Notes to Accounts of Bharat Bijlee Ltd.

Mar 31, 2018

Notes

1. GENERAL INFORMATION:

Bharat Bijlee Limited is one of the leaders in the electrical engineering industry in India. A multi-product, multi-divisional organisation, its main products are transformers, electric motors, magnet technology machines and drives and automation systems. The Company also undertakes turnkey projects (switchyards). The Company has a well established all-India marketing network that ensures responsive pre and after sales service.

The address of its registered office is Electric Mansion, 6th Floor, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025.

(iii) Notes to the Reconciliation to Previous GAAP:

(a) The provision is made against trade receivables based on “Expected Credit Loss” model as per Ind AS 109. Under Previous GAAP the provision was made when the receivable turned doubtful based on the assessment on case to case basis.

(b) Under Previous GAAP long term investments in Equity Instruments were measured at cost less diminution in value which is other than temporary. Under Ind AS, the same are measured at fair value through Other Comprehensive Income. Consequently, the differences, as at the transition date and as at the end of year 2016-17, between carrying value as per Previous GAAp and fair value, are reflected in total equity and Other Comprehensive Income respectively.

(c) Under Previous GAAP investments in Fixed Maturity Plans and Other Mutual Funds were measured at cost less diminution in value which is other than temporary. Under Ind AS, the same are measured at fair value through Profit and Loss. Consequently, the differences, as at the transition date and as at the end of year 2016-17, between carrying value as per Previous GAAP and fair value, are reflected in total equity and Profit and Loss respectively.

(d) Income Tax adjustments includes deferred tax impact on account of difference between Previous GAAP and Ind AS.

(e) Under Previous GAAP! in the absence of virtual certainty of having future profits, the Company had recognised deferred tax asset on unabsorbed depreciation and tax losses incurred only to the extent of the deferred tax liabilities. As per Ind AS, Deferred tax asset can be recognised if it is probable that the current losses will be recovered against future profits, accordingly the deferred tax asset has been recognised on such unabsorbed depreciation and tax losses.

(f) Under Previous GAAP actuarial gains and losses on employees defined benefit obligations were recognised as part of Employee benefits in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses on re-measurement of net defined benefit obligations are recognised in Other Comprehensive Income.

(iv) Other material reclassification adjustments made in the Balance Sheet and Statement of Profit and Loss

(a) Under Previous GAAP Minimum Alternate Tax (MAT) entitlements were classified under other non-current assets. Under Ind AS, it is classified as unused tax credits under deferred tax.

(b) Under Previous GAAP revenue from sale of goods was presented net of excise duty whereas under Ind AS the revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the Statement of Profit and Loss as part of expenses.

(c) Under Previous GAAP cash discount paid and outward freight recoveries were recorded under other expenses and Freight and forwarding charges respectively. Under Ind AS, cash discount paid and outward freight recoveries are reflected, as adjustments, in revenue.

(d) Under Previous GAAP the Company had created provision for doubtful debts on trade receivables on the basis of incurred loss. Under Ind AS, loss allowance on trade receivables has been determined on the basis of “Expected Credit Loss” model as per Ind AS 109.

(v) Reconciliation of cash flows for the year ended 31st March, 2017

The transition from Previous GAAP to Ind AS has not made a material impact on the statement of cash flows.

(b) Rights, preferences and restrictions attached to shares

Equity Shares : The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. Disclosure pursuant to Indian Accounting Standard (Ind AS) - 19 : Employee Benefits 1) Defined contribution plans:

The Company participates in defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The defined contribution plans are as below:

a) Provident fund

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952 eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’salary. The contributions, as specified under the law, are made to the provident fund administered and managed by Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its monthly contributions which are charged to the Statement of Profit and Loss in the period they are incurred. The benefits are paid to employees on their retirement or resignation from the Company.

b) Superannuation fund

The Company holds a policy with an Insurance company, to which it contributes a fixed amount relating to superannuation and the pension annuity is met by the Insurer as required, taking into consideration the contributions made. The Company has no further obligations under the Scheme beyond its monthly contributions which are charged to the Statement of Profit and Loss in the period they are incurred.

