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Notes to Accounts of Gabriel India Ltd.

Mar 31, 2023

Rights, preferences and restrictions attached to Equity shares:

The Company has only one class of share referred to as Equity shares having a par value of '' 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the unlikely 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 and amount paid on equity shares held by the shareholders.

NATURE OF RESERVES

Securities Premium : Securities Premium account comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific provisions of the Companies Act, 2013.

General Reserve : The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the statement of profit and loss.

Cash Flow Hedge Reserve : The Cash Flow Hedge Reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedge reserve will be reclassified to statement of profit and loss only when the hedged items affect the profit or loss.

Retained Earnings: Retained Earnings comprises of the undistributed earning after tax, kept aside to meet future (known or unknown) obligations.

2 Fair value hierachy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable. Investment in mutual funds are valued based on the NAV obtained from asset management company.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis.

NOTE 36 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as a trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The Company''s risk management is carried out by the Finance Department under policies approved by the Board of Directors. Finance Department identifies, evaluates and hedges financial risks.

A) Credit risk

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits classified at amortised cost as well as credit exposures to trade receivables and contract assets.

i) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions, investment in mutual funds, other receivables and deposits, foreign exchange transactions and other financial instruments.

ii) Trade receivables

Customer credit risk is managed through established policy, procedures and control relating to customer credit risk management. Further, Company''s customers includes Original Equipment Manufacturers (OEMs) and After Market (AM) dealers having long standing relationship with the Company. Outstanding customer receivables are regularly monitored and reconciled. At March 31, 2023, receivable from Company''s top 10 customers accounted for approximately 12% of sales (March 31, 2022: 15%) of which 94% (March 31, 2022: 90%) are receivables outstanding. An impairment analysis is performed at each reporting date on an individual basis for major clients. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. The Company does not hold collateral security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions.

iii) Other receivables, deposits with banks and loans given

Credit risk from balances with banks, financial institutions and mutual funds is managed in accordance with the Company''s approved investment policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s Board of Directors on regular basis and the said limits are revised as and when appropriate. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and avaiIabiIity of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying business, the Company''s treasury maintains fIexibiIity in funding by maintaining avaiIabiIity under committed credit lines.

The development of financial assets and liabilities is monitored on an ongoing basis. Internal directives regulate the duties and responsibilities of liquidity management and planning. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows.

(i) Financing Arrangement

The Company has obtained fund and non-fund based working capital line from banks. The Company invests its surplus funds in bank fixed deposit and liquid schemes of mutual funds, which carry low mark to market risks.

(ii) Maturities of financial liabilities

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

- aII non-derivative financial IiabiIities, and

- net and gross settIed derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

C) Commodity price sensitivity

The Company has significant usage of commodities like Steel, Oil, Aluminium exposing it to price risk arsing out of market fluctuations. Commodity price risk exposure is evaluated and managed through procurement and other related operating policies. As the Company has a back to back pass through arrangements for volatility in raw material prices there is limited impact on the profit and loss and equity of the Company.

D) Market risk - Foreign currency risk

The Company enters into international transactions and is exposed to resultant foreign exchange risk, primarily with respect to the USD, CNH (RMB), EUR and JPY. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (''). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the '' cash flows of highly probable forecast transactions.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. For hedges of foreign currency purchases and sales, the Company enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms of the hedged item. The Company therefore performs a qualitative assessment of effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Company uses the hypothetical derivative method to assess effectiveness. Ineffectiveness is reccorded in the Statement of Profit and Loss.

NOTE 37 CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

Risk Management

The Company has equity capital and other reserves attributable to the equity shareholders, as the primary source of capital with limited reliance on borrowings/ debts.

NOTE 38 SEGMENT REPORTING

Information reported to the Chief Operating Decision Maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Company is in the business of manufacture and sale of automobile components, which in the context of Indian Accounting Standard 108 ''Segment Information'' represents single reportable business segment. The accounting policies of the reportable segments are the same as the accounting policies disclosed in Note 1. The revenues, total expenses and net profit as per the Statement of Profit and Loss represents the revenue, total expenses and the net profit of the sole reportable segment

NOTE 39 DISCLOSURE IN ACCORDANCE WITH IND AS - 19 ON EMPLOYEE BENEFITS a) Defined contribution plans

The Company has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per local regulations. The contributions are made to provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

Contributions are made to employees family pension fund in India for employees as per local regulations. The contributions are made to provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The Company has recognised the following amount in the Statement of Profit and Loss for the year.

b) Post-employment obligations Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to fund managed by Life Insurance Corporation of India. Contributions are made as per the working by LIC of India.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

i) Asset volatility : All plan assets are maintained in a trust managed by a public sector insurer viz.LIC of India.LIC has a sovereign guarantee and has been providing consistent and competetive returns over the years.The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

ii) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of plans'' bond holdings

iii) Future salary increase and inflation risk: Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainities in estimating this increasing risk.

Asset-Liability mismatch risk: Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralise valuation swings caused by interest rate movements. Hence Company is encouraged to adopt asset-liability management.

The Company''s assets are maintained in a trust fund managed by public sector insurance via, LIC of India. LIC has been providing consistent and competitive returns over the years. The plan asset mix is in compliance with the requirements of the respective local regulations.

g) Defined benefit liability and employer contributions

The Company has agreed that it will aim to eliminate the deficit in gratuity plan over the years. Bonding levels are monitored on an annual basis and the current agreed contribution rate is 12% of the basic salaries. The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the agreed period and that regular contributions, which are based on service costs, will not increase significantly.

The weighted average duration of the defined benefit obligation is 12 years . The expected maturity analysis of gratuity is as follows:

The honorable Supreme Court has issued a judgement in February, 2019 in relation to inclusion of certain allowances in the definition of basic wages as defined under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952. The Company has completed its evaluation and it believes that there will not be any additional liability due to supreme court judgement. The Company will continue to monitor and evaluate its position based on future events and developments

NOTE 46

During the year, the Company was required to spend '' 20.71 million (i.e 2% of the Average Net Profit of the three preceding years) on CSR Activities which represented donations/ contributions to Companies which are engaged in CSR activities eligible under Section 135 of the Companies Act, 2013 as specified in Schedule VII. In furtherance to the budgeted expenditure the Company has spent '' 20.71 million (Previous year Budgeted CSR amount '' 21.68 million & Actual CSR spent '' 21.68 million) on the CSR Activities during the year.

NOTE 47 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

(i) Details of benami property held

No proceedings have been initiated on or are pending against the Company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Borrowing secured against current assets

The Company has no borrowings from banks and financial institutions secured against current assets.

(iii) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(vii) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(x) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xi) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xii) Title deeds of immovable properties not held in the name of company

The title deeds of all the immovable properties as disclosed in Note 2 and 3 to the financial statements, are held in the name of the Company.

NOTE 48

On May 09, 2023, the Company acquired 100% equity shares of Inalfa Gabriel Sunroof Systems Private Limited (''IGSSPL) and entered into a technical collaboration with Inalfa Roof Systems Group B.V, of The Netherlands (''Inalfa'') to undertake the activities of manufacture and sale of the automotive sunroofs through IGSSPL. The Board of Directors of Gabriel India Limited (''Gabriel India'') also accorded its approval to execute the joint venture agreement between Inalfa, Gabriel India and IGSSPL, subject to receipt of requisite approvals, pursuant to which the shareholding of Inalfa and Gabriel India in IGSSPL will be in the ratio of 51:49 in accordance with the terms contained therein.

NOTE 49

Previous year figures have been re-grouped/reclassified wherever necessary to conform to current year''s classification.

Mar 31, 2022

Rights, preferences and restrictions attached to Equity shares:

The Company has only one class of share referred to as Equity shares having a par value of ''1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

NATURE OF RESERVES

Securities Premium : Securities premium account comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific provisions of the Companies Act, 2013.

General Reserve : The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the statement of profit and loss.

Cash Flow Hedge Reserve : The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for Cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow reserve will be reclassified to statement of profit and loss only when the hedged items affect the profit or loss.

Relates to duty saved on import of capital goods and spares under the EPCG scheme. Under the scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants recognised are released to the statement of profit and loss based on fulfilment of related export obligations.

Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels: Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

NOTE 37. FINANCIAL RISK MANAGEMENT

The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as a trading or speculative instruments.

