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Notes to Accounts of Exide Industries Ltd.

Mar 31, 2015

1. SHARE CAPITAL

c) Terms / rights attached to equity shares

The company has only one class of Equity Shares having a Par Value of Re 1 per share. Each Holder of Equity Shares is entitled to one Vote per share. The company declares and pays dividends in Indian Rupee. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the year ended March 31, 2015, the amount of per share Dividend recognised as distributions to equity shareholders was Rs. 2.20 (PY Rs. 1.80 per share)

2. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company provides certain post-retirement medical benefits (PRMB) to the employees qualifying for such benefits under the scheme upto March 31, 2006, and accordingly the number of beneficiaries is frozen on that date. This benefit is unfunded.

The Company has a Pension plan, a part of the liability whereof upto March 31, 2003, for employees as on that date is in the nature of a defined benefit plan. From April 1, 2003 onwards, pension remains as a defined contribution liability which is funded annually with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

3 GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

IX The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

X Contribution to Provident and Other Funds includes Rs. 18.82 Crores (Rs. 16.85 Crores) paid towards Defined Contribution Plans

4. SEGMENT REPORTING

As the Company's business activity falls within a single primary business segment, viz "Storage Batteries and allied products", no separate segment information is disclosed. Secondary information is reported geographically.

5. RELATED PARTY DISCLOSURE: i) Particulars of related parties :

1. Subsidiaries

Chloride Batteries S.E. Asia Pte. Limited, Singapore. (CBSEA) Chloride International Limited (CIL)

Chloride Power Systems & Solutions Limited (CPSSL)

Espex Batteries Limited, UK (ESPEX)

Associated Battery Manufacturers (Ceylon) Ltd, Sri Lanka (ABML) Chloride Metals Limited (CML)

Chloride Alloys India Limited (CAIL)

Exide Life Insurance Company Limited (ELI)

2. Enterprise / Individuals having a direct or indirect control over the Company

Chloride Eastern Limited, UK. (CEL)

Chloride Eastern Industries Pte Limited, Singapore (CEIL) LIEC Holdings SA, Switzerland Mr. S B Raheja

3. Key Management Personnel (As on March 31, 2015)

Mr. P K. Kataky, Whole Time Director Mr. G. Chatterjee, Whole Time Director Mr. A. K. Mukherjee, Whole Time Director Mr. Nadeem Kazim, Whole Time Director Mr. Subir Chakraborty, Whole Time Director Mr. Supriya Coomer, Company Secretary

4. Name of the Companies / firms / in which Directors / Key Management Personnel have significant influence with whom transactions have happened during the year.

Shalini Construction Company Private Limited

Peninsula Estates Private Limited

Raheja QBE General Insurance Company Limited

6. Previous year figures have been regrouped / rearranged where necessary.


Mar 31, 2014

1. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company provides certain post-retirement medical benefits (PRMB) to the employees qualifying for such benefits under the scheme upto 31 March 2006, and accordingly the number of beneficiaries is frozen on that date. This benefit is unfunded.

The Company has a Pension plan, a part of the liability whereof upto 31 March 2003, for employee as on that date is in the nature of a defined benefit plan. From 1 April 2003 onwards, pension remains as a defined contribution liability which is funded annually with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

VIII Healthcare cost trend rates have no effect on the amounts recognised in the profit and loss account, since the benefit is in the form of a fixed amount as per the various grades, which is not subject to change.

IX. The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

X. Contribution to Provident and Other Funds includes Rs. 16.85 crs (Rs. 16.48 crs) paid towards Defined Contribution Plans.

2. SEGMENT REPORTING

As the Company''s business activity falls within a single primary business segment, viz "Storage Batteries and allied products", no separate segment information is disclosed. Secondary information is reported geographically.

