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Notes to Accounts of Hercules Hoists Ltd.

Mar 31, 2021

The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk, liquidity risk, price risk, investment of surplus liquidity and other business risks effecting business operation. The company''s risk management is carried out by the management as per guidelines and policies approved by the Board of Directors.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having credit rating equal to or above AAA and AA. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The company has provisioning policy for expected credit losses. There is no credit risk in bank deposits which are demand deposits. The creditors risk is minimum in case of entity to whom loan has been given.

The maximum exposure to credit risk as at 31 March 2021 and 31 March 2020 is the carrying value of such trade receivables as shown in note 14 of the financials.

(B) Liquidity Risk

The Company''s principal sources of liquidity are "cash and cash equivalents" and cash flows that are generated from operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the Company does not perceive any liquidity risk.

The Company significantly operates in domestic market. Though very insignificant portion of export took place during the financial year where generally payment received in advance. Hence foreign currency risk towards export is insignificant.

(ii) Defined Benefit Plan

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 to 25 days/one month salary last drawn for each completed year of service depending on the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service.

(b) Leave Encashment:

The Company has a policy on compensated absences which is applicable to its executives jointed upto a specified period and all workers. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid as a result of the unused entitlement that has accumulated at the Balance Sheet date.

The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. Theses risks may impact the obligation of the Company.

1. The company gives warranties at the time of sales of main products to the customers. Under the terms of Contract of Sales,

the company undertakes to make good by replacement or repairs, Manufacturing defects that arise within 1-2 years from the

date of sales. A provision has been recognised for the expected Warranty claims on products sold based on past experience.

2. The Company has taken orders with liquidated damages Clause. A provision has been made for the expected liability wherein the delivery is made beyond the delivery date and attracted the liquidated damages clause in the contract.

3. The company gives incentives to its senior management staff based on performance of the Company.

4. The company gives incentives to its management staff based on their performance.

49 LEASES:

As a lessee, the Company previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Company. Under Ind AS 116, the Company recognizes right of use assets and lease liabilities for most leases i.e. these leases are on balance sheet.

On transition, the Company has applied following practical expedients:

â¢ Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with similar end date.

â¢ Applied the expemption not to recognise right-of-use-assets and liabilities for leases with less than 12 months of lease term on the date of transition.

â¢ Excluded the initial direct costs from the measurement of the right-of -use-asset at the date of transition.

â¢ Grandfathered the assessment of which transactions are, or contain leases. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

â¢ Relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before the date of initial application as an alternative to performing an impairment review.

â¢ Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-to-use asset, and finance cost for interest accrued on lease liability.

50 Balance of Trade Receivable includes Rs. 100.73 Lakhs (March 2020: Rs. 227.68 Lakhs) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

51 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

53 The Company''s operations for the financial year have been impacted by the lockdown imposed to contain the spread of Covid-19. The Management of the Company has assessed the impact of the pandemic on its financial results / position such as trade receivables, intangibles, investments inventories, trade payables and based on its best judgement and reasonable estimate, has concluded that there are no material adjustments required in the Financial Statements. However the impact assessment of Covid-19 is a continuous process, given the uncertainties associated with its duration and nature, it is not possible to estimate the future impact as at the date of approval of this financial statement. The Company continues to monitor the economic effects of the pandemic while taking steps to improve its execution efficiencies and the financial outcome.

54 The date of implementation of the Code on Wages, 2019 and the Code on Social Security 2020 is yet to be notified by the Government. The Ministry of Labour and Employment has released draft rules for the Code on Social Security 2020 on November 13, 2020, and has invited suggestions from Stakeholders which are under active consideration by the Ministry. The Company will assess the impact of these codes and give effect in the financial result when the Rules/Schemes thereunder are notified.

55 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

Mar 31, 2018

1 Company Overview

The Company (âHercules Hoists Limitedâ, âHHLâ) is an existing public limited company incorporated on 15/06/1962 under the provisions of the Indian Companies Act, 1956 and deemed to exist within the purview of the Companies Act, 2013, having its registered office at Bajaj Bhavan, 226 Jamnalal Bajaj Marg, Nariman Point, Mumbai-400 021. The Company offers a diverse range of products and services including manufacturing, sales, distribution and marketing of mechanical hoists, electric chain hoists and wire rope hoists, stackers and storage and retrieval solutions, overhead cranes in the standard and extended standard range, manipulators and material handling automation solutions. The equity shares of the Company are listed on BSE Limited (âBSEâ) and National Stock Exchange of India Limited (âNSEâ). The financial statements are presented in Indian Rupee (?).

