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Notes to Accounts of Asahi India Glass Ltd.

Mar 31, 2023

Description of Reserves

a) Capital Reserve: Capital Reserve represents reserve of the Company which is not available for distribution as dividend.

b) Capital Redemption Reserve: Capital Redemption Reserve is reserve created on redemption of preference shares.

c) Securities Premium: Securities Premium represents excess amount received by the Company over the face value of its shares to be utilised for specific purposes only as per Section 52 of the Companies Act, 2013.

d) Amalgamation Reserve: Amalgamation Reserve is reserve created on amalgamation of erstwhile Float Glass India Limited with the Company.

e) General Reserve: General Reserve is free reserve of the Company which is kept aside out of Company''s profits to meet future requirements as and when they arise. The Company had transferred a portion of the Profit After Tax to General Reserve pursuant to earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013.

f) Retained Earnings: Retained Earnings are the accumulated profits of the Company after reduction of dividend and Income tax on dividend.

g) Other Reserves - FVTOCI: Other Comprehensive Income represents actuarial gain/loss on remeasurement of defined benefit obligation and fair valuation of Investments.

33. Disclosure as per Ind AS 19 ''Employee Benefits''

a) Defined Contribution Plans:

The Company pays fixed contribution to funds below at predetermined rates to appropriate authorities:

i) Provident Fund

An amount of '' 1036 lakhs (previous year '' 960 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.

ii) Superannuation Fund

An amount of '' 24 lakhs (previous year '' 12 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.

iii) Employee State Insurance/ Labour Fund

An amount of '' 34 lakhs (previous year '' 25 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.

b) Defined Benefit Plans:

The Company operates post retirement defined benefit plan for gratuity which is funded.

i) The Company''s Operating Segments are established on the basis of the information that is evaluated by the "Chief Operating Decision Maker" as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance. The segments have been identified taking into account nature of products and services, production processes, risks and returns and the internal business reporting systems.

ii) For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass. These divisions are the basis on which the Company reports its primary segment information.

iii) All segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, trade receivables, advances and operating cash and bank balances. Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Investments, tax related assets, loans and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as unallocable.

iv) Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and logistics department. These transfers are eliminated on consolidation.

v) Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income on inter corporate deposit and interest expense.

vi) There are no non-current assets located outside India.

vii) Revenue derived from a single external customer amounting to more than 10% of the entity''s revenue attributable to Automotive Glass Segment - '' 49186 lakhs (previous year '' 35605 lakhs).

39. Financial Risk Management

The Company''s activities expose it to foreign currency risk, liquidity risk, interest rate risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency/commodity swaps are entered into by the Company to hedge certain foreign currency and commodity exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.

The Company is exposed to the following risks from its use of financial instruments:

Credit Risk

Liquidity Risk

Foreign Currency Risk

Interest Rate Risk

a) Credit Risk

Credit risk arises from the possibility that the counter parties may not be able to settle their obligations. To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.

b) Liquidity Risk

Liquidity risk refers to the risk to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

The Company has an appropriate liquidity risk management framework for the management of short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

c) Foreign Currency Risk

The Company has exposure to foreign currency risk on account of its payables and receivables in foreign currency which are mitigated through regular reviews by the management. The Company enters into derivative financial instruments to mitigate the foreign currency risk and interest rate risk including,

i) forward foreign exchange contracts for foreign currency risk mitigation

ii) foreign currency interest rate swaps to mitigate foreign currency and interest rate risk on foreign currency loan.

d) Interest Rate Risk

The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (e.g. fixed, floating, rupee, foreign currency,etc.).

Fair Value Sensitivity Analysis for Fixed-Rate Instruments

The Company''s fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash Flow Sensitivity Analysis for Variable-Rate Instruments

A change of 50 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for the previous year.

b) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes investments in quoted equity instruments. Quoted equity instruments are valued using quoted prices on recognised stock exchange.

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 and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments. This level includes derivative MTM assets/liabilities. Fair value of derivative assets/liabilities such as interest rate swaps and foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap models and present value calculations.

There have been no transfers in either direction for the years ended 31^st March, 2023 and 31^st March, 2022.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants.

The carrying amounts of short term trade receivables, trade payables, creditors for capital goods and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature. For financial assets & liabilities that are measured at fair value, the carrying amounts are equal to the fair value.

42. Capital Management

The Company''s objectives when managing capital are to:

safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for other Stakeholders and

maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as result from operating activities divided by total Shareholders'' equity. The Board of Directors also monitors the level of dividends to Equity Shareholders.

Under the terms of major borrowing facilities, the Company is required to comply with the financial covenants as may be prescribed by the lenders. There have been no breaches in the financial covenants of any interest bearing borrowings.

The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.

47. The Company has used the borrowings from Banks and Financial Institutions for the specific purposes, for which it was taken at the Balance Sheet date.

48. The Company does not have any Immovable Property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.

49. The Company has not revalued its Property, Plant & Equipment or Intangible Assets during the year.

50. No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment except loans of '' 5786 lakhs to three subsidiary companies at the Balance Sheet date.

51. The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules made thereunder.

52. The quarterly returns/ statements of current assets filed by the Company with Banks/ Financial Institutions in respect of borrowings from Banks/Financial Institutions on the basis of security of current assets are generally in agreement with the books of accounts.

53. The Company has not been declared wilful defaulter by any Bank/Financial Institution/other lender.

54. The Company does not have any transaction with Companies struck off under Section 248 of Companies Act, 2013/ Section 560 of Companies Act, 1956.

The Company is awaiting No-objection certificates from concerned chargeholders for filing the requisite satisfaction of charges with ROC.

56. The Company does not have any layers prescribed under Clause (87) of Section 2 of the Act, read with Companies (Restriction on number of Layers) Rules, 2017.

57. No scheme of arrangements has been approved by the competent authority in terms of Section 230 to 237 of Companies Act, 2013.

58. The Company has not advanced/loaned/invested funds(either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with understanding (whether recorded in writing or otherwise) that the intermediary shall

i) Directly or indirectly lend or invest in other persons or entities identified in any other matter whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) Provide any guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.

59. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

i) Directly or indirectly lend or invest in other persons or entities identified in any matter whatsoever by or on behalf of Funding Party (Ultimate Beneficiaries) or

ii) Provide any guarantee or security or the like on behalf of Ultimate Beneficiaries.

60. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year, in the tax assessments under the Income Tax Act, 1961.

61. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

62. Amount in the Financial Statements are presented in '' lakhs except for per share data and as other-wise stated. Figures in brackets are in respect of previous year wherever applicable. Previous years figures have been regrouped/rearranged wherever considered necessary.

Mar 31, 2022

1. Buildings include cost of shares of '' 500 (previous year: '' 500) in a Co-operative Society.

2. Other Adjustments (Gross Block) include Interest capitalized '' 1552 lakhs, '' 1303 lakhs and '' 150 lakhs (previous year '' 1493 lakhs, '' 1302 lakhs and '' 549 lakhs) in Buildings, Plant and Equipment and Electrical Installations and Fittings respectively.

3. Electrical Installations and Fittings include '' 636 lakhs (previous year '' 636 lakhs) paid to State Electricity Board not represented by physical assets owned by the Company.

\ Dividends:

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of Shareholders in the ensuing Annual General Meeting except in case of interim dividend.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

Description of Reserves

a) Capital Reserve: Capital Reserve represents reserve of the Company which is not available for distribution as dividend.

b) Capital Redemption Reserve: Capital Redemption Reserve is reserve created on redemption of preference shares.

c) Securities Premium: Securities Premium represents excess amount received by the Company over the face value of its shares to be utilized for specific purposes only as per Section 52 of the Companies Act, 2013.

d) Amalgamation Reserve: Amalgamation Reserve is reserve created on amalgamation of erstwhile Float Glass India Limited with the Company.

f) Retained Earnings: Retained Earnings are the accumulated profits of the Company after reduction of dividend and Income tax on dividend.

g) Other Reserves - FVTOCI: Other Comprehensive Income represents actuarial gain/loss on remeasurement of defined benefit obligation and fair valuation of Investments.