Contribution to Defined Contribution Plans, recognised in the Statement of Profit and Loss for the year under employee benefits expense, are as under :

(2) Defined Benefit Plans:

The Defined Benefit Plan is as below:

Gratuity (Funded)

The Company has an obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, on death while in employment or on termination of the employment in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company''s Scheme, as applicable. Vesting occurs upon completion of five years of service. The Company makes annual contributions to gratuity fund established with the insurance company. The Company accounts for the liability for gratuity benefits payable based on an actuarial valuation. The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

If the Discount Rate i.e the yield on the Government Bonds decrease in future, the Actuarial Liability will increase and vice versa. The quantum of increase in valuation liability corresponding to specific decrease in the Discount Rate and vice versa, has been shown in the annexure containing the sensitivity Analysis of Key Actuarial Assumption.

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

Salary risk

If the salary Growth Rate over the future years of services is increased, the Actuarial Liability will increase and vice versa.

The quantum of increase in the valuation liability corresponding to specific increase in the salary growth rate and vice versa has been shown in the annexure containing Sensitivity Analysis of Key Actuarial Assumption.

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out at 31st March, 2018 by an independent actuary. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

H. Sensitivity Analysis

The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

I. Other Disclosures

a) The weighted average duration of the obligations as at 31st March, 2018 is 22 years (31st March, 2017: 23 Years; 1st April, 2016: 22 Years).

b) The Company expects to contribute Rs.75.80 lakhs to the plan during financial year 2018-19.

All Non-current assets are located in India.

No customer individually contributed 10% or more to the Company''s revenue for the year ended 31st March, 2018 and 31st March, 2017.

OTHER DISCLOSURES:

i. Segments have been identified in line with Ind AS 108 on the basis of production and distribution process and regulatory environment.

ii. The Chief Operating Decision Maker (“CODM”) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and profit from operations as the performance indicator for all of the operating segments.

iii. No operating segments have been aggregated to form the above reportable operating segments.

iv. While presenting the segment results, common expenses, common assets and liabilities to the extent not directly identifiable with any one segment have been grouped as unallocable.

v. Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a group basis.

vi. Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed for the Company as a whole.

vii. Capital expenditure consists of additions of property, plant and equipment and intangible assets.

SEGMENT INFORMATION:

(i) Composition of Business Segments:

a. Power Systems

This segment comprises of the design, commissioning and marketing of power transformers; EPC projects for electrical substations including delivery, rectification, commissioning and servicing of transformers and marketing of maintenance products.

b. Industrial Systems

This segment comprises of the development, marketing and manufacture of a wide range of standard and customized electric motors; magnet technology machines and the engineering and supply of Drives and Automation systems.

(ii) Segment Revenue, Result, Assets & Liabilities include respective amounts directly attributable to each segment & other relevant amounts allocated on reasonable basis.

3. Disclosure pursuant to Ind AS - 24 : RELATED PARTY DISCLOSURES:

3.1 RELATED PARTIES

A. Key Management Personnel

A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director

A2. Mr. Nakul P. Mehta, Vice Chairman & Managing Director

A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Enterprises over which any of (A) can exercise control or significant influence B1. Danmet Chemicals Pvt. Ltd.

Notes:

a) No amount has been written off or written back during the year ended 31st March, 2018. (Previous Year Nil).

b) Remuneration does not include the provisions made for Gratuity as they are determined on an Actuarial basis for the Company as a whole.

c) The transactions with related parties are made in the normal course of business and on terms equivalent to those that prevail in arm’s length transactions.

4. Disclosure pursuant to Indian Accounting Standard (Ind AS) - 17 : Leases

As a lessee in a Operating Lease :

Non-cancellable:

The Company has hired assets under non-cancellable operating lease arrangements at stipulated rentals. These lease arrangements range for a period between 11 months and 9 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

Figures in the bracket are for the previous year.