Geographical Segments

The Company primarily operates in India and therefore the analysis of geographical segment is demarcated into its Indian and Overseas operations as under:

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

3 CONTINGENT LIABILITIES

Outstanding Bank Guarantees / Indemnity Bonds 17.97 18.24

Sales Tax demands 24.37 15.14

Excise Duty demands 34.12* 34.32

Service Tax demands

Income Tax demands 6.82 4.46

Other claims being disputed by the Company 0.44 0.44

Claim from a landlord, an appeal whereby is pending in Hon''ble Bombay High Court Not Not Ascertainable Ascertainable 83.72 72.60

4 ACTUARIAL METHOD AND ASSUMPTIONS FOR THE LIFE INSURANCE BUSINESS

Liability for policies in force (''the Liability'') is determined by the Appointed Actuary in accordance with generally accepted actuarial practice as well as the requirements of the Insurance Act, 1938 and the regulations notified bylRDA and relevant actuarial practice standards issued by Institute of Actuaries of India.

(a) Traditional Individual Business

The Liability on a policy is calculated based using the ''Gross Premium Method'', representing the present value of expected future outgo including benefits (including future bonuses for participating policies) and future expenses less present value of expected future premium. Further, a reserve for death claims that may have been Incurred but are Not yet Reported to the Company (IBNR) is also maintained. The reserves for the Best Years Retirement Plan, ING New Best Year Retirement Plan and ING Assured Return have been set up as the sum of the policy fund balances as at 31 March 2014 plus additional reserves for excess of expenses over policy charges. The assumptions used for calculating the liability are provided below: i. Mortality & Morbidity:

Mortality is considered according to the Indian Assured Lives Mortality Table (2006-08) - Modified Ultimate and varies between 99% and 217.5% of the table (last year 90% and 135% of Indian Assured Lives Mortality Table (1994-96)). Morbidity assumption is based on the CIBT 93 Table. For term products, mortality assumption varies between 51%-145% of the Indian Assured Lives Mortality Table (2006-08) - Modified Ultimate (Last Year mortality assumptions for term products were 35%-90% of the Indian Assured Lives Mortality Table (1994-96)) ii. Expenses:

Appropriate allowance for maintenance expenses increasing with inflation has been made. Provision for initial and renewal commission has been made at actual rates payable. iii. Valuation discount rate:

Between 5.5% to 6.75% p.a. for all products (Last Year between 5.5% to 6.5% p.a. for all products). Assumptions on future bonus rates for participating business have been set to be consistent with valuation interest rate assumptions. iv. Lapses:

Future policy lapses have been assumed based on the type of policy and the duration for which the policy has been in force. The lapse rates are based on current experience of the company.

Margins for Adverse Deviation

The assumptions allow for suitable Margins for Adverse Deviation in the mortality, morbidity, expenses, lapses and valuation discount rate assumption! as required under regulations and actuarial practice standards issued by The Institute of Actuaries of India

(b) Linked Individual Business

The reserves held under the unit-linked products are the fund balances (unit reserve) as at 31 March 2014 plus non- unit reserves. Additional adjustments have also been made to allow for the following :

a. Unearned Premium Reserve in respect of mortality charge/rider charge deducted from the policyholder''s account every month.

b. IBNR reserve for death claims incurred but not reported to company as on the valuation date.

c. Reserve to meet the guarantees for unit linked products.

d. Non Unit reserves are calculated by discounting future non unit cash flow, determined based on assumptions given below:

i. Mortality & Morbidity:

Mortality is considered according to the Indian Assured Lives Mortality Table (2006-08) - Modified Ultimate and varies between 99% and 145% (varies by age), (last year 90% of Indian Assured Lives Mortality Table (1994-96) of the table). ii. Expenses:

Appropriate allowance for maintenance expenses increasing with inflation has been made. Provision for initial and renewal commission has also been made at actual rates payable. iii. Valuation discount rate (for setting up of Non unit reserve): 4.5% p.a. (last year 4.5% p.a.) iv. Unit growth rate: 4% to 10% (last year 4% to 10%) depending on the type of fund. Margins for Adverse Deviation

The assumptions allow for suitable Margins for Adverse Deviation in the mortality, morbidity, expenses, lapses and valuation discount rate assumptions as required under regulations

(c) Group Business:

Unearned Premium method for reserving is adopted for the Group yearly renewable term product. The Group Single Premium Mortgage/Credit products have been valued using the Gross Premium Method with allowance for future expected expenses. Provision for IBNR reserve has also been made as appropriate.