Fair Value

Investment property - Land and Bulding, the market value has not been ascertained. The range of estimates within which fair value is highly likely to lie- Between Rs. 8,500 Lakhs to 10,000 Lakhs

Note No 2.1: Intangible assets under development is related to Computer Software & Application Software.

Note No 3.1: Raw Material inventory includes Goods-in transit Rs. 442 Lakhs (31st March 2017 Rs. Nil and 1st April 2016 Rs. 19,831 Lakhs)

Note No 3.2: Raw Material inventory net off provision for slow moving and non moving of Rs. 100.81 Lakhs (31st March 2017 Rs. Nil and 1st April 2016 Rs. Nil)

Note No 3.3: Finished Goods inventory includes Goods-in transit Rs. Nil (31st March 2017 Rs. 0.26 Lakhs and 1st April 2016 Rs. Nil)

The average credit period ranges from 1 to 5 days for Sales through Associated Busineess Parterns (ABP), and for Direct customers/ Project order depending upon Terms of the Purchase Orders. No interest is charged on trade receivables during credit period of ABPs. Thereafter, interest is charged at 24% p.a. on the outstanding balance. The Company has a policy of providing trade receivable oustanding above 3 years.

Note No. 4.1

The company can utilise balances only towards settlement of the unpaid dividend.

Note No. 4.2

Margin money deposits amounting to Rs. 79.67 Lakhs (31 March 2017 Rs. 76.81 Lakhs and 1 April 2016 Rs. 255.91 Lakhs) are lying with bank against Bank Guarantees.

Note No 5.1: The Company has surplus fund and hence has given loan to companies/placed deposit which is payable on demand and these Companies have taken loan for their working capital requirements. The rate of interest charged is 9.30- 15 % which is higher than prevailing rate of interest charged for the same tenor of the Government securities.

Note No 5.2: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

Note No 5.3: Aggregate number of bonus shares issued and sub-division of shares during the period of five years immediately preceding the reporting date :

In the Financial Year 2012-13, 16,000,000 Equity Shares of Re.1 each were alloted as fully paid-up Bonus Shares.

Note No 5.4: The details of shareholders holding more than 5% shares in the company :

# Capital reserve mainly represents amount transferred on amalgamation of INDEF Marketing Private Limited

## General reserve refects amount transferred from statement of profit and loss in accordance with regulations ofthe Companies Act, 2013.

* For movement, refer statement of changes in equity.

Note No 6.1: Deposits from customers are interest free deposit from Associate Business Partner and repayable on termination of agreement unless otherwise agreed.

Note No 7.1: Secured by hypothecation of first and exclusive charge on all present and future stocks and book debts and also collaterally secured by pledge of mutual fund units.

Note No 8.1: The company has not received information from vendors regarding their status under the Micro,Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act,have not been given.

Note No 9.1: Goods and Service Tax (GST) have been effective from July 1, 2017. Consequently, excise duty, value added tax (VAT), Service tax etc. have been replaced with GST. Until June 30, 2017, âSale of productsâ included the amount of excise duty recovered on sales. With effect from July 1, 2017, âSale of productsâ excludes the amount of GST recovered. Accordingly, revenue from âSale of Products, and âRevenue from operationsâ for the year ended March 31, 2018 are not comparable with those of previous year. Excise duty on sales amounting to Rs. 160.61 Lakhs (31st March, 2017 : Rs. 823.09 Lakhs) has been included in sales in Statement of Profit and Loss.

Note No 10.1: Raw Material inventory net off provision for slow moving and non moving of Rs. 100.81 Lakhs (Previous Year Rs. Nil).

Note No 11.1: Finished Goods transfer to Fixed Assets on Capitalisation of Rs. Nil (Previous Year Rs. 53.85 Lakhs).

12 CAPITAL MANAGEMENT

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio and is measured by net debt divided by total capital plus net debt. The Companyâs net debt is equal to trade and other payables less cash and cash equivalents.

