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Notes to Accounts of Lumax Auto Technologies Ltd.

Mar 31, 2022

18.1 Nature and purpose of reservesa) Securities Premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilized only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

b) FvTOcI Reserve

The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI Reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognized.

c) General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilized only in accordance with the specific requirements of Companies Act, 2013.

d) Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

* Working capital demand loan '' 6,000 Lakhs (March 31, 2021: '' 1,000 Lakhs) from Bank is repayable in 180 days from respective drawdown and carries interest @ 4.40% to 5.25% per annum, secured by way of Pari-passu first charge on entire current assets of the Company both present and future.

* Working capital demand loan '' Nil (March 31, 2021: '' 1,000 Lakhs) from financial institution is repayable in 180 days from respective drawdown and carried interest @ 6.90% per annum, secured by way of pari- passu charged over the current assets of the Company.

** Working capital demand loan '' 2,000 Lakhs (March 31, 2021: '' 1,000 Lakhs) from Bank is repayable in 180 days from respective drawdown and carries interest @ 4.40% to 5.25% per annum, unsecured.

*** Cash Credit '' Nil (March 31, 2021: '' 483.70 Lakhs) secured by way of Pari-passu first charge of hypothecation on entire stocks consisting of raw material, work in progress and finished goods kept at Company’s godown, factories and book debts along with receivables of the Company, both present and future and carried Interest @ 7.50% per annum.

The Company has been sanctioned working capital limit in excess of '' 500 Lakhs in aggregate from banks/financial institutions during the year on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks/financial institutions are in agreement with the books of accounts of the Company.

Undrawn committed borrowing facility

The Company has availed fund based and non fund based working capital limits amounting to '' 20,200.00 Lakhs (March 31,

2021 : '' 14,100.00 Lakhs) from banks and financial institutions. An amount of '' 11,653.32 Lakhs remain undrawn as at March 31,

2022 (March 31, 2021 : '' 10,267.33 Lakhs).

Loan covenants

The Company has satisfied all debt covenants prescribed in the terms of bank loans. The other loans do not carry any debt covenant. The Company has not defaulted on any loans payable.

Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institutions or government or any government authority.

Terms and conditions of the above financial liabilities:

- Trade payables & Other payables are non-interest bearing and are normally settled on 30 to 90 day terms For explanations on the Company’s credit risk management processes, refer note 47.

For terms and conditions with related parties, refer to Note 41

The Code on Social Security 2020 (Code), which received the Presidential Assent on September 28, 2020, subsumes nine laws relating to social security, retirement and employee benefits, including the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and the Payment of Gratuity Act, 1972. The effective date of the Code is yet to be notified and related rules are yet to be framed. The impact of the change, if any, will be assessed and recognized post notification of the relevant provisions.

39| GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with an insurance company in the form of qualifying insurance policy.

40| COMMITMENTS AND CONTINGENCIES

a) Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for:

Capital commitments are '' 1,786.59 Lakhs (As at March 31, 2021''181.29 Lakhs), net of advances.

(b) Contingent liabilities

As at

march 31, 2022

As at march 31, 2021

claims against the company not acknowledged as debts

In respect of A.Y. 2015 - 16, the assessing officer has added to the income of the Company, a notional amount of disallowance under Rule 14A of the Income tax act, 1961 amounting to '' 8.11 Lakhs against which demand raised against the same amounting to '' 2.76 Lakhs. The Company had preferred an appeal with Commissioner of Income Tax (Appeals) CIT(A) against the same and got rejected and further the Company filled appeal with Income Tax Appellate Tribunal (ITAT). During the year, the Company has received a favourable ITAT order.

2.76

Demand from Employee State Insurance Department

0.90

0.90

The Company received income tax order under Section 143(3) dated December 30, 2019 related to A.Y. 2018-19 on account of search and seizure operation for which Company had received demand of '' 1,033.28 Lakhs including interest u/s 234ABC in respect of above matter for which the Company had filed the appeal to income tax authorities. During the current year, the Company has received a favorable order in this regard from CIT(A) and the department has filed an appeal against the said order of CIT(A). The Company is of the view, based on the advice of the advocate, that the final outcome of the case would be in the favor of the Company and hence, no provision has been made in the books of accounts.

1,033.28

1,033.28

During the earlier year, the Company received demand cum show cause notice from the Indirect Tax department alleged that the Company availed the duty drawback on the basis of unrealized sale proceeds The Company filed the reply to the assistant commissioner of customs Inland Container Depot (ICD), Tughlakabad, dated February 07, 2020 against the above show cause notice and the response is awaited as on date. The Company is of the view, based on the advice of the advocate, that the final outcome of the case would be in the favor of the Company and hence, no provision has been made in the books of accounts.

19.24

19.24

During the previous year, the Company has received show cause notice dated June 08, 2020 from the Indirect tax department alleged that the Company has availed the Excise Duty of '' 32.14 Lakhs on amortization of Drawing & Design sent by one of the customer of the Company on FOC basis. The Company is of the view, based on the advice of the advocate, that the final outcome of the case would be in the favor of the Company and hence, no provision has been made in the books of accounts.

32.14

32.14

(c) The Company entered into an agreement with the Bhosari Unit Workmen Union on September 13, 2003, vide which option for VRS was given to the workers of the Company. Accordingly, benefits under the said scheme were paid to 27 workmen who opted for the scheme. Out of these 27 workmen, 20 workmen later filed a case against the Company on the grounds of Unfair Labor Practices at the Labor court. The Court has passed an order in the favor of the workmen on June 26, 2019. Further, the Company has challenged the said order and filed revision application dated July 26, 2019 in the Industrial Court, Pune on the grounds that the said order is defective and bad at law. Out of those 20 cases, the matter has been decided by the Industrial court in favor of the Company for 17 cases vide order dated March 28, 2022. For remaining 3 cases, the Company is of the view, based on the advice of the advocate, that the final outcome of the case would be in the favor of the Company and hence, no provision has been made in the books of accounts.

