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Notes to Accounts of Honda Siel Power Products Ltd.

Mar 31, 2016

b. Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share
in the company''s residual assets. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion
to its share of the paid-up equity capital of the company. Voting rights cannot be exercised in respect of shares on which any
call or other sums presently payable have not been paid.

During the year ended 31 March 2016, the company has recognized per share dividend for distribution to equity shareholders
amounting to Rs. 6.00 (31 March 2015: Rs. 6.00).

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company,
remaining after distribution of all preferential amounts in proportion to the number of equity shares held.


As a result of management re-assessment of useful life of assets, aligning with Schedule II of the Companies Act, 2013, the
Company had recorded an additional depreciation of Rs 199.94 lakhs in the Statement of Profit and Loss in the previous year
2014-15. Further, based on a transitional provision of schedule II of the Companies Act, 2013, an amount of Rs. 34.09 lakhs (net
of deferred tax of Rs. 17.87 lakhs) had been adjusted to Reserves and Surplus in the previous year 2014-15.

b. As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the
Company. The Company has contributed Rs. 89.09 lakhs towards Prime Minister National Relief Fund, as specified in Schedule VII
of the Companies Act, 2013.

c. The Ministry of Environment has revised rules vide notification dated 7 August 2013 for Emission Standards in respect of
production and sale of generator sets (both petrol and kerosene based models) effective 31 May 2014 and 7 August 2014
respectively. Pursuant to the new rules, the Company had recognized provision of Rs. 647.35 lakhs in the previous year ended 31
March 2014 (Rs 350.01 lakhs for non useable raw material and Rs 297.34 lakhs for onerous commitment). Out of this inventory
provision of Rs. 90.96 lakhs is outstanding as at 31 March 2016. Provision for onerous commitment of Rs 297.34 lakhs and
discontinued inventory of Rs. 91.91 lakhs had been written back in the previous year ended 31 March 2015.

d. Pursuant to change in Emission Standards, the Company had reassessed the useful life of dies used for the production of
discontinued models and charged additional accelerated depreciation of Rs 42.74 lakhs in the previous year ended 31 March 2015.

1. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) amounts to Rs.
586.46 lakhs (31 March 2015: Rs. 370.51 lakhs).


2. Disclosures as per Accounting Standard (AS)-18 "Related Party Disclosures"

A. Name of related parties with whom transactions have taken place during the year

Ultimate holding company and holding company:

Honda Motor Co., Limited, Japan

Fellow Subsidiaries:

Honda Philippines Inc., Philippines

Honda Del Peru S.A., Peru

Honda de Mexico, S.A. de C.V., Mexico

Honda Australia M. & P.E. Pty. Limited, Australia

Asian Honda Motor Co., Limited, Thailand

Honda Trading Corporation, Japan

Honda Manufacturing (Nigeria) Ltd., Nigeria

Honda Trading Asia Co. Limited, Thailand

PT. Honda Power Products Indonesia, Indonesia

Honda Motorcycle and Scooter India Private Limited, India

Honda Motor India Private Limited, India

Moto Honda da Amazonia Ltda., Brazil

Honda Trading (South China) Co. Limited, Hong Kong

Honda R & D Co. Limited, Japan

Honda R & D (India) Private Limited, India

Honda Motor de Argentina S.A., Argentina

Shanghai Honda Trading Co. Limited, China

Honda Atlas Power Products Pvt. Ltd., Pakistan

PT. Honda Trading Indonesia, Indonesia

Honda Trading Brasil Ltda., Brasil

Honda Canada Inc., Canada

American Honda Motor Co. Inc., USA

Honda Trading De Argentina S.A., Argentina

Honda Trading Corporation India Private Limited, India

Honda Mindong Generator Co. Ltd., China

Honda Kaihatsu Co. Ltd., Japan

Honda Trading Europe Ltd., Belgium

Honda Motor Europe Limited, U.K.