Notes:

(a) The Company is engaged into two main business segments mainly (i) Material Handling Equipment and (ii) Windmill Power Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the organisation structure.

(b) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

13 FINANCIAL RISK MANAGEMENT

The Companyâs activities expose it to credit risk, liquidity risk, market risk and price risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact thereof in the financial statements.

The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk, liquidity risk, price risk, investment of surplus liquidity and other business risks effecting business operation. The companyâs risk management is carried out by the management as per guidelines and policies approved by the Board of Directors.

(A) Credit Risk

Credit Risk Management

The maximum exposure to credit risk as at 31 March 2018, 31 March 2017 and 1 April 2016 is the carrying value of such trade receivables as shown in note 14 ofthe financials.

(B) Liquidity Risk

The Companyâs principal sources of liquidity are âcash and cash equivalentsâ and cash flows that are generated from operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the Company does not perceive any liquidity risk.

The Company significantly operates in domestic market. Though very insignificant portion of export took place during the financial year where all payment received in advance. Hence foreign currency risk towards export is insignificant.

The Company also imports certain materials the value of which is also not material as compared to value of total raw materials. Currently, Company does not hedge this exposure. Nevertheless, Company may wish to hedge such exposures.

Open exposure

The Companyâs exposure to foreign currency risk which are unhadged at the end of the reporting period is as follows:

Sensitivity Analysis

The Company is mainly exposed to changes in USD and Euro. The sensitivity analysis demonstrate a reasonably possible change in USD and Euro exchange rates, with all other veriables held constant. 5% appreciation/depreciation of uSd and Euro with respect to functional currency ofthe companywill have impact offollowing (decrease)/increase in Profit &vice versa.

(d) Price Risk

The company is exposed to price risk in basic ingrediants of Companyâs raw material and is procuring finished components and bought out materials from vendors directly. The Company monitors its price risk and factors the price increase in pricing of the products.

14 Related party disclosures as required under Ind AS 24, âRelated Party Disclosuresâ, are given below:

a) Name of the related party and description of relationship.

15 EMPLOYEE BENEFITS

As per Ind AS 19 âEmployee Benefitsâ, the disclosures of Employee benefits as defined in the said Accounting Standards are given below :

(i) Defined Contribution Plan

Contribution to Defined Contribution Plan includes Providend Fund and Superannuation Fund. The expenses recognised for the year are as under :

(ii) Defined Benefit Plan

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 to 19 days/one month salary last drawn for each completed year of service depending on the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service.

(b) Leave Encashment:

The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. Theses risks may impact the obligation of the Company

(c) Major Category of Plan Assets

The Company has taken plans from Life Insurance Corporation of India

(d) The following tables set out the funded status of the gratuity and leave encashment plans and the amounts recognised in the Companyâs financial statements as at 31 March 2018 and 31 March 2017.

16 DERIVATIVES

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under.

** Notes:

1. The company gives Warranties at the time of Sales of Main Products to the customers. Under the terms of Contract of Sales, the company undertakes to make good by replacement or repairs, Manufacturing defects that arise within 1-2 years from the date of sales. A provision has been recognised for the expected Warranty claims on products sold based on past experience.

2. The Company has taken Orders with Liquidated Damages Clause. A provision has been made for the expected liability wherein the delivery is made beyond the delivery date and attracted the liquidated damages clause in the contract.

3. The company gives incentives to its senior management staff based on performance of the Company.

4. The company gives incentives to its management staff based on their performance.

17 During the previous year, the details of Specified Bank Notes held and transacted during the demonetization period (8th November, 2016 to 30th December, 2016) as provided in the table below:

18 LEASES:

The Companyâs major leasing arrangements are in respect of godowns/office premises (including furniture & fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs. 55.37 Lacs (March 2017: Rs. 60.62 Lacs) are charged as Rent and shown under the Note No. 40 âOther Expensesâ. These leasing arrangements, which are cancelable, range between 11 months to 3 years and are usually renewable by mutual consent at mutually agreed terms and conditions.

19 Balance of Trade Receivable includes Rs. 631.69 Lacs (March 2017: Rs. 415.21 and April 2016: Rs. 580.69 Lacs) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

20 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

21 FIRST TIME ADOPTION OF IND AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

Explanation 1 - Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from IGAAP to Ind AS.