(d) In regard to the bill discounting of invoices with bank by one of Company’s vendor (Transporter), the bank had filed an application under Section 19 of the “Recovery of Debts due to Banks and Financial Institution Act, 1993” before the Ld. DRT-II, Chandigarh for recovery of '' 999.76 Lakhs and interest thereon @ 13.75% p.a. from the Company, vendor and other parties. The Company and other parties including vendor has received an order dated February 25, 2019 from Debts Recovery Tribunal- II, Chandigarh for demanding the above amount jointly and severally. The Company has filed an appeal before Debt Recovery Appellate Tribunal (DRAT) dated March 13, 2020 against '' 782.24 Lakhs (decretal amount to which the Company is a defendant party) along with interest 13.75% p.a. and deposited 25% of decretal amount in current year in addition to the 25% already deposited in previous year. The Company is of the view, based on the advice of the advocate, that the final outcome of the case would be in the favor of the Company and hence, no provision has been made in the books of accounts.

42| EVENT AFTER THE REPORTING DATE

a) The Board of Directors of the Company has proposed dividend @ 175% i.e. '' 3.5 per equity share of face value of '' 2 each (March 31, 2021 @ 150% i.e. '' 3 per equity share of face value of '' 2 each) which is subject to shareholder’s approval in forthcoming annual general meeting.

b) On May 03, 2022, the Company has filed the Draft Scheme of merger with National Company Law Tribunal (NCLT) of its 100% subsidiary “Lumax Mettalics Private Limited” with the Company for efficient utilization & synergy of resources. The Appointed date of Merger will be April 01, 2022 subject to necessary regulatory approvals.

43| SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the financial statements:

a) Operating lease commitments - Company as lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an valuation of the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the economic life of the commercial property, and that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

b) Assessment of lease term

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the lessee.

c) Revenue from contracts with customers

The Company applied the following judgments that significantly affect the determination of the amount and timing of revenue from contracts with customers:

• Determining method to estimate variable consideration and assessing the constraint

Certain contracts for the sale of products include a right of price revision on account of change of commodity prices/purchase price that give rise to variable consideration. In estimating the variable consideration, the Company is required to use either the expected value method or the most likely amount method based on which method better predicts the amount of consideration to which it will be entitled.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Property, plant and equipment

The useful lives and residual values of property, plant and equipment are determined by the management based on technical assessment by the management. The Company believes that the derived useful life best represents the period over which the Company expects to use these assets.

b) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the longterm nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

c) Gratuity benefit

The cost of defined benefit plans (i.e. Gratuity benefit) is determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. In determining the appropriate discount rate, management considers the interest rates of long term government bonds with extrapolated maturity corresponding to the expected duration of the defined benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Future salary increases and pension increases are based on expected future inflation rates for the respective countries. Further details about the assumptions used, including a sensitivity analysis, are given in Note 39.

d) Fair value measurement of financial instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

e) Impairment of financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and expected loss rates. the Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

f) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.

The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are also relevant to other intangibles. During the year the Company has done the impairment assessment of non-financial assets and have concluded that there is no impairment in value of non-financial assets as appearing in the financial statements.

g) Lease incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore its incremental borrowing rate (IBR) to measure lease liability. The IBR is the rate of interest that the Company would have to pay to borrow over similar term, and with a similar security, the fund necessary to obtain an asset of a similar value to the right of use assets in as similar economic environments. The IBR therefore effects what the Company “would have to pay” which requires estimates when no observable rates are available or when they need to be adjusted to reflect the term and conditions of the lease. The Company estimates the IBR using observable inputs such as market interest rates when available.

44| CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, all equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the shareholders’ value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants, if any. To maintain or adjust the capital structure, the Company reviews the fund management at regular intervals and take necessary actions to maintain the requisite capital structure. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2022 and March 31, 2021.

Discount rate used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of borrower which in case of financial liabilities is average market cost of borrowings of the Company and in case of financial asset is the average market rate of similar credit rated instrument. The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

46| FAIR VALUE HIERARCHY

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

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

Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either directly or indirectly.

Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on observable market data.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

4t| financial risk management objectives and policies

The Company’s principal financial liabilities comprise of trade and other payables, borrowings, security deposits and payables for property, plant and equipment. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables, cash, fixed deposits and security deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by Finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance department provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instrument effected by market risk include loans and borrowings, deposits, FVTOCI instrument.

The sensitivity analyses in the following sections relate to the position as at March 31, 2022 and March 31, 2021.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2022 and March 31, 2021 including the effect of hedge accounting.

i) Interest rate risk

I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s interest bearing financial liabilities includes borrowings with fixed interest rates.

The Company’s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company transacts business in local currency as well as in foreign currency. The Company has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk

iii) Equity Price Risk

The Company’s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Companies Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the exposure to listed equity securities at fair value was '' 4,648.35 Lakhs. A decrease of 10% on the NSE market index could have an impact of approximately '' 464.84 Lakhs on the OCI or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI and equity. These changes would not have an effect on profit or loss.

B. 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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of financial assets (trade receivable). The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

Further, the Company’s customer base majorly includes Original Equipment Manufacturers (OEMs), Large Corporates and Tier-1 vendors of OEMs. Based on the past trend of recoverability of outstanding trade receivables, the Company has not incurred material losses on account of bad debts. Hence, no adjustment has been made on account of Expected Credit Loss (ECL).

c. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including loans from banks at an optimized cost.

48. The management has analyzed that no significant warranty claim is received by the Company in earlier years against the goods manufactured by the Company and further, the seller of traded goods warrants the Company that products will be free from defects in materials and workmanship under normal use and service and agrees to replace any defective parts under the conditions of standard warranty accompanying the products. Therefore, the Company has not made any provision for warranties and claims in its books of accounts for the year ended March 31, 2022.

49. Revenue from contracts with customers is measured by the Company at the transaction price i.e. amount of consideration received/ receivable in exchange of transferring goods or services to the customers. In determining the transaction price for the sale of goods, the Company considers the effect of price adjustments, to be claimed/ passed on to the customers, based on various cost parameters like raw material and other costs. The Company is required to pass on the savings in variable cost from the billed sales price for which the final negotiations with the customer is ongoing and will be settled in near future. The total estimated liabilities outstanding as at March 31, 2022 is '' 3,064.67 Lakhs (March 31, 2021: '' 2,832.89 Lakhs), which management believes is sufficient to discharge liabilities.