34. Disclosure as per Ind AS 19 ''Employee Benefits''

a) Defined Contribution Plans:

The Company pays fixed contribution to funds below at predetermined rates to appropriate authorities:

i) Provident Fund

An amount of '' 960 lakhs (previous year: '' 862 lakhs) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

ii) Superannuation Fund

An amount of '' 12 lakhs (previous year: '' 28 lakhs) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

iii) Employee State Insurance/ Labour Fund

An amount of '' 25 lakhs (previous year: '' 21 lakhs) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

b) Defined Benefit Plans:

The Company operates post retirement defined benefit plan for gratuity which is funded.

For details about the related employee benefits plan, See Note 1B(m) of Statement of Accounting Policies.

i) Reconciliation of the Net Defined Benefit Liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components

i) The Company''s Operating Segments are established on the basis of the information that is evaluated by the "Chief Operating Decision Maker" as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance. The segments have been identified taking into account nature of products and services,production processes,risks and returns and the internal business reporting systems.

iv) Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and logistics department. These transfers are eliminated on consolidation.

vi) There are no non-current assets located outside India.

vii) Revenue derived from a single external customer amounting to more than 10% of the entity''s revenue attributable to Automotive glass segment ''35605 Lakhs (Previous Year ''34645 Lakhs)

40. Financial Risk Management

The Company is exposed to the following risks from its use of financial instruments:

- Credit Risk

- Liquidity Risk

- Foreign Currency Risk

- Interest Rate Risk a) Credit Risk

Based on historic default rates, the Company believes that, apart from the above, no impairment allowance is necessary in respect of any other assets as the amounts are insignificant. The figures in bracket are in respect of previous year.

b) Liquidity Risk

c) Foreign Currency Risk

i) forward foreign exchange contracts for foreign currency risk mitigation

ii) foreign currency interest rate swaps to mitigate foreign currency and interest rate risk on foreign currency loan.

d) Interest Rate Risk

Fair Value Sensitivity Analysis for Fixed-Rate Instruments

The Company''s fixed rate instruments are carried at amortized cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash Flow Sensitivity Analysis for Variable-Rate Instruments

b) Fair Value Hierarchy

This Section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

There have been no transfers in either direction for the years ended 31^st March, 2022 and 31^st March, 2021.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants.

43. Capital Management

The Company''s objectives when managing capital are to:

â¢ safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for other Stakeholders and

â¢ maintain an appropriate capital structure of debt and equity.

*There are no previous years shortfall identified by the Company as the relevant amendments in Section 135(5) and 135(6) have prospective application. Therefore, the requirement to spend unspent portion of CSR Liability of the Company prior to FY 2020-21 is not required and is also supported by legal opinion obtained by the Company.

48. The Company has considered the possible effects that may result from pandemic relating to COVID-19 on the carrying amounts of receivables, inventories, property, plant & equipment and intangible assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions, the Company has, at the date of approval of these Financial Statements, used internal and external sources of information, including economic forecasts and estimates from market sources, on the expected future performance of the Company. On the basis of evaluation and current indicators of future economic conditions, the Company expects to recover the carrying amounts of these assets and does not anticipate any impairment of these financial and non-financial assets. However, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions.

49. The Company has used the borrowings from Banks and Financial Institutions for the specific purposes, for which it was taken at the Balance Sheet date.

50. The Company does not have any Immovable Property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.

51. The Company has not revalued its Property, Plant and Equipment or Intangible Assets during the year.

52. No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment except loans of Rs. 4780 Lakhs to two subsidiary companies outstanding at the Balance Sheet Date

53. The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules made thereunder.

54. The quarterly returns/ statements of current assets filed by the Company with Banks/ Financial Institutions in respect of borrowings from Banks/Financial Institutions on the basis of security of current assets are generally in agreement with the books of accounts.

55. The Company has not been declared wilful defaulter by any Bank/Financial Institution/other lender.

56. The Company does not have any transaction with companies struck off under Section 248 of Companies Act, 2013/ Section 560 of Companies Act, 1956.

The Company is awaiting No-objection certificates from concerned Chargeholders for filing the requisite satisfaction of charges with ROC.

58. The Company does not have any layers prescribed under Clause (87) of Section 2 of the Act, read with Companies (Restriction on number of Layers) Rules, 2017.

59. No Scheme of Arrangements has been approved by the competent authority in terms of Section 230 to 237 of Companies Act, 2013.

60. The Company has not advanced/loaned/invested funds(either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with understanding (whether recorded in writing or otherwise) that the intermediary shall

i) Directly or indirectly lend or invest in other persons or entities identified in any other matter whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) Provide any guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.

61. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

i) Directly or indirectly lend or invest in other persons or entities identified in any matter whatsoever by or on behalf of Funding Party (Ultimate Beneficiaries) or

ii) Provide any guarantee or security or the like on behalf of Ultimate Beneficiaries.

62. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year, in the tax assessments under the Income Tax Act, 1961.

63. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.

64. Amount in the Financial Statements are presented in '' lakhs except for per share data and as other-wise stated. Figures in brackets are in respect of previous year wherever applicable. Previous years figures have been regrouped/rearranged wherever considered necessary.

Mar 31, 2021

Description of Reserves

a) Capital Reserve: Capital Reserve represents reserve of the Company which is not available for distribution as dividend.

b) Capital Redemption Reserve: Capital Redemption Reserve is reserve created on redemption of preference shares.

d) Amalgamation Reserve: Amalgamation Reserve is reserve created on amalgamation of erstwhile Float Glass India Limited with the Company.

f) Retained Earnings: Retained Earnings are the accumulated profits of the Company after reduction of dividend and Income tax on dividend.

g) Other Reserves - FVOCI: Other Comprehensive Income represents actuarial gain/loss on remeasurement of defined benefit obligation and fair valuation of Investments.

32. During the year, the Company availed moratorium on payment of instalments/interest fallen due, from 1^st April, 2020 to 31^st August, 2020 as allowed in the RBI Notification RBI/2019-20/186: DOR.No. BP.BC.47/21.04.048/2019-20 dated 27^th March, 2020 and RBI/2019-20/244:DOR No. BP. BC.71/21.04.048/2019-20 dated 23^rd May, 2020 on ''COVID-19- Regulatory Package''. Due to availment of said moratorium, Company had deferred term loan repayments by '' 6853 lakhs and interest outgo by '' 2375 lakhs in FY 2020-21.

33. Other Income (Note 26) includes Miscellaneous income of '' 1142 lakhs on account of Sales Tax Refund to be received on the purchase of natural gas in the preceding years. The High Court of Mumbai vide interim order dated 17^th December, 2020 directed State of Maharashtra to issue C-forms to the Company on the basis of which the Company can claim refund of additional tax from Vendors. However, after decision of Supreme Court of India vide its order dated 24^th March, 2021 in similar case of THE COMMISSIONER OF COMMERCIAL TAXES & ANR ETC. VS. THE RAMCO CEMENTS Limited ETC. the realisation of above income is virtually certain.

35. Disclosure as per Ind AS 19 ''Employee Benefits''

a) Defined Contribution Plans:

The Company pays fixed contribution to funds below at predetermined rates to appropriate authorities:

i) Provident Fund

An amount of '' 862 lakhs (previous year: '' 852 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.

ii) Superannuation Fund

An amount of '' 28 lakhs (previous year: '' 31 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.

iii) Employee State Insurance/ Labour Fund

An amount of '' 21 lakhs (previous year: '' 22 lakhs) for the year is recognised as expense on this account and charged to the Statement of Profit and Loss.

b) Defined Benefit Plans:

The Company operates post retirement defined benefit plan for gratuity which is funded.

