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Notes to Accounts of Bosch Ltd.

Mar 31, 2015

Note 1: General information

Bosch Limited (the "Company") is the flagship company of Robert Bosch Group in India. Headquartered out of Bengaluru, the Company has its key manufacturing facilities in Bengaluru, Nashik, Naganathapura, Jaipur, Goa, Gangaikondan and Bidadi. The Company has presence across automotive technology, industrial technology, consumer goods and energy and building technology. it manufactures and trades products as diverse as diesel and gasoline fuel injection systems, automotive aftermarket products, starters and generators, industrial equipments, packaging machines, electrical power tools, security systems and industrial and consumer energy products and solutions. The Company's shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

2 Rights, preferences and restrictions attached to shares:

The Equity shares of the Company, having face value of Rs.10/- per share, rank pari passu in all respects including voting rights and entitlement to dividend.

(i) Nature of the provision has not been given on the grounds that it can be expected to prejudice the interests of the Company. Due to the very nature of such provisions, it is not possible to estimate the timing/ uncertainties relating to their outflows.

(ii) Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims and also management estimates regarding possible future outflow on servicing the customers for any corrective action in respect of product failure which is generally expected to be settled within a period of 1 to 3 years.

(iii) Figures in bracket relate to previous period.

Disclosure on Retirement Benefits as required in Accounting Standard (AS) 15 on "Employee Benefits" are given below:

(a) Post Employment Benefit - Defined Contribution Plans

The Company has recognised an amount of Mio INR 355 (2013: Mio INR 238) as expense under the defined contribution plans in the Statement of Profit and Loss.

(b) Post Employment Benefit - Defined Benefit Plans

The Company makes annual contributions to the Mico Employees' Gratuity Fund and makes monthly contributions to Bosch Employees (Bangalore) Provident Fund Trust and Bosch Workmen's (Nashik) Provident Fund Trust, funded defined benefit plans for qualifying employees. The Gratuity Scheme provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability.

The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement, death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the Trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

As per AS-15 benefits involving employer established provident fund, which require interest short falls to be compensated are to be considered as defined benefit plan. The Company actuary has accordingly provided the valuation and based on the below provided assumption there is no shortfall as at March 31, 2015.

(viii) Contribution expected to be paid to the Mico Employees' Gratuity Fund within next year is Mio INR 249 (2013: Mio INR 200). Contribution expected to be paid to the Mico Workmen (Bangalore) Provident Fund Trust and Mico Workmen's (Nashik) Provident Fund Trust within the next year is Mio INR 379 (2013: Mio INR 305).

(a) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.

(b) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company's policy for plan asset management.

(c) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The Company's operations predominantly relate to manufacturing and trading of automotive products. The Company is also manufacturing and /or trading in industrial technology products, consumer goods and energy and building technology products which are non-automotive products. The risks and rewards associated with these two businesses are significantly different. Therefore, the primary segment consists of "Automotive Products" and "Others" which are essentially non-automotive products. Secondary segmental reporting is organised in two geographical segments, namely "India" and "Outside India".

The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record income / expenditure and assets/liabilities in individual segments. The inter-segment sales are recorded at cost.

(a) List of related parties:

Holding Company : Robert Bosch GmbH, Federal Republic of Germany Other related parties where transactions have taken place during the period : Fellow Subsidiary Companies:

