Notes to Accounts of Shivalik Bimetal Controls Ltd.

Mar 31, 2023

Provisions and Contingent Liabilities

The assessments undertaken in recognizing
provisions and contingencies have been made in
accordance with Ind AS 37, ‘Provisions, Contingent
Liabilities and Contingent Assests’. The evaluation
of the likelihood of the contingent events has
required best judgment by management regarding
the probability of exposure to potential loss. The
timings of recognition and quantification of the
liability requires the application of judgment to
existing facts and circumstances, which can be
subject to change.

e) Revenue

The Company assesses the products /services
promised in a contract and identifies distinct
performance obligations in the contract.
Identification of distinct performance obligation
involves judgement to determine the deliverables
and the ability of the customer to benefit
independently from such deliverables.

Judgement is also required to determine the
transaction price for the contract. The transaction
price is also adjusted for the effects of the time
value of money if the contract includes a significant
financing component.

The Company uses judgement to determine
an appropriate standalone selling price for a
performance obligation. The Company allocates the
transaction price to each performance obligation on
the basis of the relative standalone selling price of
each distinct product or service promised in the
contract.

The Company exercises judgement in determining
whether the performance obligation is satisfied at
a point in time. The Company considers indicators
such as how customer consumes benefits as
services are rendered or who controls the asset as it
is being created or existence of enforceable right to
payment for performance to date and alternate use
of such product or service, transfer of significant
risks and rewards to the customer, acceptance of
delivery by the customer, etc.

2.4 Revenue Recognition

Revenue from sale of products/goods & services
is recognized upon satisfaction of the performance
obligation by transferring the control of promised
products or provision of services to a customer in an
amount that reflects the consideration which a company
expects to receive in exchange for those products or
services.

‘Revenue is recognized net of returns and is
measured based on the transaction price, which is the
consideration, adjusted for trade discounts, incentives
etc agreed as a term of contract. Revenue also excludes
taxes collected from customers.

Income from Interest is recognized using Effective
Interest rate method. Dividend income from investments
is recognized when the shareholder’s right to receive
payment has been established. Rental Incomes are
recognized on periodic basis.

Export Incentive Entitlements are recognized as Income
when right to receive credit as per the terms of the
scheme is established in respect of eligible exports
made and when there is no significant uncertainty
regarding the ultimate collection of the relevant export
proceeds.

Insurance claim are accounted for on the basis of claims
admitted/expected to be admitted and to the extent that
the amount recoverable can be measured reliably and it
is reasonable to expect ultimate collection.

All other incomes are accounted on accrual basis.

2.5 Foreign Currency Transactions

The functional and presentation currency of the
Company is Indian Rupee (“''”) which is the currency
of the primary economic environment in which the
Company operates.

The transactions in the currencies other than the entity’s
functional currency (foreign currency’s) are accounted
for at the exchange rate prevailing on the transaction’s
date.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency at
closing rates of exchange at the reporting date and the
resultant difference is charged/ credited in Standalone
Statement of Profit & Loss account.

Exchange differences arising on settlement or
translation of monetary items are recognized in
Standalone Statement of Profit & Loss except to the
extent of exchange differences which are regarded
as an adjustment to interest costs on foreign currency
borrowings that are directly attributable to the acquisition
or construction of qualifying assets, are capitalized as
cost of assets.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated
on reporting date.

2.6 Borrowing Costs

Borrowing Costs that are attributable to the acquisition
or construction of qualifying assets are added to the
cost of those assets, until such time as the assets are
substantially ready for their intended use. A qualifying
asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use.

All other Borrowing costs are recognized in the
Standalone Statement of Profit and Loss in the period in
which they are incurred.

Borrowing costs include interest and exchange
difference arising from currency borrowing to the extent
they are regarded as an adjustment to the interest cost.

2.7 Government Grant and Assistance
Government grants are assistance by government in the
form of transfer of resources to an entity in return for past
or future compliance with certain conditions relating to
the operating activities of the entity and the same are
not recognized until there is reasonable assurance that
the Company will comply with the conditions attached
to them and that the grants will be received.

Government grants related to assets, including non¬
monetary grants recorded at fair value are treated as
deferred income and are recognized and credited in the
Standalone Statement of Profit and Loss on a systematic
and rational basis over the estimated useful life of the
related asset.

2.8 Employees’ Benefits

Defined Contribution Plans:

The Company has contributed to State Governed
Provident Fund scheme, Employees State Insurance
scheme and Employee Pension Scheme which are
defined contribution plans. Contribution paid or payable
under the scheme is recognized as expense during the
period in which employees have rendered the service
entitling them to the contributions.

Defined Benefit Plans:

The employees’ gratuity is a defined benefit plan. The
present value of the obligation under such plan is
determined based on the Actuarial Valuation using the
projected unit credit method which recognizes each
period of service as giving rise to an additional unit
of employee benefit entitlement and measures each
unit separately to build up the financial obligation. The
Company has an employee gratuity fund managed by
Life Insurance Corporation of India (LIC).

The gains or losses are charged to Standalone
Statement Profit and Loss Account.

Liability in respect of compensated absence is provided
based on Actuarial Valuation using the projected unit
credit method.

Compensation to employees, who opt for retirement
under the Voluntary Retirement Scheme of the company,
is charged to the Standalone Statement of Profit & Loss
in the year of exercise of option by the employee.

Re-measurement of defined benefit plans in respect
of post-employment are charged to the Other
Comprehensive Income.

All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries,
wages, bonus etc. are recognized in the period in which
the employee renders the related service. A liability is
recognized for the amount expected to be paid when
there is a present legal or constructive obligation to pay
this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

2.9 Taxes on Income

Current Tax

Tax on income for the current period is determined on
the basis of taxable income and tax credits/ benefits
computed in accordance with the provisions of the
Income Tax Act, 1961.

Advance taxes and provisions for current income taxes
are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in
the same tax jurisdiction and where the company has
a legally enforceable right and also intends to settle the
asset and liability on a net basis.

Deferred Tax

Deferred tax is recognized on temporary differences
between the carrying amounts of assets and liabilities
in the standalone financial statements and the
corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are generally
recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all
deductible temporary differences to the extent it is
probable that taxable profits will be available against
which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not
recognized if the temporary difference arises from the
initial recognition of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting
profit.

The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to
be recovered.

Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to same taxation authority.

Current and deferred tax are recognized in profit or
loss, except when they are relating to items that are
recognized in other comprehensive income or directly
in equity, in which case, the current and deferred tax

are also recognized in other comprehensive income or
directly in equity respectively.

Deferred tax assets and liabilities are measured at
the tax rates that have been enacted or substantively
enacted at the balance sheet date.

2.10 Property, Plant and Equipment and Capital
Work-In-Progress

The cost of Property, Plant and Equipment comprises
its purchase price net of any trade discounts, if any and
rebates, import duties and other taxes (other than those
subsequently recoverable from the tax authorities), any
directly attributable expenditure on making the asset
ready for its intended use, including relevant borrowing
cost attributable to the Qualifying Asset in compliance
with Ind AS 23.

Expenditure incurred after the Property, Plant and
Equipment have been put into operation, such as
repairs and maintenance, are charged to the Standalone
Statement of Profit and Loss in the period in which
the costs are incurred. Major shut-down and overhaul
expenditure is capitalized as the activities undertaken
improves the economic benefits expected to arise from
the asset.

An item of Property, Plant and Equipment is derecognized
upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on the disposal or retirement of
an item of Property, Plant and Equipment is determined
as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in
Standalone Statement of Profit and Loss.

Property, Plant and Equipment except freehold land
held for use in the production, supply or administrative
purposes, are stated in the balance sheet at cost less
accumulated depreciation and accumulated impairment
losses., if any. Freehold lands are stated at cost.

Depreciation commences when the assets are ready
for their intended use. Depreciable amount for assets
is the cost of an asset, or other amount substituted for
cost, less its estimated residual value. Depreciation is
recognized so as to write off the cost of assets (other
than freehold land) less their residual values over their
useful lives, using straight-line method as per the useful
life prescribed in Schedule II to the Companies Act,
2013.

When significant parts of plant and equipment are
required to be replaced at intervals, the Company
depreciates them separately based on estimate of their
specific useful lives.

Major overhaul costs are depreciated over the estimated
life of the economic benefit derived from the overhaul.
The carrying amount of the remaining previous overhaul
cost is charged to the Standalone Statement of Profit

and Loss if the next overhaul is undertaken earlier than
the previously estimated life of the economic benefit.

‘Capital work-in-progress represents the cost of
Property, Plant and Equipment that are not yet ready for
their intended use at the reporting date.

‘The Company reviews the residual value, useful lives
and depreciation method annually and, if expectations
differ from previous estimates, the change is accounted
for as a change in accounting estimate on a prospective
basis.

‘Cost of in-house assembled/fabricated Property, Plant
& Equipment comprise those costs that relate directly to
the specific assets and other costs that are attributable
to the assembly/fabrication thereof.

Depreciation on Property, Plant & Equipment is
provided based on useful lives of assets as prescribed in
Schedule-II to Companies Act 2013 except in respect of
followings assets where estimated useful life is different
than these mentioned in Schedule II are as follows: -

i) Plant & Machinery 15-30 Years

ii) Dies & Tools 2 Years

iii) Assets costing below '' 5,000/- 1 Year

iv) Temporary Building Shed 3 Years

v) Machinery Spares 2-10 Years

vi) Leasehold Land Lease term

2.11 Intangible Assets

Intangible assets are initially recorded at consideration
paid for acquisition of such assets and are subsequently
carried at cost less accumulated depreciation or
amortization and accumulated impairment loss, if any.
Amortization is recognized on a straight-line basis over
their estimated useful lives.

Estimated useful life of Intangible Assets as follows:

i) Computer Software 3-6 Years

2.12 Inventories

Basis of valuation of Inventories;

• Raw materials, stores and spares: At cost, on “FIFO”
basis;

• Work-in-progress: At raw material cost plus related
cost of conversion including appropriate overheads;

• Finished goods: At cost or net realisable, whichever
is less;

• Saleable Scrap is valued at estimated realizable
value.

Raw Material, Work-In-Progress and other supplies are
not valued below cost except in cases where material
prices have declined and it is estimated that the cost of
the finished products will not exceed their net realisable

value. The comparison of cost and net realisable value
is made on item by item basis.

Cost of raw materials include cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition.

Cost of finished goods and work in progress include cost
of direct materials, labour and appropriate overheads
based on the normal operating capacity.

2.13 Impairment of non-financial assets

‘The Carrying amounts of assets are reviewed at each
Balance Sheet date and if there is any indication to the
effect that the recoverable amount of the Asset/ CGU
(Cash Generating Unit) is less than it carrying amount,
the difference is treated as “Impairment Loss”. The
recoverable amount is greater of the asset’s net selling
price less cost to sell and value in use.

‘Intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an
indication that the asset may be impaired, the impairment
loss is recognized in the Standalone Statement of Profit
and Loss account.

2.14 Leases

The Company’s lease asset classes primarily consist of
leases for land and buildings. The Company assesses
whether a contract contains a lease, at inception of a
contract.

A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified asset, the Company assesses whether:

i) the contract involves the use of an identified asset

ii) the Company has substantially all of the economic
benefits from use of the asset through the period of
the lease and;

iii) the Company has the right to direct the use of the
asset.

Company as Lessee

At the date of commencement of the lease, the
Company recognizes a right-of-use (ROU) asset and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term of
12 months or less (short-term leases) and low value
leases. For these short-term and low-value leases,
the Company recognizes the lease payments as an
operating expense on a straight-line basis over the
term of the lease. Certain lease arrangements include
the options to extend or terminate the lease before the
end of the lease term. ROU assets and lease liabilities
includes these options when it is reasonably certain that
they will be exercised.

Right-of-Use Assests (ROU)

The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. ROU assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. ROU assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash
flows that are largely independent of those from
other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to
which the asset belongs.

Lease Liabilities

The lease liability is initially measured at amortized
cost at the present value of the future lease payments.
The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country of
domicile of these leases. Lease liabilities are remeasured
with a corresponding adjustment to the related ROU
asset if the Company changes its assessment of whether
it will exercise an extension or a termination option.
Lease liability and ROU assets have been separately
presented in the Standalone Financial Statements and
lease payments have been classified as financing cash
flows.

Company as Lessor

Leases for which the Company is a lessor is classified
as a finance or operating lease. Whenever the terms of
the lease transfer substantially all the risks and rewards
of ownership to the lessee, the contract is classified as a
finance lease. All other leases are classified as operating
leases.