The Companyâs risk management is carried out by the Finance Department under policies approved by the Board of Directors. Finance Department identifies, evaluates and hedges financial risks. The Board provides written policies covering specific areas such foreign exchange risk, interest rate risk, credit risk, use of derivatives financial instruments and non derivatives financial instruments and investment of excess liquidity.

A) Credit risk

i) Credit risk management

ii) Trade receivables

Customer credit risk is managed through established policy, procedures and control relating to customer credit risk management. Further, Companyâs customers includes Original Equipment Manufacturers (OEMs) and After Market (AM) dealers having long standing relationship with the Company. Outstanding customer receivables are regularly monitored and reconciled. At March 31, 2022, receivable from Companyâs top 10 customers accounted for approximately 15% of sales (March 31,2021: 16%) of which 90% (March 31,2021: 89%) are receivables outstanding. An impairment analysis is performed at each reporting date on an individual basis for major clients. The calculation is based on historical data. The Company does not hold collateral security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.

iii) Other receivables, deposits with banks and loans given

Credit risk from balances with banks, financial institutions and mutual funds is managed in accordance with the Companyâs approved investment policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Companyâs Board of Directors on regular basis and the said limits are revised as and when appropriate. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterpartyâs potential failure to make payments.

B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying business, the Companyâs treasury maintains flexibility in funding by maintaining availability under committed credit lines.

(i) Financing Arrangement

(ii) Maturities of financial liabilities

The table below analyses the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:

- all non-derivative financial Liabilities, and

- net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows.

C) Commodity price sensitivity

D) Market risk - Foreign currency risk

The Company enters into international transactions and is exposed to resultant foreign exchange risk, primarily with respect to the USD, CNH (RMB), EUR and JPY. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

The Company enters into hedge relationships where the critical items of the hedging instrument match with the terms of hedge items, therefore a qualitative assessment of effectiveness is performed. Ineffectiveness is recorded in the Statement of Profit and Loss

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

Risk Management

The Company has equity capital and other reserves attributable to the equity shareholders, as the primary source of capital with limited reliance on borrowings/ debts.

NOTE 39. SEGMENT REPORTING

Information reported to the Chief Operating Decision Maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Company is in the business of manufacture and sale of automobile components, which in the context of Indian Accounting Standard 108 ''Segment Informationâ represents single reportable business segment. The accounting policies of the reportable segments are the same as the accounting policies disclosed in Note 1. The revenues, total expenses and net profit as per the Statement of Profit and Loss represents the revenue, total expenses and the net profit of the sole reportable segment

Information about major customers

Revenues of '' 5,665 million ( March 31,2021- '' 4,419 million ) are derived from a single external customer.

NOTE 40. DISCLOSURE IN ACCORDANCE WITH IND AS - 19 ON EMPLOYEE BENEFITS a) Defined contribution plans

b) Post-employment obligations Gratuity

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

i) Asset volatility : All plan assets are maintained in a trust managed by a public sector insurer viz.LIC of India.LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

ii) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of plansâ bond holdings

iv) Future salary increase and inflation risk: Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at managementâs discretion may lead to uncertainties in estimating this increasing risk.

Asset-Liability mismatch risk: Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralise valuation swings caused by interest rate movements. Hence company is encouraged to adopt asset-liability management.

The Companyâs assets are maintained in a trust fund managed by public sector insurance via, LIC of India. LIC has been providing consistent and competitive returns over the years. The plan asset mix is in compliance with the requirements of the respective local regulations. g) Defined benefit liability and employer contributions

The honourable Supreme Court has issued a judgement in February, 2019 in relation to inclusion of certain allowances in the definition of basic wages as defined under the Employeesâ Provident Funds & Miscellaneous Provisions Act, 1952. The Company has completed its evaluation and it believes that there will not be any additional liability due to supreme court judgement. The Company will continue to monitor and evaluate its position based on future events and developments

During the year, the Company was required to spend '' 21.68 million (i.e 2% of the Average Net Profit of the three preceding years) on CSR Activities which represented donations/ contributions to Companies which are engaged in CSR activities eligible under Section 135 of the Companies Act, 2013 as specified in Schedule VII. In furtherance to the budgeted expenditure the Company has spent '' 21.68 million (Previous year Budgeted CSR amount '' 25.46 million & Actual CSR spent '' 20.76 million) on the CSR Activities during the year.

NOTE 48

The Company has taken into consideration the impact of the known internal and external events arising from COVID-19 pandemic while preparing the financial information.

As a part of such assessment, the Company has considered the recoverability of outstanding trade receivables, contract assets, property, plant and equipment and future cash flow position upto the date of approval of these financial results. The Company is confident of recoverability of assets as on March 31, 2022. However, the impact assessment of COVID-19 is an ongoing process and itâs impact remains uncertain, given the uncertainties associated with its nature and duration. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results and the Company will continue to closely monitor any significant impact on the Companyâs financial position.

NOTE 49. ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

(i) Details of benami property held

No proceedings have been initiated on or are pending against the Company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Borrowing secured against current assets

The Company has no borrowings from banks and financial institutions.

(iii) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(vii) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(x) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

NOTE 50

Transfer to Investors Education and Protection Fund

A delay has been observed in transfer of unclaimed interest of '' 0.04 millions accrued on the matured public deposits to Investors Education and Protection fund. The required additional fee was paid along with the amount.

NOTE 51

Previous year figures have been re-grouped/reclassified wherever necessary to conform to current yearâs classification.

Mar 31, 2018

General Information

Gabriel India Limited (the âCompanyâ) offers ride control products catering to all segments in the automotive industry. The Company is domiciled in India and is listed on BSE Ltd. and National Stock Exchange of India.

The financial statements are approved for issue by the Companyâs Board of Directors on 11th May 2018.

i) Estimation of Fair Value

The fair values of investment properties have been determined with the help independent certified valuer on a case to case basis.Valuation is based on government rates, market research, market trend and comparable values as considered appropriate.

B. Rights, preferences and restrictions attached to Equity shares

The Company has only one class of share referred to as Equity shares having a par value of RS.1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

F. Aggregate number of bonus shares issued for consideration other than cash during the period of five years immediately preceding the reporting date

During the year ended March 31 2013, the Company had issued Bonus Share in the ratio of 1:1 as approved by Equity Shareholders in the Extraordinary General Meeting held on 2nd July, 2012 amounting to RS.7,18,21,970.00.

Nature of Reserves

Securities Premium : Securities premium account comprises of the premium on issue of shares. The reserve is utilized in accordance with the specific provisions of the Companies Act, 2013.

General Reserve : The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General reserve will not be reclassified subsequently to the statement of profit and loss.

Cash Flow Hedge Reserve : The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for Cash flow hedges. The cumulative gain or loss arising on changes in fair value of the designated portion of the hedging instruments that are recognized and accumulated under the heading of cash flow reserve will be reclassified to statement of profit and loss only when the hedged items affect the profit or loss.

2. Estimated warranty costs are accrued at the time of sale of components on which the warranty provisions are applicable. It is expected that majority of the warranty provisions outstanding as on March 31, 2018 is likely to result in cash outflow within 12 months of the Balance Sheet date.

4. Other provision represents estimates made for probable claims arising out of litigations/disputes pending with authorities under various statutes. The probability and the timing of the outflow with regard to these matters depend on the ultimate settlement/conclusion with the relevant authorities.

1. Sales includes excise duty collected from customers of RS.465.51 million (March 31, 2017 RS.1,544.68 million).

2. The Company is entitled to refund of octroi and sales tax under incentive scheme of Maharashtra Government which as per accounting policy of the Company are recognized based on assessment of certainty of ultimate realisation. Refund of octroi duty and taxes reflected includes RS.11.87 million (Previous year RS.29.47 million) pertaining to earlier years recognized based on the aforesaid policy of revenue recognition.

A. Names of related parties and related party relationship Relationships

Category I - Holding Company

Asia Investments Private Limited

Category II- Fellow Subsidiaries

Anand Automotive Private Limited

Anand I-Power Limited (erstwhile Perfect Circle India Limited âPCILâ)

Victor Gaskets India Limited

Anand CY Myutec Private Limited (erstwhile Chang Yun India Pvt Ltd.)