Beissbarth GmbH, Germany

Bosch (China) Investment Ltd., China

Bosch (Zhuhai) Security Systems Co., Ltd., China

Bosch Automotive Components (Changchun) Co., Ltd., China

Bosch Automotive Diagnostics Equipment (Shenzhen) Ltd., China

Bosch Automotive Diesel Systems Co., Ltd., China

Bosch Automotive Electronics India Private Ltd., India

Bosch Automotive Products (Changsha) Co., Ltd., China

Bosch Automotive Products (Nanjing) Co., Ltd., China

Bosch Automotive Products (Suzhou) Co., Ltd., China

Bosch Automotive Service Solutions (Suzhou) Co., Ltd., China

Bosch Automotive Service Solutions Corporation, Japan

Bosch Automotive Service Solutions GmbH, Germany

Bosch Automotive Service Solutions Inc., United States of America

Bosch Automotive Service Solutions Ltd., United Kingdom

Bosch Automotive Service Solutions Pty. Ltd., Australia

Bosch Automotive Service Solutions S.A. de C.V., Mexico

Bosch Automotive Service Solutions S.R.L., Italy

Bosch Automotive Service Solutions SARL, France

Bosch Automotive Thailand Co. Ltd., Thailand

Bosch Car Multimedia Portugal, S.A., Portugal

Bosch Chassis Systems India Ltd., India

Bosch Corporation, Japan

Bosch Diesel s.r.o., Czech Republic

Bosch Electrical Drives Co., Ltd., Korea

Bosch Electrical Drives India Private Ltd., India

Bosch Energy and Building Solutions GmbH, Germany

Bosch Engineering GmbH, Germany

Bosch Engineering Holding GmbH, Germany

Bosch Fren Sistemleri Sanayi ve Ticaret A.S., Turkey

Bosch Industriekessel GmbH, Germany

Bosch Lawn and Garden Ltd., United Kingdom

Bosch Management Support GmbH, Germany

Bosch Packaging Services AG, Switzerland

Bosch Packaging Systems AG, Switzerland

Bosch Packaging Technology (Chengdu) Co., Ltd., China

Bosch Packaging Technology (Singapore) Pte. Ltd., Singapore

Bosch Packaging Technology B.V., Netherlands

Bosch Packaging Technology K.K., Japan

Bosch Packaging Technology Limited, United Kingdom

Bosch Packaging Technology SA, Switzerland

Bosch Power Tec GmbH, Germany

Bosch Power Tools (China) Ltd., China

Bosch Rexroth (India) Ltd., India

Bosch Rexroth AG, Germany

Bosch Rexroth Ltd., United Kingdom

Bosch Rexroth Ltda., Brazil

Bosch Sanayi ve Ticaret A.S., Turkey

Bosch Security Systems B.V., Netherlands

Bosch Security Systems Inc., United States of America

Bosch Security Systems Ltd., United Kingdom

Bosch Sicherheitssysteme GmbH, Germany

Bosch Sistemas De Frenado, S.L.U., spain

Bosch Software Innovations GmbH, Germany

Bosch Solar Energy AG, Germany

Bosch Solarthermie GmbH, Germany

Bosch Solutions Serviqos Automotivos Ltda., Brazil

Bosch Technology Licensing Administration GmbH, Germany

Bosch Thermotechnology (Shanghai) Co., Ltd., China

Bosch Trading (Shanghai) Co., Ltd., China

Bosch Transmission Technology B.V., Netherlands

Bosch Vietnam Co., Ltd., Vietnam

BSH Home Appliances Private Limited, India

Centro Studi Componenti per Veicoli S.p.A., Italy

DECA SRL, Italy

ETAS Automotive India Private Ltd., India

ETAS GmbH, Germany

Freud S.p.A., Italy

Huttlin GmbH, Germany

Koller Schwemmer GmbH, Germany

Matra-Werke GmbH, Germany

MIVIN Engineering Technologies Private Ltd., India

Moehwald GmbH, Germany

Moeller & Devicon A/S, Denmark

Nippon Injector Corporation, Japan

OOO Robert Bosch Saratow, Russia

OOO Robert Bosch, Russia

P.T. Robert Bosch, Indonesia

Pharmatec GmbH, Germany

Precision Seals Manufacturing Ltd., India

Robert Bosch (Australia) Pty. Ltd., Australia

Robert Bosch (Bangladesh) Ltd., Bangladesh

Robert Bosch (France) S.A.S., France

Robert Bosch (Malaysia) Sdn. Bhd., Malaysia

Robert Bosch (Pty.) Ltd., South Africa

Robert Bosch (South East Asia) Pte. Ltd., Singapore