Honda Cars India Limited, India

Honda Selva Del Peru S.A., Peru

Honda Trading Philippines Ecozone Corporation, Philippines

Honda Trading America Corp., America

Honda Motor Southern Africa (Pty.) Limited, South Africa

Honda Motor De Chile S.A., Chile


Notes to the financial statements for the year ended 31 March 2016

B. Name of key management personnel:

Mr. T. Hamasaki President and CEO (Up to 30 March 2015)

Mr. Yoshifumi Iida President and CEO (With effect from 1 April 2015)

Mr. Hiroyoshi Sugimizu Vice President and Whole time director

Mr. Vinay Mittal Vice President, Whole time director and CFO


d) The Company has sub-let one of its leasehold premises. The Sub-lease agreement is cancellable by either party by serving three
months notice period. The rent received during the year amounting to Rs. 9.27 lakhs (Previous year Rs. 3.0 lakhs) has been netted
off with rent expense.

* Excludes contribution to the gratuity fund and provision for leave encashment determined on an actuarial basis, as these are
determined for the Company as a whole.

3. Disclosure in respect of operating leases under Accounting Standard (AS) - 19 "Leases"

a) General description of the Company''s operating lease arrangements:

The Company enters into operating lease arrangements for offices, residential premises for its employees and equipment for
generating power for captive consumption. Some of the significant terms and conditions of the arrangements are:

certain agreements for premises may generally be terminated by the lessee or either party by serving one to three months'' notice
or by paying the notice period rent in lieu thereof.

certain agreements for premises where the lock in period ranges from 6 to 36 months.

the lease arrangements are generally renewable on the expiry of lease period subject to mutual agreement.

b) Lease rent charged to the Statement of Profit and Loss amounts to Rs. 311.13 lakhs (31 March 2015: Rs. 318.21 lakhs).


* Net of expected reimbursement of Rs. 0.46 lakhs (31 March 2015: Rs 0.33 lakhs) from suppliers of traded goods recognized and
included in loans and advances in accordance with the requirements of Accounting Standard – 29 "Provisions, Contingent
Liabilities and Contingent Assets."

The warranty provision is expected to be utilized within the normal warranty period. The provision has been created based on
management''s estimates and past trends of actual claim received.


4. Segment information

Primary segment:

The primary reportable segment for the Company is geographical segment by location of its customers. The Company''s geographical
segment comprises domestic customers and overseas customers.

The primary segments have been identified in line with AS 17, taking into account the risks and return, organization structure
and internal reporting system.

Segment revenue comprises income from sales and services which are directly identifiable to the individual segment. Certain
non-operating incomes such as net profit on sale of fixed assets and exceptional items do not form part of segment revenue and
are included under "other non-operating income". Direct expenses in relation to segments are categorized based on items that are
individually identifiable to that segment, while the remaining costs are categorized to the segment on a reasonable basis.
Certain expenses such as administrative expenses which form a significant component of total expenses are not specifically
allocable to specific segments. Accordingly, these expenses are separately disclosed as "unallocated"and directly charged against
total income.

Segment assets include operating assets used by a segment that are directly identifiable to that segment and consist principally
of trade receivables and inventory. Segment liabilities include operating liabilities that are directly identifiable to that
segment and consist principally of accrued liabilities and advances from customers. Segment liabilities exclude share capital and
reserves and surplus. Assets and liabilities of the Company which cannot be identified to any of the reportable segments have not
been allocated as the same are used for both segments.


5. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer
pricing regulation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and
documentation to be contemporaneous in nature, the Company continuously updates its documentation for the international
transactions entered into with the associated enterprises during the financial year and expects such records to be in existence
latest by the due date as required under law. The management is of the opinion that its international transactions are at arm''s
length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax
expense and that of provision for taxation.


Mar 31, 2015

1. Company overview

Honda Siel Power Products Ltd. is a public company domiciled and headquartered in India. It is incorporated under the Companies Act, 1956 and its shares are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Company is primarily engaged in manufacturing and marketing the portable gensets, water pumps, general purpose engines, lawn mowers, brush cutters and tillers. The Company caters to both domestic and international markets.

The financial statements for the year ended 31 March 2015 have been prepared as per the requirements of Schedule III of the Companies Act, 2013.

a. Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the company''s residual assets. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

During the year ended 31 March 2015, the Company has recognised per share dividend for distribution to equity shareholders amounting to Rs. 6.00 (31 March 2014: Rs. 4.00).