50. During the year, the Company has amended the joint venture agreement with one of the joint venture partner of “Lumax Ituran Telematics Private Limited (LITPL)”, wherein the casting vote has been given to the Chairman of the LITPL appointed by the Company. By virtue of this, the Company has acquired management control of LITPL and therefore, LITPL has become subsidiary of the Company w.e.f. January 01, 2022.

53| OTHER STATUTORY INFORMATION

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company do not have transactions with struck off companies.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), 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

(vi) The Company has not received any fund from any person(s) or entity(ies), 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,

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

54. The Company’s business activity falls within a single business segment i.e. manufacturing and trading of Automotive Components and therefore, segment reporting in terms of Ind AS 108 on Segmental Reporting is not applicable.

55. Consequent to the uncertainties caused due to continuation of pandemic, the Company has prepared a cash flow projections and also assessed the recoverability of receivables, inventories, other financial & non-financial assets and factored assumptions used in annual impairment testing of fixed assets. On the basis of this evaluation and current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets and does not anticipate any impairment to these financial & non financial assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future spread of the COVID-19. However, the Company will continue to closely monitor any material changes to future economic conditions, required, if any.


Mar 31, 2018

1. Corporate information

Lumax Auto Technologies Limited (“the Company”) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the company is located at Plot No. 70, Sector -10 PCNTDA, Bhosari, Pune, Maharashtra.

The Company is principally engaged in the manufacturing of automotive components. Information on the Company’s structure is provided in Note 35. Information on other related party relationships of the Company is provided in Note 40.

The financial statements were authorised for issue in accordance with a resolution of the directors on May 28, 2018.

2 Significant accounting policies

2.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP).

These financial statements for the year ended March 31, 2018 are the first the Company has prepared in accordance with Ind AS. Refer to note 49 for information on how the Company adopted Ind AS.

The financial statements have been prepared on a historical cost basis, except for the financial assets and liabilities which have been measured at fair value or revalued amount.

2.2 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

2.2.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Defined benefit plans

The present value of the gratuity is determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

b) Property, plant and equipment

Refer note 2.2(c) for the estimated useful life of property, plant and equipment. The carrying value of property, plant and equipment has been disclosed in note 3(a).

During the year the Company has made re-assessment of the estimated useful life of the property plant and equipment’s, there has been a change in useful life of certain class of property plant and equipment’s under plant and Machineries from existing 8 years to 12 years. The impact of the change in the estimate resulted in the decrease of depreciation expense by 49.17 Lacs in the current year.

c) Intangible assets

Refer note 2.2(d) for the estimated useful life of intangible assets. The carrying value of intangible assets has been disclosed in note 4.

d) Contingencies

Refer note 39 for details of contingencies.

e) Impairment of financial assets

Refer note 2.2(m) for the policy to estimate the impairment of financial assets.

f) Impairment of non-financial assets

Refer note 2.2(n) for the policy to estimate the impairment of non-financial assets.

Ind As 101 Exemption

The Company has elected Ind AS 101 exemption and continue with the carrying value for all investment in Joint ventures and Subsidiaries as its deemed cost as at the date of transition.

d) Terms/ rights attached to equity shares:

The Company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the Annual General Meeting.

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

As at March 31, 2018, the paid up equity share capital of the Company stood at 1,363.15 Lacs divided into Nos. 136.32 Lacs equity shares of the face value of Rs 10 each. The Company has obtained its Boards’ approval for Sub-division of existing 1 equity share having face value of Rs 10 each fully paid-up into 5 equity shares having face value of Rs 2 each. The following matters was approved by the board in the board meeting held on March 23, 2018. Further the company is in process of obtaining shareholders approval through postal ballot.

* Indian rupee loan from bank amounting Rs Nil (March 31, 2017 Rs 1,250 Lacs; April 01, 2016 Rs 2,500 Lacs) taken in the financial year 201213 carried interest @ 10.25% - 10.55% p.a at present. The loan was repaid in 16 equal quarterly instalments of Rs 312.5 Lacs after fifteen month moratorium period from the disbursement date i.e. from Jan 03, 2013. The loan is secured by extension of charges by way of hypothecation on the plant and machinery alongwith the equitable mortgage (EQM) on land and building, situated at Bangalore.

** Vehicle loan amounting Rs 96.47 Lacs (Previous year Rs 125.99 Lacs; April 01, 2016 Rs 132.05 Lacs) from banks at interest @ 8%-10% are secured by way of hypothecation of the respective vehicles acquired out of proceeds thereof. These loans are repayable over a period of three years from the date of availment.

*** Deferred sales tax loan amounting to Rs 3.75 Lacs (March 31, 2017: Rs 20.85 Lacs, April 01, 2016: Rs 30.25 Lacs)] is availed by the Company on sales made during the period from financial year (FY) 1999-2000 to 2005-06. The said loan is repayable in tenure of 10 years starting from FY 2010-11 as per the repayment schedule received from sales tax authorities.

* Working capital loan from financial institution is repayable in 90 days from respective drawdown and carries interest ranging between 8.50%-9.50% per annum.

Loan covenants

The Company has satisfied all debt covenants prescribed in the terms of bank loans. The other loans do not carry any debt covenant.

3. Income tax

a) The major components of income tax expense for the years ended March 31, 2018 and March 31, 2017 are:

Statement of profit and loss:

b) OCI section

Deferred tax related to items recognised in Other Comprehensive Income during the year:

Post applicability of Goods and Services Tax (GST) w.e.f. July 01, 2017, Revenue from Operations are required to be disclosed net of GST in accordance with the requirement of Ind AS. Accordingly, the Revenue from Operations for the year ended March 31, 2018 are not comparable with the immediately preceding quarter ended / year ended March 31, 2017 and corresponding previous periods presented in the financial results which are reported inclusive of Excise Duty. The following additional information is being provided to facilitate such understanding :

4. earnings per share (EPS)

a) Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

b) Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares) by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

c) The following reflects the income and share data used in the basic and diluted EPS computations:

d) There has not been any transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements except stated in note 15 to the financial statement.

