Notes to Accounts of Sharp India Ltd.

Mar 31, 2023

Provisions

Provisions for legal claims are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. Provisions are discounted only if the impact of discounting is considered material.

(q) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees''
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. These are recognised on the basis of the actual obligations
calculated and are presented as current liabilities in the balance sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity and

(b) defined contribution plans such as provident & pension fund, superannuation fund and employee deposit linked
insurance scheme.

Gratuity obligations

The Company, on a prudent basis, accrues its gratuity obligations on the basis of actual liability using gross undiscounted
basis. Accordingly, the changes in the gratuity obligations are recognized in profit or loss.

Defined contribution plans

The Company pays provident, pension, superannuation and employee deposit linked insurance scheme contributions to
publicly administered provident & pension fund, contribution to superannuation fund and employee deposit linked insurance
scheme as per local regulations. The Company has no further payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit
expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in the future payments is available.

(r) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.

(s) Earnings/ (Loss) per share

(i) Basic earnings/ (loss) per share

Basic earnings per share is calculated by dividing:

• the profit/(loss) attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements
in equity shares issued during the year.

(ii) Diluted earnings/ (loss) per share

Diluted earnings/ (loss) per share adjusts the figures used in the determination of basic earnings/ (loss) per share to take
into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

(t) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the
requirement of Schedule III, unless otherwise stated.

Note 3: Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual
results. Management also needs to exercise judgement in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

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:

1. Going concern

Refer Note 33 of the financial statements.

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.

1. Fair valuation measurement of unquoted financial instruments

When the fair values 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 DCF model. The inputs to these
models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in
establishing fair values. Judgments 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. Refer note 26 for further disclosures.

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Mar 31, 2018

Note 1: General Information

Sharp India Limited (''the Company'') was incorporated on July 5, 1985. The Company is principally engaged in the manufacture and sale of light emitting diode televisions (‘LED TVs’) and Air-conditioners (‘ACs’).

Sharp Corporation (''Sharp''), incorporated in Japan, holds 75 per cent of the issued share capital of the Company. The Company has a technical collaboration with Sharp for the manufacture of ‘LED TVs’ and ‘ACs’.

Note 2 : Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

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:

1. Segment Reporting

Ind AS 108 Operating Segments requires Management to determine reportable segments for the purpose of disclosure in the financial statements based on internal reporting reviewed by the Chief Operating Decision Maker (CODM) to assess performance and allocate resources. The standard also requires Management to make judgements with respect to aggregation of certain operating segments into one or more reportable segment.

Operating segments used to present segment information are identified based on the internal reports used and reviewed by the Board of Directors to assess performance and allocate resources. The management has aggregated its operating segment into one reportable segment.

2. Legal Contingencies

The Company has received various orders and notices from tax authorities in respect of direct taxes and indirect taxes. The outcome of these matters may have a material effect on the financial position, results of operation or cash flows. Management regularly analyses current information about these matters and provides provisions for probable losses including the estimate of legal expense to resolve such matters. In making the decision regarding the need for loss provisions, management considers the degree of probability of an unfavorable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or disclosure of any such suit or assertion, does not automatically indicate that a provision of a loss may be appropriate.

3. Going concern Refer Note 34

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.

1. Useful lives of property, plant and equipment and intangible assets

The Company determines based on independent technical assessment, the estimated useful lives of its property, plant and equipment and intangible assets for calculating depreciation and amortization. This estimate is determined after considering the expected usage of the asset or physical wear and tear. Management reviews the residual value and useful lives annually and future depreciation and amortization charge would be adjusted where the management believes the useful lives differ from previous estimates.

2. Fair valuation measurement of unquoted financial instruments

When the fair values 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 DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments 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. Refer note 27 for further disclosures.

Write down of inventories of raw materials & components and work-in-progress to net realisable value amounted to Rs. Nil (31 March 2017: Rs. 1,002.36 lakhs) and Rs. Nil (31 March 2017: Rs. 23.45 lakhs). These were recognised as an expense during the previous year and included in ''cost of materials consumed'' and change in inventories of finished goods and work-in-progress'' in statement of profit and loss respectively.

Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The Company has not issued any bonus shares and has not allotted any shares without payment being received in cash in 5 years immediately preceding year ended March 31, 2018.

Nature and purpose of other reserves Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

The loan carries a fixed interest of 6.90% per annum and is repayable after 4 years from the date of withdrawal.

During the current year, repayment date for External Commercial Borrowings taken from Sharp Corporation, Japan, has been extended to 30 September 2018.

Note (b) :

Loan taken from Sharp Software Development India Private Limited is repayable anytime after 3 years (i.e. December 17, 2015 ) but before expiry of loan term of 5 years. The loan carries an interest of 10% per annum. During the current year, the maturity date for the repayment of the loan has been extended upto 30 September 2018.

