Notes to Accounts of Sundaram Brake Lining Ltd.

Mar 31, 2017

1. The Ministry of Corporate Affairs (MCA) vide notification dated 16^th February 2015, notified the Companies (Indian Accounting Standards) Rules 2015, (hereinafter referred as Ind AS). As a standalone entity, Ind AS would be applicable to the Company w.e.f 1^st April 2017. However the Company being an associate of T V Sundram Iyengar & Sons Limited, who have adopted Ind AS with effect from 1^st April 2016, the Company was required to present Ind AS compliant reporting with effect from 1^st April 2016. Hence the Company has adopted Ind AS from the Financial Year 2016-17 and the financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India.

2. Other Comprehensive Income mainly/ comprises of the impact on movement in fair value of Non-Current Investments in Equity/,

3. Figures for the precious year hare bean regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2016

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by an actuary.

1. Figures for the previous year have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2014

Rs. in lacs

Year ended Year ended 31.03.2014 31.03.2013

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

a) Estimated value of contracts remaining to be executed:

- On Capital Account (net) – –

- Others 77.82 67.77

b) Income Tax / Sales Tax liability in appeal. 630.98 191.57

c) Liability towards Labour cases 10.86 7.86

d) Other Contingent Liabilities :

i) Bank Guarantees for Domestic sales 113.28 35.83

ii) Bank Guarantees for purchase of third party power 43.27 90.74

iii) Letters of Credit for Bills negotiated for Export Sales 78.56 –

2. RELATED PARTY DISCLOSURE AS REQUIRED BY AS - 18 a) Description of relationship and Names of related Parties i) Subsidiaries None

ii) Associates T V Sundram Iyengar & Sons Limited

iii) Key Management Personnel

Mr K Mahesh, Chairman & Managing Director Mr Krishna Mahesh, Joint Managing Director

iv) Relatives of Key Management Personnel

Mrs Shrimathi Mahesh Ms Shrikirti Mahesh

) Enterprise with common Key Managmenent Personnel

None

vi) Enterprise in which relatives of Key Management Personnel have significant interest

Alagar Farms Private Limited Alagar Resins Private Limited

b) Defined Benefit Plan:

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

3. Figures for the previous year have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2013

1. RELATED PARTY DISCLOSURE AS REQUIRED BY AS - 18

a) Description of relationship and Names of related Parties

i) Subsidiaries None

ii) Associates T V Sundram Iyengar & Sons Limited

iii) Key Management Personnel Mr. K Mahesh, Chairman & Managing Director

Mr. Krishna Mahesh, Joint Managing Director

iv) Relatives of Key Management Personnel Mrs. Shrimathi Mahesh

Ms. Shrikirti Mahesh

v) Enterprise with common

Key Managmenent Personnel None

2. Figures for the previous year have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2012

A) The Company has issued only one class of shares referred to as equity shares having a par value of Rs. 10/-.

b) Each holder of equity shares is entitled to one vote per share.

c) The Company declares and pays dividends in Indian Rupees.

d) Except interim dividend which is declared and paid based on the decision of the Board of Directors, all other dividends are proposed by the Board of Directors and paid on approval of the shareholders at the Annual General Meeting.

e) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

f) During the last five years immediately preceding the date of the Balance Sheet, the Company has not issued any shares as bonus shares or without payment being received in cash nor has bought back any shares.

g) Following are the shareholders holding more than 5% equity shares and the number of equity shares held by each of them:

Rs. in lacs Year ended Year ended 31.03.2012 31.03.2011

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

a) Estimated value of contracts remaining to be executed:

- On Capital Account (net) 2.39 146.92

- Others 23.88 -

b) Income Tax / Sales Tax liability in appeal. 53.89 106.82

c) Liability towards Labour cases 7.86 6.66

d) Other Contingent Liabilities :

i) Bank Guarantees for domestic sales 41.69 79.32

2. PROPOSED DIVIDEND

The total dividend proposed by the Board of Directors subject to the approval of the shareholders is Rs. 118.04 lacs (PY-157.38) the rate of dividend is 30% (PY-40%) which works out to Rs. 3/- (PY-Rs. 4/-) per share.