5. Material partly-owned subsidiaries

Financial information of subsidiaries that have material non-controlling interests is provided below: Proportion of equity interest held by non-controlling interests:

6. Gratuity and other post-employment benefit plans

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with an insurance company in the form of qualifying insurance policy.

a) During the year, the Company has recognized the following amounts in the statement of profit and loss :

b) Defined Benefit Obligation

The following tables summarise the components of net benefit expense recognised in the Statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

7. Commitments and contingencies

a) Capital and other commitments

(1) Estimated amount of contracts remaining to be executed on capital account and not provided for:

Capital commitments are Rs 788.23 Lacs (March 31, 2017: Rs 21.84 Lacs April 1, 2016: Rs 215.19 Lacs), net of advances.

(2) Commitments relating to lease arrangements Operating lease commitments - Company as lessee

The total rent expense under these agreements during the year ended March 31, 2018 is 319.51 Lacs ; March 31, 2017: Rs 354.19 Lacs)

8. Segment Information

The Company had identified its primary business segment as trading & manufacturing of “Automobile components”.

All activities of the Company revolve around the above segment. The entire operations are governed by the same set of risks and returns. Hence it is considered as single primary business segment.

Geographical segments:

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and presence in international markets is not significant. Its business is accordingly aligned geographically, catering primarily to India.

9. Final Dividend

The Board of Directors of Lumax Auto Technologies Limited has passed the resolution by way of circulation on May 28, 2018 for declaration of final dividend of Rs 10 per equity share (March 31, 2017: Rs 4.70 per share) of face value of Rs 10 each.

10. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, all equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholders’ value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants, if any. To maintain or adjust the capital structure, the Company reviews the fund management at regular intervals and take necessary actions to maintain the requisite capital structure. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

11. Fair values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

* The fair values of the FVTOCI financial assets are derived from quoted market prices in active markets.

Management has assessed that remaining financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Discount rate used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of borrower which in case of financial liabilities is average market cost of borrowings of the Company and in case of financial asset is the average market rate of similar credit rated instrument. The company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

12. Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

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

Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either directly or indirectly.

Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on observable market data.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

13. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise of trade and other payables, borrowings, security deposits and payables for property, plant and equipment. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables, cash, fixed deposits and security deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by Finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance department provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk.

The sensitivity analyses in the following sections relate to the position as at March 31, 2018 and March 31, 2017.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s interest bearing financial liabilities includes borrowings with fixed interest rates.

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company transacts business in local currency as well as in foreign currency. The Company has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives and embedded derivatives.

iii) Equity Price Risk

The Company’s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Companies Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the exposure to listed equity securities at fair value was Rs 11,474.14 Lacs. A decrease of 10% on the NSE market index could have an impact of approximately Rs 1147.41 Lacs on the OCI or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI and equity. These changes would not have an effect on profit or loss.

B. 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. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

i) Trade receivables

Customer credit risk is managed by Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of financial assets (trade receivable) disclosed in Note 7. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

Further, the Company’s customer base majorly includes Original Equipment Manufacturers (OEMs), Large Corporates and Tier-1 vendors of OEMs. Based on the past trend of recoverability of outstanding trade receivables, the Company has not incurred material losses on account of bad debts. Hence, no adjustment has been made on account of Expected Credit Loss (ECL) model.

C. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including loans from banks at an optimised cost.

14. The management has analysed that no significant warranty claim is received by the Company in earlier years against the goods manufactured by the Company and further, the seller of traded goods warrants the Company that products will be free from defects in materials and workmanship under normal use and service and agrees to replace any defective parts under the conditions of standard warranty accompanying the products. Therefore, the Company has not made any provision for warranties and claims in its books of accounts for the year ended March 31, 2018.

15. First time adoption of Ind AS

These financial statements for the year ended March 31, 2018 are the first annual financial statements prepared in accordance with Ind AS. For year up to and including the year ended March 31, 2017, the Company has prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read with the Companies (Indian accounting standard) (Amendment) Rules, 2016.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ended March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 01, 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.

a) exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

i. Deemed cost-Previous GAAP carrying amount: (PPE and Intangible) :

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 previous GAAP (Indian GAAP) and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible. Intangible assets are covered by Ind AS 38. Accordingly, the Company has elected to measure all of its property, plant and equipment, capital work in progress, intangible assets and Intangible assets under development at their previous GAAP carrying value.

ii. Investments in subsidiaries and joint ventures

Ind AS 101 permits a first time adopter to measure its investment in subsidiaries, associates and joint venture, at the date of transition, at cost determined in accordance with Ind AS 27 or deemed cost. The deemed cost of such investment shall be it’s fair value at the Company’s date of transition to Ind AS, or Previous GAAP carrying amount at that date. The Company has elected to measure its investment in subsidiaries and joint ventures at the previous GAAP carrying amount as its deemed cost on the transition date.

iii. Arrangement contains a lease :

Appendix C to Ind AS 17 requires the first-time adopter to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place as at the date of transition.

b) Estimates

The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP apart from the following items where application of Indian GAAP did not require estimation:

i. Investment in equity instruments carried at Fair Value Through Other Comprehensive Income (FVTOCI); and

ii. Impairment of financial assets based on expected credit loss model.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.

f) Footnotes to the reconciliation of equity as at April 01, 2016 and March 31, 2017 and profit or loss for the year ended March 31, 2017:

1 Fair value of investment in equity instruments designated as FVTOCI

Under the previous GAAP, investment in long term equity instruments were carried at cost less provision for diminution, other than temporary, in the value of such investment. Under Ind AS these investments are required to be measured at fair value. Accordingly, fair value change with respect to investment in equity instruments of Lumax Industries Limited, designated at FVTOCI, have been recognized in other comprehensive income for the year ended March 31, 2017. This resulted in net increase in investment and total comprehensive income for the year ending March 31, 2017 by Rs 5,039.48 Lacs and Rs 264.28 Lacs at the date of transition i..e April 01, 2016 ;

2 Sale of goods

Under Previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Thus sale of goods under Ind AS has increased by INR 4076.48 with a corresponding increase in other expense. This being reclassification adjustments, have no impact on profit for the year on account of the same.