(d) Linked group business:

The reserves held under the unit-linked products are the fund balances as at 31 March 2014.

(e) Reinsurance Credit

The reinsurance credit is calculated on unearned premium basis, based on the expected reinsurance premium outgo.

5 INVESTMENTS OF LIFE INSURANCE BUSINESS

The Company is maintaining separate funds for Shareholders and Policyholders as per Section 11 (1B) of the Insurance Act, 1938. Investments and related incomes are segregated between Participating, Non Participating, Unit Linked, Annuity and Pension funds. In respect of policyholder funds, the allocation of cash / securities to policyholder is done on a daily basis.

Investments under Section 7 of the Insurance Act, 1938 are in "8.20% GSEC 12-02-2024 OIL BOND (Face Value Rs 12.11 crs)" having Book Value of Rs 11.90 crs and Market Value Rs 11.35 crs.

As on 31 March 2014, none of the investments of the Company have been classified as non-performing as per the income recognition norms issued by the IRDA.

As on 31 March 2014, none of the investments of the Company have been classified / categorised in the definition of Loans & Advances as per circular no 32/2/F&A/Circular/l 69/Jan/2006-07. In view of this, the company has not made any provisions.

6 In the current year IVL has exceeded the limits for expenses of management as per Section 40B of the Insurance Act, 1938 read with Rule 17D of the Insurance Rules, 1939. The company has articulated its expense position vis-d-vis business plans, constraints and also submitted that it would not be able to meet the requirements in the financial year 2013- 14. Subsequently the company has been granted one year extension to comply with requirement by the IRDA i.e. up to the Financial Year ending 2014-15.

7 IVL became a Subsidiary of EIL on 22nd March , 2013 and hence Statement of Consolidated Profit and Loss for FY 12-13 included line by line consolidation of Profit and Loss of IVL only for 10 days from 22nd of March 2013 to 31 st of March 2013, as against full year numbers of IVL in current year .Consequently, the figure of CY are not comparable with the figures of previous year to that extent.

8 Previous year figures have been regrouped / rearranged where necessary.


Mar 31, 2013

1. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company provides certain post-retirement medical benefits (PRMB) to the employees qualifying for such benefits under the scheme upto 31 March 2006, and accordingly the number of beneficiaries is frozen on that date. This benefit is unfunded.

The Company has a Pension plan, a part of the liability whereof upto 31 March 2003 is in the nature of a defined benefit plan. From 1 April 2003 onwards, pension remains as a defined contribution liability which is funded annually with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

2. SEGMENT REPORTING

As the Company''s business activity falls within a single primary business segment, viz " Storage Batteries and allied products", no separate segment information is disclosed. Secondary information is reported geographically. Geographical Segments

The Company primarily operates in India and therefore the analysis of geographical segment is demarcated into its Indian and Overseas operations as under:

3 ACQUISITION OF ADDITIONAL STAKE IN ING VYSYA LIFE INSURANCE COMPANY LIMITED

During the year, the Company acquired the remaining 50% shares of ING Vysya Life Insurance Company Limited (IVL) from the other shareholders, after obtaining necessary approvals from Competition Commission of India (CCI) and Insurance Regulatory and Development Authority (IRDA), at a consideration of Rs 549.33 Crores. Consequent to such acquisition of shares, IVL has now become a wholly owned subsidiary of the Company