Net debt reconciliation

This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.

Note :

(a) The Company had imported refrigerators during the financial year ended 31 March 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The Company has deposited Rs. 54.04 Lakhs under protest against this demand with the customs authorities which has been fully provided for. The outstanding provision amount of Rs. 20.80 Lakhs as on 31 March 2018 represents interest on the demand upto the date of payment.

(b) The Company was inter alia engaged in trading of "Sharp" brand consumer electronic goods during the period from 2007-08 to 2010-11. The Company has availed CENVAT credit of various common input services with respect to manufacturing activity and trading activity, such as Security, House-keeping, Auditing, etc. The Addl. Commissioner of Central Excise, Pune III commissionerate has issued a Show Cause Notice for non-reversal of CENVAT credit on such input services for the period 2007-08 to 2010-11. A personal hearing has been conducted by Addl. Commissioner on 20.03.2014 and the Order-in-Original is awaited. The Company has made full provision of the amount involved Rs. 47.40 lakhs.

There are no dues to micro, small and medium enterprises as at 31 March 2018 (31 March 2017: Nil, 1 April 2016: Nil), as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

Sale of goods includes excise duty collected from customers of Rs. 0.74 lakh (31 March 2017 Rs. 5.39 lakhs).

Goods and Service Tax (GST) has been effective from 1 July 2017. Consequently, excise duty, value added tax (VAT), service tax etc. have been replaced with GST. Until 30 June 2017, "Sale of products" included the amount of excise duty recovered on sales. With effect from 1 July 2017, "Sale of products" excludes the amount of GST recovered.

A Defined Contribution Plan

The Company also has certain defined contribution plans i.e., contribution to provident and pension fund, contribution to superannuation fund and employee deposit linked insurance scheme. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is as follows:

B Gratuity

The Company on a conservative basis, has accrued gratuity on the basis of actual liability using gross undiscounted basis. The liability is net of the amounts contributed to an Insurer, along-with interest accrued thereon, specifically to fund these liabilities.

i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. However, the Company does not have any financial instruments that are measured using Level 1 inputs.

Level 2 : The fair value of derivatives is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

ii) Fair value of financials assets and liabilities measured at amortised cost

The carrying amounts of all financial assets and liabilities except for borrowings are a reasonable approximation of their fair values The fair value of borrowings are based on discounted cash flows using a current borrowing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

3 Financial risk management

The Company''s activities exposes it to market risk, liquidity risk and credit risk. The operative management of the treasury activities of the Company is responsible for managing the financial risk position and maintaining adequate liquidity. The financial risks are reviewed and monitored on a regular basis.

(A) Credit risk

Credit risk arises from cash and cash equivalents, deposits with banks, security deposits as well as credit exposures to customers including outstanding receivables. The maximum exposure arising from these financial assets is their carrying value as disclosed in the balance sheet.

(i) Credit risk management

For banks and financial institutions, only high rated banks are accepted and hence, these are subject to low credit risk with risk of default being negligible. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets. For trade and other receivables, the Company periodically reviews the status of its key customers, monitoring their respective payment deadlines and remaining outstanding balances. Further, since the Company''s sales are made solely to its related parties, it does not bear any credit risk with respect to trade receivables.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. The company obtains necessary funds mainly through bank loans and loans from its parent company i.e. Sharp Corporation, Japan.

The management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows.

(i) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity group based on their contractual maturities:

The amounts disclosed in the tables above are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

The Company operates in an international context where transactions are conducted in currencies different from the Indian Rupees (INR). This exposes the Company to risks arising from exchange rates fluctuations. For this purpose, the Company has an exchange rate risk management policy which aims to neutralise the possible negative effects of the changes in exchange rates on Company cash-flows.

A movement of 5% in the foreign exchange rates (USD and JPY) will not have a material impact on the profit after tax.

(ii) Interest rate risk exposure :

The Company has availed fixed - rate borrowings and hence is not exposed to interest rate risk.

4 Capital Management Risk management

The Company''s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or sell assets to reduce debt.

5 Segment reporting

The Company is exclusively engaged in the business of ''consumer electronics'' consisting of all types of Colour Televisions, LED TVs and Air conditioners which is considered to constitute one single segment.

All non-current assets are located within India.

4 customers (31 March 2017: 1 customer) contribute to revenues of approximately Rs. 112.21 lakhs (31 March 2017: Rs. 2,526.70 lakhs).

Claims against the company for central excise pertain to claim for (i) service tax on repairs and maintenance services and cenvat credit on input services availed for procurement of inputs (ii) Service tax credit on input services attributable to purchase of inputs which were removed as such.

6 Going concern assessment

During the year ended 31 March 2018, the Company has incurred a loss of Rs. 965.52 Lakhs and accumulated loss at 31 March 2018 is Rs. 5,413.41 Lakhs. There was no production of LED TVs from April, 2015 (except in August, 2015) and of Air Conditioners since June, 2015, in the "absence of any orders."