Category III- Individuals having control or significant influence over the Company by reason of voting power and their relatives

Mrs. Anjali Singh- Chairperson

Category IV- Enterprise, over which control is held by individuals or through relative listed in âCategory IIIâ above

Anchemco Anand LLP (erestwhile Anchemco)

Anfilco Limited

Category V- Other Related Parties

Spicer India Private Ltd.

Mahle Behr India Private Ltd.

Haldex India Pvt. Ltd.

Mahle Filter systems India Private Ltd.

Mando Automotive India Pvt. Ltd.

Takata India Private Limited

Henkel Anand India Private Limited (erestwhile Henkel Toroson India Pvt Ltd.)

Federal -Mogul Anand Sealings India Ltd. ( erstwhile Anand I -Seal Ltd.)

C Y Myutec Anand Private Limited (Formerly C Y Myutec Pvt Ltd.)

Faurecia Emission Control Systems Koreo Co. Ltd.

Valeo Service India Auto Parts India Pvt Ltd.

SNS Foundation Deep C Anand Education Trust Dytek India Limited

Category VI - Key Management Personnel (KMP)

Mrs. Anjali Singh (Chairperson)

Mr. Manoj Kolhatkar (Managing Director)

Mr. Jagdish Kumar (Director)

Mr. Aditya Vij (Independent Director)

Mr. Pradipta Sen (Independent Director)

Mr. Atul Khosla (Independent Director) (Till 23 Oct 2017) Mr. Pradeep Banerjee (Independent Director) w.e.f 14 Dec 2017

Mr. Rajendran Arunachalam (Chief Financial Officer)

Mr. Nilesh Jain (Company Secretary)

2. Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

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

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year. Company does not undertake Interest Rate Swaps exposures as per the Gabriel Internal Policy reference no. 2.20. Foreign Currency Transactions.

The following table presents the fair value hierarchy of assets and liabilities measured at fair value on a recurring basis

The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as a trading or speculative instruments.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements

The Companyâs risk management is carried out by the Finance Department under policies approved by the Board of Directors. Finance Department identifies, evaluates and hedges financial risks. The Board provides written policies covering specific areas such foreigh exchange risk, interest rate risk, credit risk, use of derivatives financial instruments and non derivatives financial instruments and investment of excess liquidity.

(A) Credit risk

Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits classified at amortized cost as well as credit exposures to trade receivables.

i. Credit risk management

ii) Trade receivables

Customer credit risk is managed thourgh the Companyâs established policy, procedures and control relating to customer credit risk management. Further, Companyâs customers includes Original Equipment Manufacturers (OEMs) and After Market (AM) dealers having long standing relationship with the Company. Outstanding customer receivables are regularly monitored and reconciled. At March 31, 2018, receivable from Companyâs top 10 customers accounted for approximately 76 % of sales (March 31, 2017: 75%) of whicRs.13% (March 31, 2017: 12%) are receivables outstanding. An impairment analysis is performed at each reporting date on an individual basis for major clients. The calculation is based on historical data. The Company does not hold collateral security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.

iii) Other receivables, deposits with banks and loans given

(B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and avaiIabiIity of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, Companyâs treasury maintains fIexibiIity in funding by maintaining avaiIabiIity under committed credit lines.

The development of financial assets and liabilities is monitored on an ongoing basis. Internal directives regulate the duties and responsibilities of liquidity management and planning. Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows.

(i) Financing Arrangement

The Company has obtained fund and non-fund based working capital line from Banks. The Company invests its surplus funds in bank fixed deposit and liquid schemes of mutual funds, which carry no/low mark to market risks.

(ii) Maturities of financial liabilities

The table below analyses the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:

- aII non-derivative financial IiabiIities and

- net and gross settIed derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

C) Interest Rate Risk

Given the limited quantum of borrowing, the Company is not exposed to significant interest rate risk.

D) Commodity price sensitivity

(E) Market risk - Foreign currency risk

The Company enters into international transactions and is exposed to resultant foreign exchange risk, primarily with respect to the US$, CNH (RMB), EUR and JPY. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

The Company uses a combination of foreign currency option contracts and foreign exchange forward contracts to hedge its exposure in foreign currency risk. As per the risk management policy, foreign exchange forward contracts and foreign currency options contracts are permitted to hedge the foreign currency risk. The Companyâs policy of hedging is as explained below

c. Sensitivity

A reasonably possible strengthening (weakening) of the India Rupee against foreign currencies at year ended March 31 would have affected the measurement of unhedged financial instruments denominated in foreign currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

The Companyâs Hedging Policy only allows for effective Hedge relationships to be established. Hedge effectiveness is determined at the inception of hedge relationship and through periodic prespective effectiveness assessments to ensure economic relationship exists between the Hedge item and Hedge instrument.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

Risk Management

The Company has equity capital and other reserves attributable to the equity shareholders, as the primary source of capital with limited reliance on borrowings/ debts.

Note 3. Segment Reporting

Information reported to the Chief Operating Decision Maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Company is in the business of manufacture and sale of automobile components, which in the context of Indian Accounting Standard 108 âSegment Informationâ represents single reportable business segment. The accounting policies of the reportable segments are the same as the accounting policies disclosed in Note 1. The revenues, total expenses and net profit as per the Statement of Profit and Loss represents the revenue, total expenses and the net profit of the sole reportable segment.

Geographical information

The Company primarily operates in India and its revenue from operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below

Note 4. Disclosure in accordance with IND AS - 19 on Employee Benefits

a) Defined contribution plans

Contributions are made to employees family pension fund in India for employees as per local regulations. The contributions are made to provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The Company has recognized the following amount in the Statement of Profit and Loss for the year.

b) Post-employment obligations Gratuity

The amounts recognized in the balance sheet and the movements in the net defined benefit obligation over the year are as follows

The Company has no legal obligation to settle the deficit in the funded plans with an immediate contribution or additional one off contributions. The Company intends to continue to contribute the defined benefit plans as per the demand from LIC of India.

The significant estimates and actuarial assumptions were as follows

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

i) Asset volatility : All plan assets are maintained in a trust managed by a public sector insurer viz.LIC of India.LIC has a sovereign guarantee and has been providing consistent and competetive returns over the years.The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of

ii) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of plansâ bond holdings.

iii) Future salary increase and inflation risk: Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at managementâs discretion may lead to uncertainities in estimating this increasing risk.

Asset-Liability mismatch risk: Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements. Hence Company is encouraged to adopt asset-liability management.

g) Defined benefit liability and employer contributions

The weighted average duration of the defined benefit obligation is 12 years . The expected maturity analysis of gratuity is as follows

1. Local authority duties/taxes on property, utilities etc. disputed by the Company relating to issues of applicability and determination aggregating RS.184.96 million (Previous year RS.184.96 million).

2. Third party claims arising from disputes relating to contracts aggregating RS.0.40 million. (Previous year RS.0.40 million).

3. Other matters aggregating RS.128.73 million (Previous year RS.128.82 million).

Note 5. Dues to micro small and medium enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act,2006(âMSMED Actâ).The disclosures pursuant to the said MSMED Act are as follows

The information has been given in respect of such vendors to the extent they could be identified as âMicro and Small Enterprisesâ on the basis of the information available with the Company.

A. As Lessee in a Finance Lease

The Company has acquired vehicles and solar power plant⁵ under finance lease agreements. The future minimum lease payments under these lease agreements as on March 31, 2018 are as follows

B. As Lessee in a Operating Lease

The Company has entered into operating lease arrangements for factory shed, residential premises, godown. Lease arrangements provide for cancellation by either party and also contain a provision for renewal of the lease agreement.

Note 6. During the financial year 2008-09, the Company had paid remuneration to the Executive Directors in accordance with the resolutions passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of RS.15.87 million was paid to the Executive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of The Companies Act, 1956. The Company had obtained the Shareholders approval for these excess payments, in the Annual General Meeting held on July 28, 2009 and the same was charged to Statement of Profit and Loss of the said year. Central government had given approval in respect of payment to one of the Directors. The Company has subsequently applied to the Central Government for approval of the excess payments for the following

The Company had filed a review petition to the Central government in the financial year 2013-14 in respect of amount disallowed, which is pending for consideration. The Company has filed a legal case against Mr Arvind Walia for recovery of excess amount paid, which is pending for decision.

