Under the Employee Stock Option Scheme - 2015 (ESOS-2015), 31,000 Equity Shares of the face value of Rs. 10/- are available for being granted to eligible employees on the recommendation of the Nomination and Remuneration Committee. Under the first cycle (Dec. 2015 - Dec. 2019), options granted were vested in four instalments on the expiry of 18 months, 30 months, 42 months and 54 months respectively. Options granted effective January 2020 & onwards are vested in 3 instalments on the expiry of 12 months, 24 months and 36 months. These options may be exercised on any day over a period of 5 years from the date of vesting. Numbers of vested options are exercisable subject to minimum of 50 or number of options vested whichever is lower.
Further to grant given till previous financial years, the Company during the current financial year has given grant of 1083 Equity Shares at face value to the eligible employees.
Company's activities expose it to financial risks viz credit risk and liquidity risk.
Credit Risk
Majority of Company's Receivables pertain to Mahindra & Mahindra Limited, a Holding Company. Based on the overall creditworthiness of Receivables, coupled with their past track record, Company expect No / Minimum Risk with regard to its outstanding receivables. Also, there is mechanism in place to periodically track the outstanding amount and assess the same with regard to its realisation. Company expect all the debtors to be realised in full, accordingly no provision has been made in the books of account.
Credit risk on cash and cash equivalents is limited as Company generally invest in deposits with banks, high rating financial institutions & debt based Mutual Funds. Ratings are monitored periodically for re-adjustment of Portfolio, if any required. Investment as on date of financial statement are as per latest available ratings.
(i) Liquidity Risk Management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast & actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
(ii) Maturities of Financial Liabilities
The following tables specify the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amounts disclosed in the tables have been drawn up based on the earliest date on which the Company can be required to pay. Financial Liabilities includes Trade Payables, Capital Purchases, Unpaid/Unclaimed Dividend etc. which are in the normal course of business having maturity plan of less than 1 year and lease liabilities having maturity more than 1 year.
As at 31st March, 2025, the Company had a working capital of Rs. 23,416.11 lakhs including cash and bank balance & bank deposits of Rs. 17290.59 lakhs and investment of Rs. 1919.40 lakhs and other corporate deposits of Rs. Nil.
As at 31st March, 2024, the Company had a working capital of Rs. 24077.14 lakhs including cash and bank balance & bank deposits of Rs. 17427.63 lakhs and investment of Rs. 2011.10 lakhs and other corporate deposits of Rs. Nil.
Accordingly, company do not perceive any liquidity risk.
The fair values of the Financial Assets and Liabilities are included in 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 Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique
Level 1 - Quoted (unadjusted prices) in active markets for identical assets or liabilities.
Level 2 - Other T echniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3 - Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
2.31 CONTINGENT LIABILITIES AND COMMITMENTS
(Rs. in Lakhs)
Particulars
2025
2024
Contingent Liabilities
Claims against the Company not acknowledged as debt - Excise matters in dispute
220.26
211.19
- Sales Tax matters in dispute
30.77
99.21
- Income Tax matters in dispute1
50.43
Commitments
Estimated amount of contracts remaining to be executed on capital
702.15
1167.21
The Board of Directors, in their meeting held on 18th April, 2024, proposed a total dividend of Rs. 95/- per equity share and the same was approved by the shareholders at the Annual General Meeting held on 18th July, 2024, this has resulted in a cash outflow of Rs. 11539.89 lakhs during 2024-25.
The Board of Directors, in their meeting held on 16th April, 2025, proposed a total dividend of Rs. 104.50/- per equity share for the financial year ended on 31st March 2025, subject to the approval of shareholders at the Annual General Meeting and if approved, would result in a cash outflow of approximately Rs. 12694.10 lakhs.
2.38 Previous year's figures have been regrouped, wherever necessary, so as to correspond with those of the current year.
1
Assessment of Income Tax is complete upto Assessment Year 2020-21. There is no demand which is disputed in Appeal and not provided for. For earlier Assessment Years, Company have filed appeals / references which involve an estimated liability of Rs. 50.43 Lakhs (31.03.2024 - Rs. 50.43 Lakhs)
2.32 SEGMENT REPORTING
The Company is primarily engaged in the business of diesel engines, diesel engine components and spare parts. As the basic nature of these activities are governed by the same set of risk, returns and internal business reporting system, accordingly these have been grouped as single segment in above disclosures as per Ind AS- 108 dealing with "Operating Segment".