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

29 a. Restructuring programme declared in the year 2013-14 for shifting manufacturing facility from Puducherry to Greater Noida, Uttar Pradesh has been completed. The Company has shifted all usable assets to Greater Noida except following tangible assets which are held for disposal:

Building - Rs. 21.07 lakhs (corresponding gross block - Rs. 51.41 lakhs) [Previous year - Rs. 22.80 lakhs (corresponding gross block - Rs. 51.41 lakhs)]

Plant and Equipments - Rs. 6.92 lakhs (corresponding gross block - Rs. 12.44 lakhs) [Previous year - Rs. 12.48 lakhs (corresponding gross block - Rs. 27.55 lakhs)]

Office equipments - Rs. Nil lakhs (corresponding gross block - Rs.0.36 lakhs) [Previous year - Rs. Nil lakhs (corresponding gross block - Rs. 0.36 lakhs)]

b. The Ministry of Environment has revised rules vide notification dated 7 August 2013 for Emission Standards in respect of production and sale of generator sets (both petrol and kerosene based models) effective 31 May 2014 and 7 August 2014 respectively. Pursuant to the new rules, the Company had recognised Provision of Rs. 647.35 lakhs in the previous year ended 31 March 2014 (Rs 350.01 lakhs for non useable raw material and Rs 297.34 lakhs for onerous commitment). Out of the provision of Rs. 350.01 lakhs, the company has written off inventory amounting to Rs. 71.60 lakhs and balance provision of Rs. 278.41 lakhs have been reassessed at Rs 186.50 lakhs. Provision of onerous commitment of Rs 297.34 lakhs has been written back in the current year as the company has decided to purchase this material for use in further production with minor modification.

c. Pursuant to change in Emission Standards, the Company had reassessed the useful life of dies used for the production of discontinued models and charged additional accelerated depreciation of Rs 42.74 lakhs . (Previous year Rs 84.35 lakhs).

d. The Company has re-evaluated useful life of assets as per Schedule II of the Companies Act, 2013. The revised useful lives along with useful lives as per earlier estimates are as below:

As a result of management re-assessment of useful life of assets, aligning with Schedule 11 of the Companies Act, 2013, the Company has recorded an additional depreciation of Rs 199.94 lakhs in the Statement of Profit and Loss. Further, based on a transitional provision provided in Note 7(b) of Schedule II of the Companies Act, 2013, an amount of Rs. 34.09 lakhs (net of deferred tax of Rs. 17.87 lakhs) has been adjusted to Reserves and Surplus.

e. As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The areas for CSR activities are promoting health care, sanitation, safe drinking water, promoting education, gender equality and Contribution to Prime Minister''s National Relief fund. Accordingly, the Company has contributed Rs. 83 lakhs towards Prime Minister National Relief Fund, as specified in Schedule VII of the Companies Act, 2013.

2 Contingent liabilities

31 March 2015 31 March 2014 (Rs. lakhs) (Rs. lakhs)

Claims against the Company not acknowledged as debt:

Income tax matters 5,977.01 5,652.08

Excise matters 4,456.94 4,330.20

Service tax matters 749.96 700.76

Sales tax matters 240.25 251.91

Other matters 15.14 74.16

3 Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances Rs.341.51 lakhs (31 March 2014: Rs. 777.55 lakhs)] amounts to Rs. 370.51 lakhs (31 March 2014: Rs. 1,042.47 lakhs)

4 Disclosures as per Accounting Standard (AS)-18 "Related Party Disclosures"

A. Name of related parties

Ultimate holding company and holding company:

Honda Motor Co., Limited, Japan Fellow Subsidiaries

Honda Philippines Inc., Philippines

Honda Del Peru S.A., Peru

Honda de Mexico, S.A. de C.V., Mexico

Honda Australia M. & P.E. Pty. Limited, Australia

Asian Honda Motor Co., Limited, Thailand

Honda Trading Corporation, Japan

Honda Manufacturing (Nigeria) Ltd., Nigeria

Honda Trading Asia Co. Limited, Thailand

PT Honda Power Products Indonesia, Indonesia

Honda Motorcycle and Scooter India Private Limited, India

Honda Motor India Private Limited, India

Moto Honda da Amazonia Ltda., Brazil

Honda Trading (South China) Co. Limited, Hong Kong

Honda R & D Co. Limited, Japan

Honda R & D (India) Private Limited, India

Honda Motor de Argentina S.A., Argentina

Shanghai Honda Trading Co. Limited, China

Honda Atlas Power Products Pvt. Ltd., Pakistan

PT. Honda Trading Indonesia, Indonesia

Honda Trading Brasil Ltda., Brasil

Honda Canada Inc., Canada

American Honda Motor Co. Inc., USA

Honda Trading De Argentina S.A., Argentina

Honda Trading Corporation India Private Limited, India

Honda Mindong Generator Co. Ltd., China

Honda Kaihatsu Co. Ltd., Japan

Honda Trading Europe Ltd., Belgium

Honda Motor Europe Limited, U.K.