Note 7. During the year, the Company was required to spend RS.19.36 million and has incurred CSR expenses of RS.19.38 million (Previous year RS.15.78 million) which represented donations/contributions to Companies which are engaged in CSR activities eligible under section 135 of the Companies Act as specified in Schedule VII.

Note 8. Previous year figures have been re-grouped/reclassified wherever necessary to conform to current yearâs classification.

Note 9. First time adoption of Ind AS Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (the Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

A Exemptions and exceptions availed

Below mentioned are the applicable IndAS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions

1 Deemed cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment properties.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment properties at their previous GAAP carrying value.

2 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVTPL on the basis of the facts and circumstances at the date of transition to Ind AS.

Management has accordingly designated the financial instruments based on the facts and circumstances as on April 1, 2016.

Ind AS mandatory exceptions

1 Hedge Accounting

The Company uses derivative financial instruments, such as forward currency contracts to hedge its foreign currency risks. Hedge accounting has been applied prospectively from the transition date to transactions that satisfy the accounting criteria in Ind AS 109, at that date.

Hedging relationships cannot be designated retrospectively, and the supporting documentation cannot be created retrospectively. As a result, only hedging relationships that satisfied the hedge accounting criteria as of 1 April 2016 are reflected as hedges in the Companyâs results under Ind AS.

On date of transition to Ind AS, the Company has designated hedging relationship for outstanding derivative contracts as cash flow hedges. Consequently, the Company applied hedge accounting prospectively effective from transition date.

2 Estimates

The Companyâs estimates are consistent with those made in accordance with Indian GAAP at the date of transition to Ind AS, apart from the following where previous GAAP did not require estimation.

- Investment in equity instruments carried at FVTPL;

- Investment in mutual fund units carried at FVTPL;

- Impairment of financial assets based on expected credit loss method;

- Product warranty.

3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of facts and circumstances that exist at the date of transition to Ind AS.

4 Government loan at below market rate of interest - Government grant

Under Ind AS 101, Company has applied the requirements of Ind AS 109 âFinancial instrumentsâand Ind AS 20 âAccounting for Government Grants and Disclosure of Government Assistance, prospectively to government loans at below market rate of interest obtained after the date of transition to Ind AS. However under Ind AS 101, Company has applied the requirements of Ind AS retrospectively to any government loan originated before the date of transition to Ind AS provided that the information needed to do so had been obtained at the time of initially accounting for that loan. Consequently, if the Company did not under its previous GAAP recognize and measure the government loan at below market rate of interest on a basis consistent with Ind AS requirements, it shall use its previous GAAP carrying amount of the loan at the of transition to Ind AS as the carying amount of the loan in the opening Ind AS balance sheet. Accordingly the Company has applied the above requirements prospectively.

Reconciliation of Equity as at 1st April, 2016 and Profit & Loss for the year ended March 31, 2017

1 Fair Valuation of Investments & Deposits

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period. Long-term investments were carried at cost less provision for other than temporary decline in the value of such instruments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2017. This increased the retained earning by RS.4.53 million (RS.4.50 million net of tax) as at 1 April 2016 and (decreased) the retained earnings by Rs.(0.24) million [Rs.(1.28) million net of tax ] as at March 31, 2017.

Under Indian GAAP, the Company accounted for long term investments in debt securities as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated certain investments as FVTPL debt investments measured at fair value. At the date of transition to Ind AS, difference between the instruments at fair value and carrying cost as at the date of transition has been recognised in other equity, net of related deferred taxes. Deposits placed for leases and other services have been recorded at fair value as on the date of transition. These adjustments (decreased) the retained earnings as at 1 April 2016 by H(31.66) million [H(20.69) million net of tax ] and by H(24.89) million [ H(16.26) million net of tax ] as at March 31, 2017. The cumulative effect of these adjustments resulted in a (decrease) of profit after tax by H(0.36) million for the year ended March 31 2017.

2 Proposed dividend and dividend distribution tax

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting.

Accordingly, the liability for proposed dividend of FY2015-16 of RS.107.74 million with dividend distribution tax RS.21.84 million is included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

3 Derivative instruments

As stated earlier, on date of transition to Ind AS, the Company has designated hedging relationship for outstanding derivative contracts as cash flow hedges. Consequently, the Company applied hedge accounting prospectively effective from transition date by designation of hedging instruments in cash flow hedges for future expected sales and purchases that are highly probable.

The corresponding adjustment has been recognised as a separate component of equity, in the cash flow hedge reserve. On the date of transition the 1 April 2016, there is no impact on cash flow hedge reserve. The net movement of RS.27.62 million (RS.18.06 million net of tax) during the year ended on March 31, 2017 was recognized in OCI and subsequently taken to cash flow hedge reserve. The accounting for hedges and fair valuation of deriviatives resulted in increase in equity by RS.15.32 million (net of tax) as at March 31 2017.

4 Excise Duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty and GST. Under Ind AS, 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. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by RS.1544.68 million. There is no impact on the total equity and profit.

5 Discounts and sales incentives

Under the previous GAAP, certain discounts and sales incentives were disclosed as part of other expenses. Under Ind AS, amounts disclosed as revenue are net of discounts and sales incentives. This change has resulted in an decrease in total revenue and other expenses for the year ended March 31, 2017 by RS.73.98 million.

6 Remeasurement of post-employment benefit obligations

Under Ind AS, remeasurements i.e., actuarial gains and loses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these measurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 decreased by RS.18.72 million (net of tax of RS.12.24 million). There is no impact on the total equity as at March 31, 2017.

7 Other Comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP

8 Provision for Sales Returns

In order to arrive at the fair value of the consideration, received in sales, the Company has estimated amount of sales that could be possibly returned as RS.2.16 million (RS.1.41 million net of tax) for the FY2016-17.

Mar 31, 2017

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

The Company has only one class of share referred to as Equity shares having a par value of '' 1 per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2017, the amount of per share dividend recognized as distributions to Equity shareholders was Rs, 0.45 (March 31, 2016: Rs, 1.20). (Refer note 1(t))

Liquidity risk arises from borrowings and other liabilities. The company manages its liquidity risk by ensuring availability of committed credit lines and borrowing facilities.

Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The company manages the risk by entering in foreign currency exposure contracts.

Foreign exchange exposures

The Company enters into Foreign Currency Exposures Contracts for the purpose of hedging its currency risk and interest rate risk. These contracts are entered to hedge underlying assets/liabilities, firm commitments and highly probable forecast transactions and are not intended for trading or speculation.

NOTE 1. The Company is entailed to refund of octroi and sales tax under incentive scheme of Maharashtra Government which as per accounting policy of the Company are recognized based on assessment of certainty of ultimate realization. Refund of octroi duty and taxes reflected under note 21 includes Rs, 29.47 mil (Previous year Nil) pertaining to earlier years recognized based on the aforesaid policy of revenue recognition.

NOTE 2. SEGMENT INFORMATION a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of Indian market and the export turnover being 4.47% (Previous year 4.12%) of the total turnover of The Company. There are no reportable geographical segments.

NOTE 3. RELATED PARTY TRANSACTION

In accordance with the Accounting Standard on âRelated Party Disclosuresâ (AS 18), the disclosure in respect of transactions with the Companyâs related parties are as follows:

A. Names of related parties and description of relationships

(As identified and certified by the Management)

1. Enterprises where control exists

Holding Company

Asia Investment Private Limited

2. Other related parties with whom transactions have taken place during the year.

a) Fellow subsidiaries

Anand Automotive Private Limited Anand I-Power Limited (erstwhile PCIL)

Victor Gaskets India Limited

Anand CY Myutec Automotive Pvt. Ltd (erstwhile Chang Yun India Private Limited)

b) Partnership Firm of Director

Anchemco ANAND LLP

* Estimated warranty costs are accrued at the time of sale of components on which the warranty provisions are applicable. It is expected that majority of the warranty provisions outstanding as on March 31, 2017 is likely to result in cash outflow within 12 months of the Balance Sheet date.

Warranty expenses for the year are net of reversal of '' 22 million (PY NIL)

** Others represents estimates made for probable claims arising out of litigations/disputes pending with authorities under various statutes including '' 16.29 Mil (Previous Year '' 6 Mil) reflected as exceptional items (Refer note 27) and for entry tax.The probability and the timing of the outflow with regard to these matters depend on the ultimate settlement/conclusion with the relevant authorities.