Sharp Corporation Japan has been acquired by Foxconn Group entities.

As at 31 March 2018, the Company has received a support letter from Sharp Corporation, Japan for financial and operational support until 31 March 2019. Sharp Japan is a group company of Hon Hai/Foxconn Group, the world’s largest contract electronics manufacturer and the world’s third largest information technology company in terms of revenue.

Further, the Company has received financial support of Rs.Nil ( 31 March 2017: Rs. Nil, 1 April 2016: Rs 1,987.35 lakhs).

Based on this continued support from the holding company, the management is of the opinion that the Company will be able to continue as going concern.

7 First-time adoption Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following notes.

A. Exemptions and exceptions availed I Exemptions availed a) Deemed cost - Property, plant and equipment (PPE), intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after malting necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

II Exceptions applied a) Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

Notes to first-time adoption

Following notes explain the adjustments made to amounts previously reported in the financial statements prepared under the previous GAAP. The transition to Ind-AS did not have any impact on profit for the year ended 31 March 2017 and equity as at April 1, 2016 and March 31, 2017.

1 Government grants

Under Ind AS, government grants in the nature of capital are recorded by setting up a deferred income which is amortised over a period of time to match the related costs. The Company had received a grant from the state government under the Package Scheme of Incentives (''PSI'') amounting to Rs. 20 Lakhs. Under the previous GAAP, the grant was accounted for in the nature of promoters'' contribution and accordingly, credited to capital reserve. The grant has been transferred to retained earnings as at the transition date and as a result, there is no impact on the profit for the year ended 31 March 2017 as well as equity as at 1 April 2016 and 31 March 2017.

2 Excise Duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as a part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs. 5.39 Lakhs. There is no impact on the total equity and profit.

There is no impact on the reported cash flows on transition to Ind AS.

8 Indian accounting standards and amendments issued but not yet effective as at 31 March 2018

i) Ind AS 115: Revenue from contracts with customers

Ind AS 115 ''Revenue from contracts with customers'' deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity''s contracts with customers. Revenue is recognised when a customer obtains control of promised good or service and thus has the ability to direct the use and obtain the benefits from the good or service in an amount that reflects the consideration to which the entity expects to be entitled in exchange of those goods and services. The standard replaces Ind AS 18 Revenue and Ind AS 11 Construction contracts and related appendices.

A new five-step process must be applied before revenue can be recognised:

(i) Identify contracts with customers

(ii) Identify the separate performance obligation

(iii) Determine the transaction price of the contract

(iv) Allocate the transaction price to each of the separate performance obligations, and

(v) Recognise the revenue as each performance obligation is satisfied.

The new standard is mandatory for financial years commencing on or after 1 April 2018 and early adoption is not permitted. The standard permits either a full retrospective or a modified retrospective approach for the adoption.

The Company has assessed that there is no significant impact and intends to adopt the standard using modified retrospective approach which means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 April 2018 and that comparatives will not be restated.

ii) Other amendments

The Company has assessed the effects of the following amendments and has concluded that these amendments are not applicable to the Company and hence, have no impact :

(a) Appendix B to Ind AS 21 Foreign currency transactions and advance consideration

(b) Ind AS 40 Investment property - Transfers of investment property

(c) Ind AS 12 Income taxes regarding recognition of deferred tax assets on unrealised losses

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Mar 31, 2016

b) 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 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, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

# Excise duty on sales amounting to Rs. 240.86 lakhs (31 March 2015: Rs. 2,896.98 lakhs) has been reduced from sales in statement of profit and loss and excise duty on increase / (decrease) in stock amounting to Rs. 13.18 lakhs [March 31, 2015: Rs. 9.94 lakhs] has been considered as expense / (income) in note 19 of financial statements.

Defined benefit plans -

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the company''s gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarizes the components of net benefit expense recognized in the statement of profit and loss and the funded status and the amount recognized in the balance sheet for the respective plans.

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

The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

Note - 1 : SEGMENT REPORTING

The company is exclusively engaged in the business of ''consumer electronics'' consisting of all types of Colour Televisions, LED TVs and Air conditioners which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

Note - 2 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists:

Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place: Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia Sharp Manufacturing Corporation (M) SDN BHD, Malaysia Sharp Business Systems (India) Private Limited Sharp Software Development India Private Limited Sharp Middle East FZE, UAE P.T. Sharp Electronics Indonesia Nanjing Sharp Electronics Co Ltd Sharp Manufacturing Poland SP.Z.O

Key management personnel:

Mr. T. Isogai (Managing Director)

Mr. M. Nakagawasai (Chief Financial Officer)

Mr. Mayuresh P Vaze (Company Secretary)

