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Notes to Accounts of Disa India Ltd.

Mar 31, 2022

Fair value of the company''s investment property :

Fair valuation of Investment Properties as at March 31, 2022 has been arrived at on the basis of valuation carried out by an independent valuer not related to the Company. The valuer is registered with the authority which governs the valuers in India, and in the opinion of the management he has appropriate qualifications and relevant experience in valuation of properties. For all Investment properties, fair value was determined based on the capitalisation of net income method where the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. The capitalisation rate adopted is with reference to the yield rates observed by the valuers for similar properties in the locality and adjusted based on the valuer''s knowledge of the factors specific to the respective properties. Thus, the significant unobservable inputs are as follows:

1. Monthly market rent, taking into account the difference in location, and individual factors, such as frontage and size, between the comparable and the property; and

2. Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition. The fair value hierarchy for all investment properties is Level 2 and the fair values are as under: Fair value as at March 31, 2022 is Rs. 50.4 Million and as at March 31, 2021 was Rs. 35 Million. Expenses and income in respect of investment properties : Expenses (excluding depreciation) amounting to Rs. 0.2 Million (Year ended March 31, 2021:Rs. 0.2 Million). Expenses in respect of repairs, electricity charges, security expenses etc. are included in Note 35 ''Other Expenses'' and income amounting to Rs.2.5 Million (Year ended March 31, 2021: Rs.1.8 Million) is included in Note 28 ''Other income''

iv) Details of rights, preferences and restrictions in respect of equity shares:

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity shareholders are entitled to receive dividend proposed (if any) by the Board of Directors which is subject to the approval of the shareholders in the Annual General meeting, except in case of Interim Dividend.

v) During the year ended March 31, 2017, the Company has concluded the buyback of 56,000 fully paid equity shares.

Note:

2021-22:

The Board of Directors at its meeting on May 20, 2021 had recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) for the financial year ended March 31, 2021, which was approved by the shareholders at the Thirty Sixth Annual General Meeting of the Company held on August 12, 2021.

The Board of Directors at its meeting held on March 28, 2022 declared an interim dividend of Rs. 150 per share (1500%) amounting to Rs 218.1 Million for the financial year 2021-22. This has been paid on April 25, 2022.

The Board of Directors at its meeting on May 25, 2022 has recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) for the financial year ended March 31, 2022, subject to the approval of the shareholders at the next Annual General meeting of the Company. The aggregate amount of final equity dividend proposed to be distributed is Rs 14.5 Million.

2020-21:

The Board of Directors at its meeting on June 3, 2020 had recommended a final dividend of 25% (Rs 2.5 per equity share of par value Rs 10 each) for the financial year ended March 31, 2020 which was approved by the shareholders at the Thirty Fifth Annual General meeting of the Company held on August 12, 2020.

Buyback of equity shares

During the year ended March 31, 2017, the Company had concluded the buyback of 56,000 fully paid equity shares as approved by the board of directors on August 12, 2016 at a price of Rs. 4,800/- per share amounting to Rs. 268.8 Million. Further Capital Redemption reserve of Rs 0.6 Million has been created as an apportionment from retained earnings. Consequent to the buyback, share capital has reduced by Rs. 0.6 Million Capital reserve

Any profit or loss on purchase, sale, issue or cancellation of the Company''s own equity instruments is transferred to capital reserve.

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

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

VIII. Effect of Plan on Entity''s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period

The Company''s best estimate of Contribution during the next year is Rs. 7.4 Million.

The Carrying amount reflected above represents the Company''s maximum exposure to credit risk for such financial assets.

iii. Fair value hierarchy:

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

iv. Financial risk management objectives

The Company''s financial liabilities comprise mainly of trade payables and other payables. The Company''s financial assets comprise mainly of cash and cash equivalent, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

v. 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 of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans and advances.

a. Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has interest bearing bank deposits which are carrying fixed rate of interest, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

b. Foreign Currency Risk

Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euro and US Dollar.

The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables and payable in currency other than the functional currency of the Company.

A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss. A 10% weakening of the INR against these currencies would have led to an equal but opposite effect.

vi. Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, derivative financial instruments, other balances with banks, loans and other receivables.

a. Trade receivables management

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information.