NOTE 4. During the financial year 2008-09, the Company paid remuneration to the Executive Directors in accordance with the resolutions passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of Rs, 17.71 million was paid to the Executive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of The Companies Act, 1956. The Company had obtained the Shareholders approval for these excess payments, in the Annual General Meeting held on July 28, 2009 and the same was charged to Statement of Profit and Loss of the said year. The Company had subsequently applied to the Central Government for approval of the excess payments. The Central Government gave approval as under :-

The Company had filed a review petition to the Central government in the financial year 2013-14 in respect of amount disallowed, which is pending for consideration. The company has filed a legal case against Mr Arvind Walia for recovery of excess amount paid, which is pending for decision.

NOTE 5. During the year the Company was required to spend Rs, 15.78 mil and has incurred CSR expenses of Rs, 15.78 mil (Previous year Rs, 12.24 mil) which represented donations/contributions to Companies which are engaged in CSR activities eligible under section 135 of the Companies Act as specified in Schedule VII.

NOTE 6. Th e company has charged depreciation based on the useful life of significant component of assets identified resulting in additional charge of Nil (Previous year Rs, 11.55 million) to the profit of the year.

NOTE 7. a) Employee benefits expense includes provision towards bonus of Nil (Previous year Rs, 41.12 million including Rs, 21.72 million for the period April 01, 2014 to March 31, 2015) arising due to retrospective amendment of Payment of Bonus Act,1965.

b) Royalty expense is net of the write back of Nil (previous year Rs, 28.17 million) relating to earlier year on finalisation of Technical Services Assistance Agreement

NOTE 8. With effect from April 01, 2016, the Company has changed its policy for accounting of derivative transactions to align with the Guidance Note for Derivative transactions issued by The Institute of Chartered Accountants of India, which is mandatory from that date. Accordingly, the Company has adopted hedge accounting in respect of derivative contracts entered on or after April 01 2016. Consequently, Mark to Market loss of Rs, 32.49 million , in respect of such contracts outstanding as on March 31,17, is carried to Cash Flow Hedge Reserve. Mark to Market gain of Rs, 0.02 million (net of tax) for the contracts outstanding as on April 01, 2016 is taken to opening reserves.

NOTE 9. Following are the details of Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016 as required by notification of Ministry of Corporate affairs dated March 30, 2017:

NOTE 10. Previous year figures have been re-grouped/reclassified wherever necessary to conform to current yearâs classification.

Mar 31, 2016

Note 1:

Te Company is entailed to refund of octroi and sales tax under incentive scheme of Maharashtra Government which as per accounting
policy of the Company are recognized based on assessment of certainty of ultimate realization. Refund of octroi duty and taxes
reflected under note 21 includes Rs. Nil (Previous year Rs. 11.15 million) pertaining to earlier years recognized based on the
aforesaid policy of revenue recognition.

Note 2: Segment information

(a) Primary Segment:

Te Company operates only in one business segment viz. Auto Components and Parts.

(b) Secondary Segment:

Te Company caters mainly to the needs of Indian market and the export turnover being 4.12% (Previous year 3.88%) of the total
turnover of Te Company. Tere are no reportable geographical segments.

Note 3: Related party transaction

In accordance with the Accounting Standard on "Related Party Disclosures" (AS 18), the disclosure in respect of transactions with
the Company''s related parties are as follows:

A. Names of related parties and description of relationships

(As identified and certified by the Management)

1. Enterprise where control exists

Holding Company

Asia Investment Private Limited

2. Other related parties with whom transactions have taken place during the year.

(a) Fellow subsidiaries

ANAND Automotive Private Limited

Anand I-Power Limited (erstwhile Perfect Circle India Limited ''PCIL'' )

Victor Gaskets India Limited

Chang Yun India Private Limited

(b) Partnership Firm of Director

Anchemco ANAND LLP

Mr.Manoj Kolhatkar (Managing Director)

* Estimated warranty costs are accrued at the time of sale of components on which the warranty provisions are applicable. It is
expected that majority of the warranty provisions outstanding as on March 31, 2016 is likely to result in cash outfow within 12
months of the Balance Sheet date.

** Others represents estimates made for probable claims arising out of litigations/disputes pending with authorities under
various statutes including Rs. 6 million(Previous Year Rs.6 million) reflected as exceptional items (Refer note 26) and for entry
tax. The probability and the timing of the outfow with regard to these matters depend on the ultimate settlement/conclusion with
the relevant authorities.

All the above expenses have been included under Note 24

Note 4.

During the financial year 2008-09, the Company paid remuneration to the Executive Directors in accordance with the resolutions
passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of Rs 17.71 million was paid to
the Executive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of Te Companies Act,
1956. Te Company had obtained the Shareholders approval for these excess payments, in the Annual General Meeting held on Te
Company had fled a review petition to the Central government in the financial year 2013-14 in respect of amount disallowed, which
is pending for consideration. Te company has filed a legal case against Mr Arvind Walia for recovery of excess amount paid, which
is pending for decision.

Note 5

During the year the Company has incurred CSR expenses of Rs.12.24 million (Previous year Rs.10.84 million) which represented
donations/contributions to Companies which are engaged in CSR activities eligible under section 135 of the Companies Act as
specified in Schedule VII.

Note 6

a) Te Company has recomputed the depreciation based on the useful life of the assets as per accounting policy (e) in Note 1. Tis
has resulted in additional charge of depreciation of Rs. Nil (previous year Rs. 52.45 million). Further, as per transitional
provision of the Act, the Company has adjusted the written down value of Rs. Nil (Previous year Rs. 16.31 million (net of
Deferred tax of Rs. 8.51 million)) in the opening balance of surplus in Profit and Loss in respect of assets whose residual
useful life was NIL as of 1st April 2014.

b) As stated in the same accounting policy, the company has charged depreciation based on the useful life of significant
component of assets identified resulting in additional charge of Rs 11.55 million to the Profit of the year.

Note 7

a) Employee benefits expense for the year includes provision towards bonus of Rs. 41.12 million ( including Rs. 21.71 million for
the period 1st April 2014 to 31st March 2015) arising due to retrospective amendment of Payment of Bonus Act,1965.

b) Royalty expense for the year is net of the write back of Rs 28.17 million relating to earlier year on finalization of
"Technical Services Assistance Agreement"

Note 8

Previous year figures have been re-grouped/reclassified wherever necessary to conform to current year''s classification.

Mar 31, 2015

1 The above Cash flow statement has been prepared under the indirect method set out in AS-3 issued by the Institute of Chartered Accountants of India.

2 Figures in brackets indicate cash outgo.

3 Previous period figures have been regrouped and recast wherever necessary to conform to the current year classification.

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

The Company has only one class of share referred to as 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 rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the unlikely 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 2015, the amount of per share dividend recognized as distributions to Equity shareholders was H1.05 (31st March 2014: Re. 0.85).

Note 2 Contingent liabilities and commitments (to the extent not provided for)

(rs In Million) As at As at Particulars 31st March, 2015 31st March, 2014

Contingent liabilities :

Bills discounted with banks 149.61 209.76 Disputed tax matters :

a) Company in appeal 201.69 181.39

b) Matters decided in Company''s favour,tax authorities in appeal before the 41.44 41.44

High Court

c) Others 27.51 -

Claims against the Company, not acknowledged as debts 292.6 304.66

Commitments :

Estimated amount of unexecuted capital contracts 60.96 20.12 (net of advances and deposits)

others:

Guarantees issued by banks on behalf of the Company 19.02 18.72

Note 3 Foreign exchange exposures

The Company enters into Foreign Currency Exposures Contracts for the purpose of hedging its currency risk and interest rate risk. These contracts are entered to hedge underlying assets/liabilities,firm commitments and highly probable forecast transactions and are not intended for trading or speculation.

Note 4

The Company is entiled to refund of octroi and sales tax under incentive scheme of Maharashtra Government which as per accounting policy of the Company are recognised based on assessment of certainity of ultimate realisation.Refund of octroi duty and taxes reflected under note 21 includes H11.15 mil (Previous year H20.34 Million) pertaining to earlier years recognised based on the aforesaid policy of revenue recognistion.

Note 5 Segment information

a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of Indian market and the export turnover being 3.88% (Previous year 2.80%) of the total turnover of The Company. There are no reportable geographical segments.