For details about the related employee benefits plan, See Note 1B(m) of Statement of Accounting Policies.

i) Reconciliation of the Net Defined Benefit Liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components

i) The Company''s Operating Segments are established on the basis of the information that is evaluated by the âChief Operating Decision Maker" as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance. The segments have been identified taking into account nature of products and services, production processes, risks and returns and the internal business reporting systems.

ii) For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass. These divisions are the basis on which the company reports its primary segment information.

iv) Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and logistics department.

These transfers are eliminated on consolidation.

vi) There are no non current assets located outside India.

vii) Revenue derived from a single external customer amounting to more than 10% of the entity''s revenue attributable to Automotive glass segment '' 34645 lakhs (Previous Year '' 38713 lakhs)

41. Financial Risk Management

The Company is exposed to the following risks from its use of financial instruments:

- Credit Risk

- Liquidity Risk

- Foreign Currency Risk

- Interest Rate Risk

a) Credit Risk

b) Liquidity Risk

c) Foreign Currency Risk

i) forward foreign exchange contracts for foreign currency risk mitigation

ii) foreign currency interest rate swaps to mitigate foreign currency and interest rate risk on foreign currency loan.

d) Interest Rate Risk

The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (eg. fixed, floating, rupee, foreign currency, etc.).

Fair Value Sensitivity Analysis for Fixed-Rate Instruments

Cash Flow Sensitivity Analysis for Variable-Rate Instruments

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

There have been no transfers in either direction for the years ended 31^st March, 2021 and in previous year.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants.

43. Capital Management

The Company''s objectives when managing capital are to:

â¢ safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for other Stakeholders and

â¢ maintain an appropriate capital structure of debt and equity.

49. The Company has considered the possible effects that may result from pandemic relating to COVID-19 on the carrying amounts of receivables, inventories, property, plant & equipment and intangible assets. In developing the assumptions relating to the possible future un-certainties in the global economic conditions, the Company has, at the date of approval of these financial statements, used internal and external sources of information, including economic forecasts and estimates from market sources, on the expected future performance of the Company. On the basis of evaluation and current indicators of future economic conditions, the Company expects to recover the carrying amounts of these assets and does not anticipate any impairment of these financial and non-financial assets. However, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions.

50. Amount in the Financial Statements are presented in '' lakhs except for per share data and as other-wise stated. Previous years figures have been regrouped/rearranged wherever considered necessary.

Mar 31, 2018

IA. Corporate Information

Asahi India Glass Limited (âthe Companyâ) is a public limited Company incorporated in India with its Registered Office at Delhi and is listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Company is engaged interalia, in the business of manufacturing of Auto Glass, Float Glass and other value added Glasses.

(B) Standards Issued but not yet Effective:

With effect from 1st April, 2018, Ind AS 115 will supersede the current revenue recognition standards including Ind AS 18 âRevenueâ, Ind AS 11 âConstruction Contractsâ and the related interpretations. Ind AS 115 provides a five step criteria of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations. Further the Ministry of Corporate Affairs has amended Ind AS 12, Ind AS 21, Ind AS 40 and Ind AS 112 etc. . The Company does not expect any material effect on its Financial Statements due to above amendments effective from 1st April, 2018.

(d) Dividends:

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of Shareholders in the ensuing General Meeting except in case of interim dividend.

1. Exceptional item of Rs.488 lakhs (31 March, 2017: Rs.158 lakhs) represents expenses on account of compensation to employees.

2. DISCLOSURE AS PER IND AS 17 LEASESâ

The Company has taken offices, warehouses and residential facilities under cancellable operating lease agreements. The lease agreements are usually renewed by mutual consent on mutually agreeable terms. Total rental expenses under such leases amount to Rs. 830 lakhs (31 March, 2017: Rs. 749 lakhs)

3. DISCLOSURE AS PER IND AS 12 INCOME TAXESâ

(a) Income Tax Expense

i) Income Tax Recognized in Statement of Profit and Loss

ii) Income Tax Recognized in Other Comprehensive Income

iii) Reconciliation of Tax Expense and the Accounting Profit Multiplied by Indiaâs Domestic Tax Rate

(b) Proposed Dividend and Dividend Distribution Tax on Proposed Dividend not recognized at the end of the Reporting Period

Since year end, the directors have recommended the payment of final dividend amounting to Rs. 3646 lakhs (31st March, 2017: Rs. 2431 lakhs). The dividend distribution tax on this proposed dividend amounting to Rs. 749 lakhs (31st March, 2017: Rs. 495 lakhs) has not been recognized since this proposed dividend is subject to the approval of Shareholders in the ensuing Annual General Meeting.

4. DISCLOSURE AS PER IND AS 19 EMPLOYEE BENEFITSâ

(a) Defined Contribution Plans:

The Company pays fixed contribution to below funds at predetermined rates to appropriate authorities:

i. Provident Fund

An amount of Rs. 883 lakhs (31st March, 2017: Rs. 811 lakhs) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

ii. Superannuation Fund

An amount of Rs. 29 lakhs (31st March, 2017: Rs. 35 lakhs) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

iii. Employee State Insurance/ Labour Fund

An amount of Rs. 41 lakhs (31st March, 2017: Rs. 54 lakhs) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

(b) Defined Benefit Plans:

The Company operates post retirement defined benefit plan for gratuity which is funded.

For details about the related employee benefits plan, See Note 1B(m) of Statement of Accounting Policies.

(i) Reconciliation of the Net Defined Benefit Liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components

(ii) Reconciliation of Plan Assets

The following table shows a reconciliation from the opening balances to the closing balances for fair value of plan assets and its components -

(iii) Reconciliation of Fair Value of Assets and Obligation

(iv) Expense Recognized in Profit or Loss

(v) Re-Measurements Recognized in Other Comprehensive Income

(vi) Actuarial Assumptions

Principal Actuarial Assumptions at the Reporting Date (Expressed as Weighted Averages):

(vii) Sensitivity Analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Although the analysis does not take into account of the full distribution of cash flows expected under the plan, it does not provide an approximation of the sensitivity of the assumptions shown.

(viii) Maturity Profile

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan based on past service of the employees as at the valuation date:

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit liability and its components

5. DISCLOSURE AS PER IND AS 24 RELATED PARTY DISCLOSURESâ

a) List of Related Parties:

i) Subsidiaries:

1) AIS Glass Solutions Limited

2) Integrated Glass Materials Limited

3) GX Glass Sales & Services Limited

ii) Associates:

1) AIS Adhesives Limited

2) AIS Distribution Services Limited

3) Scopfy Components Private Limited

iii) Subsidiary of an Associate:

1) Timex Group Precision Engineering Limited

iv) Enterprises owned or significantly influenced by KMPs or their Relative:

1) Shield Autoglass Limited

2) Samir Paging Systems Limited

3) R.S.Estates (P) Limited

4) Nishi Electronics (P) Limited

5) Maltex Malsters Limited

6) Essel Marketing (P) Limited

7) Allied Fincap Services Limited

8) Usha Memorial Trust

9) Niana

v) key Managerial Personnel (KMP) and their Relative:

1) Mr. B. M. Labroo Chairman

2) Mr. Sanjay Labroo Managing Director and CEO

3) Mr. Masaru Omae Dy. Managing Director and CTO (Till 13th Feb, 18)

4) Mr. Satoshi Ogata Dy. Managing Director and CTO (From 13th Feb, 18)

5) Mr. Eisuke Shiozaki Non Executive Director

6) Mr. Gautam Thapar Non Executive Director

7) Mr. Gurvirendra Singh Talwar Non Executive Director

8) Mr. Masahiro Takeda Non Executive Director

9) Mr. Rahul Rana Non Executive Director

10) Ms. Shradha Suri Non Executive Director

11) Dr. Satoshi Ishizuka Non Executive Director

12) Mr. Shailesh Agarwal Chief Financial Officer

13) Mr. Gopal Ganatra Company Secretary

14) Mrs. Kanta Labroo Relative

vi) Others:

1) Asahi Glass Co. Ltd., Japan

6. FIRST TIME ADOPTION OF IND AS

These Financial Statements for the year ended 31st March, 2018 have been prepared in accordance with Ind AS adopted with effect from 1st April, 2017 with comparatives being restated. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101, âFirst Time Adoption of Indian Accounting Standardsâ, with 1st April, 2016 as the transition date and IGAAP as the previous GAAP. Accordingly the impact of transition has been provided in the opening reserves as at 1st April, 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirements of Ind AS and Schedule III.