(I) Ind AS Optional exemptions

Deemed Cost - Property, Plant and Equipment, Capital work-in-progress and Intangible Assets

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 recognised in the financial statements as at the date of transition to Ind AS, measured as per the IGAAP 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. Accordingly, the Company has elected to measure all of its property, plant and equipment, Capital work-in-progress and intangible assets at their IGAAP carrying values.

(II) Ind AS mandatory exemptions

(i) Estimates

An entityâs estimates in accordance with Ind ASâ at the date of transition to Ind AS shall be consistant with the estimates made for the same date in accordance with the IGAAP (after adjustments to refect any difference in accounting policies) unless there is an objective evidence that those estimates were in error.

(ii) Classification and measurement of financial assets (other than equity instruments)

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exists at the date of transition to Ind AS.

(iii) De-recognition of financial assets and financial liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions for Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows first time adopter to apply the derecognition requirements provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past Ind AS 101 retrospectively from the date of entityâs choosing, transactions was obtained at the time of initially accounting for the transactions.

1 Property, Plant and Equipment and Investment Property

Under the IGAAP, Investment Property, Land & Bulding was grouped under Property Plant and Equipment. Under Ind AS, the same is treated as Investment property under Ind AS 41 at carrying cost under IGAAP. There is no impact on the total equity and profit.

2 Investments

Under the IGAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. 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 (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31 March 2017. This increased the retained earnings by Rs. 417.11 Lacs as at 31 March 2017 (1 April 2016 - Rs. 393.27 Lacs).

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in FVOCI Equity investments reserve as at the date of transition and subsequently in the other comprehensive income for the year ended 31 March 2017. This increased other reserves by Rs. 14510 Lacs as at 31 March 2017 (1 April 2016 - Rs. 8870.03 Lacs).

3 Security Deposits

Under the IGAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the group has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposits have been recognised in retained earnings. Consequent to this change, the amount of security deposits decreased by Rs. Nil as at 31 March 2017 (1 April 2016 Rs. 9.95 Lacs). Total equity decreased by Rs. 5.63 Lacs as on 1 April 2016 (Set-off notional interest income of Rs. 4.32 Lacs). The profit for the year and total equity as at 31 March 2017 increased by Rs. 2.64 Lacs due to notional interest income recognised on security deposits. The net impact on the deposits is Rs. 2.98 Lacs

4 MAT Credit Entitlement

Under the IGAAP, Mat Credit Entitlement was the grouped as Long term loans & advances. Under Ind AS, Mat Credit is an element of deferred tax being a tax credit under IND AS 12 (Income Tax). Hence the amount of Mat Credit regrouped with deferred tax liabilities (net) of Rs. 47.58 lacs as at 31 March 2017 (1 April 2016 Rs. Nil). There is no impact on the total equity and profit.

5 Trade Receivable

As per Ind AS 109, the company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the allowance for doubtful debts increased by Rs. 343.19 lakhs as at 31 March 2017 (1 April 2016 Rs. 603.40 lakhs). Consequently, the total equity as at 31 March 2017 decreased by Rs. 343.19 lakhs (1 April 2016 Rs. 603.40 lakhs) and profit for the year ended 31 March 2017 increased by Rs. 260.20 lakhs.

Under the IGAAP, Provision of Service discount was grouped as Short term provision. Under Ind AS, Service discount provision was netted with Trade Receivable. This change of amount of Provision of Service discount regrouped with trade receivable of Rs. 10.94 lakhs as at 31 March 2017 (1 April 2016 Rs. 58.33 lakhs). There is no impact on the total equity and profit.

6 Deposits with Government Authorities

Under the IGAAP, security deposit placed with Government authorities were grouped as short term loans & advances. Under Ind AS, the security deposit placed with the government authorities is in accordance with the taxation regulations. There is no contractual agreement for placing such a deposit, it is not a financial instrument. Hence the security deposit is not a financial asset under IND AS 32 (Financial Instrumnets). This change the amount of deposits regroup with other current assets of Rs. 48.81 lakhsasat31 March2017(1 April2016Rs.41.61 lakhs).There is no impact on the total equity and profit.