4 CONTINGENT LIABILITIES

Outstanding Bank Guarantees/Indemnity Bonds 18.24 15.93

Sales Tax demands 15.14 1.53

Excise Duty demands 34.32* 33.77

Service Tax demands - 0.77

Income Tax demands 4.46 6.50

Other claims being disputed by the Company 0.44 0.45

Claim from a landlord , an appeal whereby is pending in Hon''ble Bombay High Court Not Not Ascertainable Ascertainable

72.60 58.95

* Includes a Demand of Rs 32.60 crs plus penalties, as applicable, for the period June 2006-May 2009 on the grounds that Excise Duty was payable on the MRP of batteries.The Company has contested applicability of The Standards of Weights & Measures Act,1976 and Rules thereunder, the applicability of which is still to be adjudicated by the Hon''ble Supreme Court.

5 PREVIOUS YEAR FIGURES HAVE BEEN REGROUPED / REARRANGED WHERE NECESSARY.


Mar 31, 2012

A) Terms / rights attached to equity shares

The company has only one class of Equity Shares having a Par Value of Re 1 per share. Each Holder of Equity Shares is entitled to one Vote per share. The company declares and pays dividends in Indian Rupee. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the year ended 31st March 2012, the amount of per share Dividend recognized as distributions to equity shareholders was Rs 1.50 (PY Rs 1.50 per share)

i) The Company has a full-fledged Research and Development Center and it has thereby been able to considerably further its efficiency. During the year, a sum of Rs. 12.05 crs. (Rs. 9.76 crs), including capital expenditure Rs. 0.94 crs. (Rs. 1.09 crs), was spent on Research and Development work.

ii) Stores and Spares consumed is exclusive of Rs. 0.46 crs (Rs 0.45 crs) being the amounts allocated to other heads of expenses.

iii) Rent and Hire charges include Rs 0.54 crs (Rs. 0.62 crs) towards lease of residential apartments. These are cancellable leases, renewable by mutual agreement. Generally, there is no escalation clause and no other restrictions imposed by the lease arrangements. There are no sub-leases.

1. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company provides certain post-retirement medical benefits (PRMB) to the employees qualifying for such benefits under the scheme upto 31 March 2006, and accordingly the number of beneficiaries is frozen on that date. This benefit is unfunded.

The Company has a Pension plan, a part of the liability whereof upto 31 March 2003 is in the nature of a defined benefit plan. From 1 April 2003 onwards, pension remains as a defined contribution liability which is funded annually with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan. The following tables summarise the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans.

I. In 2012-13 the Company expects to contribute Rs. 5.00 crs (Rs 5.00 crs) to gratuity and Rs 0.50 crs (Rs 1.00 crs) to Pension.

II. Healthcare cost trend rates have no effect on the amounts recognized in the profit and loss account, since the benefit is in the form of a fixed amount as per the various grades, which is not subject to change

III. The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

IV. Contribution to Provident and Other Funds includes Rs 14.94 crs (Rs 13.60 crs) paid towards Defined Contribution Plans

2.SEGMENT REPORTING

As the Company's business activity falls within a single significant primary business segment, viz "Storage Batteries and allied products', no separate segment information is disclosed. Secondary information is reported geographically.

3. UTILISATION OF MONEY RAISED THROUGH PRIVATE PLACEMENT

During the financial year 2009-10, the Company had raised Rs 529.91 crores (net) by issuing shares to Qualified Institutional Buyers to generate funds for its capital expenditure, acquisitions and for general corporate purposes. Entire amount of Rs 529.91 crs (Rs 295.88 crores) has been used for the stated purpose and unutilized balance as at 31st March, 2012 is Rs Nil (Rs 234.03 crs).

* Includes a Demand of Rs 32.60 crs plus penalties, as applicable, for the period June 2006-May 2009 on the grounds that Excise Duty was payable on the MRP of batteries. The Company has contested this demand largely on grounds of non-applicability of The Standards of Weights & Measures Act, 1976 and Rules there under, the applicability of which is still to be adjudicated by the Hon'ble Supreme Court. Pending the adjudication, the demand has been treated as Contingent Liability in these Financial Statements.