Robert Bosch A/S, Denmark

Robert Bosch AG, Austria

Robert Bosch Argentina Industrial S.A., Argentina

Robert Bosch Automotive Technologies (Thailand) Co., Ltd., Thailand

Robert Bosch Car Multimedia GmbH, Germany

Robert Bosch Car Multimedia Holding GmbH, Germany

Robert Bosch Company Ltd., China

Robert Bosch Elektronik GmbH, Germany

Robert Bosch Elektronika Gyarto Kft., Hungary

Robert Bosch Elektrowerkzeuge GmbH, Germany

Robert Bosch Energy and Body Systems Kft., Hungary

Robert Bosch Engineering and Business Solutions Private Ltd., India

Robert Bosch Engineering and Business Solutions Vietnam Co. Ltd., Vietna

Robert Bosch Espana Fabrica Castellet S.A., Spain

Robert Bosch Espana Fabrica Madrid S.A., Spain

Robert Bosch Espana Fabrica Treto S.A., Spain

Robert Bosch Espana Gasoline Systems S.A., Spain

Robert Bosch Fahrzeugelektrik Eisenach GmbH, Germany

Robert Bosch Fuel Systems LLC, United States of America

Robert Bosch Inc., Philippines

Robert Bosch Korea Diesel Ltd., Korea

Robert Bosch Korea Ltd., Korea

Robert Bosch Licensing Administration C.V., Netherlands

Robert Bosch LLC, United States of America

Robert Bosch Ltd., Thailand

Robert Bosch Ltda., Brazil

Robert Bosch Mexico S.A. de C.V., Mexico

Robert Bosch Mexico Sistemas Automotrices, S.A. de C.V., Mexico Robert Bosch Middle East FZE, United Arab Emirates Robert Bosch Oy, Finland

Robert Bosch Packaging Technology B.V., Netherlands

Robert Bosch Packaging Technology Inc., United States of America

Robert Bosch Power Tool Elektromos Szerszamgyarto Kft., Hungary

Robert Bosch Power Tools Sdn. Bhd., Malaysia

Robert Bosch Produktie N.V., Belgium

Robert Bosch S. A., Chile

Robert Bosch Sdn. Bhd., Malaysia

Robert Bosch Sp. z o.o., Poland

Robert Bosch Taiwan Co., Ltd., Taiwan

Robert Bosch Tecnologia de Embalagem Ltda., Brazil

Robert Bosch Tool Corporation, United States of America

Robert Bosch, S. de R.L. de C.V., Mexico

Robert Bosch, spol. s.r.o., Czech Republic

SBM Schoeller-Bleckmann-Medizintechnik GmbH, Austria

Scintilla AG, Switzerland

Service- und Betriebsgesellschaft Heidehof GmbH, Germany

sia Abrasives Company Ltd., China

sia Abrasives Industries AG, Switzerland

SICAM S.r.l., Italy

Tecnologie Diesel e Sistemi Frenanti S.p.A., Italy

Unipoint Electric MFG Co., Ltd., Taiwan

United Automotive Electronic Systems Co., Ltd., China

ZF Lenksysteme India Private Ltd., India

Subsidiary Company : MICO Trading Private Limited, India

Associate (also a fellow subsidiary) : Newtech Filter India Private Limited, India (formerly known as MHB Filter India Private Limited, India) [Pursuant to further share purchase by Robert Bosch Investment Nederland B.V., Netherlands from Mann and Hummel Filter Private Ltd., India (joint venture parties) on December 19, 2014, the joint venture agreement between Bosch Group and Mann and Hummel stands terminated. Consequently, the relationship with Newtech Filter India Private Ltd., India has changed from joint venture to an associate.]

Other entity under the control of the company : Bosch India Foundation, India.

Key Management Personnel: Dr. Steffen Berns, Mr. Soumitra Bhattacharya, Mr. Franz Hauber (from January 01, 2014 to February 28, 2015) and Dr. Andreas Wolf (from March 01, 2015)

Note : The information disclosed is based on the names of the parties as identified by the management.

3 Contingentliabilities [Rs. in Millions (Mio INR)]

(a) Claims against the Company not acknowledged as debts:

Excise/ Customs

Net of tax 0 0

Gross 0 0

(b) Bills discounted not matured 572 577

4 Exceptional items

Exceptional items represent one time changes in retirement benefits consequent to wage settlement during the period.