7 Deferred Tax

Under IGAAP, deferred taxes were recognised based on Profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. under Ind AS, deferred tax is recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of assets and liabilities in the books and their respective tax base.

8 Revenue from Operations

Under the IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid 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 31 March 2017 by Rs. 823.09 lakhs. There is no impact on the total equity and profit

Under the IGAAP, certained discounts was shown in expenses. Under Ind AS, the same has been netted from revenue of Rs. 110.79 lakhs . There is no impact on the total equity and profit.

9 Remeasurements of Post-Employment Benefit Obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the IGAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31 March 2017 increased by Rs. 8.27 lakhs (1 April 2016 Rs. 15.34 lakhs). There is no impact on the total equity as at 31 March 2017 (1 April 2016).

10 Proposed Dividend

Under the IGAAP, 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 recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend (including dividend distrubution tax Rs. 97.71 lakhs) of Rs. 577.72 lakhs as at 31 March 2017 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

22 Fair Value Measurement-

The fair value of Financial instrument as of March 31,2018, March 31,2017 and April 1,2016 were as follows-

The management assessed that Cash and Cash equivalents, loans, other balances with Banks, trade receivables, trade payables and other current liabilities/assets approximate their carrying amounts largely due to the short-term maturities of these instruments.

23 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

Mar 31, 2017

Note No 1.1: Terms/rights attached to equity shares

Note No 1.2 Aggregate number of bonus shares issued and sub-division of shares during the period of five years immediately preceding the reporting date : In the Financial Year 2012-13, 16,000,000 Equity Shares of Re. 1 each were alloted as fully paid-up Bonus Shares.

Note No 1.3: The Board of Directors have recommended a dividend of Re. 1.00 (Previous Year Rs. 1.50) per share for the financial year ending 31^st March, 2017 as final dividend.

Note No. 1.4

The company has not received information from vendors regarding their status under the Micro,Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act, have not been given.

Note No. 1.5 Buildings - Building includes Rs. 0.04 L (Previous Year Rs. Nil) being the face value of investment in shares of Co-operative Premises Society.

Note No 1.6: Aggregate market value of Quoted Investments Rs. 168,37.95 Lakhs (Previous Year Rs. 111,97.98 Lakhs.)

Note No 1.7: Raw Material inventory includes Goods-in transit Rs. Nil (Previous year Rs. 1,98.31 Lakhs)

Note No 1.8: Finished Goods inventory includes Goods-in transit Rs. 0.26 Lakhs (Previous year Rs. Nil)

Note No. 1.9

The company can utilize balances only towards settlement of the unpaid dividend.

Note No. 1.10

Margin money deposits amounting to Rs. 76.81 Lakhs (Previous Year Rs. 2,55.91 Lakhs) are lying with bank against Bank Guarantees.

Note No.1.11: The Company has surplus fund and hence has given loan to companies/placed deposit which is payable on demand and has taken loan for their working capital requirements. The rate of interest charged is 9.30- 15 % which is higher than prevailing rate of interest charged for the same tenor of the Government securities.

* Note: Out of above service tax credit of Rs. 1.28 Lakhs (Previous Year Rs. 1.22 Lakhs) has been taken and the same has not been debited to Statement of Profit & Loss.

Notes :

(b) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

Defined Benefit Plan

Gratuity and Leave encashment which are defined benefits plan which are accrued based on actuarial valuation as at balance sheet date by an independent actuary. The Company has opted for a Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India (LIC), and the contribution is charged to the Statement of Profit & Loss each year. The Company has funded the liability on account of leave benefits through LIC''s Group Leave Encashment Assurance Scheme and the Contribution is charged to Statement of Profit and Loss.

Note :

3. The company gives incentives to its management staff based on their performance.

2 ASSETS TAKEN ON LEASE:

The Company''s major leasing arrangements are in respect of godowns/office premises (including furniture & fittings therein wherever applicable taken on leave and license basis). The aggregate lease rentals of Rs 60.62 Lakhs (Previous Year Rs. 55.23 Lakhs) are charged as Rent and shown under the Note No. 25 âOther Expensesâ. These leasing arrangements, which are cancelable, range between 11 months to 5 years and are usually renewable by mutual consent at mutually agreed terms and conditions.