3 Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Group recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

4 Other comprehensive income

Under Previous GAAP, the Company has not presented Other Comprehensive Income (OCI) separately. Hence, it has reconciled Previous GAAP profit to profit or loss as per Ind AS. Further, Previous GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

5 Cash Discounts

Revenue shall be measured at fair value of the consideration received or receivable. Also the amount of revenue arising on a transaction is usually determined by agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the entity. Therefore, the total sales has been disclosed net of any discounts given/to be given to the customers. However, this does not impact the results of the Company.

g) Cash Flow Statement

The transition from Previous GAAP to Ind AS do not have a material impact on the statement of cash flows.

16. Standards issued but not yet effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

a) Ind AS 115 - Revenue from Contracts with Customers

In March 2018, the Ministry of Corporate Affairs had notified Ind AS 115 ‘Revenue from Contracts with Customers’ which would be applicable for accounting periods beginning on or after 1 April 2018.This Standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The Company is evaluating the requirements of the new standard and the effect on the financial statements is expected to be insignificant.

b) Amendments to Ind AS 12 - Recognition of Deferred Tax Assets for unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

c) Transfers of Investment Property — Amendments to Ind AS 40

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use.

Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with Ind AS 8 is only permitted if it is possible without the use of hindsight.

The amendments are effective for annual periods beginning on or after 1 April 2018. The Company will apply amendments when they become effective. However, since there are no investment properties, the Company does not expect any effect on its financial statements.

d) Appendix B to Ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope that are initially recognised on or after:

(i) The beginning of the reporting period in which the entity first applies the Appendix, or

(ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the Appendix.

The Appendix is effective for annual periods beginning on or after 1 April 2018. However, since the Company’s current practice is in line with the Interpretation, the Company does not expect any effect on its financial statements.


Mar 31, 2017

1. Operating lease: Company as lessee

The Company has entered into commercial leases for office premises and warehouses. There are no contingent rents in the lease agreements. The lease terms is for 1-5 years and more than 5 year and are renewable at the mutual agreements of both the parties. There are no restrictions imposed by lease arrangements. There are no subleases. The rent expense under these agreements is Rs. 35,419,434 (March 31, 2016 : Rs. 27,463,614).

2. Segment information Business segment

The Company had identified its primary business segment as trading & manufacturing of "Automobile components"

All activities of the Company revolve around the above segment. The entire operations are governed by the same set of risks and returns. Hence it is considered as single primary business segment.

Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and presence in international markets is not significant. Its business is accordingly aligned geographically, catering primarily to India.

3. The management has analyzed that no significant warranty claim is received by the Company in earlier years against the goods manufactured by the Company and further, the seller of traded goods warrants the Company that products will be free from defects in materials and workmanship under normal use and service and agrees to replace any defective parts under the conditions of standard warranty accompanying the products. Therefore, the Company has not made any provision for warranties and claims in its books of accounts for the year ended March 31, 2017.

4. The Company has closed the operations of one of its unit at Aurangabad, due to lack of customer orders and created adequate provisions in books for incidental cost incurred/expected to incur related to the closure of the said plant. The company believes that the provision carried in the books is sufficient to cover any losses in relation to the closure of the plant. The laborers had filed a legal case against the company in that regard. The District Court has, recently, issued interim relief order to maintain status quo for the said plant.

5. The Company has entered into an agreement with Lumax Ancillary Limited to sell one of its unit at kala amb in slump sale basis on April 1, 2017. Accordingly WDV of fixed assets situated at KalaAmb are disclosed under current assets as " Assets held for sale" amounting to Rs. 709,792 as at Balance sheet date.

6. Previous year’s figures have been reclassified/re-grouped wherever necessary, to confirm to this year''s classification.


Mar 31, 2016

b) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Operating lease: Company as lessee

The Company has entered into commercial leases office premises and warehouse. There are no contingent rents in the lease agreements. The lease terms is for 1- 5 years and are renewable at the mutual agreements of both the parties.

There are no restrictions imposed by lease arrangements. There are no sublease and the entire lease are non-cancellable in nature. The rent expense under these agreements is Rs.27, 463,614 (Previous year: Rs.24, 474,205)

2. Details of expenses capitalized under fixed assets/capital work in progress

During the year, the company has capitalized the following expenses of revenue nature to the cost of fixed asset/ capital work-in-progress (CWIP). Consequently, expenses disclosed under the respective notes are net of amounts capitalized by the Company.

3. Related Party Disclosure

Names of related parties and related party relationship

Related parties with whom transactions have taken place during the year

S.No.

Particulars

Name of Related Parties

1

Subsidiary Companies

Lumax DK Auto Industries Limited ("LDK")

Lumax Mannoh Allied Technologies Limited ("LMAT") Lumax Energy Solutions Private Limited ( "LES" ) Lumax Integrated Ventures Private Limited ("LIVE" ) Lumax Sipal Engineering Pvt. Ltd.

2

Key Management Personnel

Mr.D.K. Jain (Chairman)

Mr.Anmol Jain (Managing Director)

3

Relatives of Key Management Personnel

Mr.Deepak Jain ( Son of Mr. D.K. Jain ,Brother of Mr. Anmol Jain)

Mrs. Shivani Jain ( Wife of Mr. Anmol Jain )

Mrs. Usha Jain ( Wife of Mr.D.K.Jain & Mother of Mr. Anmol Jain and Mr.Deepak Jain)

4

Enterprise owned or significantly influenced

Lumax Industries Limited

by Key Management Personnel or their

Lumax Finance Private Limited

Relatives

Lumax Ancillary Limited

Mahavir Udyog

D. K. Jain & Sons ( HUF)

Bharat Enterprises

D. K. Jain & Family Trust

Lumax Tours & Travels Limited

Vardhman Agencies Private Limited

Lumax Charitable Foundation

Lumax Management Services Private Limited

5

Joint Venture

Lumax Cornaglia Auto Technologies Private Limited ("LCAT") Lumax Gill Austem Auto Technologies Private Limited (LGAT"

4. Segment information Business segment

The Company had identified its primary business segment as dealing & manufacturing of "Automotive components".

All activities of the Company revolve around the above segment. The entire operations are governed by the same set of risks and returns. Hence it is considered as single primary business segment.

Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and presence in international markets is not significant. Its business is accordingly aligned geographically, catering primarily to India.

