate not more than ten
percent of the total share capital of the Company carrying voting rights. Provided that a member holding more than ten percent, of the total share capital of the Company
carrying voting rights may appoint a single person as proxy and such person shall not act as proxy for any other person or shareholder.
3. This form of proxy in order to be effective should be duly executed and deposited at the Registered Office of the Company at Plot No. 24-,26, Sector-7, IMT Manesar,
Gurgaon Haryana 122050 at least 48 hours before the time of the Meeting.

153
 The Hi-Tech Gears Limited
Registered Office: - Plot No. 24-26, Sector-7, IMT Manesar, Gurgaon Haryana 122050
CIN- L29130HR1986PLC081555 Website: - www.thehitechgears.com
Tel.: +91(124)4715100 Fax: +91(124)2806085 e-mail id: [email protected]

ELECTRONIC VOTING PARTICULARS

EVEN (Electronic Voting Event USER ID PASSWORD NO. OF SHARES

Number)

The e-voting facility will be available during the following voting period:

Commencement of e-voting From 09:00 A.M. (IST) on September 24, 2019

End of e-voting Upto 05:00 P.M. (IST) on September 26, 2019

The cut-off date (i.e. the record date) for the purpose of e-voting is September 20, 2019

…….................... …….......... …........... ............ ........... TEAR HERE …….......... …….......... …........... ............ ........................

The Hi-Tech Gears Limited

Registered Office: - Plot No. 24-26, Sector-7, IMT Manesar, Gurgaon Haryana 122050
CIN- L29130HR1986PLC081555 Website: - www.thehitechgears.com
Tel.: +91(124)4715100 Fax: +91(124)2806085 e-mail id: [email protected]

ATTENDANCE SLIP
I/We hereby record my presence at the 33rd Annual General Meeting held on Friday, September 27, 2019 at 11.00 A.M. at the registered office of
the Company at Plot No. 24-26, Sector-7,IMT Manesar, Gurgaon Haryana 122050

Name of the Shareholders or Proxy (In Block Letters) ..........................................................................................................................

No. of Shares Held ..........................................................................................................................

Regd. Folio No./DPID-CLID ..........................................................................................................................

.....................................................................
(Signature of the Shareholder/Proxy)

Note:
PLEASE COMPLETE THIS ATTENDENCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE HALL.

154
 Route Map

IMT Manesar
NH-48 To Jaipur
Tau Devi Lal
Town Park

IDBI Bank

Medeor Hospital
Manesar
Police Station H
Maxop
Engineering
Company Pvt.
Ltd.
Kherki Dhaula Toll Plaza
NH-48 To Jaipur

approx 10 km from Rajiv

Chowk, Gurgaon

Overbridge

From Gurgaon
The Hi-Tech Gears Ltd.
From Sohna
Plot No. 24,25 & 26,
Sector -7, , IMT Manesar,
Rajiv Chowk Gurgaon, Haryana – 122050
Tel: (0124) 4715100

From Gurgaon
From Mahrauli
NH-48 To Jaipur

From Airport

From
Dhaula Kuan

155
NOTES

156
 
  




 
 

    !!