3 Balance of Trade Receivable includes Rs. 7,58.41 Lakhs (Previous Year Rs. 9,23.89 Lakhs) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

4 Unauthorised price increases of about Rs 2,00 Lakhs may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained.

5 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

6 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

Mar 31, 2016

1. The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the schedule III of Companies Act, 2013

Mar 31, 2015

Note No 1.: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

Note No 1.3: Aggregate number of bonus shares issued and sub-division of shares during the period of five years immediately preceding the reporting date :

In the Financial Year 2012-13, 16,000,000 Equity Shares of Re.1 each were alloted as fully paid-up Bonus Shares.

Note No. 2 :

The company has not received information from vendors regarding their status under the Micro,Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act,have not been given.

Note No. 3 :

The Board of Directors have recommended a final dividend of Rs 1.50 (Previous Year Rs 1.50) per share on par value of equity share of Rs 1 each for the financial year 2014-15. The amount of dividend shall be Rs.57,771,648 including Dividend Distribution Tax Rs.9,771,648 (Previous Year dividend Rs. 56,157,600 Including Dividend Distribution Tax Rs. 8,157,600)

Note No. 4 :

The company can utilise balances only towards settlement of the unpaid dividend.

Note No. 5 :

Margin money deposits amounting to Rs. 56,708,340 (Previous Year Rs. 13,049,289) are lying with bank against Bank Guarantees.

6. a) CONTIGENT LIABILITIES :

Particulars As at As at 31.03.2015 31.03.2014

Disputed Income Tax Liability 7,346,416 127,211,592

Disputed Excise Duty & Service Tax Liability 10,418,204 22,124,338

Indemnity Bonds issued under Export Promotion 507,554 507,554 Capital Goods (EPCG) Scheme

Claims against the company not acknowledged as debts 732,470 732,470

Disputed Sales Tax Liabilities 340,429,507 29,075,125

359,434,151 179,651,079

b) COMMITMENTS :

Particulars As at As at 31.03.2015 31.03.2014

Estimated Amounts of Contract remaining to be executed on Capital account and not 155,750 383,890 provided for

155,750 383,890

7. Note :

1. The company gives Warranties at the time of Sales of Main Products to the customers. Under the terms of Contract of Sales, the company undertakes to make good by replacement or repairs, Manufacturing defects that arise within 1-2 years from the date of sales. A provision has been recognised for the expected Warranty claims on products sold based on past experience.

2. The Company has taken Orders with Liquidated Damages Clause. A provision has been made for the expected liability wherein the delivery is made beyond the delivery date and attracted the liquidated damages clause in the contract.

3. The company gives incentives to its management staff based on their performance.

8. Balance of Debtors includes Rs. 86,226,974 (Previous Year Rs. 62,487,231) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

9. Unauthorised price increases of about Rs 2 crores may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained. Further few suppliers have filed windingup petition against the company for non payment of dues.

10. Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

11. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III.

Mar 31, 2014

1 RELATED PARTY DISCLOSURE

a) Details of nature of relationship

S.No. Related Parties Nature of Relationship

(i) Bajaj Electricals Limited Shri Shekhar Bajaj is Chairman & Managing Director

(ii) Bajaj Finserv Ltd. Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(iii) Hind Lamps Limited Shri Shekhar Bajaj is Chairman

(iv) Hind Musafir Agency Ltd. Shri Shekhar Bajaj is Chairman

(v) Hindustan Housing Co. Ltd. Shri Shekhar Bajaj is Member

(vi) Baroda Industries Pvt. Ltd. Relatives of Shri Shekhar Bajaj, Smt. Minal Bajaj (Brother''s Wife) &

Shri Niraj Bajaj (Brother) are Directors

(vii) Bajaj Allianz General Insurance Co. Ltd. Relative of Shri Shekhar Bajaj, Shri Niraj Bajaj (Brother) is Director

(viii) Bajaj International Pvt. Ltd. Shri Shekhar Bajaj is Chairman

(ix) Shri Shekhar Bajaj Chairman (Key Management Personnel)

(x) Bajaj Finance Limited Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(xi) Shri H.A. Nevatia Whole Time Director (Key Management Personnel)

(xii) Shri Prakash Subramaniam President & CEO (Key Management Personnel w.e.f. 01/04/2013 &

Joint President from 01/01/2013 till 31/03/2013)

(xiii) Shri M. S. Saigal President & CEO (Key Management Personnel until 31/03/2013)

2 Balance of Debtors includes Rs. 62,487,231/- (previous year Rs. 26,922,959/- ) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

3 Unauthorised price increases of about Rs 2 crores may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained. Further few suppliers have filed winding up petition against the company for non payment of dues.