# Others represent liability in respect of statutory dues which is sub-judice and payment thereon will depend upon the outcome of the case.

* Provision for Warranty Costs in connection with repairs and free replacement of parts during warranty period is determined based on past experience and estimates and are accrued in the year of sale.

5. Exceptional Item

Exceptional item represents excess of the compensation received over the unamortised lease premium on surrender of a part of the Company''s factory lease hold land at Airoli, Navi Mumbai to MIDC, the lessor, for proposed public road project.

6. Revenue from operations upto 30th June, 2017 includes excise duty, which is discontinued effective 1st July, 2017 upon implementation of Goods and Services Tax (GST) in India. In accordance with ‘Ind AS-18, Revenue'', GST is not included in revenue from operations.

7. Subsequent Events

The Board of Directors at its meeting held on 10th May, 2018 has recommended a dividend of Rs.2.50 per equity share of Rs.10/- each (total dividend Rs.141.29 lakhs) for the year ended 31st March, 2018, subject to approval of shareholders at the Annual General Meeting to be held on 28th June, 2018.

8. Disclosure pursuant to Indian Accounting Standard (Ind AS) - 107 : Financial Instruments: Disclosures Financial instruments and Risk management

8.1 Capital management

The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company’s management reviews it’s capital structure considering the cost of capital, the risks associated with each class of capital and the need to maintain adequate liquidity to meet its financial obligations when they become due. Accordingly the management and the Board of Directors periodically review and set prudent limit on overall borrowing limits of the Company.

8.2 Categories of financial instruments

The following table provides categorisation of all financial instruments at carrying value.

8.3 Financial risk management

The financial risks emanating from the Company''s operating business include market risk, credit risk and liquidity risk. These risks are managed by the Company using appropriate financial instruments. The Company has laid down written policies to manage these risks.

8.3.1 Market risk management

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Currency risk, Interest rate risk and other price risk.

A. Foreign currency risk management

The Company is exposed to foreign currency risk arising mainly on import (of raw materials and capital items) and export (of finished goods). Foreign currency exposures are managed within approved policy parameters utilising forward contracts.

The carrying amounts of the Company''s foreign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows:

A.1 Foreign currency sensitivity analysis

The Company''s exposure to Foreign Currency changes for all currencies is not material.

A.2 Derivative Financial Instruments

The Company has entered into foreign currency forward contracts to manage its exposure to fluctuations in foreign exchange rates on foreign currency receivables and payables. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data.

The following table details the significant derivative financial instruments outstanding at the end of the reporting period:

* - Denotes amounts in full figures.

B. Interest rate risk management

The Company does not have interest rate risk exposure on its outstanding loans as at the year end as these loans are short-term loans on fixed interest rate basis.

C. Other price risks

The Company is exposed to price risks arising from its investments in mutual funds and equity.

Equity price risk is related to change in market reference price of investments in equity shares held by the Company. The fair value of quoted investments held by the Company exposes it to equity price risks. In general, these investments are not held for trading purposes.

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to the very short tenor of the underlying portfolio in the liquid schemes, these do not hold any significant price risks.

C.1 Equity price sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower, the other comprehensive income for the year ended 31st March, 2018 would have increased/decreased by ‘ /- 1650.02 Lakhs (2016-2017: increase/decrease by ‘ /- 1757.69 Lakhs) as a result of the changes in fair value of equity investments measured at FVTOCI.

C.2 Mutual fund price sensitivity analysis

The sensitivity analysis below has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March, 2018 would have increased/decreased by ‘ /- 86.85 Lakhs (2016-2017: increase/decrease by ‘Nil) as a result of the changes in fair value of mutual funds.

8.3.2 Credit risk management

Credit risk arises from the possibility that a counter party''s inability to settle its obligations as agreed in full and in time. The maximum exposure to credit risk in respect of the financial assets at the reporting date is the carrying value of such assets recorded in the financial statements net of any allowance for losses.