**Purchase of goods for the year ended March 31, 2016 are netted off with credits for price support received by way of discounts from Sharp Electronics (Malaysia) SDN amounting to Rs. Nil. (Rs.156.06 lakhs for the year ended March 31, 2015)

e) Reimbursements from/to holding company

During the current year, the company has received following reimbursements from Sharp Corporation, Japan:

1) Rs. 1,258.42 lakhs (31 March 2015: Rs. Nil) towards provision for slow moving inventories;

2) Rs. 297.57 lakhs (31 March 2015: Rs. Nil) towards additional depreciation on certain assets of plant and machinery, Moulds, jigs and fixtures and Technical knowhow;

3) Rs. 50.98 lakhs ((31 March 2015: Rs. Nil) towards Development expenses;

4) Rs. 380.38 lakhs (31 March 2015: Rs. Nil) towards other expenses, net.

Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire, (ii) service tax on repairs and maintenance services and cenvat credit on input services availed for procurement of inputs (iii) Service tax credit on input services attributable to purchase of inputs which were removed as such

Note - 3 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2016 (March 31, 2015: Nil), as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets as at March 31, 2016 can be realized, the same have not been recognized in accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Rules. Accordingly deferred tax asset has been recognized to the extent of deferred tax liability.

Note- 4 : PROVISION FOR DUES UNDER DISPUTE

(i) The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs.20.80 Lakhs as on March 31, 2016 represents interest on the demand.

(ii) The Company was inter alia engaged in trading of sharp brand consumer electronic goods during the period from 2007-08 to 2010-11. The Company has availed CENVAT credit of various common input services with respect to manufacturing activity and trading activity, such as Security, House-keeping, Auditing, etc. The Addl. Commissioner of Central Excise, Pune III commissioner ate has issued a Show Cause Notice for non-reversal of CENVAT credit on such input services for the period 2007-08 to 2010-11. A personal hearing has been conducted by Addl. Commissioner on 20.03.2014 and the Order-in-Original is awaited. The Company has made full provision of the amount involved Rs. 47.39 lakhs.

Note - 5 : GOING CONCERN ASSESSMENT

During the year ended March 31, 2016, the Company has incurred a loss of Rs. 1,406.22 Lakhs and accumulated loss at March 31, 2016 is Rs. 1,292.31 Lakhs. There was no production of LED TVs from April, 2015 (except in August, 2015) and of Air Conditioners since June, 2015, in the absence of any orders.

The Company has informed the Stock Exchange that Sharp Corporation, Japan (the Holding Company) will issue new shares through Third Party allotment to Hon Hai Precision Industry Co Ltd, Foxconn (Far East) Limited , Foxconn Technology Pte Limited and SIO International Holdings Limited. Sharp Corporation, Japan also announced the expected change of the parent company which will occur as a result of the capital increase through third party allotment. As at March 31, 2016, the Company has received a support letter from Sharp Corporation, Japan for financial and operational support until March 31, 2017. Further, the Company has received financial support of Rs. 1,987.35 lakhs post March 31, 2016.

Based on this continued support from the holding company, the management is of the opinion that the company will be able to continue as going concern. Consequently, no adjustments have been made to the carrying values or classification of Balance sheet accounts as at March 31, 2016.

Note- 6: PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.

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Mar 31, 2015

Defined benefit plans -

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the company's gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarizes the components of net benefit expense recognized in the statement of profit and loss and the funded status and the amount recognized in the balance sheet for the respective plans.

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

The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

Note - 1 : LEASE COMMITMENTS

Operating Lease: Company as lessee

The company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of three years and contain provisions for early termination. There were no restrictions placed upon the Company by entering into this lease.

Lease payments on cancellable operating leases during the year: Rs.Nil. (31 March, 2014 Rs.0 lakhs)

Note - 2 : SEGMENT REPORTING

The company is exclusively engaged in the business of 'consumer electronics' consisting of all types of Colour Televisions, LED TVs and Air conditioners which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

Note - 3 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists: Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place: Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Corporation (M) SDN BHD, Malaysia

Sharp Business Systems (India) Limited

Sharp Software Development India Private Limited

Sharp Middle East FZE, UAE

S&O Electronics (M) SDN BHD, Malaysia

Sharp Manufacturing Poland SP.Z.O

P.T.Sharp Electronics Indonesia

Key management personnel:

Mr. M. Nakagawasai (from June 1, 2012) Mr. T.Isogai (from December 9, 2012) Mayuresh P Vaze

Note - 4 : CAPITAL COMMITMENT

There are capital commitments worth Rs. Nil outstanding as at the year-end (31 March, 2014: Rs. 3.06Lakhs)

Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire, (ii) service tax on repairs and maintenance services and cenvat credit on input services availed for procurement of inputs (iii) Service tax credit on input services attributable to purchase of inputs which were removed as such

Note - 5 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2015 (March 31, 2014: Nil), as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets as at March 31, 2015 can be realized, the same have not been recognized in accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Rules. Accordingly deferred tax asset has been recognized to the extent of deferred tax liability.