The above information exclude particulars in respect of certain non-resident shareholders for whom dividend warrants were sent to the shareholders' banks in India in Indian Rupees, with prior approval of the Reserve Bank of India.


Mar 31, 2011

OTHERS

a. Sales are net of price adjustments for earlier years, settled during the year by the Company and discounts, trade incentives etc.

b. Excise duty includes Rs. 18.82 crs. (Rs. 8.83 crs) paid on batteries issued towards warranty claims.

c. The Company has a full-fledged Research and Development Center and it has thereby been able to considerably further its efficiency. During the year, a sum of Rs. 9.76 crs. (Rs. 11.55 crs), including capital expenditure Rs. 1.09 crs. (Rs. 2.73 crs), was spent on Research and Development work.

d. Stores and Spares consumed is exclusive of Rs. 0.45 crs (Rs. 0.37 crs) being the amounts allocated to other heads of expenses.

e. The amounts due to Micro and Small enterprises are as follows:-

1. Principal Amount Rs. 5.29 crs (Rs. 5.44 crs) Interest due on above Rs. 0.01 crs (Rs. 0.02 crs)

2. Amount of interest paid in terms of Sec. 16 of the Micro, Small and Medium Enterprise Development Act 2006 Rs. nil (Rs. nil)

3. Amount of interest due and payable for the period of delay Rs. 0.01 crs (Rs. 0.02 crs)

4. Amount of interest accrued and remaining unpaid as at 31st March 2011 Rs. 0.03 crs (Rs. 0.02 crs)

5. Amount of further interest remaining due and payable in the succeeding year Rs. nil (Rs. nil)

f. Diminution, based on the net worth as per the latest audited accounts of the relevant Company or market value, in the value of certain long term unquoted/quoted investments as on the Balance Sheet date, being temporary in nature, has not been provided.

i. Materials consumed (Schedule 16) includes warranty costs Rs. 77.27 crs (Rs. 28.81 crs) and is net of exchange fluctuation Gain Rs. 15.48 crs. (Rs. 18.52 crs.), export incentives Rs. 6.63 crs. (Rs. 5.10 crs.), and purchase tax set-off Rs. Nil. (Rs. 0.64 crs).

l. During the last year, the Company had raised Rs. 529.91 crores (net) by issuing shares to Qualified Institutional Buyers to generate funds for its capital expenditure, acquisitions and for general corporate purposes. Out of above Rs. 295.88 crores have been used for the stated purpose and balance of Rs. 234.03 crores remain temporarily invested in mutual funds as at 31st March, 2011.

n. BUSINESS SEGMENT

As the Companys business activity falls within a single primary business segment, viz. Lead Acid Storage Batteries, the disclosure requirements of Accounting Standard-17 "Segment Reporting", issued by the Institute of Chartered Accountants of India are not applicable.

q. The Company has paid Rs. 0.62 crs (Rs. 0.49 crs) towards lease of residential apartments. These are cancellable leases, renewable by mutual agreement. Generally, there is no escalation clause and no other restrictions imposed by the lease arrangements. There are no sub-leases.

r. Gratuity, compensated absences and other post-employment benefit plans The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company provides certain Post-Retirement Medical Benefits (PRMB) to the employees qualifying for such benefits under the scheme upto 31 March 2006, and accordingly the number of beneficiaries is frozen on that date. This benefit is unfunded.