A. Trade Receivables

The Company''s trade receivables consists of a large and diverse base customers including State owned Companies, Large Private Corporates and Public sector enterprises. Hence the Company is not exposed to concentration and credit risk.

B. Other Financial Assets

The Company maintains exposure in cash and cash equivalents, time deposits with banks and NBFCs, investments in debt mutual funds. Investment of surplus funds are made only with approved counter parties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

8.3.3 Liquidity risk management

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Treasury Risk Management Policy includes an appropriate liquidity risk management framework for the management of the short-term, medium-term and long term funding and cash management requirements. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March, 2018 Rs.14850 lakhs, (as at 31st March, 2017 Rs.22331 lakhs, as at 1st April, 2016 Rs.13445 lakhs).

8.3.3.1 Liquidity risk table

The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes principal cash flows along with interest.

8.4 Fair value measurements

The Company''s certain financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about the valuation technique(s), inputs used and the fair value hierarchy used in determining such fair values.

Note: These investments in equity instruments are not held for trading. Instead, they are held for long-term strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at FVTOCI as the management believe that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in profit or loss.

There were no transfers between Level 1 and 2 in the period.

9. Previous year''s figures have been regrouped/recast/reclassified, wherever necessary.

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Mar 31, 2017

(b) Rights, preferences and restrictions attached to shares

Equity Shares : The Company has one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(a) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2017 and as at 31st March, 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1. Segments have been identified in line with Accounting Standard AS 17 on the basis of production and distribution process and regulatory environment.

2. Company has disclosed Business segments as Primary segments.

Composition of Business Segments:

a. Power Systems

This segment comprises of the design, commissioning and marketing of power transformers; EPC projects for electrical substations including delivery, rectification, commissioning and servicing of transformers and marketing of maintenance products.

b. Industrial Systems

This segment comprises of the development, marketing and manufacture of a wide range of standard and customized electric motors; magnet technology machines and the engineering and supply of AC variable-speed drives and drive systems.

3. Segment Revenue, Result, Assets & Liabilities include respective amounts directly attributable to each segment and other relevant amounts allocated on reasonable basis.

While presenting the segment results, common expenses, common assets and liabilities to the extent not directly identifiable with any one segment have been grouped as unallocable.

4. Company does not have any secondary segments since risk and return are not significantly dependent on geographical locations. Further since the revenue from within India and the assets within India are greater than 90% of the total revenues and total assets, respectively, of the Company, the disclosure requirements for secondary segment as per the aforesaid standard is also not applicable.

* The appointment and remuneration proposed in terms of Schedule V of the Companies Act, 2013, of Mr. Shome N. Danani, Whole-time Director, designated as Executive Director, is subject to approval of the Members of the Company at the ensuing Annual General Meeting scheduled on June 30, 2017. The salary paid to Mr. Danani for the period, January 28, 2017 to March 31, 2017, which is subject to approval of the members aggregates to '' 15.15 lakhs.

a. No amount has been written off or written back during the year ended 31.03.2017 (Previous Year Nil).

b. CY = Current Year, PY = Previous Year

5. Disclosure pursuant to Accounting Standard - 19 : Leases

As a lessee in an Operating Lease:

Non-cancellable

The Company has hired assets under non-cancellable operating lease arrangements at stipulated rentals. These lease arrangements range for a period between 11 months and 9 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

With respect to all operating leases :

Figures in the bracket are for the previous year.

# Others represent liability in respect of statutory dues which is sub-judice and payment thereon will depend upon the outcome of the case.

* Provision for Warranty Costs in connection with repairs and free replacement of parts during warranty period is determined based on past experience and estimates and are accrued in the year of sale.

The disclosures with respect to ‘Permitted Receipts'', ‘Permitted Payments'', ‘Amount Deposited in Banks'' and ‘Closing cash in hand as on 30.12.2016'' is understood to be applicable in case of SBNs only.