5 Change in the financial year

The company has changed its accounting year to commence from 1st April of every year and to end on 31st March of following year to comply with the requirement of the Companies Act, 2013. Consequently, the current accounting period is for the fifteen months from January 1, 2014 to March 31, 2015. Hence, the current period's figures are not comparable to those of the previous period.

6 Previous period figures

Previous period's figures have been regrouped/ reclassified, wherever necessary, to conform to current period classification.

7 Rounding off

Amounts mentioned as "0" in the financial statements denote amounts rounded off being less than Rupees one million.


Dec 31, 2013

Note 1 : Segmental Reporting :

The Company''s operations predominantly relate to manufacturing and trading of automotive products. The Company is also manufacturing and/or trading in industrial equipments, consumer goods and energy and building technological goods which are non-automotive products. The risks and rewards associated with these two businesses are significantly different. Therefore, the primary segment consists of "Automotive Products" and "Others" which are essentially non-automotive products. Secondary segmental reporting is organised in two geographical segments, namely "India" and "Outside India".

The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record income/ expenditure and assets/liabilities in individual segments. The inter-segment sales are recorded at cost.

Note 2 : Lease Disclosures

Information on leases as per Accounting Standard 19 on "Accounting for Leases":

(a) Finance Lease :

The Company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

(b) Operating Lease Expenses :

The Company has various operating leases for office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognised in the Statement of Profit and Loss for the year is Mio INR 360 (2012: Mio INR 302).

Note 3 : Research and Development expenses

Total Research and Development expenditure recognised in the Statement of Profit and Loss (including amounts shown under Note 12 and Note 32 to the Financial Statements) amounts to Mio INR 1,605 (2012: Mio INR 1,377)

Note 4 : Interest in Joint Venture

Details of Company''s share in the Joint Venture assets, liabilities, revenue and expenses as required by Accounting Standard 27 " Financial Reporting of Interests in Joint Ventures" is as indicated below:

Name of the Joint Venture : MHB Filter India Private Limited.

Country of Incorporation : India

Percentage of ownership interest : 25%

Note 5 : Derivative Instruments

The Company uses forward exchange and currency option contracts to hedge against its foreign currency exposures relating to highly probable forecast transactions. The Company does not enter into derivative instruments for trading or speculative purposes.

Note 6 : Previous Year Figures

Previous year''s figures have been regrouped/ reclassified, wherever necessary, to conform to current year classification.

Note 7 : Rounding Off

Amounts mentioned as "0" in the financial statements denote amounts rounded off being less than Rupees one million.


Dec 31, 2012

Note 1:Company Information

Bosch Limited (the "Company") is the flagship company of Robert Bosch Group in India. Headquartered out of Bangalore, the Company has its manufacturing facilities in Bangalore, Nashik, Naganathapura, Jaipur and Goa. The Company has presence across automotive technology, industrial technology and consumer technology. It manufactures and trades products as diverse as diesel and gasoline fuel injection systems, automotive aftermarket products, auto electricals, special purpose machines, packaging machines, electric power tools, security systems, solar energy and thermo technology. The Company''s shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Note 2: Pursuant to the agreement entered into between Robert Bosch GmbH, Germany (the holding Company) and SPX Corporation, USA in January 2012, the Company has acquired Indian unit of ''Service Solutions'' business from SPX India Private Limited with effect from December 3, 2012 on a going concern basis for an aggregate consideration of Mio INR 99.

(a) Rights, preferences and restrictions attached to shares:

The Equity shares of the Company, having face value of Rs. 10/- per share, rank pari passu in all respects including voting rights and entitlement to dividend.

(a) Addition to capital reserve represents subsidy received during the year under the Package Scheme of Incentives, 2001 from the Government of Maharashtra Mio INR 1,056 (2011: Nil).

(a) There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

(i) Nature of the provision has not been given on the grounds that it can be expected to prejudice the interests of the Company. Due to the very nature of such costs, it is not possible to estimate the timing / uncertainties relating to their outflows.

(ii) Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims and also management estimates regarding possible future outflow on servicing the customers for any corrective action in respect of product failure which is generally expected to be settled within a period of 1 to 3 years.

(iii) Figures in bracket relate to previous year.