The Company has a Pension plan, a part of the liability whereof upto 31 March 2003 is in the nature of a defined benefit plan. From 1 April 2003 onwards, pension remains as a defined contribution liability which is funded annually with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

V. In 2011-12 the Company expects to contribute Rs. 5.00 crs to gratuity and Rs. 1.00 crs to Pension.

VII. Actuarial Assumptions

1. Discount Rate 8.00% p.a (7.50%)

2. Expected rate of return on plan assets 9.00% p.a (8.00%)

3. Mortality pre retirement Standard Table LIC (1994-96) Ultimate

4. Mortality Post retirement Mortality for annuitants LIC (1996-98) Ultimate

5. Employee Turnover Rate 10.00% (10.00%)

VIII. Healthcare cost trend rates have no effect on the amounts recognised in the profit and loss account, since the benefit is in the form of a fixed amount as per the various grades, which is not subject to change

IX. The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

X. Contribution to Provident and Other Funds includes Rs. 13.60 crs (Rs. 12.51 crs) paid towards Defined Contribution Plans

s. Related Party Disclosure:

i) Particulars of related parties :

1. Subsidiaries : Chloride Batteries S.E. Asia Pte. Limited, Singapore (CBSEA) Chloride International Limited (CIL) Caldyne Automatics Limited (Caldyne) Espex Batteries Limited, UK (Espex) Associated Battery Manufacturers (Ceylon) Ltd., Sri Lanka (ABML) Chloride Metals Limited (CML-Formerly Tandon Metals Limited) Leadage Alloys India Limited Exide Batteries (Pvt) Limited (Subsidiary of CBSEA)

2. Associate Companies : ING VYSYA Life Insurance Company Limited (IVL)

3. Enterprise/Individuals having a direct : Chloride Eastern Limited, UK. (CEL) or indirect controls over the company Chloride Eastern Industries Pte Limited, Singapore (CEIL) LIEC Holdings SA, Switzerland Mr. S B Raheja

4. Key Management Personnel : Mr. T V Ramanathan (As on 31st March, 2011) Mr. G Chatterjee Mr. P K Kataky Dr. S K Mittal (upto 30 April, 2010) Mr. A K Mukherjee Mr. Nadeem Kazim Mr. Supriya Coomer

5. Name of the Companies /firms/ : Nil in which Directors/Key Management Personnel have significant influence with whom transactions have happened during the year.

v. Exceptional item of Rs. 46.93 crores represents gain on transfer of land which was no longer in use.

w. Other income in Schedule 14 includes Rs. 20.65 crores being gain arising on account of premature payment of deferred sales tax loan in terms of Net Present Value (NPV) Scheme of the Government of Tamilnadu. The Company has been granted the above in terms of order no. 743/2011/A8 dated 29th March, 2011 issued by Joint Commissioner (CT), Chennai (East) Division.


Mar 31, 2010

I. CONTINGENCIES

Contingent liabilities not provided for in respect of

- Outstanding Bank Guarentees/lndemnity Bonds 10.09 10.24

- Sales Tax demands 1.03 0.11

- Excise Duty demands 0.77 0.62

- Other claims being disputed by the Company 0.50 0.54

- Claim from a landlord, an appeal whereby is pending in Honble

Bombay High Court Not ascertainable Not ascertainable

II. OTHERS

a. Sales are net of price adjustments for earlier years, settled during the year by the Company and discounts, trade incentives etc (after adjustment of excess provision written back amounting to Rs. 9.93 crs.).

b. Excise duty includes Rs. 8.83 crs. (Rs. 11.96 crs) paid on batteries issued towards warranty claims.

c. The Company has a full-fledged Research and Development Center and its has thereby been able to considerably further its efficiency. During the year, a sum of Rs. 11.55 crs. (Rs. 9.38 crs), including capital expenditure Rs. 2.73 crs. (Rs. 1.80 crs), was spent on Research and Development work.

d. Stores and Spares consumed is exclusive of Rs. 0.37 crs (Rs. 0.29 crs) being the amounts allocated to other heads of expenses.

f. Diminution, based on the net worth as per the latest audited accounts of the relevant Company or market value, in the value of certain long term unquoted/quoted investments as on the Balance Sheet date, being temporary in nature, has not been provided.

g. Details of amount payable (when due) to Investor Education & Protection Fund are as follows (Schedule -11)

i. Materials consumed (Schedule 16) includes warranty costs Rs. 28.81 crs (Rs. 37.59 crs) and is net of exchange fluctuation Gain Rs. 18.18 crs. (Includes Exchange Loss Rs. 40.64 crs.), export incentives Rs. 5.10 crs. (Rs. 4.64 crs.), and purchase tax set-off Rs.0.64 crs. (Rs. nil).