6. Previous year''s figures have been regrouped/recast/reclassified, wherever necessary.

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Mar 31, 2016

1. Segments have been identified in line with Accounting Standard AS 17 on the basis of production and distribution process and regulatory environment.

2. Company has disclosed Business segments as Primary segments.

Composition of Business Segments:

a. Power Systems

This segment comprises the design, commissioning and marketing of power transformers; EPC projects for electrical substations including delivery, rectification, commissioning and servicing of transformers and marketing of maintenance products.

b. Industrial Systems

This segment comprises the development, marketing and manufacture of a wide range of standard and customized electric motors; magnet technology machines and the engineering and supply of AC variable-speed drives and drive systems.

3. Segment Revenue, Result, Assets & Liabilities include respective amounts directly attributable to each segment & other relevant amounts allocated on reasonable basis.

While presenting the segment results, common expenses, common assets and liabilities to the extent not directly identifiable with any one segment have been grouped as unallowable.

4. Company does not have any secondary segments since risk and return are not significantly dependent on geographical locations. Further since the revenue from within India and the assets within India are greater than 90% of the total revenues and total assets, respectively, of the Company, the disclosure requirements for secondary segment as per the aforesaid standard is also not applicable.

5. Related Party Disclosures

6.1 RELATED PARTIES

A. Key Management Personnel

A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director

A2. Mr. Nakul P Mehta, Vice Chairman & Managing Director

A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Relatives of the Key Management Personnel

B1. Mr. Anand J. Danani (brother of Mr. Nikhil J. Danani)

B2. Ms. Avanti P Mehta (sister of Mr. Nakul P Mehta)

B3. Ms. Sita P Mehta (sister of Mr. Nakul P Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or significant influence C1. Danmet Chemicals Pvt. Ltd.

C2. Nasivan Investments Pvt. Ltd.

7. Disclosure pursuant to Accounting Standard - 19 : Leases

As a lessee in an Operating Lease:

Non-cancellable

The Company has hired assets under non-cancellable operating lease arrangements at stipulated rentals. These lease arrangements range for a period between 11 months and 9 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

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Mar 31, 2015

1 GENERAL INFORMATION

Bharat Bijlee Limited is one of the leaders in the electrical engineering industry in India. A multi-product, multi-divisional organisation, its main products are transformers, projects, electric motors, elevator systems and drives. The Company has a well established all-India marketing network that ensures responsive pre and after sales service.

(a) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in an Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(a) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company which has been relied upon by the auditors.

As at As at 31st March, 2015 31st March, 2014 2. Contingent Liabilities:

Disputed Sales Tax Demands 225.33 225.33

Disputed Excise Duty Demands 215.54 423.60

Disputed Custom Duty Demand 126.12 126.12

Disputed Income Tax Demands 28.01 228.43

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

1. Segments have been identified in line with Accounting Standard AS 17 on the basis of production and distribution process and regulatory environment.

2. Company has disclosed Business segments as Primary segments.

Composition of Business Segments:

a. Power Systems

This segment comprises the design, commissioning and marketing of power transformers; EPC projects for electrical substations including delivery, rectification, commissioning and servicing of transformers and marketing of maintenance products.

b. Industrial Systems

This segment comprises the development, marketing and manufacture of a wide range of standard and customized electric motors; synchronous gearless machines for the elevator industry and the engineering and supply of AC variable-speed drives and drive systems.

3. Segment Revenue, Result, Assets & Liabilities include respective amounts directly attributable to each segment & other relevant amounts allocated on reasonable basis.

While presenting the segment results, common expenses, common assets and liabilities to the extent not directly identifiable with any one segment have been grouped as unallocable.

4. Company does not have any secondary segments since risk and return are not significantly dependent on geographical locations. Further since the revenue from within India and the assets within India are greater than 90% of the total revenues and total assets, respectively, of the Company, the disclosure requirements for secondary segment as per the aforesaid standard is also not applicable.