(a) Includes excise duty on increase / (decrease) of finished goods Mio INR 33 (2011: Mio INR 191)

Note 4: Employee Retirement Benefits:

Disclosure on Retirement Benefits as required in Accounting Standard (AS) 15 on "Employee Benefits" are given below:

(a) Post Employment Benefit - Defined Contribution Plans

The Company has recognised an amount of Mio INR 233 (2011: Mio INR 223) as expense under the defined contribution plans in the Statement of Profit and Loss.

(b) Post Employment Benefit - Defined Benefit Plans

The Company makes annual contributions to the Mico Employees'' Gratuity Fund and makes monthly contributions to Mico Workmen (Bangalore Works & Sales Houses) Provident Fund Trust and Mico Workmen''s (Nashik) Provident Fund Trust, funded defined benefit plans for qualifying employees. The Gratuity Scheme provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability. The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement, death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the Trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

As per Accounting Standard 15 issued by the Institute of Chartered Accountants of India, benefits involving employer established provident fund, which require interest short falls to be compensated are to be considered as defined benefit plan. The Company actuary has accordingly provided the valuation and based on the below provided assumption there is no shortfall as at December 31, 2012.

(vii) Contribution expected to be paid to the Mico Employees'' Gratuity Fund within next year is Mio INR 261 (2011: Mio INR 228).

Contribution expected to be paid to the Mico Workmen (Bangalore Works & Sales Houses) Provident Fund Trust and Mico Workmen''s (Nashik) Provident Fund Trust within the next year is Mio INR 258 (2011: Mio INR 236).

Notes:

a) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.

b) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company''s policy for plan asset management.

c) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note 5 : Segmental Reporting :

The Company''s operations predominantly relate to manufacturing and trading of automotive products. The Company is also manufacturing industrial equipments and consumer goods which are non-automotive products. The risks and rewards associated with these two businesses are significantly different. Therefore, the primary segment consists of "Automotive Products" and "Others" which are essentially non-automotive products. Secondary segmental reporting is organised in two geographical segments, namely "India" and "Outside India".

The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record income/ expenditure and assets/liabilities in individual segments. The inter-segment sales are recorded at cost.

Note 6 : Lease Disclosures

Information on leases as per Accounting Standard 19 on "Accounting for Leases":

(a) Finance Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

(b) Operating Lease Expenses :

The Company has various operating leases for equipments, office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognised in the Statement of Profit and Loss for the year is Mio INR 302 (2011 : Mio INR 224).

(c) Operating Lease Income :

Rental income received during the year in respect of operating lease is Mio INR 370 (2011: Mio INR 342). Details of assets given on operating lease as on December 31, 2012 are as below:

NOTE 7 : RESEARCH AND DEVELOPMENT EXPENSES

Total Research and Development expenditure recognised in the Statement of Profit and Loss (including amounts shown under Note 13 and Note 33 to the Financial Statements) amounts to Mio INR 1,377 (2011: Mio INR 1,258)

Note 8 : Interest in Joint Venture

Details of Company''s share in the joint venture assets, liabilities, revenue and expenses as required by Accounting Standard 27 "Financial Reporting of Interests in Joint Ventures" is as indicated below:

Name of the Joint Venture : MHB Filter India Private Limited.

Country of Incorporation : India

Percentage of ownership interest : 25%

Note 9 : Derivative Instruments

The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to highly probable forecast transactions.

The Company does not enter into derivative instruments for trading or speculative purposes.

Note 10 : Previous Year Figures

The Financial Statements for the year ended December 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 ended December 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year''s figures have also been reclassified to conform to current year''s classification. The adoption of Revised Schedule VI for previous year''s figures does not impact recognition and measurement principles followed for preparation of the Financial Statements.

Note 11 : Rounding Off

Amounts mentioned as "0" in the financial statements denote amounts rounded off being less than Rupees one million.


Dec 31, 2011

1. Disclosure on Retirement Benefits as required in Accounting Standard (AS) 15 on "Employee Benefits" are given below:

(a) Post Retirement Benefit- Defined Contribution Plans

The Company has recognised an amount of TINR 222,990 (2010-.TINR 213,526) as expense under the defined contribution plans in the Profit and Loss Account.