For operating leases, rental income is recognized on a
straight-line basis over the term of the relevant lease.

Short Term Leases are Leases for Low Value Assets
The Companies apply the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term 12 months and less from the
commencement date and do not contain a purchase
options).

It also applies the leave of low-value assets recognition
exemption to leases that are considered of low values.
Leases payments on such leases are recognised as
expense on straight line basis over the lease term.

2.15 Non-Current Assets Held for sale
Non-Current assets are classified as held for sale if it
is highly probable that they will be recovered primarily
through sale rather than through continuing use. Such
assets are generally measured at the lower of their
carrying amount and their fair value less cost to sell.
Losses on initial classification as held for sale and
subsequent gains and losses on re-measurement are
recognized in the Standalone Statement of Profit &
Loss.

Once Classified as held for sale, property, plant and
equipment and intangible assets are no longer amortized
or depreciated.

Non-current assets and disposal group that ceases to
be classified as “Held for Sale” shall be measured at the
lower of carrying amount before the non-current asset
and disposal group was classified as “Held for Sale” and
its recoverable amount at the date of the subsequent
decision not to sell.

2.16 Cash and cash equivalents

Cash comprises cash on hand and demand deposits
with banks. Cash equivalents are short-term balances
(with an original maturity of three months or less from
the date of acquisition), highly liquid investments that
are readily convertible into known amounts of cash
and which are subject to insignificant risk of changes in
value.

2.17 Cash Flow Statements

Standalone Cash flows are reported using the indirect
method, whereby Profit before tax is adjusted for the
effects of transactions of a non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments. The cash flows from regular revenue
generating, financing and investing activities of the
company are segregated.

2.18 Financial Instruments

A Financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial Assets

A. Initial Recognition and Measurement

The Company recognizes financial assets and
financial liabilities when it becomes a party to
the contractual provisions of the instrument. All
financial assets are initially recognized at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets, which are
not at fair value through profit or loss, are adjusted
to the fair value on initial recognition. Purchase and
sale of financial assets are recognized using trade
date accounting.

B. Subsequent Measurement

a) Financial assets carried at amortized cost
(AC)

A financial asset is measured at amortized
cost if it is held within a business model whose
objective is to hold the asset in order to collect
contractual cash flows and the contractual
terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.

b) Financial assets at fair value through other
comprehensive income (FVTOCI).

A financial asset is measured at FVTOCI, if it is
held within a business model whose objective
is achieved by both collecting contractual
cash flows and selling financial assets and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

c) Financial assets at fair value through profit
or loss (FVTPL)

A financial asset which is not classified in any of
the above categories are measured at FVTPL.
This includes equity investment in other than
Joint Ventures and Associates.

C. Impairment of Financial Assets

In accordance with Ind AS 109, the Company
uses ‘Expected Credit Loss’ (ECL) model, for
evaluating impairment of financial assets other
than those measured at fair value through profit
and loss (FVTPL).

Expected credit losses are measured through a
loss allowance at an amount equal to:

The 12-months expected credit losses
(expected credit losses that result from those
default events on the financial instrument
that are possible within 12 months after the
reporting date); or

Lifetime expected credit losses (expected
credit losses that result from all possible default
events over the life of the financial instrument)

For trade receivables Company applies
‘simplified approach’ which requires expected
lifetime losses to be recognized from initial
recognition of the receivables. The Company
uses historical default rates to determine
impairment loss on the portfolio of trade
receivables. At every reporting date these
historical default rate are reviewed and changes
in the forward-looking estimates are analysed.

Financial Liabilities

A. Initial Recognition and Measurement

All financial liabilities are recognized at fair value
and in case of loans, net of directly attributable cost.
Fees of recurring nature are directly recognized
in the Standalone Statement of Profit & Loss as
finance cost.

B. Subsequent Measurement

Financial liabilities are carried at amortized cost
using the effective interest method. For trade and
other payables maturing within one year from
the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of
these instruments.

Derivative Financial Instruments
The Company enters into derivative financial instruments
to manage its exposure to foreign exchange rate risks,
in the form of foreign exchange forward contracts.
Derivatives are initially recognized at fair value at the
date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end
of each reporting period. The resulting gain or loss is
recognized in Standalone Statement of Profit & Loss
immediately unless the derivative is designated and
effective as a hedging instrument, in which event the
timing of the recognition in Standalone Statement of
Profit & Loss depends on the nature of the hedge item.

Derecognition of Financial Instruments
The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the
transfer qualifies for derecognition under Ind AS 109.
A financial liability (or a part of a financial liability) is
derecognized from the Company’s Balance Sheet when
the obligation specified in the contract is discharged or
cancelled or expires.

The carrying value and fair value of financial instruments
by categories as at the year ended are disclosed at Note
No. 43.2.

2.19 Investment in Subsidiary(s) and Joint Ventures
The Company has accounted for its investments in
subsidiary(s) and joint ventures at cost less accumulated
impairment loss, if any in “accordance with Ind AS 27,
separate financial statements”.

2.20 Research and Development Expenditure

Key focus area of Research and Development (R&D)
activities at Shivalik includes;

• Optimising of resource utilisation.

• Quality & productivity improvements and
cost optimization through process efficiency
improvements.

• Product development, customisation and new
applications.

Revenue as well Capital expenditure pertaining to
research and development and costs pertaining to
manpower directly part of R&D activities is charged
to the Standalone Statement of Profit and Loss.

2.21 Earnings Per share

(i) Basic Earnings Per Share

Basic Earnings per Share is computed by dividing:

a. net profit or loss for the period attributable to
equity shareholders

b. by the weighted average number of Equity
Shares outstanding during the period

(ii) Diluted earnings per share

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

a. the after-income tax effect of interest and
other financing costs associated with dilutive
potential equity and:

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

2.22 Provision and Contingent Liabilities

Provisions are recognized for liabilities that can be
measured only by using substantial degree of estimation,
if

a. the company has a present obligation as a result of
past event,

b. a probable outflow of resources is expected to
settle the obligation; and

c. the amount of the obligation can be reliably
estimated.