The transition to Ind AS has resulted in changes in the presentation of the Financial Statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 1 have been applied in preparing the Financial Statements for the year ended 31st March, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs Balance Sheet and Statement of Profit and Loss is set out in the following tables and notes. Exemptions on the first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out as below:

(1) Exemptions and Exceptions Availed: (i) Exemptions from Retrospective Application

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind As. The Company has applied the following exemptions:

(a) Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

Pursuant to this the goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition.

(b) Fair Value as Deemed Cost

Property, Plant and Equipments have been measured at fair value at the date of transition to Ind AS as deemed cost. However, the Company has elected to measure intangible assets at its carrying value and use that as its deemed cost at the above date.

The Company continues the policy of capitalizing exchange differences/accumulation in Foreign Currency Monetary Items Translation Difference Account arising on translation of long term foreign currency monetary items prior to 1st April, 2017.

(d) Investment in Subsidiaries and Associates

The Company has elected to measure investment in subsidiaries and associates at cost.

(ii) Exceptions to Retrospective Application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101 âFirst Time Adoption of Indian Accounting Standards.â

(a) Estimates

On assessment of estimates made under the previous GAAP Financial Statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS as there is no objective evidence of an error in those estimates.

(b) Classification and Measurement of Financial Assets

The classification of the financial assets to be measured at amortized cost or fair value through Other Comprehensive Income is made on the basis of facts and circumstances that existed on the date of transition to Ind AS.

(iii) Transition to Ind AS- Reconciliations

The following reconciliations provide the explanation of the difference arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101 âFirst Time Adoption of Indian Accounting Standards.â

(a) Effect of Ind AS adoption on the Balance Sheet as at 1st April, 2016 and 31st March, 2017.

(b) Effect of Ind AS adoption on Statement of Profit and Loss for the year ended 31st March, 2017.

(d) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017.

(e) Reconciliation of Statement of Cash Flows for the year ended 31st March, 2017.

(a) Effect of Ind AS adoption on the Balance Sheet as at 1st April, 2016 and 31st March, 2017

(f) Notes to First-Time Adoption:

(i) Property, Plant and Equipment

The Company has considered the fair value of Property, Plant and Equipment at the date of transition as its deemed cost in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.

(ii) Borrowings

Under Ind AS, loan processing fees/transaction costs are considered for calculating effective interest rate. The impact on the date of transition has been accounted for in the reserves and subsequent to the transition is reflected in the Statement of Profit and Loss.

(iii) Investments in Equity Instruments

Under previous GAAP, investments in equity instruments were carried at cost less provision for other than temporary diminution in the value of such investments. Under Ind AS, investment have been classified as âMeasured at Fair Value through Other Comprehensive Income (FVOCI). Changes in fair value are recognized directly in the Other Comprehensive Income. However the Company has elected to carry investments in subsidiaries and associates at cost.

(iv) Sales

(a) Excise Duty

Under previous GAAP, sales were presented net of Excise Duty. Under Ind AS, sales are reported inclusive of Excise Duty. Excise Duty is presented as a separate expense line item in the Statement of Profit and Loss.

(b) Cash Discount

Under previous GAAP, cash discounts were reported as part of Other Expenses in the Statement of Profit and Loss. Under Ind AS, these have been netted off from sales.

(v) Re-measurement of Defined Benefit Plans

Under previous GAAP re-measurements i.e actuarial gains/losses formed part of expense and were recognized in the Statement of Profit and Loss. Under Ind AS actuarial gains/losses are recognized in Other Comprehensive Income

(vi) Proposed Dividend

Under previous GAAP dividend proposed by the Board of Directors after the Balance Sheet date but before the approval of Financial Statements were considered as an adjusting event. Accordingly provision for proposed dividend (including dividend distribution tax) was recognized as liability in the same year to which it pertained. Under Ind AS, such dividend is recognized when the same is approved by the Shareholders in the Annual General Meeting.

(vii) Cash and Cash Equivalents

Under previous GAAP, book overdrafts were presented as part of âCash Flows from Operating Activitiesâ in the Statement of Cash Flows. Under Ind AS, book overdrafts are included as a component of âCash and Cash Equivalentsâ in the Statement of Cash Flows.

(viii) Deferred Taxes

Under previous GAAP, deferred taxes were accounted for on the basis of income statement approach which required creation of deferred tax on temporary differences between taxable income and accounting income. Under Ind AS, deferred taxes are accounted on the basis of the Balance Sheet approach which requires creation of deferred tax on temporary differences between the carrying amount of an asset/liability in the Balance Sheet and its corresponding tax base. Application of Ind AS has also resulted in recognition of deferred taxes on new temporary differences arising due to adjustment made on transition to Ind AS.

Notes -

i. The Companyâs Operating Segments are established on the basis of the information that is evaluated by the âChief Operating Decision Makerâ as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance. The segments have been identified taking into account nature of products and services, production processes, risks and returns and the internal business reporting systems.

ii. For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass. These divisions are the basis on which the company reports its primary segment information.

iii. All segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, trade receivables, loans and advances and operating cash and bank balances. Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as unallocable.

iv. Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and logistics department. These transfers are eliminated on consolidation.

v. Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income on inter corporate deposit and interest expense.

vi. There are no non current assets located outside India.

vii. Revenue derived from a single external customer amounting to more than 10% of the entityâs revenue attributable to Automotive glass segment Rs.56378 lakhs (Previous Year: Rs.54130 lakhs)

7. FINANCIAL RISK MANAGEMENT

The Companyâs activities expose it to foreign currency risk, liquidity risk, interest rate risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency/commodity swaps are entered into by the Company to hedge certain foreign currency and commodity exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.

The Company is exposed to the following risks from its use of financial instruments:

- Credit Risk

- Liquidity Risk

- Foreign Currency Risk

- Interest Rate Risk

(a) Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations. To manage trade receivable, the Company periodically assess the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.

(i) Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

(ii) Ageing Analysis of Trade Receivables

The ageing analysis of the trade receivables is as below:

(iii) Reconciliation of Impairment Loss Provisions

The movement in the allowance for impairment in respect of financial assets during the year was as follows:

Based on historic default rates, the Company believes that, apart from the above, no impairment allowance is necessary in respect of any other assets as the amounts are insignificant.

(b) Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

(i) Financing Arrangements

The Company has access to the following undrawn borrowing facilities at the end of the reporting period:

(ii) Maturities of Financial Liabilities

The following are the contractual maturities of derivative and non-derivative financial liabilities, based on contractual cash flows:

a) forward foreign exchange contracts for foreign currency risk mitigation

b) foreign currency interest rate swaps to mitigate foreign currency and interest rate risk on foreign currency loan.