4 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

5 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the revised schedule VI.

Mar 31, 2013

1 The Company has invested in Preference Shares of Hind Lamps Limited (hereinafter referred as HL) of Rs.10,000,000/-. The accounts of HL shows negative networth, however no provision has been made for diminution in the value of investment as in the opinion of the management, the dimunition is not permanent in nature.

2 Balance of Debtors includes Rs. 26,922,659/- (previous year Rs. Rs.34,57,657/- ) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

3 Unauthorised price increases of about Rs 2 crores over the last 3 years may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained. Further few suppliers have filed windingup petition against the company for non payment of dues.

4 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

5 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the revised schedule VI.

Mar 31, 2012

1 The Company has invested in Preference Shares of Hind Lamps Limited (hereinafter referred as HL) of Rs.10,000,000/-. The accounts of HL shows negative networth, however no provision has been made for diminution in the value of investment as in the opinion of the management, the dimunition is not permanent in nature.

2 Balance of Debtors includes Rs.34,57,657/- (previous year Rs. 16,49,357/-) which are outstanding since long for which no provision has been made in the accounts as Management is hopeful of recovery.

3 Unauthorised price increase of Rs. 1.98 Crores over 3 years were given by some officers of the company in collusion with certain identified vendors and those purchases were accounted at invoiced value in the respective years. Amount lying to be credit of these vendors have been held back and appropriate legal action is being taken against the perpetators. Some of the above mentioned vendors have filed winding up petition against the company for non payment of their dues which the company is contesting. Recoveries will be accounted on receipt basis.

4 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

5 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the revised schedule VI.

Mar 31, 2011

1. Contingent Liabilities :

2010-11 2009-10 sr. No. Particulars Rs. rs.

(a) Disputed excise Duty Liability 11,698,100 8,560,820

(b) Disputed income Tax Liability (Company in Appeal) 115,591,752 41,787,880

(c) indemnity Bonds issued under export Promotion Capital Goods (ePCG) scheme 507,554 457,256

(d) Claims against the Company not acknowledged as debts 732,470 732,470

(e) Disputed sales Tax Liability (Company in Appeal) 8,753,089 -

2. estimated amount of contract remaining to be executed on capital account and not provided for (net of advance) rs 893,550 (previous year rs.4,948,699).

3. The Company has not received information from vendors regarding their status under the Micro, small and Medium enterprises Development Act, 2006 and hence disclosures relating to amounts as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

Defined Benefit Plan

Gratuity and Leave encashment which are defined benefits are accrued based on actuarial valuation as at balance sheet date by an independent actuary. The Company has opted for a Group Gratuity-cum-Life Assurance scheme of the Life insurance Corporation of india (LiC), and the contribution is charged to the Profit & Loss Account each year. The Company has funded the liability on account of leave benefits through LiC's Group Leave encashment Assurance scheme and the Contribution is charged to Profit and Loss Account.

4. Related party disclosure

(a) related party disclosure in accordance with Accounting standard 18 issued by the institute of Chartered Accountants of india ("iCAi")

Sr. No. Related Parties Nature of Relationship

(i) Bajaj electricals Limited shri shekhar Bajaj is Chairman & Managing Director

(ii) Bajaj Auto Limited shri shekhar Bajaj is Director

(iii) Bajaj Finserv Ltd. relative of shri shekhar Bajaj, shri Madhur Bajaj (Brother) is Director

(iv) Bajaj Holdings & investment Ltd. relative of shri shekhar Bajaj, shri Madhur Bajaj (Brother) is Director

(v) Hind Lamps Limited shri shekhar Bajaj is Chairman

(vi) Hind Musafir Agency Ltd. shri shekhar Bajaj is Chairman

(vii) Hindustan Housing Co. Ltd. shri shekhar Bajaj is Member

(viii) Baroda industries Ltd. relatives of shri shekhar Bajaj, smt. Minal Bajaj (Brother's Wife) & shri Niraj Bajaj (Brother) are Directors