Contingent liability is disclosed in case of

i. a present obligation arising from past events, when
it is not probable that an outflow of resources will be
required to settle the obligation;

ii. a present obligation arising from past events, when
no reliable estimate is possible; and

iii. a possible obligation arising from past events where
the probability of outflow of resources is not remote.
Provisions and contingent liabilities are reviewed at
each Balance Sheet date.

2.23 Segment reporting

The Company’s business activity primarily falls within a
single segment i.e. Process and Product Engineering.
The geographical segments considered are “within
India” and “outside India”. The analysis of geographical
segments is based on geographical location of the
customers.

2.24 Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules,
2015 as amended from time to time. On March 31,2023,
MCA amended the Companies (Indian Accounting
Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements -

This amendment requires the entities to disclose their
material accounting policies rather than their significant
accounting policies. The effective date for adoption
of this amendment is annual periods beginning on
or after April 1, 2023. The Company has evaluated
the amendment and the impact of the amendment is
insignificant in the standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors - This amendment
has introduced a definition of ‘accounting estimates’
and included amendments to Ind AS 8 to help entities
distinguish changes in accounting policies from changes
in accounting estimates. The effective date for adoption
of this amendment is annual periods beginning on or
after April 1, 2023. The Company has evaluated the
amendment and there is no impact on its standalone
financial statements.

Ind AS 12 - Income Taxes - This amendment has
narrowed the scope of the initial recognition exemption
so that it does not apply to transactions that give rise to
equal and offsetting temporary differences. The effective
date for adoption of this amendment is annual periods
beginning on or after April 1, 2023. The Company has
evaluated the amendment and there is no impact on its
standalone financial statement.

---

Mar 31, 2018

1. COMPANY’S OVERVIEW

Shivalik Bimetal Controls Limited referred to as “Shivalik” is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. “Shivalik’s ” manufacturing Units are located at Chambaghat, Solan, in the state of Himachal Pradesh, India. The Company’s shares are listed on Bombay Stock Exchange.

“Shivalik” is engaged in the business of manufacturing & sales of Thermostatic Bimetal / Trimetal strips, components , EB welded products,Cold Bonded Bimetal Strips and Parts etc., The application of “Shivalik”s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company’s products are exported to over 40 Countries around the world.

The financial statements as at 31^st March,2018 present the financial position of the Shivalik.

3.1 Leasehold Land:

Leasehold Period: 95 years w.e.f. year 1984.

Leasehold Installment: Nil

3.2 Other adjustment comprise exchange difference arising on translation/ settlement of long term foreign currency monetary items pertaining to acquisition of depreciable assets of Rs.2.27 lacs (PY: Rs.(2.39) Lacs) capitalised.

3.3 Borrowing Cost Capitalised during the year aggregated to Rs 4.69 lacs (Previous Year: Rs 7.51 Lacs), (refer note no.33)

3.4 Contractual obligations

Refer note 38B for disclosure of contractual commitments for the acquisition of property, plant and equipment.

3.5 As per the section 118(2)(h) of H.R Tenancy & Land Reforms Act, 1972, freeholdland acquired during the year is required to put the land to use for industrial purpose within a period of 2 years extendable by 1 year, if required.

3.6 Leasehold land, Buildings and Property,plant and equipment is pledged against borrowings.

3.7 Capital Work in Progress includes the following expenses,capitalised.

17.2 The Company has only one class of shares referred to as Equity shares having par value of Rs 2/-. The holder of Equity Share is entitled to one vote per share.

17.3 In the event of liquidation of the Company, the residual interest in the company''s net assets shall be distributed to the shareholders in the proportion to the equity shares held.

17.4 a) During the year,the company has paid an interim dividend of Rs 0.30 per share for FY 17-18 and final dividend of Rs 0.25 per share for FY 16-17 which resulted in a cash outflow of Rs 196.44 lacs inclusive of corporate dividend tax.

b) The Board of Directors, in its meeting held on 28^th May,2018 have proposed a final dividend of Rs 0.30 per equity share for the financial year ended 31^st March 2018. The proposal is subject to the approval of shareholders at the forthcoming Annual General Meeting and if approved would result in cash outflow of approximately Rs 138.90 lacs including corporate dividend tax.

17.5 The Company has issued and alloted 1,92,01,400 equity shares to the eligible holders of equity shares, on the record date i.e. 6^th October 2017 as bonus equity shares by capitalising reserves, on 9^th October 2017. The earnings per shares figures for the year ended 31^st March 2018 and Year ended 31^st March 2017 have been reinstated to give effects to the allotment of bonus shares, as required by Ind AS 33.(refer note 37)

17.6 The Company does not have a holding company

17.7 Shareholders holding more than 5% shares

i) Capital reserve : Reserve is primarily created due to Interest received in Calls in arrears.

ii) General reserve : Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement of mandatory transfer of a specified percentage of the net profit to general reserve has been withdrawn and the Company can optionally transfer any amount from the surplus of profit or loss account to the General reserves.

2. Disclosure pursuant to Ind AS 19 “Employee Benefits”:

The disclosures required under Ind AS 19 “Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans -Employees’ Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

The employees’ Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Actuary has carried out the valuation based on the followings assumptions:

3. CSR Expenditure

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the Year is Rs 19.95 lakhs (Previous Year Rs 14.15 lakhs)

(b) Expenditure related to Corporate Social Responsibility is Rs 20.73 Lakhs (Previous Year Rs 14.54 Lakhs)

4. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

On the basis of confirmation obtained from suppliers who have registered themselves under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, the following are the details:

The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied by the auditors

5. Customs Duty not provided for in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs 75.07 lacs inclusive of Cenvatable amount of Rs 53.00 lacs (Previous Year Rs 103.39 lacs inclusive of Cenvatable amount of Rs 77.77 lacs). However, the above policy has no impact on the operating results of the Company.

6. The Company’s activities involve predominantly one operating segment i.e. Process and product Engineering, which are considered to be within a single operating segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by Ind AS 108- Segment Reporting has been disclosed as below.

b) Non Current Operating assets

All Non Current Assets other than financial instruments, deferred tax assets of the company are located in India.

7. “Related Party Disclosure” for the year ended 31^st March, 2018 in accordance with Ind AS 24:

(i) List of related parties where control exits and related parties with whom transactions have taken place and relationships:

8. FINANCIAL INSTRUMENTS

8.1 Capital Management

The Company’ s capital management objectives are;

- to maintain healthy Credit rating, Capital Ratios and Leverage.