The currency profile of financial assets and financial liabilities as at 31st March, 2018, 31st March, 2017 and 1st April, 2016 are as below:

Sensitivity Analysis

The Company is mainly exposed to JPY, USD and EURO.

The following table provides details of the Companyâs sensitivity to a 2% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for a 2% change in foreign currency rates. The sensitivity analysis includes external loans. A positive number below indicates an increase in profit or equity and vice-versa.

(d) Interest Rate Risk

Fair Value Sensitivity Analysis for Fixed-Rate Instruments

The Companyâs fixed rate instruments are carried at amortized cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash Flow Sensitivity Analysis for Variable-Rate Instruments

(b) Fair Value Hierarchy

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

There have been no transfers in either direction for the years ended 31st March, 2018, 31st March, 2017 and 1st April, 2016.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants.

The carrying amounts of short term trade receivables, trade payables, creditors for capital goods and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature. For financial asset & liabilities that are measured at fair value, the carring amounts are equal to the fair value.

8. CAPITAL MANAGEMENT

The Companyâs objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for other Stakeholders and

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as result from operating activities divided by total Shareholdersâequity. The Board of Directors also monitors the level of dividends to Equity Shareholders.

The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of long term and short term borrowings less cash and cash equivalent. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of the reporting period was as follows:

9. DETAILS OF INVESTMENTS MADE, LOANS AND ADVANCES GIVEN AND GUARANTEES GIVEN COVERED UNDER SECTION 186 (4) OF The COMPANIES ACT, 2013:

i) Advances given and Investments made are given under the respective heads.

ii) Corporate Guarantees given by the Company in respect of loans/credit facilities/other business purposes extended to following companies :

10. DISCLOSURE AS REQUIRED BY SCHEDULE V OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015:

Loans and Advances in the Nature of Advances:

(i) To Subsidiary Companies

(ii) To Firms/Companies in which directors are interested

11. CORPORATE SOCIAL RESPONSIBILITY EXPENSES (CSR)

As per Section 135 of the Companies Act, 2013 read with Schedule VII thereof, the Company is required to spend, in every financial year, at least two per cent of the average net profits made during the three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:

12. In accordance with Ind AS 18 on âRevenueâand Schedule III to Companies Act, 2013 sales for the previous year ended 31st March, 2017 and for the period 1st April, 2017 to 30th June, 2017 were reported gross of Excise Duty and net of value added tax (VAT). Excise Duty was reported as a separate expenditure line item. Consequent to the introduction of Goods and Service Tax (GST) w.e.f. 1.7.2017, VAT, Excise Duty etc. have been absorbed in the GST and accordingly the same is not recognized as part of sales as per requirements of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly Financial Statements for the year ended 31st March, 2018 are not comparable with the figures of the previous year.

13. Remuneration to Deputy Managing Director and C.T.O. appointed during the year is subject to approval of members in the ensuing Annual General Meeting.

14. Amount in the Financial Statements are presented in Rs. lakhs except for per share data and as other-wise stated. Previous years figures have been regrouped/rearranged wherever considered necessary.

Mar 31, 2017

The Company has only one class of issued shares referred to as equity shares having a par value of Rs.1 each. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of Shareholders in the ensuing General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

Notes:- 1) Buildings include cost of shares of Rs.500 (Previous Year Rs.500) in a Co-operative Society.

2) Electrical Installations and Fittings (Gross Block) include Rs.334 lakhs (Previous Year Rs.334 lakhs) paid to State Electricity Board not represented by physical assets owned by the Company.

3) Other Adjustments (Gross Block) include decrease in rupee liability Rs.21 lakhs, Rs.44 Lakhs and Rs.4 lakhs (Previous Year increase Rs.315 lakhs, Rs.718 lakhs, and Rs.44 lakhs) in respect of differences in foreign exchange rates in Buildings, Plant and Machinery and Electrical Installations and Fittings respectively.

4 The Company has taken offices, warehouses and residential facilities under cancellable operating lease agreements. The lease agreements are usually renewed by mutual consent on mutually agreeable terms. Total rental expenses under such leases amount to Rs.749 lakhs (Rs.651 lakhs).

5 DISCLOSURE AS PER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED)

Note: The information has been given in respect of such vendors to the extent they could be identified as Micro and Small Enterprise as per MSMED on the basis of information available with the Company relied upon by the Auditors.

6 CORPORATE SOCIAL RESPONSIBILITIES (CSR)

a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs.98 lakhs (Previous Year Nil).

b) Expenditure related to CSR is Rs.279 lakhs (Previous Year Rs.146 lakhs) as per details given below:

7 The Company has not considered necessary to provide for diminution in investment in equity shares of AIS Glass Solutions Ltd., GX Glass Sales and Services Ltd. and Integrated Glass Materials Ltd., Subsidiary Companies, as investment is long term and diminution in value is temporary.

8 The balance of Rs.67 lakhs (Rs.543 lakhs) in ''Foreign Currency Monetary Item Translation Difference Account'' is after adjustment of Rs.458 lakhs (Rs.1171 lakhs) recognized as expense for the year pursuant to option exercised by the Company in line with Notification No. G.S.R. 225(E) dated 31st March, 2009 and subsequent clarification via Circular No. 25/2012 dated 09th August, 2012 issued by the Ministry of Corporate Affairs, Government of India.

9 Exceptional item of Rs.158 lakhs (Rs.204 lakhs) represents expenses on account of compensation to employees and related payments.

10 Some of the Sundry Creditors, Trade Receivables and Advances are subject to confirmation / reconciliation.

11 Details of investments made, loans and advances given and guarantees given covered under Section 186 (4) of the Companies Act, 2013.

i) Advances given and Investments made are given under the respective heads.

ii) Corporate Guarantees given by the Company in respect of loans/credit facilities/other business purposes extended to following companies :

12 a) The Company use foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

13 RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD (AS)-18

a) List of Related Parties

i) Subsidiaries: AIS Glass Solutions Ltd., Integrated Glass Materials Ltd., GX Glass Sales and Services Ltd.

ii) Associates: AIS Adhesives Ltd., AIS Distribution Services Ltd.

iii) Enterprises owned or significantly influenced by key management personnel or their relatives:

Shield Autoglass Ltd., Samir Paging Systems Ltd., R.S.Estates (P) Ltd., Nishi Electronics (P) Ltd., Maltex Malsters Ltd., Essel Marketing (P) Ltd., Allied Fincap Services Ltd., Usha Memorial Trust, Niana

iv) Key Management Personnel and their relatives:

Directors : Mr. B. M. Labroo, Mr. Sanjay Labroo, Mr. Masaru Omae

Relatives : Mrs. Kanta Labroo

v) Other related Parties where control exists : Asahi Glass Co. Ltd., Japan

Note : Related party relationship is as identified by the Company on the basis of available information and legal opinion obtained by the Company and accepted by the Auditors as correct.

i) For management purposes, the Company is organized into two major operating divisions - Automotive Glass and Float Glass. These divisions are the basis on which the company reports its primary segment information.

ii) All segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, trade receivables, loans and advances and operating cash and bank balances. Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Segment assets and liabilities do not include investments, inter corporate deposits, miscellaneous expenditure, current income tax and deferred tax.

iii) Segment revenues and segment results include transfers between business segments. Inter segment sales to Automotive Glass Division are accounted for at cost of production plus 10%. These transfers are eliminated on consolidation.

iv) Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income on inter corporate deposit and interest.

14 Previous Year''s figures have been regrouped/rearranged, wherever found necessary. Figures in brackets above are in respect of Previous Year.

15 Figures have been rounded off to Rs .lakhs.

Mar 31, 2014

NOTE 1. The Company has taken offices, warehouses and residential facilities under cancellable operating lease agreements. The lease agreements are usually renewed by mutual consent on mutually agreeable terms. Total rental expenses under such leases amount to Rs. 455 Lakhs (Rs. 425 Lakhs).