(ix) Mukand Ltd. relative of shri shekhar Bajaj, shri Niraj Bajaj (Brother) is Director

(x) Bajaj Allianz General insurance Co. Ltd. relative of shri shekhar Bajaj, shri Niraj Bajaj (Brother) is Director

(xi) Bajaj international Pvt. Ltd. shri shekhar Bajaj is Chairman

(xii) shri shekhar Bajaj Chairman (Key Management Personnel)

(xiii) shri H.A. Nevatia Whole Time Director (Key Management Personnel)

(xiv) shri M.s. saigal President & CeO (Key Management Personnel)

5. The Company has investment in Preference shares of Hind Lamps Limited (Hereinafter referred as HL) of rs. 10,000,000/-. The accounts of HL shows negative networth, however no provisions has been made for diminution in the value of investment as in the opinion of the management, the decline is temporary in the nature.

6. Balance of Debtors includes rs.16,49,357/- (previous year rs. 30,59,227/-) which are outstanding since long for which no provision has been made in the accounts as Management is hopeful of recovery.

7. Balances of sundry Debtors, sundry Creditors and Loans & Advances are subject to confirmation and consequential adjustments, if any.

8. Previous year's figures have been regrouped/rearranged wherever necessary to make them comparable with those of the current year's.

Mar 31, 2010

1. Contingent Liabilities:

2009-10 2008-09

Sr. No. Particulars Rs. Rs.

(a) Disputed Excise Duty Liability 8,560,820 7,494,903

(c) Disputed Income Tax Liability (Company in Appeal) 41,787,880 4,860,185

(d) Bonds issued under Export Promotion Capital Goods (EPCG) Scheme 457,256 411,942

(e) Claims against the Company not acknowledged as debts 732,470 732,470

2. Estimated amount of contract remaining to be executed on capital account and not provided for (net of advance) Rs 49,48,699/- (previous year Rs.76,46,840/-)

3. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

4. Related party disclosure

(a) Related party disclosure in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India ("ICAI")

Sr. No. Related Parties Nature of Relationship

(i) Bajaj Electricals Limited Shri Shekhar Bajaj is Chairman & Managing Director

(ii) Bajaj Auto Limited Shri Shekhar Bajaj is Director

(iii) Bajaj Finserv Ltd. Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(iv) Bajaj Holdings & Investment Ltd. Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(v) Hind Lamps Limited Shri Shekhar Bajaj is Chairman

(vi) Hind Musafir Agency Ltd. Shri Shekhar Bajaj is Chairman

(vii) Hindustan Housing Co. Ltd. Shri Shekhar Bajaj is Member

(viii) Baroda Industries Ltd. Relatives of Shri Shekhar Bajaj, Smt. Minal Bajaj (Brothers Wife) & Shri Niraj Bajaj (Brother) are Directors

(ix) Mukand Ltd. Relative of Shri Shekhar Bajaj, Shri Niraj Bajaj (Brother) is Director

(x) Bajaj Allianz General Insurance Co. Ltd. Relative of Shri Shekhar Bajaj, Shri Niraj Bajaj (Brother) is Director

(xi) Bajaj International Pvt. Ltd. Shri Shekhar Bajaj is Chairman

(xii) Shri Shekhar Bajaj Chairman (Key Management Personnel)

(xiii)Shri H.A. Nevatia Whole Time Director (Key Management Personnel)

Shri M.S. Saigal President & CEO (Key Management Personnel)

5. Hitherto, the expenditure on Voluntary Retirement Scheme were being expensed out over a period of 5 years, during the year the Company has changed the policy and accordingly have expensed out entire amount in the current year in accordance with Accounting Standard 15 on Employee Benefits. Due to which the miscellaneous expenditure is understated by Rs. 31,416,254/- and profit is understated by Rs. 31,416,254/- and consequently the Reserves.

6. Balance of Debtors includes Rs.30,59,227/- which are outstanding since long for which no provision has been made in the accounts as Management is hopeful of recovery.

7. Balances of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation and consequential adjustments, if any.

8. Previous years figures have been regrouped/rearranged wherever necessary to make them comparable with those of the current years.

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