- to maximise rerturn to the Shareholders.

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The Principal source of funding of the company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings.

Fair Value Measurement

i) Carrying amount of Financial assets and financial liabilities recorded at amortized cost approximates their fair value.

ii) Investment in Equity instrument of other companies is measured at its fair value using Level 3 valuation techniques.

8.2 Financial Risk Management

The Company’s activities expose it to market risk, liquidity risk, Foreign Currency Risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

8.3 Credit risk

Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. Credit risk encompasses both, direct risk of default and the risk of deterioration of creditworthiness.

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. The company has a policy of only dealing with credit worthy parties.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due.

Other financial assets measured at amortised cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

b) Expected credit losses

The Company provides for expected credit losses based on the following:

The company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by ''analysing historical trend of default based on the criteria defined above. And such provision percentage determined have been ''considered to recognise life time expected credit losses on trade receivables.

8.4 Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management measures involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these obligations.

Maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity based on their contractual maturities for all non-derivative financial liabilities.

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

8.5 Market Risk

The company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates. The company seeks to minimize the effects of these risks by minutely observing the variation and fluctuation on regular basis. Compliance of exposure volume is reviewed by the management on real time basis and taking corrective measures as and when required.

8.6 Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company.

(i) Foreign currency risk exposure:

The Companys exposure to foreign currency risk at the end of the reporting period are as follows

8.7 Interest rate risk

i) Liabilities

Interest rate risk is the risk that the fair value or future cash flows of a financial Assets/Liabilities because of changes in market interest rates. The company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the company are principally denominated in rupees and US dollars with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates.

ii) Assets

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

8.8 Price Risk

The Company does not have significant exposure to price risk on its financial assets and liabilities.

9. First time adoption of Ind AS

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

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31^st March 2018, the comparative information presented in these financial statements for the year ended 31^st March 2017 and in the preparation of an opening Ind AS balance sheet at 1^st April 2016 (the Company’s date of transition). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial statements is set out in the following tables and notes.

9.1 Exemptions and exceptions applied

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

a) Deemed cost as fair value for Property, Plant and Equipment

In Accordance with Ind AS-101, company has elected to measure items of its Property, Plant and Equipment at their fair value at the date of transition to Ind ASs and use that fair value as its deemed cost at that date. The resultant impact being accounted for in the reserves. The aggregate fair value of Property, Plant and Equipment where the exemption is availed amounted to Rs 4,469.64 Lacs with an aggregate upword adjustment of Rs 1,406.92 Lacs being recognised to the carrying value reported under previous GAAP

b) Deemed cost of investment in Associates and Joint Ventures

Ind AS 101 allows an entity to treat Previous GAAP carrying value or fair value on the date of transition to Ind AS as deemed cost for investments held in associates and joint ventures. Accordingly, the Company has elected to treat fair value of one of the investment in Joint ventures at deemed cost and carrying value as deemed cost in case of other investments. The aggregate transition date fair value of such investments was Rs 683.42 Lacs with a downward adjustment of Rs 828.59 Lacs being recognised to the carrying value reported under the Previous GAAP while the aggregate carrying value of the investments for which Previous GAAP carrying value has been considered deemed cost was Rs 243.73.

c) Long Term Foreign Currency Monetary Item

For its Long Term Foreign Currency Monetary Items, the Company has opted to continue its Previous GAAP policy for accounting of exchange differences arising from the translation of long-term foreign currency monetary. Accordingly exchange differences, arising on translation/ settlement of long term foreign currency monetary items recognised before 1^st April 2017, pertaining to the acquisition of a depreciable assets, are adjusted to the cost of the asset.

The Company has applied the following mandatory exceptions:

a) Estimates

The estimates as at 1^st April 2016 and as at 31^st March 2017 are consistent with those made for the same dates in accordance with Previous GAAP apart from the impairment of financial assets based on Expected Credit Loss (ECL) model where application of Previous GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at 1^st April 2016 the date of transition to Ind AS, and as of 31^st March 2017.

b) Classification of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

9.2 Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from Previous GAAP to Ind AS:

Notes to reconciliations

1) Impact of adopting fair value as deemed cost for property, plant and equipment

In accordance with the optional expemption included in note 44.1(a) and (b) above, the Company recorded items of its porperty, plant and equipment and certain investments in associate/ joint venture at fair value on the date of transition to Ind AS.

2) Impact of measuring equity investments at fair value through Profit or Loss (FVTPL)

Ind AS requires investments in equity shares other than in subsidiaries, joint ventures and associates to be measured at fair value. The Company has classified one such investment to be measured at fair value through profit and loss.

3) Adjustment on account of expected credit losses

Under the previous GAAP, the provision for doubtful receivables was recognized based on specific assessment of individual customers. Under Ind AS, the Company has recognised impairment loss on trade receivables based on the expected credit loss model where expected a probability weighted expectation life time credit loss is recognised.

4) Spares capitalised

Under previous GAAP spares were recognised as inventory and charged to Profit and Loss upon issuance was charged to Profit and Loss unless it increased the future benefits from the existing asset beyond its previously assessed standard of performance.

Under Ind AS spares have been capitalised if they were held by the Company for use in business and that is expected to be used for more than one year. The adjustment results in upward movement of Rs 6.98 lacs in Property,plant and equipment.

5) Deferred tax adjustments on Ind AS adjustments

Under previous GAAP deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period.

Under Ind AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transition adjustments have also lead to recognition of deferred taxe on new temporary differences.

6) Remeasurement of defined benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP these remeasurements formed part of the profit or loss for the year.

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Mar 31, 2016

1 Leasehold Land:

Leasehold Period: 95 years Leasehold Installment: Nil

2 In compliance with newly inserted para 46A of the Accounting Standard (AS)- 11 " The effect of changes in Foreign Exchange Rates", vide notification issued by the Ministry of Corporate Affarirs , the company has adjusted ''1,363 thousands (Previous year ''17,836 thousands) to the cost of relevant fixed assets during the year.

3. Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

-Employees'' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees'' Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the followings assumptions:

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Mar 31, 2015

1. COMPANY'S OVERVIEW

Shivalik Bimetal Controls Limited referred to as "Shivalik" is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. "Shivalik's " manufacturing Units are located at Chambaghat, Solan, in the state of Himachal Pradesh, India. The Company's shares are listed on Bombay Stock Exchange.