NOTE 2. There are no delays in payments to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

NOTE 3. Some of the Sundry Creditors, Trade Receivables and Advances are subject to confirmation/reconciliation.

NOTE 4. The Company has not considered necessary to provide for diminution in investment in equity shares of Subsidiary Companies AIS Glass Solutions Ltd. and GX Glass Sales & Services Ltd. as investment is long term and diminution in value is temporary.

NOTE 5. The balance of Rs. 1186 Lakhs (Rs. 1310 Lakhs) in ''Foreign Currency Monetary Item Translation Difference Account'' is after adjustment of Rs. 1565 Lakhs (Rs. 744 Lakhs) recognised as expense for the year pursuant to option exercised by the Company in line with Notification No. G.S.R. 225(E) dated March 31, 2009 and subsequent clarification via Circular No. 25/2012 dated August 9, 2012 issued by the Ministry of Corporate Affairs Government of India.

NOTE 6. The remuneration to the Managing Director has been approved by shareholders of the Company up to ceiling of Rs. 75 Lakhs. However, owing to losses during the year, remuneration paid of Rs. 31 Lakhs is in excess of limits as per Schedule XIII of The Companies Act, 1956. An application to the Central Government for approval of such excess remuneration up to the ceiling approved by shareholders is being made by the Company.

NOTE 7. a) The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

NOTE 8. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD (AS)-18 a) List of Related Parties

i) Subsidiaries : AIS Glass Solutions Limited, Integrated Glass Materials Limited, GX Glass Sales & Services Limited

ii) Associates : AIS Adhesives Ltd., Asahi India Map Auto Glass Ltd., Vincotte International India Assessment Services (P) Ltd.

iii) Enterprises owned or significantly influenced by key management personnel or their relatives :

Shield Autoglass Ltd., Samir Paging Systems Ltd., R. S. Estates (P) Ltd., Nishi Electronics (P) Ltd., Maltex Malsters Ltd., Essel Marketing (P) Ltd., Allied Fincap Services Ltd., Usha Memorial Trust, Krishna Maruti Ltd.

iv) Key management personnel and their relatives :

Directors : Mr. B. M. Labroo, Mr. Sanjay Labroo, Mr. H. Nohara, Relatives : Mrs. Kanta Labroo

v) Other related parties where control exists :

Asahi Glass Co. Limited, Japan and its subsidiaries - AGC Flat Glass Asia Pacific Pte. Ltd., AGC Technology Solutions Co. Ltd., AGC Bor Glass Works OJSC, AGC Automotive Phillipines Inc., PT Asahimas Flat Glass Co., Ltd., AGC Automotive Thailand Co., Ltd., AGC Flat Glass Hellas SA, AGC Automotive China Co., Ltd. AGC Flat Glass Coating SA, AGC Glass Europe (Formerly AGC Flat Glass Europe), AGC Flat Glass Nederland BV, AGC Automotive (Foshan) Co., Ltd. AGC Flat Glass North America Ltd., AGC Flat Glass Klin LLC, AGC Flat Glass - (Vastok LLC) - Russia,

NOTE 9. CONTINGENT LIABILITIES AND COMMITMENTS (To the extent not provided for)

Rs. Lakhs

As At 31st March, 2014 As At 31st March, 2013

CONTINGENT LIABILITIES

a) Claims against the Company not acknowledged as Debts

i) Excise, Custom duty and Service Tax 1566 1509 (including excise duty liability of Rs. 311 Lakhs (Rs. 311 Lakhs) settled by Settlement Commission deleted by Delhi High Court against which SLP of Excise Department has been accepted by Supreme Court of India)

ii) Disputed Income Tax 13 380

iii) Disputed Sales Tax Demand 1371 1159

iv) Others 229 22

b) Guarantees

i) Bank Guarantees and Letters of Credit outstanding 5237 6261

ii) Corporate Guarantees 2438 2465

c) Other Money for which the Company is contingently liable

Channel Financing from Bank 1476 687

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 434 Lakhs (Rs. 196 Lakhs).

NOTE 10. There are no delays in payments to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company and its subsidiaries. Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

NOTE 11.The balance of Rs. 1186 Lakhs (Rs. 1310 Lakhs) in ''Foreign Currency Monetary item Translation Difference Account'' is after adjustment of Rs. 1565 Lakhs (Rs. 744 Lakhs) recognised as expense for the period pursuant to option exercised by the Company given in Paragraph 46A of Accounting Standard (AS)-11 ÂThe Effects of Changes in Foreign Exchange Rates" inserted by the Notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs, Government of India.

NOTE 12. Previous year''s figures have been regroupe/rearranged, wherever found necessary. Figures in the brackets above are in respect of the previous year.

NOTE 13. Figures have been rounded off to Rs. Lakhs.

Mar 31, 2013

NOTE 1. The Company has taken offices, warehouses and residential facilities under cancellable operating lease agreements. The lease agreements are usually renewed by mutual consent on mutually agreeable terms. Total rental expenses under such leases amount to Rs. 425 Lakhs (Rs. 417 Lakhs).

NOTE 2. There are no delays in payments to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). The information regarding Micro and Small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

NOTE 3. Some of the Sundry Creditors, Trade Receivables and Advances are subject to confirmation/reconciliation.

NOTE 4. During the year, the Company decided to increase the issued capital by allotment of further equity shares on right basis (Rights Issue) and accordingly Board approved issuance of such shares in their Meeting held on October 10, 2012. The "Draft Letter of Offer" was filed with SEBI on February 8, 2013 against which the Company received interim observations from SEBI and filed reply to them.

In March 2013, the Company received advance subscription of Rs. 5000 lakhs against share application money from one of the promoters in the proposed Rights Issue towards its entitlement. The said advance against share application money is being used towards the objects of the proposed Rights Issue. The terms and conditions, number of shares proposed to be issued and the amount of premium etc. will be ascertained on receipt of approval from SEBI.

NOTE 5. The Company has not considered necessary to provide for diminution in value of equity shares of Subsidiary Companies AIS Glass Solutions Ltd., GX Glass Sales & Services Ltd. and Integrated Glass Materials Ltd. as investment is long term and diminution in value is temporary.

NOTE 6. The balance of Rs. 1310 Lakhs (Rs. 1180 Lakhs) in ''Foreign Currency Monetary Item Translation Difference Account'' is after adjustment ofRs. 744 Lakhs (Rs. 428 Lakhs) recognised as expense for the year pursuant to option exercised by the Company given in Paragraph 46A of Accounting Standard (AS) -11 "The Effects of Changes in Foreign Exchange Rates" inserted by the notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs, Government of India.

NOTE 7. The remuneration to the Managing Director has been approved by shareholders of the Company up to ceiling of Rs. 75 Lakhs. However, owing to losses during the year, remuneration paid of Rs. 68 Lakhs is in excess of limits as per Schedule XIII of The Companies Act, 1956. The Company has made an application to the Central Government for approval of such excess remuneration up to the ceiling approved by shareholders.