3. Related Party Disclosures:

3.1 RELATED PARTIES

A. Key Management Personnel

A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director

A2. Mr. Nakul P Mehta, Vice Chairman & Managing Director

A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Relatives of the Key Management Personnel

B1. Late Mr. Jaisingh R. Danani, a non-executive Director (father of Mr. Nikhil J. Danani & Grandfather of Mr. Shome N. Danani)

B2. Mr. Anand J. Danani (brother of Mr. Nikhil J. Danani)

B3. Ms. Avanti P Mehta (sister of Mr. Nakul P Mehta)

B4. Ms. Sita P Mehta (sister of Mr. Nakul P Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or significant influence C1. Danmet Chemicals Pvt. Ltd.

C2. Nasivan Investments Pvt. Ltd.

Related parties' relationship as stated in (A) to (C) above are as identified by the Company and relied upon by the Auditors.

4. Disclosure pursuant to Accounting Standard - 19 : Leases

As a lessee in an Operating Lease:

Non-cancellable

5. Previous year's figures have been regrouped/recast/reclassified, wherever necessary.

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Mar 31, 2014

1 GENERAL INFORMATION

Bharat Bijlee Limited is one of the leaders in the electrical engineering industry in India. A multi-product, multi-divisional organisation, its main products are transformers, projects, electric motors, elevator systems and drives. The Company has a well established all-India marketing network that ensures responsive pre and after sales service.

As at As at 31st March 2014 31st March 2013

2 Contingent Liabilities not provided for in respect of :

Disputed Sales Tax Demands 225.33 189.90

Disputed Excise Duty Demands 423.60 423.60

Disputed Custom Duty Demand 126.12 191.12

Disputed Income Tax Demands 228.43 162.03

It is not practicable for the Company to estimate the timings of cash outfl ows, if any, in respect of the above pending resolution of the respective proceedings.

3 RELATED PARTY DISCLOSURES:

3.1 RELATED PARTIES

A. Key Management Personnel A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director A2. Mr. Nakul P. Mehta, Vice Chairman & Managing Director A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Relatives of Key Management Personnel B1. Late Mr. Jaisingh R. Danani, a non-executive Director (father of Mr. Nikhil J. Danani & Grandfather of Mr. Shome N. Danani) B2. Ms. Avanti P. Mehta (sister of Mr. Nakul P. Mehta) B3. Ms. Sita P. Mehta (sister of Mr. Nakul P. Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or signifi cance infl uence C1. Danmet Chemicals Pvt. Ltd. C2. Nasivan Investments Pvt. Ltd.

Related parties'' relationship as stated in (A) to (C) above are as identifi ed by the Company and relied upon by the Auditors.

4 Previous year''s figures have been regrouped / recast / reclassifi ed, wherever necessary.

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Mar 31, 2013

1 GENERAL INFORMATION

Bharat Bijlee Limited is one of the leaders in the electrical engineering industry in India. A multi-product, multi-divisional organisation, its main products are transformers, projects, electric motors, elevator systems and drives. The Company has a well established all- India marketing network that ensures responsive pre and after sales service.

(a) Rights, preferences and restrictions attached to shares

Equity Shares : The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend . In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Secured by hypothecation of all tangible moveable assets including stock of Raw Materials and Components , Stores, Spares, Fuel, Work-in-Progress, Finished Goods, Stock-in-trade and Book Debts. The oral equitable mortgage, ranking second and subservient to mortgages created, on immovable properties excluding vacant land at Company''s Kalwe factory is in the process of being satisfied as the same has been waived by the banks.

(a) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small and Medium Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2013 This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company which has been relied upon by the auditors.

1. Segments have been identified in line with Accounting Standard AS 17 on the basis of production and distribution process and regulatory environment.