The reversal/allowance for life time expected credit loss on customer balances for the year ended is disclosed in Note 14. b. Other financial assets

Credit risk arising from derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are nationalised and private banks.

vii. Liquidity Risk

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management, is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents.

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

viii. Capital management

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of Capital and the risks associated with each class of capital. The company does not have any borrowings and its entire capital is funded through equity.

47 Additional regulatory information not disclosed elsewhere in the financial statements

i. As per section 248 of the Companies Act, 2013, there are no balances outstanding or transactions with struck off companies.

ii. The Company has not traded / invested in Crypto currency or virtual currency.

iii. The Company has 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

iv. 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.

v. The Company has no 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).

vi. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, except as disclosed in the financial statements.

vii. The Company is not a declared willful defaulter by any bank or financial institution or other lender.


Mar 31, 2018

NOTE 1

1. General information

1.1 DISA India Limited (‘the Company’) is a public limited company incorporated in India in 1984 under the Companies Act 1956.It is listed on Bombay Stock Exchange and headquartered in Bangalore. Its Promoters are DISA Holding AG of Switzerland and DISA Holding A/S of Denmark which hold 54.10% and 20.72% of share capital of the Company respectively. The Company’s ultimate holding company is Norican Global A/S, Denmark.

The Company is a leading equipment manufacturer with advanced foundry and surface preparation process technology. It supplies complete foundry systems with DISA range of moulding machines, sand mixers with combination of sand plant equipment, surface preparation machines and environmental control systems to customers across the country with its network of sales offices in New Delhi, Pune, Kolkata and Bangalore with its two manufacturing plants located in Tumkur and Hosakote in Bangalore, Karnataka.

1.2. The Company’s standalone financial statements were approved by the Company’s Board of Directors on May 24, 2018.

2. Significant accounting policies

2.1. The financial statements of Disa India Limited have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. Up to the year ended March 31, 2017 the Company prepared its financial statements in accordance with Standards notified under the Companies (Accounting Standards) Rules, 2006. Financial Statements for the current financial year 2017-18 are the Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer Note 3.20 for the details of first-time adoption exemptions availed by the Company.

2.2. Basis of Preparation and Presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

2.3. Functional currency

Financial statements are presented in Indian Rupees, which is the functional currency of the Company, and the currency of primary economic environment in which the Company operates. All the financial information presented in Indian Rupees has been rounded to the nearest million except shares and earning per share data which are presented in absolute terms.

2.4. Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities & disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised, and future periods affected.

Critical estimates and judgments:

Areas involving critical judgments are

i) Note 35 - Estimation of defined benefit obligations

ii) Note 21 - Estimation for provisions of warranty claims

Fair value of the company’s investment property :

Fair valuation of Investment Properties as at March 31, 2018, March 31, 2017 and April 1, 2016 has been arrived at on the basis of valuation carried out as on respective dates by an independent valuer not related to company. The valuer is registered with the authority which governs the valuers in India, and in the opinion of management he has appropriate qualifications and recent experience in the valuation of properties. For all Investment properties, fair value was determined based on the capitalisation of net income methods where the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. The capitalisation rate adopted is made by reference to the yield rates observed by the valuers for similar properties in the locality and adjusted based on the valuer’s knowledge of the factors specific to the respective properties. Thus, the significant unobservable inputs are as follows:

1. Monthly market rent, taking into account the difference in location, and individual factors, such as frontage and size, between the comparable and the property; and

2. Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition. The fair value hierarchy for all investment properties is Level 2 and the fair values are as under:

Fair value as at March 31, 2018 is Rs. 39.5 Million, as at March 31, 2017 was Rs. 37.7 Million and as at April 1, 2016, 36.9 Million.

Expenses and income in respect of investment properties Expenses (excluding depreciation) amounting to 0.1 Million (FY 2017-2018: 0.1 Million) in respect of repairs,electricity charges, security expenses etc. are included in Note 36 ‘Other Expenses’ and income amounting to 1.6 Million (FY 2016-2017: 1.7 Million) is included in Note 29 ‘Other income.