Note- 6 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs.20.80 Lakhs as on March 31, 2015 represents interest on the demand.

Note - 7 : PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.

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Mar 31, 2014

Note- 1 : Background

Sharp India Limited (''the Company'') was incorporated on July 5, 1985. The company is principally engaged in the manufacture and sale of colour televisions (''CTVs''), light emitting diode televisions(''LED TVs''). During current year, the Company has commenced the production of air conditioners (''ACs'').

Sharp Corporation (''Sharp''), a company incorporated in Japan, holds 75 per cent of the issued share capital of the company. The company has a technical collaboration with Sharp for the manufacture of colour televisions (''CTVs'') and (''LED TVs'') & air conditioners (''ACs'').

Note- 2 : Basis of preparation

The financial statements of the company have been prepared in accordance with 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 Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act,1956 read with General Circular 8/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention on an accrual basis except for derivative financial instruments which have been measured at fair value.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Note - 3 : LEASE COMMITMENTS

Operating Lease: Company as lessee

The company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of three years and contain provisions for early termination. There were no restrictions placed upon the Company by entering into this lease.

Lease payments on cancellable operating leases during the year: Rs.13 thousands. (31 March, 2013 Rs.13 thousands)

Note - 4 : SEGMENT REPORTING

The company is exclusively engaged in the business of ''consumer electronics'' consisting of all types of Colour Televisions, LED TVs and air conditioners which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

Note - 5 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists: Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place: Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Corporation (M) SDN BHD, Malaysia

Sharp Business Systems (India) Limited

Sharp Roxy Sales (Singapore) Pte Ltd, Singapore

Sharp Software Development India Private Limited

Sharp Middle East FZE, UAE

S&O Electronics (M) SDN BHD, Malaysia

Key management personnel:

Mr. M. Nakagawasai (from June 1, 2012) Mr.T.Isogai (from December 9, 2012)

Note - 6 : CONTINGENT LIABILITIES

March 31, 2014 March 31, 2013

Claims against the company not acknowledged as debts

- Central excise authorities 24,995 20,601

24,995 20,601

Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire, (ii) service tax on repairs and maintenance services and cenvat credit on input services availed for procurement of inputs (iii) Service tax credit on input services attributable to purchase of inputs which were removed as such (v) proportionate reversal of cenvat credit availed on common input services availed for procurement & sale of trading goods.

Note - 7 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2014 (March 31, 2013 : Nil), as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets as at March 31, 2014 can be realised, the same have not been recognised in accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Rules.Accordingly deferred tax asset has been recognized to the extent of deferred tax liability.

Note- 8 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs. 2,080 thousands as on March 31, 2014 represents interest on the demand.

Note - 9 : PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.

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Mar 31, 2013

Note - 1 : BACKGROUND

Sharp India Limited (''the company'') was incorporated on July 5, 1985. The company is principally engaged in the manufacture and sale of colour televisions (''CTVs'') and liquid crystal display televisions (''LCD TVs''). Further, the company was also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TVs, air conditioners and audio systems.

Sharp Corporation (''Sharp''), a company incorporated in Japan, holds 80 per cent of the issued share capital of the company. The company has a technical collaboration with Sharp for the manufacture of colour televisions (''CTVs'') and (''LCD/ LED TVs'').

The Company has commenced the production of Air conditioners from May 2013.

Note - 2 :BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with 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 Companies (Accounting Standards) Rules 2006 (as amended)(''the rules'') and the relevant provisions of the Companies Act ,1956. The financial statements have been prepared under the historical cost convention on an accrual basis except for derivative financial instruments which have been measured at fair value.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Note - 3 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2013, as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

Note - 4 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs.2,080 thousands as on March 31, 2013 represents balance demand and interest on the same.

Note - 5 : PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.

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Mar 31, 2012

Note - 1 : BACKGROUND

Sharp India Limited ('the company') was incorporated on July 5, 1985. The company is principally engaged in the manufacture and sale of colour televisions ('CTVs') and liquid crystal display televisions ('LCD TVs'). Further, the company was also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TVs, air conditioners and audio systems.

Effective from 1st April 2011, the company has shifted to a new business model wherein it has focused on its core strength of manufacturing. The products manufactured by the company would be sold to Sharp Business Systems (India) Limited ('SBSIL'), a 100% subsidiary company of Sharp Corporation Japan. SBSIL would handle the after sales and service activity for all products manufactured by the company and sold to SBSIL. Due to the change in business model the current year figures are not comparable with the previous year.