"Shivalik" is engaged in the business of manufacturing & sales of Thermostatic Bimetal / Trimetal strips, components and other clad materials, EB welded products, Cold Bonded Clad Strips and Parts etc., The application of "Shivalik"s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company's products are exported to over 40 Countries around the world.

2.1 Leasehold Land:

Leasehold Period: 95 years Leasehold Installment: Nil

2.2 In compliance with newly inserted para 46A of the Accounting Standard (AS)- 11 " The effect of changes in Foreign Exchange Rates", vide notification issued by the Ministry of Corporate Affarirs, the company has adjusted Rs.17836 thousands (Previous year Rs.894 thousands) to the cost of relevant fixed assets during the year.

@The company has initiated recovery proceedings against three irregular parties/ debtors which have been issued winding up directions or are under BIFR. Every possible efforts are being made for the recovery and management is of the belief that substantial amount will be recovered. However as a Prudent accounting policy/ practice an estimated amount has been provided as doubtful of recovery, in the Books of Account.

3.1 Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees' Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the following assumptions:

4. Contingent Liabilities in respect of:

( Rs in '000) Particulars 2014-15 2013-14

(A) Contingent Liabilities

(I) Claim Against the Company Not - - Acknowledged as Debts

(II) Guarantees

a. Bank Guarantee(s) submitted 25,213 19,978

b. Letters of Credit established by the bank - 5,524

c. Corporate Guarantee(s) on behalf of Jv/ Associate 74,600 53,800 Company

d. Surety with Sales Tax Department 500 500

(III) Other Money for which the Company is Contingently Liable

a. Buyers Credit Interest payable 418 411

b. Interest on Customs/Excise Duty for surrender of import benefit on unrealised - 3,804 export proceeds

c. Customs duty on Material imported against Advance 8,685 52,808 License /EPCG Scheme, for pending export obligation

d. Bills Discounted - 10,862

(B) Commitments

(a) Estimated amount of contracts 33,396 14,051 (net of advances) exceeding

Rs 1.00 lakh in each case remaining to be executed on capital account and not provided for 33. The Company was issued SCNs (Show Cause Notices) w.r.t. admissibility of Cenvat Credit amounting to Rs.51,533 thousands of Service Tax availed (Previous Year Rs. 49,195 thousands) and Rs.1,787 thousands (Previous Year Rs. 1,787 thousands) towards cenvat credit of excise duty and Rs.345 thousands (Previous Year Rs. 345 thousands) towards demand of excise duty on "dies and tools written off" by the Company.

The Company has sought legal opinion on the stated issue and has been advised that the SCNs issued by the department are bad in Law as such not tenable. Accordingly , the company has submitted replies to the referred SCNs, however the final decision from the appropriate authority is pending.

5. Customs Duty not provided for in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs.25,142 thousands inclusive of Cenvatable amount of Rs. 19,229 thousands (Previous Year Rs.9,983 thousands inclusive of Cenvatable amount of Rs.7,583 thousands). However, the above policy has no impact on the operating results of the Company.

6. Foreign currency exposures (Net) that are not hedged by forward contracts as on 31st March, 2015 amount to Rs. 2,89,285 thousands (Previous year Rs.2,21,802 thousands).

7. The Company's activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments.All assets other than receivables against exports and stocks lying in warehouse at Germany, are located in India. The details of reportable segments are as under:-

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Mar 31, 2014

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.1 The Company has only one class of shares referred to as Equity shares having par value of Rs.2/-. The holder of Equity Share is entited to one vote per share.

1.2 In the event of liquidation of the Company, the residual interest in the company''s assets shall be distributed to the shareholders in the proportion to the equity shares held.

* Rs.59,691 thousand comprises term loan of Rs.53,389 thousands which is secured by first charge on Plant & Machinery, both present and future and equitable mortgage of company''s Factory Leasehold Land and Building, situated at Chambaghat, Solan,(H.P) and vehicle loan of Rs. 6,302 thousands secured by hypothecation of vehicles.

#Classification of foreign currency loan has been made into Non - Current and Current, after taking into consideration the term loan availed by the company to square off buyers credit loan subsequent to the balance sheet date.

** Refer Note no. 11(a)

@Secured by hypothecation of stocks, movable properties and Book Debts, both present and future, and equitable mortgage of company''s Factory Leasehold Land and Building situated at Chambaghat Solan, Himachal Pradesh.

# As required under "Micro, Small and Medium Enterprises Development Act, 2006", the information available with the company relating to amount overdue at the end of the period on account of principal amount due is Rs.76888 (Previous year ''16630) and interest due thereon is Nil (Previous year Nil)

2.1 Leasehold Land:

Leasehold Period: 95 years Leasehold Installment: Nil

2.2 In compliance with newly inserted para 46A of the Accounting Standard (AS)- 11 "The effect of changes in Foreign Exchange Rates",vide notification issued by the Ministry of Corporate Affairs, the company has adjusted Rs.894 thousands (Previous year Rs.494 thousands) to the cost of relevant fixed assets during the year.

2.3 Capital Work-in-Progress (Unit-IV)

Amount incurred by the company towards installation of Plant & Machinery And the Site Developmemt in regard to Unit IV are appearing under the head Capital Work In Progress which would be capitalized on the remaining Plant and Machinery as and when completed and put to use, the details whereof are given below:

3.1 Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees'' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees'' Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the followings assumptions:

3.2 The company announced Voluntary Retirement Scheme (VRS) for its workers & staff and in response to the scheme, some emloyees opted for the same during the year. In compliance with the provisions of the AS-15 "Employee Benefits" the entire amount of Rs.36.25 lacs incurred by the company is charged to the Statement of Profit & Loss account under the head "Exceptional Items (Income)/Expenses."

33. Contingent Liabilities in respect of:

Rs in 000) Particulars 2013-14 2012-13

(A) Contingent Liabilities

Bank Guarantee(s) submitted 19,978 14,248

Letters of Credit established by the bank 5,524 - Bills Discounted 10,862 21,065

Customs duty on Material imported against 52,808 58,636 Advance License /EPCG Scheme, for pending export obligation

Interest on Customs/Excise Duty for surrender 3,804 3,804 of import

benefit on unrealised export proceeds

Corporate Guarantee(s) on behalf of JV/Associate 53,800 53,800 Company

Surety with Sales Tax Department 500 500

(B) Commitments

(a) Estimated amount of contracts 14,051 12,595 (net of advances) exceeding Rs.1.00 lakh in each case remaining to be executed on capital account and not provided for

4. The Company was issued SCNs ( Show Cause Notice''s) w.r.t. admissibility of Cenvat Credit amounting to Rs.49,195 thousands of Service Tax availed and Rs.2,132 thousands of cenvat credit of excise duty availed by the Company.