The cost of inventory recognised as an expense/(income) includes Rs. (2.1) Million (during 2016-17: Rs. 4.0 Million) in respect of obsolete raw material, Rs 0.4 Million (during 2016-17 Rs. (1.3) Million), Work in progress Rs (2.5) Million (during 2016-17 Rs.5.3 Million).

iv) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity shareholders are entitled to receive dividend proposed (if any) by the Board of Directors which is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of Interim Dividend.

v) During the year ended March 31, 2017, the Company had concluded the buyback of 56,000 fully paid equity shares as approved by the board of directors on August 12, 2016 at a price of Rs. 4,800/- per share amounting to Rs. 268.8 Million. In line with the Companies Act 2013, an amount of Rs. 109.1 Million, Rs. 142.6 Million and Rs 17.1 Million have been utilised from Security premium account, General reserve and Surplus in profit and loss account respectively. Further Capital Redemption reserve of Rs 0.6 Million has been created as an apportionment from retained earnings. Consequent to the buyback, share capital has reduced by Rs. 0.6 Million.

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

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

VI. Sensitivity Analysis

Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

VIII.Effect of Plan on Entity’s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period

The Company’s best estimate of Contribution during the next year is Rs. 13.2 Million.

IX. Expected outflow in future years (as provided in actuarial report)

Other than above, the company has not given any loans or advances in the nature of loan to subsidiary and in which directors are interested. There are no loans where either no interest is charged or interest is below the rate specified in section 186 of the Companies Act, 2013, wherever applicable.

3 Financial instruments

(i) Financial assets and liabilities

The carrying value and fair value of financial instrument by category is as follows

(ii) Categories of Financial Instruments

The Carrying amount reflected above represents the Company’s maximum exposure to credit risk for such financial assets.

(ii) Fair value hierarchy:

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

(iii) Financial risk management objectives

The Company’s financial liabilities comprise mainly of trade payables and other payables. The Company’s financial assets comprise mainly of cash and cash equivalent, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

(iv) 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 of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans and advances.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has interest bearing bank deposits which are carrying fixed rate of interest, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

b) Foreign Currency Risk

Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.

The carrying amount of the Company’s Foreign Currency denominated monetary items are as follows;

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euro and US Dollar.

The following table details the Company’s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables and payable in currency other than the functional currency of the Company.

A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss. A 10% weakening of the INR against these currencies would have led to an equal but opposite effect.

(v) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, derivative financial instruments, other balances with banks, loans and other receivables.

(a) Trade receivables management

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information.

(b) Other financial assets

Credit risk arising from derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are nationalised and private banks.

(vi) Liquidity Risk

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management, is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents.

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

(vii) Capital management

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company’s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of Capital and the risks associated with each class of capital. The company does not have any borrowings and its entire capital is funded through equity

Non-current assets include property, plant and equipment, intangible assets, insvestment property, capital advances and pre-paid expenses. It is allocated based on the geographic location of the respective assets.

(iii) Major customers :

The Company has no external customer which accounts for more than 10% of the Group’s total revenue for the year ended March 31, 2018 and March 31, 2017

4 Proposed dividend

The Board of Directors in their meeting held on May 24, 2018, proposed a final equity dividend of Rs. 2.5 per equity share of Rs 10.00 each fully paid up for the year 2017-18. The aggregate amount of final equity dividend proposed to be distributed is Rs 4.4 Million including dividend distribution tax of Rs 0.7 Million.

5 A Notes for the reconciliation

(i) Under the previous GAAP, there was no requirement to present investment property separately and the same was included under property, plant and equipment and measured at cost. Under Ind AS, investment property is required to be presented separately in the balance sheet and depreciation is charged on it. Accordingly, the carrying value of investment property as at April 1, 2016 of Rs. 3 Million and as at March 31, 2017 of Rs. 2.9 (after considering depreciation) Million under previous GAAP has been reclassified to a separate line item on the face of the balance sheet and depreciation provided based on the estimated useful life.

(ii) Under Ind AS, security deposit given against operating lease are presented at fair value by discounting it taking lease contract period and the differential amount has been treated as advance rentals to be amortised as rent over lease period. Accordingly, security deposit amount has been reduced by Rs. 2.2 Million as at March 31, 2017 (Rs. 1.0 Million as at April 1, 2016) and advance rental has been recognised at 2.2 Million at March 31, 2017 (Rs. 1.0 Million as at April 1, 2016). Consequently, rent expense and interest income for the year ended March 31, 2017 are higher by Rs.0.2. Million and Rs. 0.2 Million respectively.