Note 6 Related party transaction

In accordance with the Accounting Standard on "Related Party Disclosures" (AS 18), the disclosure in respect of transactions with the Company''s related parties are as follows:

A. Names of related parties and description of relationships (As identified and certified by the Management)

1. Enterprise where control exists:

Holding Company

Asia Investment Private Limited

2. Other related parties with whom transactions have taken place during the year: a Fellow subsidiaries Anand Automotive Private Limited Anand I-Power Limited (erstwhile PCIL)

Victor Gaskets India Limited Chang Yun India Private Limited B partnership Firm of Director

Anchemco (w.e.f 18th Sept 2014)

C Key Management personnel

Mr.Manoj Kolhatkar (Managing Director)

* Estimated warranty costs are accrued at the time of sale of components on which the warranty provisions are applicable. It is expected that majority of the warranty provisions outstanding as on March 31,2015 is likely to result in cash outflow within 12 months of the Balance Sheet date.

** Others represents estimates made for probable claims arising out of litigations/disputes pending with authorities under various statutes including H6.0 Million (Previous Year H42 Million) reflected as exceptional items (Refer note 27) ,sales tax,excise duty and entry tax.The probability and the timing of the outflow with regard to these matters depend on the ultimate settlement/conclusion with the relevant authorities.

Note 7

During the financial year 2008-09, the Company paid remuneration to the Executive Directors in accordance with the resolutions passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of H17.71 million was paid to the Executive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of The Companies Act, 1956. The Company had obtained the Shareholders approval for these excess payments, in the Annual General Meeting held on July 28, 2009.The Company has subsequently applied to the Central Government for approval of the excess payments. The Central Government gave approval as under :-

The Company had filed a review petition to the Central government in the financial year 2013-14 in respect of amount disallowed, which is pending for consideration.

Note 8

During the year the Company has incurred CSR expenses of H10.84 mil which represented donations/contributions to Companies which are engaged in CSR activities eligible under section 135 of the Companies Act as specified in Schedule VII.

Note 45

The Company has recomputed the depreciation based on the useful life of the assets as per accounting policy (e). This has resulted in additional charge of depreciation of H52.45 million for the year ended 31st March, 2015. Further, as per transitional provision of the Act, the Company has adjusted the written down value of H16.31 million (net of Deferred tax of H8.49 million)in the opening balance of surplus in Profit and Loss in respect of assets whose residual useful life was NIL as of 1st April 2014.

Note 9

Previous year figures have been re-grouped/reclassified wherever necessary to conform to current years classification.

Mar 31, 2014

Note 1: Contingent liabilities and commitments (to the extent not provided for)

Particulars As at As at 31st March, 2014 31st March, 2013 (Rs. In Million) (Rs. In Million)

Contingent liabilities :

Bills discounted with Banks 209.76 225.61

Disputed Tax matters :

a) Company in appeal 181.39 187.53

b) Matters decided in Company''s favour, tax authorities in appeal before the 41.44 41.44 High Court

Claims against the Company, not acknowledged as debts 304.66 300.86

Commitments :

Estimated amount of unexecuted capital contracts 20.12 100.33 (net of advances and deposits)

Others:

Guarantees issued by banks on behalf of the Company 18.72 17.29

Note 2: Foreign exchange exposures

The Company enters into Foreign Currency Exposures Contracts for the purpose of hedging its currency risk and interest rate risk. These contracts are not intended for trading or speculation.

Note 3: In terms of Government of Maharashtra policy refund of Octroi Duty under the Package Scheme of Incentives 2007,the Company is eligible to receive an amount not exceeding Rs.74.45 Million at Nashik plant for the period 01.11.2011 to 30.11.2015.During the year the Company has received an amount of Rs 20.34 million for the period 01.11.2011 to 31.03.2013 which is included under other operating income. The octroi refund entitlement for the year of Rs 19.80 million is recognised and is adjusted in material consumption.

Note 4: Segment information

a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of Indian market and the export turnover being 2.80% (Previous year 3.51%) of the total turnover of the Company. There are no reportable geographical segments.

Note 5: Related party transaction

In accordance with the Accounting Standard on "Related Party Disclosures" (AS 18), the disclosure in respect of transactions with the Company''s related parties are as follows:

A. Names of related parties and description of relationships

(As identified and certified by the Management)

1. Enterprise where control exists

Holding Company

Asia Investment Private Limited

2. Other related parties with whom transactions have taken place during the year.

A Fellow subsidiaries

Anand Automotive Limited Perfect Circle India Limited Victor Gaskets India Limited Chang Yun India Limited

B Key Management Personnel

Mr.Prakash Kulkarni (Former Executive Chairman) (upto 20th May 2011) Mr. Arvind Walia ( Former Managing Director) (upto 2nd Nov 2011) Mr. Manoj Kolhatkar (Managing Director)

Note 6: Previous year figures have been re-grouped/reclassified wherever necessary to conform to current years classification.

Mar 31, 2013

1. Foreign exchange exposures

The Company enters into Foreign Exchange Exposures Contracts for the purpose of hedging its currency risk and interest rate risk. These contracts are not intended for trading or speculation.

a) The following are the outstanding Forward Exchange Contracts entered into by the Company:

C) The Company has availed the long term foreign currency buyers credit (foreign currency loan) amounting to Euro 0.93 million with interest rate linked to Euribor. In order to hedge the currency risk and interest risk, the Company has entered into SWAP and forward contracts with its bankers with terms similar to the original foreign currency loan. Pursuant to the hedging of the foreign currency and interest risk, the foreign currency loan has been recorded as a fixed Indian currency loan.

2. Loans and advances includes due from officers of the Company current year Nil (Previous year Rs.0.61 million). Maximum amount due during the year Nil (Previous year Rs.0.64 million).

3. Segment information

a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of Indian market and the export turnover being 3.51% (Previous year 4.84%) of the total turnover of the Company. There are no reportable geographical segments.

4. RELATED PARTY TRANSACTIONS

In accordance with the Accounting Standard on "Related Party Disclosures" (AS 18), the disclosure in respect of transactions with the Company''s related parties are as follows:

A. Names of related parties and description of relationships

(As identified and certified by the Management)

1. Holding Company

Asia Investments Private Limited

2. Other related parties with whom transactions have taken place during the year.

A Fellow Subsidiaries

Anand Automotive Limited Anchemco Limited Perfect Circle India Limited Victor Gaskets India Limited Chang Yun India Limited

B Associate

Federal-Mogul Bearings India Limited (till 15-03-2012)

C Key Management Personnel

Mr. Deepak Chopra (Chairman)

Mr. Manoj Kolhatkar (Managing Director)

5. During the financial year 2008-09, the Company paid remuneration to the Executive Directors in accordance with the resolutions passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of Rs 17.71 Million was paid to the Executive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of the Companies Act, 1956. The Company had obtained the Shareholders approval for these excess payments, in the Annual General Meeting held on July 28, 2009.The Company has subsequently applied to the Central Government for approval of the excess payments. The Central Government gave approval as under:-

The company had filed a review petition to the Central Government in the financial year 2010-11 in respect of amount disallowed, which is pending for consideration.

6. The company announced compensation under Voluntary Retirement Scheme for employees in one of the unit during the year and paid a sum of Rs. 36.38 Million which is reflected as exceptional item in the Statement of Profit and Loss.

7. Previous year figures have been re-grouped/reclassified wherever necessary to conform to current years classification.

Mar 31, 2012

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

(i) The Company has only one class of share referred to as 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. 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 amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) In the unlikely 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 amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) During the year ended 31 March, 2012, the amount of per share dividend recognized as distributions to equity shareholders was Re.1 (31 March, 2011: Re.1).

* Addition includes interest and pre operative expenses capitalized Rs. 8.08 Million (Previous Year Rs. Nil Million)

# Includes Leasehold land and buildings having a gross value of Rs. Nil Million (Previous Year Rs. 12.61 Million) and Rs. Nil Million (Previous year Rs. 19.16 Million) respectively, which were held by the Company for sale in the previous year.

@ Vehicles include Assets purchased on finance lease amounting to Rs. 18.92 Million (Previous Year Rs. 3.32 Million) with a written down value of Rs. 9.33 Million (Previous Year Rs. 2.82 Million) as at year end .