2. Company has disclosed Business segments as Primary segments.

Composition of Business Segments :

a. Power Systems

This segment comprises the design, commissioning and marketing of power transformers; EPC projects for electrical substations including delivery,rectification,commissioning, and servicing of transformers and marketing of maintenance products.

b. Industrial Systems

This segment comprises the development, marketing and manufacture of a wide range of standard and customized electric motors;synchronous gearless machines for the elevator industry and the engineering and supply of AC variable-speed drives and drive systems.

3. Segment Revenue, Result, Assets & Liabilities include respective amounts directly attributable to each segment & other relevant amounts allocated on reasonable basis.

While presenting the segment results, common expenses, common assets and liabilities to the extent not directly identifiable with any one segment have been grouped as unallocable.

4. Company does not have any secondary segments since risk and return are not significantly dependent on geographical locations. Further since the revenue from within India and the assets within India are greater than 90% of the total revenues and total assets, respectively, of the Company, the disclosure requirements for secondary segment as per the aforesaid standard is also not applicable.

5 RELATED PARTY DISCLOSURES:

5.1 RELATED PARTIES

A. Key Management Personnel

A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director

A2. Mr. Nakul P Mehta, Vice Chairman & Managing Director

A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Relatives of Key Management Personnel

B1. Mr. Jaisingh R. Danani, a non-executive Director (father of Mr. Nikhil J. Danani)

B2. Ms. Avanti P Mehta (sister of Mr. Nakul P Mehta)

B3. Ms. Sita P Mehta (sister of Mr. Nakul P Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or significant influence C1. Danmet Chemicals Pvt. Ltd.

C2. Nasivan Investments Pvt. Ltd.

6 Previous year''s figures have been regrouped / recast / reclassified, wherever necessary.

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Mar 31, 2012

1. GENERAL INFORMATION:

Bharat Bijlee Limited is one of the leaders in the electrical engineering industry in India. A multi-product, multi-divisional organisation, its main products are transformers, projects, electric motors, elevator systems and drives. The Company has a well established all-India marketing network that ensures responsive pre and after sales service.

Contingent liabilities are disclosed by way of note to the Financial Statements after careful evaluation by the management of the facts and legal aspects of the matter involved.

2. Contingent Assets are neither recognised nor disclosed.

As at As at 31st March 2012 31st March 2011

30. Contingent Liabilities not provided for in respect of: Disputed Sales Tax Demands 88.55 153.66

Disputed Excise Duty Demands 423.60 410.09

Disputed Custom Duty Demand 191.12 305.83

Disputed Income Tax Demands 226.29 204.47

Claims against the Company not acknowledged as debts 1.30 3.56

3. Segments have been identified in line with Accounting Standard AS 17 on the basis of production & distribution process and regulatory environment.

4. Company has disclosed Business segments as Primary segments. Composition of Business Segments :

a. Power Systems

This segment comprises the design, commissioning and marketing of power transformers, EPC projects for electrical substations commissioning, erection and servicing of transformers and marketing of maintenance products.

b. Industrial Systems

This segment comprises the development, marketing and manufacture of a wide range of standard and customized electric motors, synchronous gearless machines for the elevator industry and the engineering and supply of AC variable-speed drives and drive systems.

5. Segment Revenue, Result, Assets & Liabilities include respective amounts directly attributable to each segment & other relevant amounts allocated on reasonable basis.

While presenting the segment results, common expenses, common assets & liabilities to the extent not directly identifiable with any one segment have been grouped as unallocable.

6. Company does not have any secondary segments since risk and return are not significantly dependent on geographical locations. Further since the revenue from within India and the assets within India are greater than 90% of the total revenues and total assets, respectively, of the Company, the disclosure requirements as per the aforesaid standard is also not applicable.

7. Related Party Disclosures:

7.1 RELATED PARTIES

A. Key Management Personnel.

A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director

A2. Mr. Nakul R Mehta, Vice Chairman & Managing Director

A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Relatives of the Key Management Personnel

B1. Mr. Jaisingh R. Danani, a non-executive Director (father of Mr. Nikhil J. Danani)

B2. Ms. Avanti R Mehta (sister of Mr. Nakul R Mehta)

B3. Ms. Sita R Mehta (sister of Mr. Nakul R Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or significant influence C1. Danmet Chemicals Pvt. Ltd.