(b) Post Retirement Benefit- Defined Benefit Plans

The Company makes annual contributions to the Mico Employees' Gratuity Fund and makes monthly contributions to Mico Workmen (Bangalore Works & Sales Houses) Provident Fund Trust, a funded defined benefit plan for qualifying employees. The Gratuity Scheme provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability. The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement, death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

(i) As per the best estimate of the management, contribution expected to be paid to the Mico Employees Gratuity Fund is TINR 228,378 (2010:TINR 199,112) and to the Provident Fund Trusts is TINR 236,030 (2010: TINR 186,836) plans during the year ending December 31, 2012.

Notes:

1) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.

2) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company's policy for plan asset management.

3) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

2. Segment Information :

The Company's operations predominantly relate to manufacturing and trading of automotive products. The Company is also manufacturing industrial equipments and consumer goods which are non-automotive products. The risks and rewards associated with these two businesses are significantly different. Therefore, the primary segment consists of "Automotive Products" and "Others" which are essentially non-automotive products. Secondary segment information is organised in two geographical segments, namely "India" and "Outside India".

The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record income/ expenditure and assets/ liabilities in individual segments. These are as set out in the note on significant accounting policies. The inter-segment sales are recorded at cost.

3. Information on leases as per Accounting Standard 19 on "Accounting for Leases":

(a) Finance Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 - "Accounting for Leases".

(b) Operating Lease Expenses :

The Company has various operating leases for equipments, office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognised in the Profit and Loss Account for the year amounts to TINR 224,127 (2010 -. TINR 185,947).

[Rs. in Thousands (TINR)]

2011 2010

4. Contingent liabilities :

(a) Claims against the Company not acknowledged as debts:

(i) Excise / Customs Net of tax 235 235

Gross 352 352

(ii) Trade Demands Net of tax - 155,603

Gross - 233,000

(b) Guarantees given by Banks on behalf of the Company 215,692 256,380

(c) Bills Discounted not matured 650,363 845,620

(d) Certain industrial disputes are pending before various judicial authorities - amounts not ascertainable.

5. Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 2,521,192 1,115,504

6. (a) Advances include dues from directors and an officer of the Company 8,881 5,232

(b) Maximum amount due from directors and an officer of the Company at any time during the year 10,404 6,471

7. Previous year's figures have been regrouped/recast, wherever necessary, to conform to current year's classifications.


Dec 31, 2009

1. Pursuant to the buyback announcement on December 08, 2008, the company has bought back 652,560 fully paid up equity shares (including 26,589 fully paid up equity shares bought back in the year 2008). The buyback offer closed on October 23, 2009. 2. During the previous year, appropriation of profit towards dividend was made based on the number of shares outstanding as at December 31, 2008. Consequent to the buyback, the actual amount of dividend distributed, however, was based on the number of equity shares outstanding as at the record date, i.e. May 08, 2009. The excess appropriation made in the year 2008 towards dividend (and tax thereon) has been reversed in the current year.

3. Disclosure on Retirement Benefits as required in Accounting Standard (AS) 15 on "Employee Benefits" are given below:

(a) Post Retirement Benefit - Defined Contribution Plans

The Company has recognised an amount of TINR 316,669 (2008 : TINR 301,837) as expense under the defined contribution plans in the Profit and Loss account.

(b) Post Retirement Benefit - Defined Benefit Plans

The Company makes annual contributions to the Mico Employees Gratuity Fund, a funded defined benefit plan for qualifying employees. The Scheme provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

4. Segmental Reporting:

The Companys operations predominantly relate to manufacturing and trading of automotive products. The Company is also manufacturing industrial equipments and consumer goods which are non-automotive products. The risks and rewards associated with these two businesses are significantly different. Therefore, the primary segment consists of "Automotive Products" and "Others" which are essentially non-automotive products. Secondary segmental reporting is organised in two geographical segments, namely "India" and "Outside India".

The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record revenue/ expenditure and assets/liabilities in individual segments. These are as set out in the note on significant accounting policies. The inter-segment sales are recorded at cost.

(b) Details of Secondary Segment

Revenue from geographical segment is based on location of its customers and total carrying amount of assets and total cost incurred during the period to acquire fixed assets is based on geographical locations of the assets.