Honda Cars India Limited, India

Honda Kaihatsu India Hospitality Pvt. Ltd., India

Honda Selva Del Peru S.A.

Honda Power Products Ltd., Japan

Honda Trading Philippines Ecozone Corporation, Philippines Honda Trading America Corp., America

B. Name of key management personnel:

Mr. T. Hamasaki President and CEO (Up to 30 March 2015)

Mr. Hiroyoshi Sugimizu Vice President and Whole time director (with effect from 1 April 2014)

Mr. Vinay Mittal Vice President, Whole time director and CFO

Mr. S. Yotsumoto Vice President and Whole time director (Upto 23 March 2014)

5 Disclosure in respect of operating leases under Accounting Standard (AS) - 19 "Leases"

a) General description of the Company''s operating lease arrangements:

The Company enters into operating lease arrangements for leasing area offices, residential premises for its employees and equipment for generating power for captive consumption. Some of the significant terms and conditions of the arrangements are:

- certain agreements for premises may generally be terminated by the lessee or either party by serving one to three months'' notice or by paying the notice period rent in lieu thereof.

- other agreements for premises cannot be terminated by either party before the expiry of one year.

- the lease arrangements are generally renewable on the expiry of lease period subject to mutual agreement.

- the Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the Statement of Profit and Loss amounts to Rs. 318.21 lakhs (31 March 2014: Rs.376.89 lakhs).

c) Future minimum lease payments under non-cancellable operating lease are as under:

* includes contribution to family pension fund Rs 87.76 lakhs (31 March 2014: Rs. 66.81 lakhs)

(b) The following tables summarize the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective defined benefit plans:

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

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

* Net of expected reimbursement of Rs.0.33 lakhs (31 March 2014: Rs 0.47 lakhs) from suppliers of traded goods recognized and included in loans and advances in accordance with the requirements of Accounting Standard - 29 " Provisions, Contingent Liabilities and Contingent Assets."

The warranty provision is expected to be utilised within the normal warranty period of one year. The provision has been created based on management''s estimates and past trends.

6 Segment information Primary segment:

The primary reportable segment for the Company is geographical segment by location of its customers. The Company''s geographical segment comprises domestic customers and overseas customers.

The primary segments have been identified in line with AS 17, taking into account the risks and return, organisation structure and internal reporting system.

Segment revenue comprises income from sales and services which are directly identifiable to the individual segment. Certain non-operating incomes such as interest income on fixed deposits, net profit on sale of fixed assets and exceptional items do not form part of segment revenue and are included under "other non-operating income". Direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while the remaining costs are categorised to the segment on a reasonable basis. Certain expenses such as administrative expenses which form a significant component of total expenses are not specifically allocable to specific segments. Accordingly, these expenses are separately disclosed as "unallocated" and directly charged against total income.

Segment assets include operating assets used by a segment that are directly identifiable to that segment and consist principally of trade receivables and inventory. Segment liabilities include operating liabilities that are directly identifiable to that segment and consist principally of accrued liabilities and advances from customers. Segment liabilities exclude share capital and reserves and surplus. Assets and liabilities of the Company which cannot be identified to any of the reportable segments have not been allocated as the same are used for both segments.

Information about primary segments - geographical segments by customer:

7 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing regulation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company continuously updates its documentation for the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by the due date as required under law. The management is of the opinion that its international transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.


Mar 31, 2013

1. Company overview

Honda Siel Power Products Ltd. is a public company domiciled and headquartered in India. It is incorporated under the Companies Act, 1956 and its shares are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The Company is primarily engaged in manufacturing and marketing the portable gensets, water pumps, general purpose engines, lawn mowers, brush cutters and tillers. The Company caters to both domestic and international markets.