The Company has sought legal opinion on the stated issue and has been advised that the SCNs issued by the department are bad in Law as such not tenable. Accordingly , the company has submitted replies to the reffered SCNs,however the final decision from the appropriate authority is pending.

5. ''Customs Duty not provided for''in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs.9,983 thousands inclusive of Cenvatable amount of Rs.7,583 thousands (Previous Year Rs.22,898 thousands inclusive of Cenvatable amount of Rs.17,375 thousands). However, the above policy has no impact on the operating results of the Company.

6. Foreign currency exposures (Net Liabilities) that are not hedged by forward contracts as on 31st March, 2014 amount to Rs.2,20,563 thousands (Previous year Rs.2,22,350 thousands).

7. The Company''s activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments. All assets other than receivables are located in India.

8. "Related Party Disclosure" for the year ended 31st March, 2014 in accordance with Accounting Standard-18 issued by the Institute of Chartered Accountants of India:

(i) List of related parties where control exits and related parties with whom transactions have taken place and relationships:

Name of Related Party Relationship

Checon Shivalik Contact Solutions Pvt. Ltd. Joint Venture

Shivalik Bimetal Engineers Associates Pvt. Ltd. Innovative Clad Solutions Pvt. Ltd.

Mr. S. S Sandhu Mr. N. S. Ghumman Key Managerial Personnel (KMP) Mr. D. J. S. Sandhu Mr. Angad Sandhu

Mr. Kanav Anand Relative of Key Managerial Personnel Mr. Kabir Ghumman

TSL Holdings Ltd Angad Estates Pvt. Ltd. Enterprises over which Key Managerial Vishesh Credits Pvt. Ltd. Personnel are able to exercise significant Amar Engineering Company Pvt. Ltd. infuence Ultra Portfolio Management Pvt. Ltd. O.D.Finance and Investment Pvt.Ltd.

iii) The Company has entered into transactions with the related parties in terms of provisions of section 297 of the Companies Act, 1956 and in terms of the approval accorded by Ministry of Corporate Affairs, Government of India, in this regard.

9. Disclosure in respect of Joint Venture

The company''s Interest in the Joint Venture are reported as Long Term Investment (Note No.-14) and stated at cost. The Disclosure as per AS -27 in respect of Investment in Joint Venture is as under.

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Mar 31, 2013

1. Company''s Overview

Shivalik Bimetal Controls Limited referred to as "Shivalik" is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. "Shivalik''s" manufacturing Units are located in Distt. Solan, in the state of Himachal Pradesh, India. The Company''s shares are listed on Bombay Stock Exchange.

"Shivalik" is engaged in the business of manufacturing & sales of Thermostatic Bimetal / Trimetal strips, components and other clad materials, EB welded products, Cold Bonded Clad Strips and Parts etc., The application of "Shivalik"s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company''s products are exported to over 40 Countries around the world.

2. The Company was issued SCNs ( Show Cause Notice''s) w.r.t. admissibility of Cenvat Credit amounting to Rs.48,149 thousands of Service Tax availed and also w.r.t. Excise Duty payable amounting to Rs. 345 thousands by the Company.

The Company has sought legal opinion on the stated issue and has been advised that the SCNs issued by the department are bad in Law as such not tenable. Accordingly , the company has submitted replies to the reffered SCNs,however the final decision from the appropriate authority is pending.

3. ''Customs Duty not provided for, in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs. 22,898 thousands inclusive of Cenvatable amount of Rs. 17,375 thousands (Previous Year Rs. 35,378 thousands inclusive of Cenvatable amount of Rs.27,301 thousands). However, the above policy has no impact on the operating results of the Company.

4. The company has applied for permission to surrender 100% EOU status of Unit III, to the appropriate authorities and has deposited Custom Duty and Excise Duty in lieu of the debonding of its 100% EOU for surrender of Import benefit on unrealised export proceeds. The request of the company for waiver of interest on Custom Duty/Excise Duty is pending with appropriate authorities, accordingly the same has been included under Contingent Liabilities.

5. Foreign currency exposures (Net Liabilities) that are not hedged by forward contracts as on 31st March, 2013 amount to Rs.2,22,350 thousands (Previous year Rs.2,74,005 thousands).

6. The Company''s activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments. All assets other than receivables are located in India.

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Mar 31, 2012

1. Company's Overview

Shivalik Bimetal Controls Limited referred to as "Shivalik" is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. "Shivalik's" manufacturing Units are located in Distt. Solan, in the state of Himachal Pradesh, India. The Company's shares are listed on Bombay Stock Exchange.

"Shivalik" is engaged in the business of manufacturing & sales of Thermostatic Bimetal/Trimetal strips, components and other clad materials, EB welded products, Cold Bonded Clad Strips and Parts etc., The application of "Shivalik"s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company's products are exported to over 35 Countries around the world.

2. Share Capital

2.1 The Company has only one class of shares referred to as Equity shares having par value of Rs. 2/-. The holder of Equity Share is entited to one vote per share.

2.2 In the event of liquidation of the Company, the residual interest in the company's assets shall be distributed to the shareholders in the proportion to the equity shares held.

3.1 Leasehold Land:

Leasehold Period: 99 years Leasehold Instalment: Nil

3.2 In compliance with the companies (Accounting Standard) amendment Rules, 2009 issued by the Ministry of Corporate Affairs vide Notification no.-G.S.R. 225(E) dated 31st March, 2009 and according to newly inserted paragraph of the Accounting Standard (AS)- 11 "The effect of changes in Foreign Exchange Rates", during the year the company has adjusted Rs. 995 thousands (Previous year Rs. 163 thousands) to the cost of relevant fixed assets. Out of Rs. 995 thousands, Rs. 460 thousands stands included in borrowing cost as per AS-16-"Borrowing Cost read with ASI-10".