Sharp Corporation ('Sharp'), a company incorporated in Japan, holds 80 per cent of the issued share capital of the company. The company has a technical collaboration with Sharp for the manufacture of colour televisions ('CTVs') and ('LCD TVs').

a) 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 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, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

Note 2a

Freehold land includes Rs.1,812 thousands, paid for the acquisition of land at Koregaon Bhima. Although the Company possesses the title deeds to this land, the final purchase consideration is still to be determined. Management believes that no additional claims are likely to be made against the Company consequent to the finalisation of the purchase consideration.

Note 2b

Depreciation figure disclosed in the statement of profit and loss for the year ended March 31, 2012 is net of reimbursement amounting to Rs. 15,733 thousands (previous year Rs. 13,888 thousands) received from Sharp Corporation, Japan, towards additional depreciation on certain assets of plant and machinery, moulds, technical know-how, furniture and fittings and assets located at various branches.

Defined benefit plans -

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the company's gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the funded status and the amount recognised in the balance sheet for the respective plans.

Note - 3 : LEASE COMMITMENTS

The company had entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of one to three years and contain provisions for early termination. The lease agreement for the office premises taken by the company on operating lease with a non-cancellable three year term was cancelled with the consent from 1st April 2011. There were no restrictions imposed by leased agreement. There are no sub-leases. Hence the lease rental charge during the year for such an agreement is Rs. Nil (Previous year Rs. 2,040 thousands) and maximum obligation on long-term non-cancellable operating lease payable as per the rentals stated in the agreement is as follows;

Lease payments on cancellable operating leases during the year Rs. 2,044 thousands (Previous year Rs. 12,902 thousands).

Note - 4 : SEGMENT REPORTING

The company is exclusively engaged in the business of 'consumer electronics' consisting of all types of Colour Televisions and other products which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

The company has only one geographical location based on location of assets and hence the additional information relating to carrying amount of segment assets and cost to acquire tangible and intangible fixed assets based on location of assets has not been disclosed.

Note - 5 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists:

Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place:

Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Corporation (M) SDN BHD, Malaysia

Sharp Business Systems (India) Limited

Sharp Manufacturing Thailand Co. Ltd. Thailand

Sharp Electronics Inc of Korea

Sharp Middle East FZE, UAE

P.T Sharp Electronics Indonesia

Sharp Roxy Sales (Singapore) Pte Ltd, Singapore

Sharp Electronics (Singapore) Pte Ltd, Singapore

Sharp Appliances (Thailand) Ltd; Thailand

Key management personnel:

Mr. T. Sakamoto

Mr. K. Ajikawa

Mr. T. Mikami

e) Reimbursements from holding company

During the current year, the company has received following reimbursements from Sharp Corporation, Japan:

1) Rs. Nil (Previous year Rs. 7,015 thousands) towards liquidation of defective inventories.

2) Rs. 15,733 thousands (Previous Year Rs. 13,888 thousands) towards additional depreciation on certain assets of plant and machinery and model fees.

3) Rs. 25,115 thousands towards LCD panel price support.

4) Rs.6,650 thousands (Previous year Rs. Nil) towards Voluntary Retirement Scheme (VRS) expenses.

5) Rs. 9,310 thousands (Previous year Rs. 12,741 thousands) towards other expenses, net.

Note - 6 : There are no capital commitments outstanding as at the year end (Previous Year Rs. Nil)

Note - 7 : CONTINGENT LIABILITIES

2012 2011

Claims against the company not acknowledged as debts

- Central excise authorities 20,038 20,188

20,038 20,188

Based on the opinion of the legal counsel of the company, all contingent liabilities as at balance sheet date have been assessed as remote. Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire and (ii) service tax on royalty paid to Sharp Corporation, Japan, and service tax on repairs and maintenance services.

Note - 8 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2012, as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

The provision for product warranty represents the expected claims on account of field failure of parts and expected expenditure of servicing the products over the period of free warranty, which varies on the product type and model sold, the field failure rate of key parts, the current cost of components etc.

Note - 9 : VOLUNTARY RETIREMENT SCHEME EXPENSES

The Company had during the current year ended March 31, 2012, declared a Voluntary Retirement Scheme ('VRS') for its employees. As the entire cost on this account is reimbursed by Sharp Corporation, Japan, there is no impact on the statement of profit and loss for the year ended March 31, 2012.

Note - 10 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. During the current year; CESTAT Mumbai has granted stay with a pre-deposit of Rs. 3,000 thousands; pending disposal of the appeal. The outstanding provision amount of Rs. 4,399 thousands as on March 31, 2012 represents balance demand and interest on the same.

Note - 11 : PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.

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Mar 31, 2011

1. Background

Sharp India Limited ('the Company') was incorporated on July 5, 1985. The Company is principally engaged in the manufacture and sale of colour televisions & LCD TV's. Further, the Company is also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TV's, air conditioners and audio systems.

Sharp Corporation ('Sharp'), a company incorporated in Japan, holds 80 per cent of the issued share capital of the Company. The Company has a technical collaboration with Sharp for the manufacture of colour televisions ('CTVs').