Holding Company : Robert Bosch GmbH, Germany Fellow Subsidiary Companies:

Beissbarth GmbH, Germany

Bosch (China) Investment Ltd..China

Bosch Automotive Diagnostics Equipment (Shenzhen) Ltd., China

Bosch Automotive Diesel Systems Co., Ltd., China

Bosch Automotive Electronics India Pvt Ltd, India

Bosch Automotive Products (Changsha) Co., Ltd. , China

Bosch Automotive Products (Suzhou) Co. Ltd., China

Bosch Automotive Thailand Co. Ltd., Thailand

Bosch Chassis Systems India Ltd, India

Bosch Corporation, Japan

Bosch Diesel, s.r.o., Czech Republic

Bosch Electrical Drives Co., Ltd., South Korea

Bosch Electrical Drives india Pvt Ltd, India

Bosch Engineering GmbH, Germany

Bosch Management Support GmbH, Germany

Bosch Packaging Services AG, Switzerland

Bosch Packaging Technology (Hangzhou) Co., Ltd., China

Bosch Packaging Technology (Singapore) Pte. Ltd., Singapore

Bosch Packaging Technology, Inc., United States

Bosch Power Tools (China) Ltd., China

Bosch Rexorth India Ltd., India

Bosch Rexroth AG, Germany

Bosch Rexroth Corporation, United States

Bosch Rexroth Electric Drives and Controls (Shenzhen) Co., Ltd., China

Bosch Rexroth Electric Drives and Controls GmbH, Germany

Bosch Rexroth Fluidtech S.A.S., France

Bosch Rexorth Ltda., Brazil

Bosch Rexroth Otomasyon Sanayi ve Ticaret A.S., Turkey

Moehwald GmbH, Germany

Nanjing Huade Spark Plug Co., Ltd., China

Nanjing Bovon Power Tools Co., China

OOO Bosch Rexroth, Russian Fedaration

Precision Seals Mfg Ltd, India

Robert Bosch (Australia) Proprietary Limited, Australia

Robert Bosch (France) S.A.S., France

Robert Bosch (Malaysia) SDN. BHD., Malaysia

Robert Bosch (Proprietary) Limited, South Africa

Robert Bosch (South East Asia) Pte. Ltd., Singapore

Robert Bosch AG, Austria *

Robert Bosch Argentina Industrial S.A., Argentina

Robert Bosch Car Multimedia Holding GmbH, Germany

Robert Bosch Company Limited, China

Robert Bosch Elektronika Gyarto Kft., Hungary

Robert Bosch Elektrowerkzeuge GmbH, Germany

Robert Bosch Energy and Body Systems Kft., Hungary

Robert Bosch Engineering and Business Solutions Ltd., India

Robert Bosch Espana Fabrica Castellet S.A., Spain

Robert Bosch Espana Fabrica Madrid, S.A., Spain

Robert Bosch Espana Fabrica Treto, S:A., Spain

Robert Bosch Espana Gasoline Systems S.A., Spain

Robert Bosch Fahrzeugelektrik Eisenach GmbH, Germany

Robert Bosch Fuel Systems LLC, United States

Robert Bosch Inc., Phillipines

Robert Bosch Korea Diesel Ltd., South Korea

Robert Bosch Korea Mechanics and Electronics Ltd., South Korea

Robert Bosch Limitada, Brazil

Bosch Sanayi ve Ticaret A.S., Turkey

Bosch Security Systems B.V., Netherlands

Bosch Security Systems Inc., United States

Bosch Sicherheitssysteme GmbH, Germany

Bosch Techniques dEmballage S.A.S., France

Bosch Thermotechnik GmbH, Germany

Bosch Trading (Shanghai) Co., Ltd., China

Bosch Transmission Technology B.V., Netherlands

BSH Bosch und Siemens Hausgerate GmbH, Germany

BT Magnet-Technologie GmbH, Germany

Centro Studi Component! PerVeicoli S.p.A., Italy

Erphi Electronic GmbH, Germany

ETAS Automotive India Private Ltd., India

ETAS Entwicklungs- und Applik.elektronische Systeme GmbH, Germany

MIVIN Engineering Technologies Private Limited, India

Robert Bosch Limited, Great Britain

Robert Bosch Limited, Thailand

Robert Bosch LLC, United States

Robert Bosch Middle East FZE, Dubai

Robert Bosch Packaging Technology B.V., Netherlands