NOTE 8. a) The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

NOTE 9. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD (AS) - 18 a) List of Related Parties

i) Subsidiaries : AIS Glass Solutions Limited, Integrated Glass Materials Limited, GX Glass Sales & Services Limited

ii) Associates : AIS Adhesives Ltd., Asahi India Map Auto Glass Ltd., Vincotte International India Assessment Services (P) Ltd.

iii) Enterprises owned or significantly influenced by key management personnel or their relatives:

Shield Autoglass Ltd., Samir Paging Systems Ltd., R. S. Estates (P) Ltd., Nishi Electronics (P) Ltd., Maltex Malsters Ltd., Essel Marketing (P) Ltd., Allied Fincap Services Ltd., Usha Memorial Trust, Krishna Maruti Ltd.

iv) Key management personnel and their relatives:

Directors : Mr. B. M. Labroo, Mr. Sanjay Labroo, Mr. H. Nohara,

Relatives : Mrs. Kanta Labroo

v) Other related parties where control exists : Asahi Glass Co. Limited, Japan and its subsidiaries (except subsidiaries with whom no transactions took place) - AGC Flat Glass Asia Pacific Pte. Ltd., AGC Technology Solutions Co., Ltd., AGC Automotive Europe SA, AGC Automotive Phillipines Inc., PT Asahimas Flat Glass Co., TBK., AGC Automotive Thailand Co., Ltd., AGC Flat Glass Hellas SA, AGC Flat Glass Coating SA, AGC Glass Europe (Formerly AGC Flat Glass Europe), AGC Flat Glass Nederland BV, AGC Automotive (Foshan) Co., Ltd.

NOTE 10. Previous year''s figures have been regrouped/rearranged, wherever found necessary. Figures in brackets above are in respect of previous year

NOTE 11. Figures have been rounded off to Rs. Lakhs.

Mar 31, 2012

1. CONTINGENT LIABILITIES AND COMMITMENTS

(To the extent not provided for) Rs. Lakhs

As At As At 31st March, 2012 31st March, 2011

Contingent Liabilities

a) Claims against the Company not acknowledged as debts (excluding interest and penalty which may be payable on such claims)

i) Excise and Custom duty (including referred in Note 33) 1328 1347

ii)Disputed Income Tax 387 367

iii) Disputed Sales Tax Demand 1091 987

b) Guarantees

i) Bank Guarantees and Letter of Credit Outstanding 3051 3028

ii)Corporate Guarantees [including Rs. 6568 Lakhs (Rs. 4652 Lakhs) for subsidiaries] 8201 7106

c) Other money for which the Company is contingently liable Channel Financing from Bank 947 933

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 208 Lakhs (Rs. 3072 Lakhs).

2. Some of the Sundry Creditors, Trade Receivables and Advances are subject to confirmation/reconciliation.

3. In a previous year, in Auto SBU of the Company, Custom and Central Excise Settlement Commission settled Excise Duty Liability at Rs. 368 Lakhs (excluding interest) out of which the Company had accepted liability of Rs. 56 Lakhs and paid the same along with interest of Rs. 20 Lakhs. The matter was decided in favour of the Company by the High Court of Delhi against which SLP of the Excise Department has been accepted by the Supreme Court of India.

4. The Company has not considered necessary to provide for diminution in value of equity shares of Subsidiary Companies AIS Glass Solutions Ltd., GX Glass Sales & Services Ltd. and Integrated Glass Materials Ltd. as investment is long term and diminution in value is temporary.

5. The Company has exercised the option given in paragraph 46A of Accounting Standard (AS)-11 "The Effects of Changes in Foreign Exchange Rates" inserted by the Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs, Government of India and accordingly the exchange differences arising on reporting of long term foreign currency monetary items relating to the acquisition of depreciable capital assets are adjusted to the cost of the assets to be depreciated over the balance life of the asset and in other cases accumulated in "Foreign Currency Monetary Items Translation Difference Account" and amortised over the balance period of such long term foreign currency monetary items.

Out of Foreign Currency Monetary Item Translation Difference Account of Rs. 1608 Lakhs, an amount of Rs. 428 Lakhs has been amortised. Pursuant to such adoption of the option, the loss for the year is lower by Rs. 1180 Lakhs.

6. The remuneration to the Managing and Other Directors is approved by the shareholders of the Company. However owing to the losses during the year such remuneration was not determinable on the date of such approval. The remuneration so approved and paid is in excess of the ceiling limits in Schedule XIII of the Companies Act, 1956. An application is being made to the Central Government for approval of excess remuneration of Rs. 26 Lakhs (Previous year Nil).

7. a) The Company uses foreign currency forward contracts to

hedge its risks associated with foreign currency fluctuations. The Company does not use forward contracts for speculative purposes.

8. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD (AS) - 18 a) List of Related Parties

i) Subsidiaries : AIS Glass Solutions Limited, Integrated Glass Materials Limited, GX Glass Sales & Services Limited

ii) Associates : AIS Adhesives Ltd., Asahi India Map Auto Glass Ltd., Vincotte International India Assessment Services (P) Ltd.

iii) Enterprises owned or significantly influenced by key management personnel or their relatives :

Shield Autoglass Ltd., Samir Paging Systems Ltd., R. S. Estates (P) Ltd., Nishi Electronics (P) Ltd., Maltex Malsters Ltd., Essel Marketing (P) Ltd., Allied Fincap Services Ltd., Usha Memorial Trust, Krishna Maruti Ltd.

iv) Key Management Personnel and their relatives :

Directors : Mr. B. M. Labroo, Mr. Sanjay Labroo, Mr. Arvind Singh, Mr. K. Nakagaki, Mr. H. Nohara Relatives : Mrs. Kanta Labroo, Mrs. Vimmi Singh

v) Other related parties where control exists : Asahi Glass Co. Limited, Japan and its subsidiaries - AGC Flat Glass Asia Pacific Pte. Ltd., AGC Technologies Solutions Ltd., Asahi Glass Phillipines Inc., Glavermas Pte Ltd., Asahi Glass Ceramics Co. Ltd., P. T. Asahimas Flat Glass TBK Indonesia, AGC Automotive Thailand Co. Ltd., AGC Flat Glass - Hellas, AGC Flat Glass - Russia, AGC Flat Glass Coating S. A., AGC Technology Systems Solution Company, AGC Flat Glass North America Inc., AGC Flat Glass Europe S. A., AGC Flat Glass Nederland BV, AGC Automotive Foshan, AGC Automotive Replacement Glass, Asahi Glass Machinery Co. Ltd., Asahi Flat Glass Asia Europe S. A.

Notes :

i) For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass. These divisions are the basis on which the Company reports its primary segment information.

ii) All segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, trade receivables, loans and advances and operating cash and bank balances. Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Segment assets and liabilities do not include investments, inter corporate deposits, miscellaneous expenditure, current income tax and deferred tax.

iii) Segment revenues and segment results include transfers between business segments. Inter segment sales to Automotive Glass Division are accounted for at cost of production plus 10%. These transfers are eliminated on consolidation.

iv) Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income on inter corporate deposit and interest.

10. Previous year's figures have been regrouped/rearranged, wherever found necessary. Figures in brackets above are in respect of previous year.

11. Figures have been rounded off to Rs. Lakhs.

Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 3072 Lakhs (Rs. 1026 Lakhs) (net of advances).

2. Contingent Liabilities for :

Rs. Lakhs

Particulars AS At 31st March 2011 As At 31st March, 2010

a) Bank guarantees and letters of credit outstanding 3028 2646

b) Claims against the Company not acknowledged as debts (excluding interest and penalty which may be payable on such claims)

i) Excise and custom duty (including referred in Note No. 10) 1347 2784

ii) Disputed Income Tax and Wealth Tax Demands 367 10

iii) Corporate Guarantees (including Rs. 4652 Lakhs (Rs. 3952 Lakhs) for subsidiaries) 7106 5168

iv) Channel Financing from Bank 933 1154

v) Disputed Sales Tax Demands 987 968

b) The Company operates post retirement defined benefit plan for retirement gratuity which is funded.

3. The Company has taken offices, warehouses and residential facilities under cancellable operating lease agreements. The lease agreements are usually renewed by mutual consent on mutually agreeable terms. Total rental expenses under such lease amount to Rs. 379 Lakhs (Rs. 311 Lakhs).