The Company had obtained exemption for its Provident Fund Trust under Section 17 of Employee's Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by trust vis-a-vis statutory rate.

a) Defined Benefit Plan:

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

3. The Company has prepared the Financial Statements in accordance with the revised Schedule VI to the Companies Act, 1956 which was notified on 28-02-2011. Accordingly the figures for the previous year have been rearranged and reclassifed so as to make them comparable with those of the current year.

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Mar 31, 2011

1) Contingent Liabilities not provided for: Rs in lacs As at/ As at/ Year ended Year ended 31.03.2011 31.03.2011

Estimated value of contracts remaining to be executed on

Capital Account (net) 146.92 443.15

Income Tax / Sales Tax liability contested / being contested in appeal. In case of a favourable decision in the appeal, the liability may notarise 106.82 15.44

Liability towards Labour cases 6.66 5.46

(2) Deferred Tax Liability:The Company has estimated the deterred tax charge (credit) using the applicable rate of income tax based on the impact of timing differences for the current year.

(3) Intangible assets:

Licence Fees for Windows software application of Rs. 1 0 lacs has been recognised as an intangible asset in 2006-07 & an amortisation policy of 5 years period has been adopted. For the current year, a sum of Rs. 2 lacs has been included as amortisation cost.

(4) Extraordinary items: Amounts paid to a bank:

As reported in earlier publications and Annual Accounts, there were certain disputes arising out of certain derivative transactions entered into on behalf of the Company with some banks and the disputes relating to such transactions with all banks have been settled. The net amount paid by the Company relating to the period has been shown as Extraordinary Expenditure. If the Company defaults in case of its financial commitments under the said settlement, the entire amount claimed by the Bank (net of payments made) equivalent to Rs. 80.62 Crores would become payable.

(5) Borrowing cost:

During the year an amount of Rs. 55.84 lacs was capitalised in accordance with the accounting policy of the Company (Previous Year Rs. 12.51 lacs).

(6) Disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006:

The employees gratuity lund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

Figures in respect of previous year have been regrouped wherever necessary to conform to this years classification.

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Mar 31, 2010

(1) Deferred Tax Liability:

The Company has estimated the deferred tax charge (credit) using the applicable rate of income tax based on the impact of timing differences between financial statements and estimated taxable income for the current year.

(2) Intangible assets:

Licence Fees for Windows software application of Rs. 10 lacs has been recognised as an intangible asset in 2006-07 & an amortisation policy of 5 years period has been adopted. For the current year a sum of Rs. 2 lacs has been included as amortisation cost.

(3) Disclosure of Related Party Transactions :

Names of related parties and description of relationship

1 Subsidiaries None

2 Associates T V Sundram Iyengar & Sons Limited

3 Key Management Personnel Mr. K Mahesh (Chairman & Managing Director)

4 Enterprise with common Key Management Personnel

5 Relatives of Key Management Personnel Mrs. Shrimathi Mahesh, Ms. Shripriya Mahesh,

Mr. Krishna Mahesh and Ms. Shrikirti Mahesh

6 Enterprises in which relatives of Key Alagar Farms Private Limited Management Personnel have significant Alagar Resins Private Limited interest

(4) Extraordinary items : Amount paid to various banks :

As reported in earlier publications and Annual Accounts, there were disputes arising out of certain derivative transactions entered into on behalf of the Company with some banks and the disputes relating to such transactions with all banks have been settled. The net amount paid by the Company relating to the period has been shown as Extraordinary Expenditure. If the Company defaults in any of its financial commitments under the said settlement, the entire amount claimed by the Bank (net of payments made) equivalent to Rs. 87.62 Crores would become payable.

(5) Borrowing cost:

During the year an amount of Rs. 12.51 lacs was capitalised according to the accounting policy of the Company (PY Rs. 0.54lac).

(6) Disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006:

Figures in respect of previous year have been regrouped wherever necessary to conform to this years classification.