Robert Bosch Power tools SDN BHD, Malaysia

Robert Bosch Sistemas de Frenos, S.A. de C.V., Mexico

Robert Bosch Tecnologia de Embalagem Ltda., Brazil

Robert Bosch, S. de R.L. de C.V., Mexico

Robert Bosch, spol. s r.o., Czech Republic

Scintilla AG, Switzerland

SICAM S.r.l., Italy

Tecnologie Diesel e Sistemi Frenanti S.p.A., Italy

Telex EVI Audio (Hong Kong) Co. Ltd, China

United Automotive Electronic Systems Co., Ltd., China

Weifu High Technology Co., Ltd., China

Note : The information disclosed is based on the names of the parties as identified by the management.

Subsidiary of the company: MICO Trading Private Limited. Transaction details below. (Rs. in Thousands) Reimbursement of expenses - 3 (2008:26) ; Receivable - 132 (2008:129)

Key Management Personnel: Mr. V.K. Viswanathan, Mr. M. Lakshminarayan (Upto 31.12.2008), Dr. F. Allerkamp (Upto 31.12.2008), Dr. A. Hieronimus (Upto 31.01.2008), Dr. Manfred Duemholz

Joint Venture:

MHB Filter India Private Ltd., Transaction details below. (Rs. in Thousands)

Sales - TINR 11,009 (2008: Nil), Purchases - TINR 331,868 (2008 : TINR 136,167), Services rendered - TINR 3,100 (2008 : TINR 3,011)

Receivables - TINR 3,636 (2008: TINR 251), Payables - TINR 32,731 (2008 : TINR 21,943)

Other entity under control of the Company: Bosch India Foundation, Transaction details below. (Rs. in Thousands) Donation: TINR 14,500 (2008: TINR 31,575), Amount payable: TINR 14,875 (2008: TINR 16,175)

Names of fellow subsidiaries having transaction value in excess of 10% in line transactions Sales - Robert Bosch Korea Diesel Ltd, South Korea TINR 1,021,757 Rent received - Robert Bosch Engineering and Business Solutions Limited, India TINR 254,375

- Bosch Automotive Electronics India Pvt Ltd, India TINR 44,057 Professional, consultancies and other services received - Robert Bosch Engineering and Business Solutions Ltd., India TINR 252,925 Interest received - Bosch Rexroth (India) Ltd, India TINR 80,098, MIVIN Engineering Technology Ltd., India TINR 12,186 Sale of business divisions - Bosch Chassis Systems India Ltd,India TINR 2,500, Bosch Electrical Drives India Pvt Ltd, India TINR 18,258 Sale of Investment - Bosch Rexroth (India) Ltd, India TINR 19,110 Loan given - Bosch Rexroth India Ltd, India TINR 300,000

5. Information on leases as per Accounting Standard 19 on "Accounting for Leases":

(a) Finance Lease :

The company does not have any item covered under finance lease which needs disclosure as per Accounting Standard 19 -" Accounting for Leases".

(b) Operating Lease Expenses :

The Company has various operating leases for equipments, office facilities, guest houses and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognised in the Profit and Loss Account for the year is TINR 179,184 (2008 .- TINR 134,265).

[Rs. in Thousands (TINR); 2009 2008 13. Contingent liabilities :

(a) Claims against the Company not acknowledged as debts:

(i) Excise / Customs Net of tax 232 232 Gross 352 352

(ii) Service Tax Net of tax - 3,151

Gross - 4,774

(iii) Octrol Net of tax - 1,312

Gross - 1,987

(b) Guarantees given by Banks on behalf of the Company 200,486 178,765

(c) Bills Discounted not matured 1,064,635 607,517

(d) Certain industrial disputes are pending before various judicial authorities - amounts not ascertainable.

6. Previous years figures have been regrouped/recast, wherever necessary, to conform to current years classifications.

 
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