4. Some of the Current Liabilities, Sundry Debtors and Advances are subject to confirmation/reconciliation.

5. In a previous year, in Auto SBU of the Company, Custom and Central Excise Settlement Commission settled Excise Duty Liability at Rs. 368 Lakhs (excluding interest) out of which the Company had accepted liability of Rs. 56 Lakhs and paid the same along with interest of Rs. 20 Lakhs. The matter was decided in favour of the Company by the High Court of Delhi against which SLP of the Excise Department has been accepted by the Supreme Court of India.

6. The Company has not considered necessary to provide for diminution in value of equity shares of subsidiary companies AIS Glass Solutions Ltd., GX Glass Sales & Services Ltd. and Integrated Glass Material Ltd. as investment is long term and diminution in value is temporary.

7. During the year the amount outstanding as per books to be credited to Investor Education and Protection Fund was Rs. 19.93 Lakhs, out of which amount of Rs. 3.90 Lakhs was refunded by the Companys bank as "excess funding" and the remaining amount of Rs. 16.03 Lakhs was paid to the fund in time. The Company was advised to pay the above amount of Rs. 3.90 Lakhs also to the fund which has since been paid.

8. Interest of Rs. 441 Lakhs (Rs. 57 Lakhs) on borrowings for fixed assets for expansion/new projects is capitalised till the date such assets are put to use for commercial production.

9. Related Party Disclosures under Accounting Standard (AS)-18 :

a) List of Related Parties :

i) Subsidiaries: AIS Glass Solutions Ltd., Integrated Glass Materials Ltd., GX Glass Sales & Services Ltd.

ii) Associates : AIS Adhesives Ltd., Asahi India Map Auto Glass Ltd., Vincotte International India Assessment Services (P) Ltd.

iii) Enterprises owned or significantly influenced by key management personnel or their relatives :

Shield Autoglass Ltd., Samir Paging Systems Ltd., R. S. Estates (P) Ltd., Nishi Electronics (P) Ltd., Maltex Malsters Ltd., Essel Marketing (P) Ltd., Allied Fincap Services Ltd., Usha Memorial Trust, Krishna Maruti Ltd.

iv) Key Management Personnel and their relatives :

Directors : Mr. B. M. Labroo, Mr. Sanjay Labroo, Mr. Arvind Singh, Mr. K. Nakagaki , Mr. H. Nohara Relatives : Mrs. Kanta Labroo, Mrs. Vimi Singh

v) Other related parties where control exists : Asahi Glass Co. Ltd., Japan and its subsidiaries -

AGC Flat Glass Asia Pacific Pte. Ltd., Asahi Glass Machinery Co. Ltd., Asahi Glass Phillipines, Inc., Glavermas Pte. Ltd., Asahi Glass Ceramics Co. Ltd., P. T. Asahimas Flat Glass TBK Indonesia, AGC Automotive Thailand Co. Ltd., AGC Flat Glass - Hellas, AGC Flat Glass - Russia, AGC Flat Glass Coating S. A., AGC Technology Systems Solution Company, AGC Flat Glass North America Inc., Asahi Flat Glass Asia Europe S. A., AGC Flat Glass Europe S. A., AGC Flat Glass Nederland BV

10. Previous years figures have been regrouped/rearranged, wherever found necessary. Figures in brackets above are in respect of previous year.

11. Figures have been rounded off to Rs. Lakhs.

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.1026 Lakhs (Rs. 409 Lakhs) (net of advances).

2. Contingent Liabilities for: Rs. Lakhs As on 31st As on 31st March 2010 March.2009 a) Bank guarantees and letters of credit outstanding 2646 2988 b) Claims against the Company not acknowledged as debts (excluding interest and penalty which may be payable on such claims) i) Excise and Custom Duty (including referred in Note No. 10) 2784 2737 ii) Disputed Wealth Tax Demands 10 10 iii) Corporate Guarantees [including Rs. 3952 Lakhs (Rs. 4187 Lakhs) for a subsidiary] 5168 5167 iv) Channel Financing from Bank 1154 1223 v) Disputed Sales Tax Demands 968 2564 vi) Others - 13

3. The Company has taken offices, warehouses and residential facilities under cancellable operating lease agreements. The lease agreements are usually renewed by mutual consent on mutually agreeable terms. Total rental expenses under such lease Rs. 241 Lakhs (Rs. 414 Lakhs).

4. a) In a previous year, in Auto SBU of the Company, Custom and Central Excise Settlement Commission settled Excise Duty Liability at Rs. 368 Lakhs (excluding interest) out of which the Company had accepted liability of Rs. 56 Lakhs and paid the same alongwith interest of Rs. 20 Lakhs. The matter was decided in favour of the Company by the High Court of Delhi against which SLP of the Excise Department has been accepted by the Supreme Court of India.

b) Deputy Commissioner of Customs (Original Authority) in a previous year issued an order imposing additional custom duty of about Rs.1606 Lakhs on the value of project imports made by erstwhile Floatglass India Ltd. (amalgamated with the Company with effect from 1st April, 2002). On appeal by the Company, Commissioner Customs (Appeals) set aside the above order on 25th November, 2002 against which the Commissioner of Customs filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal. In a previous year the matter was remanded back to the Original Authority for fresh decision. The liability, if any, will be accounted on final decision by Original Authority.

5. The Company has not considered necessary to provide for diminution in value of equity shares of subsidiary company AIS Glass Solutions Ltd. as investment is long term and diminution in value is temporary.

6. The balance of Rs.126 Lakhs in "Foreign Currency Monetary Item Translation Difference Account" is after adjustment of Rs.126 Lakhs recognised as income for the year which is in accordance with Companies (Accounting Standards) Amendment Rules 2009, relating to Accounting Standard (AS)-11.

7. Interest of Rs. 57 Lakhs (Rs. 104 Lakhs) on borrowings for fixed assets for expansion/new projects is capitalised till the date such assets are put to use for commercial production.

8. The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to firm commitments. The Company does not use forward contracts for trading and speculative purposes.

9. Related Party Disclosures under Accounting Standard (AS)-18 : a) List of Related Parties :

i) Subsidiaries : AIS Glass Solutions Ltd., Integrated Glass Materials Ltd.

ii) Associates : AIS Adhesives Ltd., Asahi India Map Auto Glass Ltd., Vincotte International India Assessment Services (P) Ltd.

iii) Enterprises owned or significantly influenced by key management personnel or their relatives :

Shield Autoglass Ltd., Samir Paging Systems Ltd., R. S. Estates (P) Ltd., Nishi Electronics (P) Ltd., Maltex Malsters Ltd., Essel Marketing (P) Ltd., Allied Fincap Services Ltd., Usha Memorial Trust, ACMA, Krishna Maruti Ltd.

iv) Key Management Personnel and their relatives :

Directors : Mr. B. M. Labroo, Mr. Sanjay Labroo, Mr. K. Kojima, Mr. Arvind Singh, Mr. H. Nohara

Relatives : Mrs. Kanta Labroo, Mrs. Vimi Singh

v) Other related parties where control exists : Asahi Glass Co. Limited, Japan and its subsidiaries - AGC Flat Glass Asia Pacific Pte. Ltd., Asahi Glass Machinery Co. Ltd., Asahi Glass Phillipines, Inc., Glavermas Pte Ltd., Asahi Glass Ceramics Co. Ltd., P. T. Asahimas Flat Glass TBK Indonesia, AGC Automotive Thailand Co. Ltd., AGC Flat Glass - Hellas, AGC Flat Glass - Russia, AGC Flat Glass Coating S.A., AGC Technology Systems Solution Company, AGC Flat Glass North America Inc., Asahi Flat Glass Asia Europe S.A., AGC Flat Glass Europe S.A., AGC Flat Glass Nederland BV.

10. Previous years figures have been regrouped/rearranged, wherever found necessary. Figures in brackets above are in respect of previous year.

11. Figures have been rounded off to Rs. Lakhs.

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