5. Corporate Social Responsibility (CSR) expenditure

As per the provisions of Section 135 of the Companies Act, 2013 and Companies (Corporate social responsibility Policy) Rules 2014, the Company has to spend atleast 2% of average net profit of last three financial years towards CSR. Accordingly a CSR committee has been formed for carrying out the CSR activities as per Schedule VII of the Companies Act, 2013. The Company has contributed a sum of Rs.4,100,000 (Previous year- Rs.3,140,000 towards CSR and debited the same to the statement of Profit and Loss.

6. Interest in Joint venture Companies

Pursuant to Accounting Standard 27 on financial report of interests in joint ventures, the relevant information relating to the joint venture companies is as given below.

7. During the previous year the Company had received consideration of Rs.237,150,000 against sale of 45% shares of Lumax Mannoh Allied Technologies Limited (LMAT). The consideration was received in terms of Joint venture and share purchase and shareholder agreement dated March 4, 2014 amongst the Company, Mannoh Industrial Co. Limited, Lumax DK Auto Industries Limited and Lumax Mannoh Allied Technologies Limited.

8. During the year, the Company has acquired 100% shares of Lumax Integrated Ventures Private Limited ("LIVE") against consideration of Rs.1, 049,400.

9. Previous year’s figures have been reclassified/re-grouped wherever necessary, to confirm to this year''s classification.


Mar 31, 2015

1 Corporate information

Lumax Auto Technologies Limited is a Public Limited Company located in India. The Company is engaged in dealing & manufacturing of automotive components. The Shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention, The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3 Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares holder is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

4 Gratuity and other post -employement benefit plans :

The Company operates defined plans, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

5 Operating lease: Company as lessee

The Company has entered into commercial leases for office premises and warehouses. There are no contingent rents in the lease agreements. The lease terms is for 1-5 years and are renewable at the mutual agreements of both the parties. There are no restrictions imposed by lease arrangements. There are no sublease and all the leases are non-cancellable in nature. The rent expense under these agreements is Rs.24,474,205 (Previous year : Rs. 16,176,478).

6 Depreciation

(a) . Till 31st March, 2014, depreciation was being provided on straight line method as per the rates prescribed in Schedule XIV of the Companies Act, 1956. The Schedule XIV has been replaced by Schedule II of the Companies Act, 2013 and the depreciation has been charged on straight line method on the basis of useful lives of the assets in the manner as prescribed in Schedule II of Companies Act, 2013.

(b) Till 31st March, 2014, the assets for a value not exceeding Rs. 5000/- were written off in the year of purchase as per Schedule XIV of the Companies Act, 1956. Schedule II of the Companies Act, 2013 does not recognize such practice. The depreciation on assets for a value not exceeding Rs. 5000/- has been provided on the basis of their useful lives in the manner as prescribed in the Schedule II of the Companies Act, 2013.

7 Contingent Liabilities (Amount in Rs.)

Particulars Year Year Ended Ended March 31, March 31, 2015 2015 In respect of A.Y. 2010 - 11, the assessing officer has added to the income of the Company notional amount of disallowance under Rule 14A of the Income tax act,1961 amounting to Rs. 435,192 against which demand 118,000 118,000 raised for amountingRs 118,000. The Company has preferred an appeal with CIT (A).

In respect of A.Y. 2012 - 13, the assessing officer has added to the income of the under Rule 14A of the Income tax act, Company notional amount of disallowance 1961 amounting to Rs. 1,134,302 against which demand raised for amounting Rs 384,670. 384,670 - The Company has preferred an appeal with CIT (A).

Deputy commissioner (Central Excise) 36,27,098 - has disallowed CENVAT credit amounting Rs.3,627,098 paid on nickel plating to job worker relating to the period from 2008-09 to 2013-14.The Company had filed the appeal with Commissioner (Appeals) and personal heraing is pending before the Commissioner (Appeals) in respect of the period from 2008 -09 to November 2013. Deputy commissioner (Central Excise) 10,42,425 - had raised a demand in respect of 6 % reversal of exempted services relating to the period from October 2008 to July 2013.The Company had filed the (Appeals).appeal with Commissioner (Appeals) and personal heraing is pending before the Commissioner

The Company on the basis of current status of the cases and advice obtained from legal counsel is confident that there would not be any probable outflow of resources in these matters.

8 Related Party Disclosure

(A) Subsidiary companies

Lumax DK Auto Industries Limited (LDK)

Lumax Mannoh Allied Technologies Private Limited

(B) Key Management Personnel D.K. Jain (Chairman)

Anmol Jain (Managing Director)

(C) Relative Of Key Management Personnel

Deepak Jain (Son Of Mr. D.K. Jain ,Brother of Mr. Anmol Jain)

Mrs. Shivani Jain ( Wife of Mr. Anmol Jain )

Mrs. Usha Jain (Wife of Mr.D.K.Jain & Mother of Mr. Anmol Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel Lumax Industries Limited

Lumax Finance Private Limited Lumax Ancillary Limited Mahavir Udyog D. K. Jain & Sons ( HUF)

Bharat Enterprises D. K. Jain Family Trust Lumax Tours & Travels Limited Vardhman Agencies Private Limited Lumax Charitable Foundation

(E) Joint Venture

Lumax Cornaglia Auto Technologies Private Limited (LCAT)

Lumax Gill-Austem Auto Technologies Private Limited (LGAT)

9 Segment information Business segment

The Company had identified its primary business segment as dealing & manufacturing of "Automotive components".

All activities of the Company revolve around the above segment. The entire operations are governed by the same set of risks and returns. Hence it is considered as single primary business segment.

Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has some presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e India and Outside India. The Company has considered domestic and exports markets as geographical segments and accordingly considered them for disclosure based on materiality of transactions.

10 Corporate Social Responsibility (CSR) expenditure

As per the provisions of Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has to spend atleast 2% of average net profit of last three financial years towards CSR. Accordingly a CSR committee has been formed for carrying out the CSR activities as per Schedule VII of the Companies Act, 2013. The Company has contributed a sum of Rs. 3,140,000 towards CSR and debited the same to the statement of Profit and Loss.