4.1 Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

5. Contingent Liabilities in respect of

(Rs. in '000)

Particulars 2011-12 2010-11

(A) Contingent Liabilities

Bank Guarantee(s) submitted 11,211 9,255

Letters of Credit established by the bank 18,033 20,803

Bills Discounted 17,843 15,269

Customs duty on Material imported against Advance License/

EPCG Scheme, for pending export obligation 62,350 6,827

Corporate Guarantee(s) on behalf of JV/Associate Company 55,800 20,100

Surety with Sales Tax Department 500 500

(B) Commitments

(a) Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for 14,517 30,958

6. 'Customs Duty not provided for' in respect of materials lying in Bonded Warehouses/Materials in Transit as on Balance Sheet date, is of Rs. 35,378 thousands inclusive of Cenvatable amount of Rs. 27,301 thousands (Previous Year Rs. 23,927 thousands inclusive of Cenvatable amount of Rs. 18,950 thousands). However, the above policy has no impact on the operating results of the Company.

7. During the year the Company has made plans for changing the scope of operations carried out by "100% EOU" i.e. Unit-III. The erstwhile operations shall henceforth be continued by the other existing units of the company. As such the Company has applied for permission to surrender 100% EOU status of Unit-III.

8. Foreign currency exposures that are not hedged by forward contracts as on 31st March, 2012 amount to Rs. 2,74,005 thousands (Previous year Rs. 1,69,810 thousands).

9. The Company's activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments. All assets other than receivables are located in India.

10. "Related Party Disclosure" for the year ended 31st March, 2012 in accordance with Accounting Standard-18 issued by the Institute of Chartered Accountants of India:

(i) List related parties where control exits and related parties with whom transactions have taken place and relationships:

Sl. No. Name of Related Party Relationship

1. Checon Shivalik Contact Solutions Pvt. Ltd. Joint Venture

2. Shivalik Bimetal Engineers Pvt. Ltd. Associates

3. Innovative Clad Solutions Pvt. Ltd.

4. Mr. S. S. Sandhu

5. Mr. N. S. Ghumman Key Managerial Personnel (KMP)

6. Mr. D. J. S. Sandhu

7. Mr. G. C. Prabhu Other Directors

8. Mr. Anil K Sud

9. Mr. Angad Sandhu

10. Mr. Kanav Anand Relative of Key Managerial Personnel

11. Mr. Kabir Ghumman

12. Brig. J. M. Singh

13. TSL Holdings Ltd Enterprises over which Key Managerial Personnel are able to exercise significant influence

14. Angad Estates Pvt. Ltd.

15. Vishesh Credits Pvt. Ltd.

16. Amar Engineering Company Pvt. Ltd.

11. Disclosure in respect of Associate(s)

Name of Company Country of % of Voting power held as at Incorporation 31 March, 2012 31 March 2011

Shivalik Bimetal Engineers Pvt. Ltd. India 45% 45%

Innovative Clad Solutions Pvt.Ltd.@ India 27% 33.33%

@Consequent to exist of a JV partner from Innovative Clad Solutions Pvt. Ltd.(ICS) (wherein there were three

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Mar 31, 2010

1.(a) Contingent Liabilities in respect of:

(Rs. in Lacs)

Current Year Previous Year

i) Bank Guarantee(s) submitted 52.50 61.29

ii) Letters of Credit established by the bank 576.71 88.53

iii) Bills Discounted 159.14 75.70

iv) Custom duty on Material imported against Advance Licence / for pending export obligation 2.31 6.47

v) Corporate Guarantee on behalf of JV Company 121.00 121.00

vi) Surety with Sales Tax Department 3.00 2.00



2. The balances of Sundry debtors and Creditors are subject to confirmation; however, these are being reasonably moni- tored.

3. In the opinion of the management all the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and the provisions for all known liabilities have been adequately made in the accounts.

4. Balance with scheduled Banks in unclaimed dividend accounts amounting to Rs. 19.00 lacs (Previous year Rs. 18.00 lacs).

5. Custom Duty not provided for in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs. 67.64 lacs inclusive of Cenvatable amount of Rs. 56.01 lacs (Previous Year Rs. 150.48 lacs inclusive of Cenvatable amount of Rs. 112.82). However the above policy has no impact on the operating results of the Company.

6. The financial risk mainly relating to changes in the exchange rates in respect of payables including firm commitments are hedged by forward contracts aggregating to Rs. 751.73 lacs (Previous Year Nil/-) outstanding as on March 31, 2010.

7. In compliance with the Notification dated March 31,2009 issued by Ministry of Corporate Affairs and according to the newly inserted paragraph 46 of the Accounting Standard -11 "The effect of Changes in Foreign Exchange Rates", the company has adjusted Rs. 1.25 lacs (Previous Year Nil/-) to the cost of relevant fixed assets. 8. "Related Party Disclosure" for the year ended 31st March, 2010 in accordance with Accounting Standard-18 issued by the Institute of Chartered Accountants of India:

(a) Related parties and their relationships

i) Key Management Personnel

Mr. S.S. Sandhu Chairman

Mr. N.S. Ghumman Managing Director

Mr. D. J.S. Sandhu Dy. Managing Director Others

Mr. Angad Sandhu Business Development Manager

Mr. Kanav Anand Asstt. General Manager - Marketing

Birg. J.M. Singh Executive Director



ii) Subsidiary Company

Shivalik Bimetal Engineers Pvt. Ltd.

iii) Joint Ventures

a) Checon Shivalik Contact Solutions Pvt. Ltd.

b) Innovative Clad Solutions Pvt. Ltd.

iv) Enterprises over which persons referred in (i) above, or their relatives, are able to exercise significant influence:-.

a) TSL Holdings Ltd.

b) Angad Estates Pvt. Ltd.

c) Vishesh Credits Pvt. Ltd.

9. Disclosure of Sundry Creditors under Current Liabilities is based on the information available with the Company regarding the status of suppliers as defined under the "Micro, Small and Medium enterprises Development Act, 2006". As per Information available with the Company amount overdue at the year end on account of principal amount is Rs. 72,429/- (Previous year Rs. 2,12,603/- and Nil (Previous year- Nil) interest is due thereon.

10. Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(i) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

(ii) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the followings assumptions:

11. The corresponding figures of previous year have been regrouped/rearranged wherever found necessary, to conform to this years presentation

12. Additional information pursuant to the provisions of paragraphs 3 and 4 of part II of "Schedule VI of the Companies Act, 1956."