(iii) Under Ind AS, liability for dividend is recognized in the period in which the obligation to pay is established. Under previous GAAP, a liability is recognized in the period to which the dividend relates, even though the dividend may be approved by the shareholders subsequent to the reporting date. Consequently, dividend payable under Ind AS is lower and retained earning is higher.

(iv) Under previous GAAP, revenue from sale of products was recognized and the provision for Supervision of Installation and commissioning which were pending on the reporting date were accrued. Under In AS, revenue from Supervision of Installation and commissioning being separately identifiable components of a sale of Product, is recognized after the completion of the Supervision of Installation and commissioning.

(v) Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face statement of profit and loss. The change does not affect total equity as at April 01, 2016 and March 31, 2017, profit before tax or total profit for the year ended March 31, 2017.

(vi) Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of the statement of profit and loss.

(vii) Under previous GAAP, there was no concept of other comprehensive Income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.

(viii) Under previous GAAP, the Company had created provision for impairment of receivables only in respect of specific amount for doubtful receivables. Under Ind AS, additional impairment allowance has been determined based on Expected Credit Loss (ECL) model. Consequent to this change, on the date of transition to Ind AS, an allowance/(reversal) for ECL of Rs. 0.5 Million and for the year ended on March 31. 2017 an amount of Rs. (0.1 Million) on trade receivables.


Mar 31, 2017

Note 1. Disclosures under Accounting Standards

2.Disclosure Pursuant to AS-15 (Revised) a) Defined Contribution Plans

The Company makes Provident Fund , Employees state Insurance and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes , the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.12.9 Million (March 31, 2016:Rs.10.6 Million) for Provident Fund contributions and Rs. 6 Million (March 31, 2016: Rs.5.6 Million ) for Superannuation Fund contributions and Rs. 0.1 Million (March 31, 2016: Rs.0.2 Million) for Employees State insurance scheme contribution in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3 Business segment is identified as the primary segment and after considering all relevant factors. The company is engaged in manufacture of machinery and machinery parts and is considered to constitute a single segment in the context of AS-17 on "Segment Reporting" referred to in the Companies Act, 2013.

The geographic segments individually contributing 10 percent or more of the Company''s revenues and segment assets are shown separately:

Note: Future cash outflow in respect of the above is determinable only on occurrence of uncertain future events


Mar 31, 2016

iv) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity Shareholders are entitled to receive dividend proposed by the Board of Directors which is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of Interim Dividend.

Notes forming part of the financial statements for year ended March 31, 2016

1. During the previous year , pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014 , the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs 10,000 or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets. The details of previously applied useful life and current useful life are as follows:

2. Previous financial year is for a period of 15 months commencing from 1st Jan 2014 and ended 31st March 2015 and are not directly comparable with the current year number. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2015

1. Notes :

i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year :

There is no change in the number of shares and amount of share capital at the beginning and at the end of the year.

ii) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity Shareholders are entitled to receive dividend proposed by the Board of Directors which is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of Interim Dividend.

iii) Details of shares held by holding company, the ultimate holding company, their subsidiaries and associates 818,902 (PY-818,902) Equity Shares are held by Disa Holding AG, Switzerland (54.22%) (PY-54.22%) 313,751 (PY-313,751) Equity Shares are held by Disa Holding AS, Denmark (20.78%) (PY-20.78%) . Disa Holding AG is a fully owned subsidiary of Disa Holding AS.

iv) Shareholders other than the companies mentioned in Note (iii) above holding more than 5% of total share capital 90,000 (PY - 94,476) Equity Shares are held by IDFC Premier Equity Fund (5.96%) (PY- 6.26%)

As at As at Particulars 31st March, 31st December, 2015 2013 Rs. Lakhs Rs. Lakhs

2. Contingent Liabilities and Commitments

(i) Claims against company not acknowledged as debt - Service Tax 14 11

* CST /VAT 123 47

* Excise Duty 5 1

(ii) In addition to the above, the Company received a demand notice for Rs. 1,084 Lakhs towards non submission of Form C from customers for the year 2013-14 including interest and penalty. The Company have submitted subsiquent to year end C Forms except for Rs. 155 Lakhs, which would be done in due course. The Company does not except any liabilities on this amount.