2 In the previous year, the Company has disposed off land (comprising freehold and leasehold) and building of the Company and other miscellaneous items of plant and machinery and furniture, fixtures and office equipment situated at Rudrapur, Uttarakhand. The resultant gain arising from the disposal of said fixed assets after adjusting the expenses related to such disposal have been disclosed as "Exceptional Items" in note 27. The Company does not have any further obligations towards the lessor, viz. Government of Uttarakhand, in respect of the leasehold land.

3 Contingent liabilities

31 March 2013 31 March 2012 (Rs. lakhs) (Rs. lakhs)

Claims against the Company not acknowledged as debt:

Income tax matters 4,500.54 3,773.96

Excise matters 4,859.63 2,877.88

Service tax matters 680.92 677.60

Sales tax matters 155.26 804.91

Other matters 55.48 27.14

4 Commitments

a. Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances Rs. 331.83 lakhs (31 March 2012: Rs. 782.88 lakhs)] amount to Rs. 614.35 lakhs (31 March 2012: Rs. 1,587.04 lakhs)

b. The Company has entered into an agreement for hiring a power generating equipment, the cancellation of which by the Company within the first 52 weeks of the agreement will entail monetary compensation on the Company equivalent to Rs. Nil lakhs (31 March 2012: Rs. 19.80 lakhs)

5 Details of contributions made to political parties

During the previous year, the Company has made contributions to political parties, viz. Rs 15 lakhs to Bhartiya Janta Party and Rs 10 lakhs to Indian National Congress Party. No such payment has been made in the current year.

6 Disclosures as per Accounting Standard (AS)-18 "Related Party Disclosures" A. Name of related parties

Ultimate holding company and holding company:

Honda Motor Co., Limited, Japan Fellow Subsidiaries

Honda Motor Southern Africa (Pty.) Limited, South Africa

Honda Philippines Inc., Philippines

Honda Del Peru S.A., Peru

Honda de Mexico, S.A. de C.V., Mexico

Honda Australia M. & P.E. Pty. Limited, Australia

Asian Honda Motor Co., Limited, Thailand

Honda Trading Corporation, Japan

Honda Manufacturing (Nigeria) Ltd., Nigeria

Honda Trading Asia Co. Limited, Thailand

PT. Honda Power Products Indonesia, Indonesia

Honda Motorcycle and Scooter India Private Limited, India

Honda Motor India Private Limited, India

Honda Express Logistics India Private Limited, India

Moto Honda da Amazonia Ltda., Brazil

Honda Trading (South China) Co. Limited, Hong Kong

Honda R&D Co. Limited, Japan

Honda R&D (India) Private Limited, India

Honda Europe NV, Belgium

Honda Motor de Argentina S.A., Argentina

Shanghai Honda Trading Co. Limited, China

Honda Atlas Power Products Pvt. Ltd., Pakistan

PT. Honda Trading Indonesia, Indonesia

Honda Trading Brazil Ltda., Brazil

Honda Trading De Argentina S.A., Argentina

Honda Trading Corporation India Private Limited, India

Honda Mindong Generator Co. Ltd., China

Honda Kaihatsu Co. Ltd., China

Honda Trading Europe Ltd., Belgium

Honda Motor Europe Limited, U.K.

Honda Canada Inc., Canada

Jialing-Honda Motors Co. Ltd., China

Honda Soltec Co. Ltd , Japan

American Honda Motor Co. Inc., USA

Honda Cars India Limited, India (previously known as "Honda Siel Cars India Limited", India)

7 Disclosure in respect of operating leases under Accounting Standard (AS)-19 "Leases"

a) General description of the Company''s operating lease arrangements:

The Company enters into operating lease arrangements for leasing area offices, residential premises for its employees and equipment for generating power for captive consumption. Some of the significant terms and conditions of the arrangements are: certain agreements for premises may generally be terminated by the lessee or either party by serving one to three months'' notice or by paying the notice period rent in lieu thereof. other agreements for premises cannot be terminated by either party before the expiry of one year. the lease arrangements are generally renewable on the expiry of lease period subject to mutual agreement. the Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the Statement of Profit and Loss Rs. 321.05 lakhs (31 March 2012: Rs.280.05 lakhs).