2. CONTINGENT LIABILITIES 2011 2010 Claims against the Company not acknowledged as debts

- Central Excise authorities 20,188 20,780

20,188 20,780

Based on the opinion of the legal counsel of the Company, all contingent liabilities as at balance sheet date have been assessed as remote. Claims against the Company for Central Excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire and (ii) service tax on royalty paid to Sharp Corporation, Japan, and service tax on contract carriage services, repairs and maintenance and canteen services.

3. LEASE COMMITMENTS

The Company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of one to three years and contain provisions for early termination. There is also an office premises taken by the Company on operating lease with a non-cancellable three year term. There are no restrictions imposed by leased agreement. There are no sub-leases. The lease rental charge during the year for such an agreement is Rs. 2,040 (Previous Year Rs. 2,040) and maximum obligation on long-term non- cancellable operating lease payable as per the rentals stated in the agreement is as follows;

4. REIMBURSEMENTS FROM HOLDING COMPANY

During the current year, the Company has received Rs.7,015 (Previous year Rs. Nil ) as reimbursements from Sharp Corporation, Japan, towards liquidation of defective inventories and Rs. 13,888 (Previous Year Rs. Nil) towards additional depreciation on certain assets of plant and machinery , furniture and fittings and assets located at various branches.

5. RELATED PARTY TRANSACTIONS

(a) The names of the related parties under the appropriate relationship included in notes 9(b) and 9(c) are as follows:

Sr No Type of relationship Name of the party

1. Holding Company Sharp Corporation - Japan

2. Fellow Subsidiary Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Co.(M) SDN BHD., Malaysia

Sharp Business Systems (India) Limited

Sharp Manufacturing Thailand Co. Ltd., Thailand

Sharp Appliances (Thailand) Ltd., Thailand

P.T. Sharp Electronics Indonesia.

Sharp Roxy Sales (Singapore) Pte. Ltd., Singapore

Sharp Electronics (SINGAPORE)PTE LTD, Singapore

3. Key Management Personnel Mr T. Sakamoto

Mr. K. Ajikawa Mr. Y. Mizuno

6. SEGMENT REPORTING

The Company is exclusively engaged in the business of 'consumer electronics' consisting of all types of Colour Televisions and other products which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules. Further the Company mainly caters to the needs of the Indian market & the export turnover amounts to approximately 0.00% (Previous Year 0.07% ) of the total turnover of the Company. Hence there are no reportable geographical segments.

Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the Company's gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarises the components of net benefit expense recognised in the profit and loss account and the funded status and the amount recognised in the balance sheet for the respective plans.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Net employees benefit expense recognised in the Profit and Loss Account

* The Company expects to contribute Rs. 1,500 to gratuity in 2011-12.

** During the year Company has paid premium to LIC Rs. 333 (Previous Year: Rs. 6,040), which has been included in the Gratuity expenses.

The following table summarises the components of net benefit balance recognized in the balance sheet: Details of defined benefit gratuity plan

7. In accordance with ASI 14 (revised) on 'Disclosure of revenue from Sales Transaction' issued by the Institute of Chartered Accountants of India, excise duty on sales amounting to INR 89,473 (Previous year INR 73,253) has been reduced from sales in profit and loss account and excise duty on (increase)/decrease in stock amounting to INR (5,262) (Previous Year INR 414) has been considered as (income)/expense in schedule 17 of the financial statements.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets of Rs.41,848 (Previous Year Rs. 41,167) (net) as at the close of the year can be realized, the same have not been recognized In accordance with Accounting Standard 22 "Accounting for Taxes On Income" notified under the Rules, and has been restricted to the deferred tax liability which is an evidence of virtual certainty.

8. There are no dues to micro, small and medium enterprises as at March 31, 2011, as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

9. WRITE BACK OF LIABILITIES OF PREVIOUS YEAR

During the year, the Company has written back liabilities of earlier years no longer required in respect of sales promotion expenses amounting to Rs. Nil (Previous year Rs. 7,742) and which has been credited to the corresponding expense account.

10. There are no capital commitments outstanding as at the year end (Previous Year Rs. Nil)

11. Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.

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Mar 31, 2010

1. Background

Sharp India Limited (the Company) was incorporated on July 5, 1985. The Company is principally engaged in the manufacture and sale of colour televisions & LCD TVs. Further, the Company is also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TVs, air conditioners and audio systems.

Sharp Corporation (Sharp), a company incorporated in Japan, holds 80 per cent of the issued share capital of the Company. The Company has a technical collaboration with Sharp for the manufacture of colour televisions (CTVs).