Note : a) Outflow, if any, arising out of the said claim including interest would depend on the outcome of the decision of the appelette authority and the company's reight for future appeal before the judiciary.

(iii) Estimated amount of contracts remaining to be executed on capital 35 3 account and not provided for tangible assets

Note 3. Disclosures under Accounting Standards

3.1 Disclosure Pursuant to AS-15 (Revised)

a) Defined Contribution Plans

The Company makes Provident Fund , Employees state Insurance and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes , the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 126 Lakhs ( December 31, 2013: Rs.105 Lakhs) for Provident Fund contributions and Rs. 66 Lakhs (December 31, 2013: Rs.46 Lakhs ) for Superannuation Fund contributions and Rs. 3 Lakhs ( December 31, 2013: Rs. 4 Lakhs) for Employees State insurance scheme contibution in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

4. Note :

i) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

ii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

iii) LIC with whom the scheme has been funded has advised that the portfolio of the scheme as at 31st March 2014, the latest date for which such information has been compiled by them.

iv) Estimate of amount of contribution in the immediate next year is Rs 40.00 Lakhs (December 31, 2013: Rs 40 Lakhs)

5. The financial year of the company has been changed from 31st December to 31st March, consequently the current financial year is for a period of 15 months commencing January 1, 2014 and ended March 31, 2015 and accordingly not directly comparable with previous year number. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Dec 31, 2013

1. Disclosure Pursuant to AS-15 (Revised)

a) Defined Contribution Plans

The Company makes Provident Fund, Employees State Insurance and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.i05 Lakhs ( PY-Rs.87 Lakhs ) for provident fund contributions and Rs.46 Lakhs ( PY-Rs.39 Lakhs ) for superannuation fund contributions and Rs. 4 Lakhs ( PY- Rs.5 Lakhs) for employees state insurance scheme contribution in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.


Dec 31, 2012

Rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- , each holder of Equity shares has one vote per share.

The Equity Shareholders are entitled to receive dividend proposed by the Board of Directors which is subject to the approval of the shareholders in the enusing Annual General meeting , except in case of Interim Dividend.

I Disclosure Pursuant to AS-15 (Revised)

1. Defined Contribution Plans

An Amount of Rs. 130.77 lakhs (previous year Rs.113.45 lakhs) is recognised as an expense and included in "Employee benefit expense " (Note 19 in the Profit and Loss Account)

II (a) During the year ended 31 December 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its Financial Statements. Accordingly, the Company has reclassified / regrouped/ amended the previous year figures in accordance with the requirements applicable in the current year.

(b) Prior to 1st January 2012, the cost of inventories was determined on weighted average basis. Consequent to the shift to a new ERP platform , the Company has changed the determination of inventory to the first-in first-out method . The impact of, and the adjustments resulting from, such change has no material effect on the financial statements for the current period.

(c) Figures in brackets indicate previous year''s figures.


Dec 31, 2011

Not Available


Dec 31, 2009

SI. Description For the year Previous Year No. Rs.000 Rs.000

I CONTINGENT LIABILITIES:

a) i) Guarantees given by Bank 40,419 83,290

ii) LC issued by Bank - 739

iii) Corporate Guarantees given 272 -

b) Estimated amount of contracts remaining to be executed on capital account and not provided for - 5,600

c) Claims against company not acknowledged as debt— Income tax 1,910 -

— Service tax 196 -

— Others 492 -

I Disclosure Pursuant to AS-15 (Revised)

1. Defined Contribution Plans

An amount of Rs.82.80 lakhs (previous year Rs.87.58 lakhs) is recognised as an expense and included in "Manufacturing and Other Expenses" (Schedule 12 (f)) in the Profit and Loss Account.

II Amount of borrowing costs capitalised during the year - Nil ( 2008- Nil)

III Previous years figures have been re-grouped/reclassified wherever necessary. Figures in brackets indicate previous years figures.

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