8 Segment information ,.''

Primary segment:

The primary reportable segment for the Company is geographical segment by location of customers. The Company''s geographical segment comprises domestic customers and overseas customers.

The primary segments have been identified in line with AS 17, taking into account the risks and return, organisation structure and internal reporting system.

Segment revenue comprises income from sales and services which are directly identifiable to the individual segment. Certain non-operating incomes such as interest income on fixed deposits, net profit on sale of fixed assets and exceptional items do not form part of segment revenue and are included under "other non-operating income". Direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment, while the remaining costs are categorised to the segment on a reasonable basis. Certain expenses such as administrative expenses which form a significant component of total expenses are not specifically allocable to specific segments. Accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income.

Segment assets include operating assets used by a segment that are directly identifiable to that segment and consist principally of debtors and inventory. Segment liabilities include operating liabilities that are directly identifiable to that segment and consist principally of accrued liabilities and advances from customers. Segment liabilities exclude share capital and reserves and surplus. Assets and liabilities of the Company which cannot be identified to any of the reportable segments have not been allocated as the same are used for both segments.

9 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing regulation under sections 92-92F of the Income-taxAct, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence before the due date of filing return of income under the Income-tax Act, 1961. The management is of the opinion that its international transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

10 Previous year figures have been regrouped/ reclassified to conform to the current year financial statements.


Mar 31, 2012

1 Subsequent to the Rudrapur factory consolidation, the land (comprising freehold and leasehold) and building of the Company and other miscellaneous items of plant and machinery and furniture, fixtures and office equipment situated at Rudrapur, Uttarakhand, have been disposed off during the current year. The resultant gain arising from the disposal of said fixed assets after adjusting the expenses related to such disposal have been disclosed as "Exceptional Items" in note 27. The Company does not have any further obligations towards the lessor, viz. Government of Uttarakhand, in respect of the leasehold land.

2 Contingent liabilities

As at As at 31 March 2012 31 March 2011 (Rs. lakhs) (Rs. lakhs)

Claims against the Company not acknowledged as debt:

- Various income tax matters for different assessment years pending before various authorities 3,773.96 2,458.19

- Various excise matters for different years pending before various authorities 2,877.88 2,618.01

- Various service tax matters for different years pending before various authorities 677.60 675.80

- Various sales tax matters pending before various authorities 804.91 864.06

- Other matters 27.14 30.96

3 Commitments

a. Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances Rs. 782.88 lakhs (31 March 2011: Rs. 230.87 lakhs)] amount to Rs. 1,587.04 lakhs (31 March 2011: Rs. 487.64 lakhs)

b. The Company has entered into an agreement for hiring a power generating equipment, the cancellation of which by the Company within the first 52 weeks of the agreement will entail monetary compensation on the Company equivalent to Rs. 19.80 lakhs (31 March 2011: Rs. Nil).

4 Details of contributions made to political parties

During the current year, the Company has made contributions to political parties, viz. Rs. 15.00 lakhs to Bharatiya Janata Party (31 March 2011: Rs. Nil) and Rs. 10.00 lakhs to Indian National Congress Party (31 March 2011: Rs. Nil).

5 Disclosure in respect of operating leases under Accounting Standard (AS) -19 "Leases"

a) General description of the Company's operating lease arrangements:

The Company enters into operating lease arrangements for leasing area offices, residential premises for its employees and equipment for generating power for captive consumption. Some of the significant terms and conditions of the arrangements are:

- certain agreements for premises may generally be terminated by the lessee or either party by serving one to three months' notice or by paying the notice period rent in lieu thereof.

- other agreements for premises cannot be terminated by either party before the expiry of one year.

- the lease arrangements are generally renewable on the expiry of lease period subject to mutual agreement.

- the Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the statement of profit and loss Rs.280.05 lakhs(31 March 2011: Rs.157.81 lakhs).

c) Future minimum lease payments under non-cancellable operating lease are as under:

6 Segment information Primary segment:

The primary reportable segment for the Company is geographical segment by location of customers. The Company's geographical segment comprises domestic customers and overseas customers.

The primary segments have been identified in line with AS 17, taking into account the risks and return, organisation structure and internal reporting system. Segment revenue comprises income from sales and services which are directly identifiable to the individual segment. Certain non-operating incomes such as interest income on fixed deposits, net profit on sale of fixed assets and exceptional items do not form part of segment revenue and are included under "other non-operating income". Direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment, while the remaining costs are categorised to the segment on a reasonable basis. Certain expenses such as administrative expenses which form a significant component of total expenses are not specifically allocable to specific segments. Accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income.