C2. Nasivan Investments Pvt. Ltd.

Related parties' relationship as stated in I (A) to l(C) above are as identified by the Company and relied upon by the Auditors.

8. The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2011

31st March, 2011 31st March, 2010 Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs

1. Contingent Liabilities not provided for in respect of:

(i) Disputed Sales Tax demands 153.66 135.95

(ii) Disputed Excise Duty demands 410.09 410.09

(iii) Disputed Custom Duty Demand 305.83 305.83

(iv) Disputed Income Tax Demands 204.47 100.00

(v) Claims against the Company not acknowledged as debts 3.56 3.56

2. Estimated amount of contracts remaining to be executed on 872.42 143.51 capital account and not provided for (net of advances)

3. Professional Charges include :

(a) To Auditors : (net of Service Tax)

(i) Audit Fees 13.00 13.00

(ii) Tax Audit Fee 1.20 1.20

(iii) Company Law and other matters 0.23 0.23

(iv) Certifications 0.15 0.15

(v) Reimbursement of Out of Pocket Expenses 0.32 0.18

14.90 14.76

(b) To Cost Auditors (net of Service Tax) 0.36 0.33

4. Disclosure under the Micro, Small and Medium Enterprises Development Act.

(a) There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5 RELATED PARTY DISCLOSURES:

I. RELATED PARTIES

A. Key Management Personnel.

A1. Mr. Nikhil J. Danani, Vice Chairman & Managing Director

A2. Mr. Nakul R Mehta, Vice Chairman & Managing Director

A3. Mr. Shome N. Danani, Executive Director (son of Mr. Nikhil J. Danani)

B. Relatives of the Key Management Personnel

B1. Mr. Jaisingh R. Danani, a non-executive Director (father of Mr. Nikhil J. Danani) B2. Ms. Avanti R Mehta (sister of Mr. Nakul R Mehta) B3. Ms. Sita P. Mehta (sister of Mr. Nakul P. Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or significant influence C1. Danmet Chemicals Pvt. Ltd.

C2. Nasivan Investments Pvt. Ltd.

Related parties relationship as stated in l(A) to l(C) above are as identified by the Company and relied upon by the Auditors.

6. Previous Years figures have been regrouped wherever necessary.

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Mar 31, 2010

1. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

a) There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

2. RELATED PARTY DISCLOSURES:

I. RELATED PARTIES

A. Key Management Personnel.

Mr. Nikhil J. Danani, Vice Chairman & Managing Director Mr. Nakul P. Mehta, Vice Chairman & Managing Director Mr. Shome N. Danani, Executive Director ( son of Mr. Nikhil J. Danani )

B. Relatives of the Key Management Personnel

Mr. Jaisingh R. Danani, a non-executive Director (father of Mr. Nikhil J. Danani)

Mr. Anand J. Danani, a non-executive Director (brother of Mr. Nikhil J. Danani)

Ms. Avanti P. Mehta (sister of Mr. Nakul P. Mehta)

Ms. Sita P. Mehta (sister of Mr. Nakul P. Mehta)

C. Enterprises over which any of (A) or (B) can exercise control or significant influence Danmet Chemicals Pvt. Ltd.

Nasivan Investments Pvt. Ltd.

Gayatri Education, Medical & Research Foundation Pvt. Ltd.

Related parties relationships as stated in I (A) to I (C) above are as identified by the Company and relied upon by the Auditors.

3. The Company has only one reportable business segment viz. "Industrial Products" in terms of the Accounting Standard - 17 on "Segment Reporting". The Company mainly operates in the domestic market and hence there is no reportable secondary segment.

4. Previous Years figures have been regrouped wherever necessary.