$ Depreciation for the year includes Rs. Nil Million (Previous Year Rs. 1.54 Million) of provision for assets not in use included under Schedule 16 - Manufacturing, administration, selling and distribution and other expenses.

1. CONTIGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Particulars As at As at 31 March, 2012 31 March, 2011 Rs. In Million Rs. In Million

Contingent liabilities :

Bills discounted, Letters of Credit and Bank guarantees 318.97 400.02

Income Tax, Sales Tax, Service Tax and Excise duty against which the company is in appeal. 157.28 96.70

Claims against the Company, not acknowledged as debts 321.96 24.05

Commitments :

Estimated amount of unexecuted capital contracts 111.64 337.00

(net of advances and deposits)

The Company enters into forward exchange contracts for the purpose of hedging its currency risk and interest rate risk. These contracts are not intended for trading or speculation.

2. The company is in the process of obtaining requisite clearance and completing the purchase formalities for the land situated at Khandsa,on which a manufacturing facility was set up in 2008.The company has paid an advance of Rs.90 million for the purchase of land which is included in Capital advance under the head Long term loans & advances.

3. Loans and advances include Rs.1.02 million (Previous year Rs.0.90 million) due from an officer of the company.Maximum amount due during the year Rs.1.19 million (Previous year Rs.1.32 million)

4. Segment information

a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of the Indian market and the export turnover being 4.84% (Previous year 3.00%) of the total turnover of the Company, there are no reportable geographical segments.

5. RELATED PARTY TRANSACTIONS

In accordance with the Accounting Standard on "Related Party Disclosures" (AS 18), the disclosure in respect of transactions with the Company's related parties are as follows:

A. Names of related parties and description of relationships

(As identified and certified by the Management)

1. Enterprise where control exists - Holding Company.

Holding Company

Asia Investments Private Limited

2. Other related parties with whom transactions have taken place during the year.

A Fellow Subsidiaries

Anand Automotive Limited Anchemco Limited Perfect Circle India Limited Victor Gaskets India Limited Chang Yun India Limited

B Associate

Federal-Mogul Bearings India Limited (till 15-03-2012)

C Key Management Personnel

Mr. Arvind Walia (till 01-09-2011)

Mr. Manoj Kolhatkar (from 01-09-2011)

6. The company has identified certain assets which are not in use.The WDV of these assets as at March 31,2012 is Rs.5.39 million (Previous year Rs. 14.98 million) and the same is fully provided for.

Para 132 of AS15 (revised 2005) does not require any specific disclosures except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard No. 5 or Accounting Standard No. 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

7. During the financial year 2008-09, the Company paid remuneration to the Executive Directors in accordance with the resolutions passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of Rs 17.71 million was paid to the Execu- tive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of the Companies Act, 1956. The Company had obtained the Shareholders approval for these excess payments, in the Annual General Meeting held on July 28, 2009.The company has subsequently applied to the Central Government for approval of the excess payments. The Central Government gave approval as under

The company had filed a review petition to the Central Government in the financial year 2010-11 in respect of amount disallowed, which is pending for consideration.

8. The company has availed the long term foreign currency buyers credit (foreign currency loan) amounting to Euro 1,013,956 with interest rate linked to Euribor.In order to hedge the currency risk and interest risk, the company has entered into SWAP and forward contracts with its bankers with terms similar to the original foreign currency loan.Pursuant to the hedging of the foreign currency and interest risk,the foreign currency loan has been recorded as a fixed Indian currency loan.

9. Previous year figures have been re-grouped/reclassified wherever necessary to conform to current years classification.

Mar 31, 2011

1. a) The Secured Term Loans amounting to Rs. 394.97 million (Previous Year Rs. 404.97 million) from banks are secured as follows:

i) Rs. 199.97 million (Previous year Rs. 199.97 million) from Bank of India is secured by first charge on specified movable plant and machinery installed at Khandsa plant and Chakan plant and collaterally secured by first and exclusive charge on the immovable properties situated at Hosur plant.

ii) Rs. 45.00 million (Previous year 75.00 million) from ING Vysya Bank, secured by equitable mortgage of Land and Building situated at Ambad plant.

iii) Rs. 150.00 million (Previous year Rs. NIL) from Kotak Mahindra Bank secured by first Pari Passu charge over the movable fixed assets both present and future and exclusive charge by way of equitable mortgage over the immovable properties situated at Chakan plant.

iv) Rs. NIL (Previous year Rs. 130.00 million) from State Bank of India was secured by hypothecation of the Company's entire movable fixed assets both present and future.

(b) Buyer's Import Credit for Capital Goods facility Rs. 60.21 million (Previous year NIL) is secured by exclusive charge on the Dyna Chrome plating machine and all related equipment.

(c) The Working capital facilities amounting to Rs. 658.55 million (Previous year Rs. 640.75 million) are secured by hypothecation of stocks, book debts and other current assets of the Company.

2. (a) Secured Term Loans from banks due for repayment within a year is Rs. 180.03 million (Previous year Rs. 171.11 million).

(b) Buyer's Import Credit for Capital Goods due for repayment within a year is Rs. NIL (Previous Year NIL)

(c) Fixed deposits due for repayment within a year Rs. 162.10 million (previous year Rs. 30.04 million)

(d) Sales Tax Deferral loan due for repayment within a year is Rs. 46.13 million (previous year Rs. 24.98 million).

(e) Other Loans and advances due for repayment within a year is Rs. 1.25 million (Previous year Rs. 1.56 million).

3. Estimated amount of contracts remaining to be executed on capital account and not provided for are Rs. 337.00 million (Previous year Rs. 127.46 million).

4. Contingent Liabilities are in respect of:

31.03.11 31.03.10

Rs. Million Rs. Million

(i) Bills discounted, Letters of Credit and Bank guarantees 400.02 422.86

(ii) Income Tax, Service Tax, Sales Tax and Excise duty 96.70 109.03 against which the Company is in appeal

(iii) Claims not acknowledged as debts 24.05 29.40

5. The Company is in process of obtaining requisite clearance and completing the purchase formalities for the land situated at Khandsa, on which a manufacturing facility was set up in 2008. As the clearance formalities are taking time, the Company has, during the year, agreed to make a onetime payment of Rs. 30 million for usage of the land. The expense has been fully charged off to Profit and Loss Account in the current year. The Company has paid an advance of Rs. 90 Million for the purchase of land which is included in CWIP.

6. Loans and Advances include Rs. 0.90 million (Previous year Rs. 1.43 million) due from an officer of the Company. Maximum amount due during the year Rs. 1.32 million (Previous year Rs. 1.66 million).

7. Segmental Reporting:

a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of Indian market and the export turnover being 3.00% (Previous year 1.81%) of the total turnover of the Company; there are no reportable geographical segments.

8. In accordance with the Accounting Standard on "Related Party Disclosures" (AS 18), the disclosure in respect of transactions with the Company's related parties are as follows:

A. Names of related parties and description of relationships (As identified and certified by the Management)

1. Enterprise where control exists - Holding Company. Holding Company Asia Investment Private Limited, March 25, 2011

2. Other related parties with whom transactions have taken place during the year.

A Fellow Subsidiaries

Anand Automotive Limited Anchemco Limited Perfect Circle India Limited Victor Gaskets India Limited Chang Yun India Limited

B Associate

Federal-Mogul Bearings India Limited

C Key Management Personnel

Mr. Prakash Kulkarni Mr. Arvind Walia

9. The Company has the following provision in the books of account as on March 31, 2011

Estimated warranty costs are accrued at the time of sale of components on which the warranty provisions are applicable. It is expected that majority of the warranty provision outstanding as on 31st March 2011 is likely to result in cash outflow within 18 months of the Balance Sheet date.

10. Job work charges included in cost of materials amount to Rs. 348.05 million (Previous Year Rs. 333.93 million).

11. Actual consumption of raw material as disclosed in the profit and loss account is derived on the basis of opening stock purchase- closing stock = consumption. The standard consumption based on the bill of material is not fully computed by this company in one of its plants. Accordingly the amount relating to the abnormal scrap, rejections and wastages which is inbuilt in the above mentioned consumption relating to these plants is not available.