I. During the year, the Company has issued 5 crores shares of Re 1 each to Qualified Institutional Buyers (QIBs) at a premium of Rs. 106.90 to generate funds for its capital expenditure, acquisitions and for general corporate purposes. The total sum received aggregated to Rs.539.50 crores (including Rs.534.50 crores towards Securities premium). Pending utilization of the money for the purposes mentioned above, the Company has temporarily invested the funds in mutual funds after adjusting share issue expenses of Rs 9.59 crores (including Auditors remuneration of Rs. 0.27 crores).

n. BUSINESS SEGMENT

As the Companys business activity falls within a single primary business segment, viz. lead Acid Storage Batteries, the disclosure requirements of Accounting Standard-17 "Segment Reporting", issued by the Institute of Chartered Accountants of India are not applicable.

q. The Company has paid Rs. 0.49 crs (Rs. 0.52 crs) towards lease of residential apartments. These are cancellable leases, renewable by mutual agreement. Generally, there is no escalation clause and no other restrictions imposed by the lease arrangements. There are no sub-leases.

r. Gratuity, compensated absences and other post-employment benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company provides certain Post-Retirement Medical Benefits (PRMB) to the employees qualifying for such benefits under the scheme upto 31 March 2006, and accordingly the number of beneficiaries is frozen on that date. This benefit is unfunded.

The Company has a Pension plan, a part of the liability whereof upto 31 March 2003 is in the nature of a defined benefit plan. From 1 April 2003 onwards, pension remains as a defined contribution liability which is funded annually with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

V. In 2010-11 the Company expects to contribute Rs. 5.00 crs to gratuity and Rs. 1.00 crs to Pension.

VIII. Healthcare cost trend rates have no effect on the amounts recognised in the profit and loss account, since the benefit is in the form of a fixed amount as per the various grades, which is not subject to change.

IX. The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

X. Contribution to Provident and Other Funds includes Rs. 12.51 crs (Rs. 10.26 crs) paid towards Defined Contribution Plans.

s. The Ministry of Corporate Affairs, Government of India vide its letter no. 47/68/2010-CL-lll dated 19th March, 2010, has exempted the Company from attaching the Annual Reports and other particulars of its subsidiary companies along with the Annual Report of the Company required u/s 212 of the Companies Act, 1956.

v. Related Party Disclosure:

i) Particulars of related parties :

1. Subsidiaries

Chloride Batteries S.E. Asia Pte. Limited, Singapore (CBSEA)

Chloride International Limited (CIL)

Caldyne Automatics Limited (Caldyne)

Espex Batteries Limited, UK (Espex)

Associated Battery Manufacturers (Ceylon) Ltd., Sri Lanka (ABML)

Chloride Metals Limited (CML-Formerly Tandon Metals Limited)

Leadage Alloys India Limited

Exide Batteries (Pvt) Limited (Subsidiary of CBSEA)

2. Associate Companies :

INGVYSYA Life Insurance Company Limited (I VL)

CEIL Motive Power Pty Limited, Australia (Upto 24th August, 2009)

3. Enterprise/Individuals having a direct :

Chloride Eastern Limited, UK. (CEL) or indirect controls over the company Chloride Eastern Industries Pte Limited, Singapore (CEIL) LIEC Holdings SA, Switzerland Mr. S B Raheja

4. Key Management Personnel : Mr. T V Ramanathan

Mr. G Chatterjee

Mr. P K Kataky

Dr. S K Mittal

Mr. A K Mukherjee

Mr. Nadeem Kazim

Mr. Supriya Coomer

5. Name of the Companies/firms/ : Nil in which Directors/Key Management Personnel have significant influence with whom transactions have happened during the year