Segment assets include operating assets used by a segment that are directly identifiable to that segment and consist principally of debtors and inventory. Segment liabilities include operating liabilities that are directly identifiable to that segment and consist principally of accrued liabilities and advances from customers. Assets and liabilities of, the Company which cannot be identified to any of the reportable segments have not been allocated as the same are used for both segments.

7 The Company has prepared these financial statements by applying the principles of Revised Schedule VI of the Companies Act, 1956, which is applicable for the accounting periods commencing on or after 1 April 2011. Accordingly, the previous year figures have been regrouped/ reclassified to make them comparable.


Mar 31, 2010

1. The restructuring programme declared in the previous year by the Company for shifting its factory from Rudrapur, Uttaranchal, to Greater Noida, Uttar Pradesh has been completed during the current year. The company offered a Voluntary Retirement Scheme to all the workers of Rudrapur factory. Majority of the workers have opted for the said scheme and a sum of Rs. 1,893 lakhs has been paid under the said VRS scheme and included underExceptional Itemsin the financial statements.

Pursuant to the above agreement, the Company has been able to shift its entire inventory and the required plant and machinery from Rudrapur factory to Greater Noida factory. The remaining fixed assets not transferred to Greater Noida factory are currently being held for disposal. The expenses on such shifting have been included underExceptional itemsin the financial statements.

2. Contingent liabilities:

(Rs. Lakhs) Currentyear Previous year

Claims against the Company not acknowledged as debts

- Various income-tax matters for different assessment years pending before various authorities 1,890.27 1,022.36

- Various excise matters for different years pending before various authorities 2,446.78 3,639.15

- Various service tax matters for different years pending before various authorities 176.58 168.38

- Various sales tax matters pending before various authorities 233.94 427.84

- Other matters 43.75 32.28

4. Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances, Rs 316.19 lakhs (Previous year Rs. 544.35 lakhs).

5. Disclosure in respect of employee benefits under Accounting Standard (AS) - 15 "Employee Benefits" prescribed by the Companies (AccountingStandards) Rules, 2006:

(vii) Investment details of plan assets

The gratuity trust has taken up a group policy with Life Insurance Corporation of India,

(c) Provident Fund

The Companys actuary has confirmed that as at 31 March 2010, the Company does not have any liability on account of interest shortfall between the return from the investments of the provident fund trust and the notified interest rate.

The actuary, however, has expressed an inability to provide the required information prescribed by AS-15 such as changes in present value of defined benefit obligation, fair value of plan assets, actuarial gain/loss recognised in the profit and loss account etc. Accordingly the required disclosures have not been made.

6. The net exchange difference amounting to a net gain of Rs. 22.58 lakhs has been included in miscellaneous income (Previous year Rs.127.89 lakhs).

7. Segment information

Primary segment:

The primary reportable segment for the Company is geographical segment by location of customers. The Companys geographical segment comprises domestic customers and overseas customers.

The primary segments have been identified in line with AS 17, taking into account the risks and return, organisation structure and internal reporting system.

Segment revenue comprises income from sales and services which are directly identifiable to the individual segment. Certain non-operating incomes such as liabilities written back and income from export benefits do not form part of segment revenue and are included under "other non-operating income". Direct expenses in relation to segments is categorised based on items that are individually identifiable to that segment, while the remaining costs are categorised to the segment on a reasonable basis. Certain expenses such as administrative expenses which form a significant component of total expenses are not specifically allocable to specific segments. Accordingly these expenses are separately disclosed as "unallocated" and directly charged against total income.

Segment assets include operating assets used by a segment that are directly identifiable to that segment and consist principally of debtors and inventory. Segment liabilities include operating liabilities that are directly identifiable to that segment and consist principally of accrued liabilities and advances from customers. Assets and liabilities of the Company which cannot be identified to any of the reportable segments

8.Contributions to political party Rs Nil (Previous year Rs 5.00 lakhs to Bhartiya Janta Party)

9.The figures for the previous year have been regrouped /recasted wherever necessary.

 
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