11 During the year, the Company has received consideration of Rs 237,150,000 against sale of 45% shares of Lumax Mannoh Allied Technologies Private Limited (LMAT). The consideration is received in terms of Joint venture and Share purchase and Shareholder agreement dated March 4, 2014 amongst the Company, Mannoh Industrial Co. Limited, Lumax DK Auto Industries Limited and Lumax Mannoh Allied Technologies Private Limited.

12 The management has analysed that no significant warranty claim is received by the Company in earlier years against the goods manufactured by the Company and further, the seller of traded goods warrants the Company that products will be free from defects in materials and workmanship under normal use and service and agrees to replace any defective parts under the conditions of standard warranty accompanying the products. Therefore, the Company has not made any provision for warranties and claims in its books of accounts for the year ended March 31, 2015.

13 Previous year figures were audited by another firm of Chartered Accountant.

14 Previous years figures have been reclassified/re-grouped wherever necessary, to confirm to this year''s classification.


Mar 31, 2013

1 Company Information

Lumax Auto Technologies Limited is a public limited company located in India and incorporated under the Companies Act, 1956. The company is engaged in dealing & manufacturing of automotive components. The shares of the company are listed on the Bombay Stock Exchange Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE).

2.1 Disclosure of Standalone Results of Subsidiary Company:

The Ministry of Company Affairs, Government of India, vide its General Circular no. 2/2011 dated February 08, 2011, issued under section 212(8) of the Companies Act, 1956 , has exempted the company from attaching the Balance sheet and Statement of Profit and Loss of its subsidiary under section 212(1) of the Companies Act, 1956.

3.1 Balance in Deposit Accounts includes:-

a) Rs. 2,50,000/- is deposited towards guarantee in Central Excise Delhi for removal of goods without payment of excise duty under Bond ( CT-1 form) for export.

b) Rs. 50,000/- is deposited towards gurantee in Sales Tax department (Nahan Kala-amb) .

4.1 During the year an amount of Rs.97.92 Lacs paid to Mrs. Usha Jain - Managing Director of the Company, in excess of the limits specified by the relevant provisions of the Companies Act, 1956 on account of the overseas medical treatment.

The Company had got approval from the shareholders for waiver of the said excess remuneration to the Managing Director through Postal Ballot and application to the Central Government was filed by the company for approval of the said proposal. Subsequently, a letter was received from the Managing Director requesting the company to accept the refund of excess remuneration paid to her on account of her overseas medical treatment. The Board of Directors of the Company accepted the said request and decided to drop the applications filed with the Central Government for approval of the said proposal. The Company is in process to withdraw the application made to the Central Government in this respect as the amount has been refunded.

5. Related Party Disclosure

(A) Subsidiary

(i) Lumax DK Auto Industries Limited

(B) Key Management Personnel

(i) Mrs. Usha Jain ( Managing Director)

(C) Relative Of Key Management Personnel

(i) Mr. D.K. Jain (Husband of Mrs. Usha Jain)

(ii) Mr. Deepak Jain (Son of Mrs. Usha Jain)

(iii) Mr. Anmol Jain (Son of Mrs. Usha Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel

(i) Lumax Industries Limited

(ii) Lumax Finance Private Limited

(iii) Lumax Ancilliary Limited

(iv) Lumax Automotive System Limited

(v) Lumax Filters Private Limited

(vi) Mahavir Udyog

(vii) D. K. Jain & Sons ( HUF)

(viii) Bharat Enterprises

(ix) D. K. Jain & Family Trust

(x) Lumax Tours & Travels Limited

(xi) Vardhman Agencies Private Limited

(E) Joint venture

(i) Lumax Cornaglia Auto Technologies Private Limited


Mar 31, 2012

1 Company Information

Lumax Auto Technologies Limited is a Public Limited company located in India and incorporated under the Companies Act, 1956. The Company is engaged in manufacturing & selling of automotive parts. The shares of the Company are listed on the Bombay Stock Exchange Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE).

2.1 Rights, preferences & restrictions attached to shares-

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

3.1 Disclosure of Standalone Results of Subsidiary Company:

The Ministry of Company Affairs, Government of India, vide its General Circular no. 2/2011 dated 8th February, 2011, issued under section 212(8) of the Companies Act, 1956, has exempted the company from attaching the Balance Sheet and Statement of Profit and Loss of its Subsidiary under section 212(1) of the Companies Act, 1956,

3.2 Interest in Joint Venture Companies

Pursuant to Accounting Standard 27 on Financial Reporting of Interests in Joint Ventures, the relevant information relating to the Joint Venture Company, is as given below:

Raw Materials and components, Stores & Spares (Including Packing Materials), Traded Goods (Including Moulds & Dies) -

Valued at lower of Landed cost (net of taxation credits, if any) and Net Realizable value*, after making provision for obsolescence wherever necessary.

Cost comprises of cost of Purchase & other costs incurred in bringing them to their respective present location and condition and is determined on First-in-First-Out (FIFO) basis.

Work-in-Progress, Finished Goods -

Valued at lower of cost and Net Realizable value*, after making provision for obsolescence wherever necessary.

Cost of Work-in-progress & Finished Goods includes Direct Material, Labour and proportion of manufacturing overheads

Scrap-

At Net Realizable Value*.

4.1 Balance in Deposit Accounts includes:-

a) Rs. 2,50,000/- is deposited towards guarantee with Central Excise Delhi for removal of Goods without payment of Excise Duty under Bond ( CT-1 form) for Export.

b) Rs.. 50,000/- is deposited towards guarantee with Sales Tax department (Nahan Kaleamb) .

5. Statement showing the use of proceeds from Preferential allotment of Shares:

During the Year ended March 31, 2011, the Company had issued 20,00,000 equity shares of Rs. 10/- each on preferential basis at a premium of Rs. 109.10 per share. The net proceeds of the issue have been utilized for the objects of the issue as detailed below:

6. Gratuity and Other Post-employment Benefit Plans :

Liability for employee benefits has been determined by an actuary, in conformity with the principles set out in the accounting Standard 15 (revised ) which are as hereunder :

7. Contingent Liabilities (Rs. in Lacs)

Particulars Year Ended Year Ended March 31, 2012 March 31, 2011

Income Tax demand : For Assessment Year 2007-08, Company has filed an appeal with CIT Appeal), Further, CIT (Appeal) has passed an order in favour of company, and have inst ructed Assessing officer to review some of the matters contested by the company, for which assessing officer has not issued any demand to the company Nil Nil

Corporate Guarantee given to Bank against Loans taken by Subsidiary

Company Lumax DK Auto Industries Limited. Nil 22.85

8. Related Party Disclosure :

(A) Subsidiary

(a) Lumax DK Auto Industries Ltd.