12. The Company has identified certain assets which are not in use. The WDV of these assets as at March 31, 2011 is Rs. 14.98 million (Previous Year Rs. 17.89 Million) against which an additional provision of Rs. 1.54 million (previous year Rs. 4.61 million) has been made during the year. The total provision being carried at March 31, 2011 is Rs. 14.98 million (Previous Year Rs. 13.42 Million).

IX. The contributions expected to be paid to the plan during the annual period beginning after the balance sheet date is indeterminable as the information from the fund manager has not been received.

X. Para 132 of AS15 (revised 2005) does not require any specific disclosures except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard No. 5 or Accounting Standard No. 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

13. During the year, the Company has availed a long term foreign currency buyers credit ("foreign currency loan") amounting to Euro 1,013,956 with interest rate linked to Euribor. In order to hedge the currency risk and interest rate risk, the Company has entered into SWAP and forward contracts with its bankers with terms similar to the original foreign currency loan. Pursuant to the hedging of the foreign currency and interest rate risk, the foreign currency loan has been recorded as a fixed Indian currency loan.

14. During the year discrepancies arising from timing differences in recording of consumption of certain raw materials were noticed in one of the manufacturing units of the Company. Consequently Rs. 23.3 million of Raw Material purchases pertaining to year ended March 31, 2010 and consequential tax impact of Rs. 6.10 million has been recorded in the year ended March 31, 2011.

15. Previous year figures have been re-grouped/reclassified wherever necessary to conform to current year's classification.

Mar 31, 2010

1. a) The Term Loans amounting to Rs. 404.97 million (Previous Year Rs. 774.02 million) from banks are secured as follows:

i) Rs. 130.00 million (Previous year Rs. 54.30 million) from State Bank of India is secured by hypothecation of the CompanyÃs entire movable fixed assets both present and future.

ii) Rs. 199.97 million (Previous year Rs. 130.42 million) from Bank of India , secured by first charge on specified movable plant and machinery installed at Khandsa plant and Chakan plant and also collaterally secured by first and exclusive charge on the immovable properties situated at Hosur plant.

iii) Rs. 75.00 Million (Previous year Nil) from ING Vysya Bank, is secured by equitable mortgage of Land and Building situated at Ambad plant.

iv) Rs. Nil (Previous year Rs. 200.00 million) loan from State Bank of India is secured by hypothecation of the CompanyÃs entire movable fixed assets both present and future.

v) Rs. Nil (Previous year Rs. 214.30 million) from ABN AMRO Bank, secured by first Pari Passu charge over the movable fixed assets both present and future and exclusive charge by way of equitable mortgage over the immovable properties situated at Chakan plant.

vi) Rs. Nil (Previous year Rs. 175.00 million) from ING Vysya Bank is secured by second Charge of the movable fixed assets and an exclusive charge by way of equitable mortgage over the immovable properties situated at Ambad plant.

(b) The Working capital facilities amounting to Rs. 640.75 million (Previous year Rs. 501.21 million) are secured by hypothecation of stocks, book debts and other current assets of the Company.

2. (a) Secured Term Loan from banks due for repayment within a year are Rs. 171.11 million (Previous year Rs. 191.40 million).

(b) Fixed deposits due for repayment with in a year Rs. 30.04 million (previous year Rs.22.22 million)

(c) Sales Tax Deferral loan due for repayment within a year is Rs. 24.98 million (Previous year Rs. 15.28 million).

(d) Other Loans and Advances due for repayment within a year are Rs. 1.56 million (Previous year Rs. 0.65 million).

3. Estimated amount of contracts remaining to be executed on capital account and not provided for are Rs. 127.46 million (Previous year Rs. 342.78 million).

4. (a) Contingent Liabilities are in respect of: 31.03.10 31.03.09 Rs. Million Rs. Million

(i) Bills discounted, Letters of Credit and Bank guarantees 422.86 366.27

(ii) Income Tax, Sales Tax and Excise duty against which appeals are pending 109.03 100.44

(iii) Claims not acknowledged as debts 29.40 241.22

(iv) Interest unpaid to Micro, Small and Medium Enterprises 2.50 3.21

5. The company has signed an MOU with Mahle Filter Systems India Limited for purchase of land at Khandsa, on which the Company has set up plant and building. Mahle Filter Systems India Limited is in process of obtaining necessary Government clearances for tranferring the title of lands to the company.

6. Loans and Advances include:

a) Rs. 1.43 million (Previous year Rs. 1.55 million) due from an officer of the company. Maximum amount due during the year Rs. 1.66 million (Previous year Rs. 3.40 million).

b) Rs. 0.19 million (Previous year Rs. 4.72 million) of debts due from Private Limited Companies and Firms where any director is a director or partner.

7. Segmental Reporting:

a) Primary Segment:

The Company operates only in one business segment viz. Auto Components and Parts.

b) Secondary Segment:

The Company caters mainly to the needs of Indian market and the export turnover being 1.81% (Previous year 2.10%) of the total turnover of the company; there are no reportable geographical segments.

8. In accordance with the Accounting Standard on ÃRelated Party DisclosuresÃ (AS 18), the disclosure in respect of transactions with the CompanyÃs related parties are as follows:

A. Names of related parties * and description of relationships

1. Mr. Prakash Kulkarni - Key Management Personnel

2. Mr. Arvind Walia Ã Key Management Personnel

3. Federal Mogul Bearings India Limited formerly Anand Engine Components Limited-Associate

4. Asia Investments Private Limited - Entity in respect of which the company is an associate. * As identified and certified by the Management

9. The Company enters into forward exchange contracts being derivative instruments, for the purpose of hedging its currency risk and are not intended for trading or speculation.

10. Actual consumption of raw material as disclosed in the Profit and Loss account is derived on the basis of Opening stock + purchases - closing stock =Consumption. The standard consumption based on the bill of material is not fully computed by the company in two of its plants. Accordingly, the amount relating the abnormal scrap, rejections and wastages which is inbuilt in the above mentioned consumption relating to these plants are not fully readily available.

11. The Company has identified certain assets which are not in use. The WDV of these assets as at March 31, 2010 is Rs. 17.89 million (Previous Year Rs.24.99 Million) against which an additional provision of Rs. 4.61 million (previous year Rs. 5.19 million) has been made during the year. The total provision being carried at March 31, 2010 is Rs. 13.42 million (Previous Year Rs. 8.81 Million).

12. The amounts of Inter Corporate Deposits outstanding as at the year end from Asia Investments Pvt Ltd, a shareholder of the company are Rs. Nil (previous year Rs. 82.5 million), from Anfilco Limited Rs. 75 million (Previous year Rs.10 million) and from Anand Automotive Systems Limited Rs. 5 million (Previous Year Rs Nil).

13. Other income includes Rs. Nil (previous year Rs. 9.00 million) of reimbursement towards shifting expenses for the manufacturing facility located at Gurgaon.

14. Profit on sale of assets includes gain of Rs. Nil (previous year Rs. 42.80 million) for ceding development rights for a part of the land located at Mulund, Mumbai.

15. One case involving fraudulent purchases of stores and consumables through falsification of records and documents was detected during the year. Based on the investigations carried out by the Company, the estimated amount involved is Rs 4.1 Million over a period of time including previous years. Necessary legal process has been initiated for the recovery of the amount.

16. (a) During the previous year, the Company paid remuneration to the Executive Directors in accordance with the resolutions passed by the Remuneration Committee of the Board of Directors and the Shareholders. An amount of Rs 12.94 million was paid to the Executive Directors in excess of the limits prescribed under Section II of Part II of Schedule XIII of the Companies Act, 1956. The Company had obtained the Shareholders approval in the Annual General Meeting held on July 28, 2009 and has applied to the Central Government and their approval is awaited.

(b) The Company has purchased machinery from related party i.e. Asia Investments Private Limited without the prior approval of Central Government under Section 297 of the Companies Act, 1956. The Company has filed for Compounding of offence under Section 621A of the Companies Act, 1956 to the Central Government and their approval is awaited.

(c) The Company has given Inter Corporate Deposits to related party i.e. Asia investments Private Limited without the prior approval of Central Government under Section 295 of the Companies Act, 1956. The Company has filed for Compounding of offence under Section 621A of the Companies Act, 1956 to the Central Government and their approval is awaited.

17. Previous year figures have been re-grouped/reclassified wherever necessary to conform to current yearÃs classification.

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