2. CONTINGENT LIABILITIES

2010 2009

Claims against the Company not acknowledged as debts

- Central Excise authorities 20,780 20,095

20,780 20,095

Based on the opinion of the legal counsel of the Company, all contingent liabilities as at balance sheet date have been assessed as remote. Claims against the Company for Central Excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire and (ii) service tax on royalty paid to Sharp Corporation, Japan, and service tax on contract carriage services, repairs and maintenance and canteen services.

3. DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE

Particulars of Derivatives Purpose

Forward contract outstanding as at Balance Sheet date

Buy USD 738,429 (2009– USD 1,414,296) Hedge against USD liabilities

(These amounts are not in thousands)

The provision for product warranty represents the expected claims on account of field failure of parts and expected expenditure of servicing the products over the period of free warranty, which varies on the product type and model sold, the field failure rate of key parts, the current cost of components etc.

4. LEASE COMMITMENTS

The Company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of one to three years and contain provisions for early termination. There is also an office premises taken by the Company on operating lease with a non-cancellable three year term. There are no restrictions imposed by leased agreements. There are no subleases.The lease rental charge during the year for such agreement is Rs. 1,870 (Previous Year Rs. 4,345) and maximum obligation on long-term non- cancellable operating lease payable as per the rentals stated in the agreement is as follows;

5. REIMBURSEMENTS FROM HOLDING COMPANY

During the year ended March 31, 2010, the Company has provided for doubtful debts aggregating Rs.1,008 (previous year Rs.15,864) of which Rs. Nil (previous year Rs.14,600) is reimbursed by Sharp Corporation, Japan. The provision for doubtful debts aggregating Rs.1,008 (previous year Rs.1,264) debited to profit and loss account is after netting off the reimbursement of Rs. Nil (previous year Rs.14,600).

During the current year, the Company has received Rs. Nil (Previous year Rs.28,327) as reimbursements from Sharp Corporation, Japan, towards Selling and General Administration expenses and Rs. Nil, (Previous Year Rs.42,472) as yearly discount on raw material and components and finished goods purchased from it and other group companies.

6. RELATED PARTY TRANSACTIONS

(a) The names of the related parties under the appropriate relationship included in notes 9(b) and 9(c) are as follows:

Sr No Type of relationship Name of the party

1. Holding Company Sharp Corporation - Japan

2. Fellow Subsidiary Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Co.(M) SDN BHD Sharp Business Systems (India) Limited Sharp Manufacturing Thailand Co. Ltd., Thailand Sharp Appliances (Thailand) Ltd., Thailand

P.T. Sharp Electronics Indonesia.

Sharp Roxy Sales (Singapore) Pte. Ltd. Sharp Electronics (SINGAPORE)PTE LTD

3. Key Management Personnel Mr Y. Mizuno (Upto May 26, 2009)

Mr T. Sakamoto (w.e.f. May 26, 2009)

Mr. K. Ajikawa

7. SEGMENT REPORTING

The Company is exclusively engaged in the business of consumer electronics consisting of all types of Colour Televisions and other products which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Companies (Accounting Standard) Rules, 2006. Further the Company mainly caters to the needs of the Indian market & the export turnover being approx. 0.07% ( Previous Year 0.32% ) of the total turnover of the company. Hence there are no reportable geographical segments.

8. POST EMPLOYMENT BENEFITS Defined Contribution Plans -

The Company has recognized the following amounts in the Profit and Loss Account for the year :

Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the Companys gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarises the components of net benefit expense recognised in the profit and loss account and the funded status and the amount recognised in the balance sheet for the respective plans.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Net employees benefit expense recognised in the Profit and Loss Account

* The Company expects to contribute Rs.500 to gratuity in 2010-11.

** During the year Company has paid premium to LIC Rs.6,040 (Previous Year: Rs.3,077), which has been included in the Gratuity expenses.

The following table summarises the components of net benefit balance recognized in the balance sheet: Details of defined benefit gratuity plan

9. In accordance with ASI 14 (revised) on Disclosure of revenue from Sales Transaction issued by the Institute of Chartered Accountants of India, excise duty on sales amounting to INR 73,253 (Previous year INR 98,959) has been reduced from sales in profit and loss account and excise duty on decrease in stock amounting to INR. 414 (Previous Year INR 3,328) has been considered as expense in schedule 17 of the financial statements.

In accordance with Accounting Standard 22 "Accounting for Taxes On Income" notified under the Companies (Accounting Standards) Rules, 2006, in view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets of Rs.41,167 (Previous Year Rs. 45,165) (net) as at the close of the year can be realized, the same have not been recognized and has been restricted to the deferred tax liability which is an evidence of virtual certainty.

10. As at March 31, 2010, no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

11. WRITE BACK OF LIABILITIES OF PREVIOUS YEAR

During the year, the Company has written back liabilities of earlier years no longer required in respect of sales promotion expenses amounting to Rs. 7,742 (Previous year Rs. Nil) and which has been credited to the corresponding expense account.