(B) Key Management Personnel

(a) Mr. D.K. Jain ( Husband Of Mrs. Usha Jain & Father Of Mr. Anmol Jain)

(b) Mrs. Usha Jain ( Wife Of Mr. D.K. Jain & Mother Of Mr. Anmol Jain)

(c) Mr. Anmol Jain ( Son Of Mr. D.K. Jain & Mrs. Usha Jain)

(C) Relative Of Key Management Personnel

(a) Mr. Deepak Jain ( Son Of Mr. D.K. Jain & Mrs. Usha Jain, Brother of Mr. Anmol Jain)

(b) Mrs. Shivani Jain ( Wife Of Mr. Anmol Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel

(a) Lumax Industries Ltd.

(b) Lumax Finance Pvt. Ltd.

(c) Lumax Anciliary Ltd. ( Formerly Deepak Auto Ltd.)

(d) Lumax Automotive System Ltd.

(e) Lumax Filter Limited

(f) Mahavir Udyog

(g) D. K. Jain & Sons ( HUF)

(h) Lumax International Pvt. Ltd.

(i) Bharat Enterprises

(j) D. K. Jain & Family Trust

(k) Lumax Tours & Travels Ltd.

(l) Vardhman Agencies Pvt. Ltd.

(E) Joint Venture

(a) Lumax Cornaglia Auto Technologies Pvt. Ltd.


Mar 31, 2011

1. Contingent Liabilities not provided for

(Amount Rs. in Lacs)

Sr. No. Particulars 2010-11 2009-10

a) Income Tax demand : For Assessment Year 2007-08, Company has filed an appeal with CIT (Appeal), Further, CIT (Appeal) has passed an order in favour of company, and have instructed Assessing officer to review some of the matters contested by the company, for which assessing officer has not issued any demand to the company Nil 152.62

b) Corporate Guarantee given to Bank against Loans taken by Subsidiary Company Lumax DK Auto Industries Limited. 22.85 222.97

Based on the favourable decisions in similar cases/legal opinions taken by the Company, the company believes that it has good cases in respect of the items listed under (a) above and hence no provision there against is considered necessary.

2. Details in respect of Opening Stock, Production, Turnover & Closing Stock of Finished Goods: As Per Annexure-A (Certified by Management).

3. Details in respect of consumption of Raw Materials and Consumables and others: As per Annexure-B (Certified by Management).

4. In terms of Paragraph-3 Part-II of Schedule VI of the Companies Act 1956, quantity wise disclosure have been restricted to those items/ articles which individually account for 10% or more of the total Sales, Consumption as the case may be and the same is disclosed to the extent available and considered as compiled and certified by the management.

5. Gratuity and Other Post-Employment Benefit Plans:

Provision for Gratuity is made in the books and take into effect the application of changes vide Gazette Notification No.15/2010, as the effective date of changes were notified by the Central Government during Current Year.

6. Related Party Disclosures:

The information about transactions with the related parties is attached herewith - As per Annexure "C".

7. Balance confirmation letters have not been obtained from some of the parties.

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

Related Party Disclosure:

(A) Subsidiary

(a) Lumax DK Auto Industries Ltd.

(B) Key Management Personnel:

(a) Mr. D. K. Jain (Husband of Mrs. Usha Jain & Father of Mr. Anmol Jain)

(b) Mrs. Usha Jain (Wife of Mr. D.K. Jain & Mother of Mr. Anmol Jain)

(c) Mr. Anmol Jain (Son of Mr. D.K. Jain & Mrs. Usha Jain)

(C) Relatives of Key Management Personnel :

(a) Mr. Deepak Jain (Son of Mr. D.K. Jain & Mrs. Usha Jain, Brother of Mr. Anmol Jain)

(b) Mr. S.C. Jain (now deceased) (Father of Mr. D.K. Jain & Grandfather of Mr. Anmol Jain and Deepak Jain)

(c) Mrs. Shivani Jain (Wife of Mr. Anmol Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel :

(a) Lumax Industries Ltd.

(b) Lumax Finance Pvt. Ltd. (formely Sheela Finance Pvt. Ltd.)

(c) Deepak Auto Ltd.

(d) Lumax Automotive Systems Ltd.

(e) Lumax Filter Pvt. Ltd.

(f) Mahavir Udyog

(g) Lumax Investment and Finance Pvt. Ltd. (Merged with Sheela Finance Pvt. Ltd.) (h) Lumax International Pvt. Ltd.

(i) Bharat Enterprises

(j) S L Lumax Ltd.

(k) Lumax Tours & Travels Ltd.

(l) Vardhman Agencies Pvt. Ltd.

(E) Joint Venture

(a) Lumax Cornaglia Auto Technologies Pvt. Ltd.


Mar 31, 2010

1 a. Capital Commitment Net of Advance Rs. 22.28 Lacs (Previous year 382.72 Lacs)

2. Details in respect of Opening Stock, Turnover & Closing Stock of Finished Goods (Including Traded Goods) : As Per Annexure-A (Certified by Management).

3. Details in respect of consumption of Raw Materials, Consumables and purchase of traded goods : As per Annexure-B (Certified by Management).

4. In terms of Paragraph-3 Part-II of Schedule VI of the Companies Act 1956, quantity wise disclosure have been restricted to those items/articles which individually account for 10% or more of the total Sales, Consumption as the case may be and the same is disclosed to the extent available and considered as compiled and certified by the management.

5. Sundry Creditors as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) have been identified to the extent of information available with the company . This has been relied upon by the auditors. Sundry Creditors include following amounts due to MSMED parties:

6. Balance confirmation letters have not been obtained from some of the parties.

7. Previous years figures have been regrouped or rearranged wherever necessary to make them comparable with the current years figures.

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