NOTES FORMING PART OF THE FINANCIAL STATEMENTS (All amounts in Rupees lacs, unless otherwise stated) NOTE 1 COMPANY OVERVIEW Minda Industries Limited is a public company domiciled and headquartered in India. It was incorporated on 16 September 1992 under the Companies Act, 1956 and its shares are listed on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Delhi Stock Exchange (DSE)* *SEBI vide its order number VTM/PS/45/MRD/DSA/NOV/2014 dated 18th November 2014 has withdrawn the recognitions granted to Delhi Stock Exchange. Company is engaged in the business of manufacturing of auto components including auto electrical parts and its accessories. The Company caters to both domestic and international markets. NOTE 2 SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to the period brsented in these financial statements. A. Basis of brparation of financial statements These financial statements have been brpared under the historical cost convention on a going concern basis, on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles (GAAP) in India. Indian GAAP comprises mandatory accounting standards as specified under the section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and other accounting pronouncements of the Institute of Chartered Accountants of India. B. Use of estimates The brparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future periods. C. Current-non-current classification All assets and liabilities are classified into current and non-current. Assets An asset is classified as current when it satisfies any of the following criteria: (a) it is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realised within 12 months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current. Liabilities A liability is classified as current when it satisfies any of the following criteria: (a) it is expected to be settled in the Company's normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is due to be settled within 12 months after the reporting date; or (d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current. Operating cycle Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. D. Fixed assets and debrciation a) Tangible fixed assets Tangible fixed assets except revalued assets are carried at cost of acquisition or construction less accumulated debrciation and/or accumulated impairment loss, if any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its brviously assessed standard of performance. Tangible fixed assets acquired wholly or partly with specific grant/subsidy from government, if any, are recorded at the net acquisition cost to the Company. Borrowing costs are interest and other costs (including exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred by the Company in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of those tangible fixed assets which necessarily take a substantial period of time to get ready for their intended use are capitalised. Other borrowing costs are recognised as an expense in the period in which they are incurred. Exchange differences (favourable as well as unfavorable) arising in respect of translation/settlement of long term foreign currency borrowings attributable to the acquisition of a debrciable asset are also included in the cost of the asset. Tangible fixed assets under construction are disclosed as capital work-in-progress. Debrciation on plant & machinery and tools & dies is provided as per WDV basis and on other tangible fixed assets as per SLM basis, based on the rates as per useful life brscribed in Schedule II to the Companies Act, 2013 except in the case of tools & dies, the life based on technical advice ranges between 3 to 8 years in case of opening block and 6 years in case of additions during the year. Leasehold land and leasehold improvements are amortised on a straight line basis over the period of lease or their useful lives, whichever is shorter. Freehold land is not debrciated. Debrciation is provided on a pro-rata basis i.e. from the date on which asset is ready for use. Assets acquired under finance leases are debrciated over the shorter of the lease term and their useful lives (not being greater than the useful life envisaged in Schedule II to the Companies Act, 2013) unless it is reasonably certain that the Company will obtain ownership by the end of the lease term, in which case the debrciation rates applicable for similar assets owned by the Company are applied. Assets costing upto Rs.5,000 are fully debrciated in the year of purchase. Debrciation for the year is recognised in the Statement of Profit and Loss. The useful lives are reviewed by the management at each financial year-end and revised, if appropriate. In case of a revision, the unamortized debrciable amount is charged over the revised remaining useful life. A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal.. Assets retired from active use and held for disposal, if any, are stated at the lower of their net book value and net realisable value and shown under 'Other current assets' Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss. b) Intangible fixed assets and amortization (i) Goodwill Goodwill that arises on an amalgamation or on the acquisition of a business is brsented as an intangible asset. Goodwill arising from amalgamation is measured at cost less accumulated amortisation and any accumulated impairment loss. Such goodwill is amortised over its estimated useful life or five years whichever is shorter. Goodwill arising on acquisition of a business is measured at cost less any accumulated impairment loss. Goodwill is tested for impairment annually. (ii) Acquired intangible assets Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortization and any accumulated impairment loss. Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates. Intangible assets are amortised in the Statement of Profit or Loss over their estimated useful lives, from the date that they are available for use based on the expected pattern of consumption of economic benefits of the asset. Accordingly, at brsent, these are being amortised on straight line basis. In accordance with the applicable Accounting Standard, the Company follows a rebuttable brsumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. However, if there is persuasive evidence that the useful life of an intangible asset is longer than ten years, it is amortised over the best estimate of its useful life. Such intangible assets and intangible assets that are not yet available for use are tested annually for impairment. Technical knowhow: Amortised over the period of agreement. Amortisation method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be significantly different from brvious estimates, the amortisation period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortisation method is changed to reflect the changed pattern. An intangible asset is derecognised on disposal or when no future economic benefits are expected from its use and disposal. Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss. c) Capital work-in-progress Fixed assets under construction and cost of assets not put to use before the year-end, are disclosed as capital work-in-progress. E. Impairment The carrying values of all assets are reviewed at each reporting date to determine if there is an indication of any impairment. If any indication exists, the asset's recoverable amount is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset, or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the Statement of Profit and Loss. An impairment loss is reversed if there is a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent the carrying amount of the asset that does not exceed the carrying amount that would have been determined net off debrciation or amortisation, if no impairment loss had been recognised. F. Leases a) Operating leases Assets acquired under leases other than finance leases are classified as operating leases. The total lease rentals (including scheduled rental increases) in respect of an asset taken on operating lease are charged to the Statement of Profit and Loss on a straight line basis over the lease term unless another systematic basis is more rebrsentative of the time pattern of the benefit. b) Finance leases Assets acquired under finance leases are recognised as an asset and a liability at the lower of the fair value of the leased assets at the inception of the lease and the brsent value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability and charged to the Statement of Profit and Loss. G. Investments Investments that are readily realisable and intended to be held for not more than a year from the date of acquisition are classified as current investments. All other investments are classified as long-term investments. However, that part of long term investments which is expected to be realized within 12 months after the reporting date is also brsented under 'current assets' as "current portion of long term investments" in consonance with the current-non-current classification scheme of Schedule III. Long-term investments (including current portion thereof) are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment. Current investments are carried at the lower of cost and fair value. Any reductions in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss. Investment in the capital of a partnership firm is shown by reference to the capital of the firm on the balance sheet date. The Company's share of profit or loss in a partnership firm is recognised in the Statement of Profit and Loss as and when it accrues i.e. when it is computed and credited or debited to the capital/current/any other account of the company in the books of the partnership firm. H. Inventories Inventories which comprise raw materials, work-in-progress, finished goods, stock-in-trade, stores and spares, and loose tools are carried at the lower of cost and net realisable value. Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their brsent location and condition. In determining the cost, moving average cost method is used. In the case of manufactured inventories and work in progress, fixed production overheads are allocated on the basis of normal capacity of production facilities. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products. Raw materials and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realisable value. The comparison of cost and net realisable value is made on an item-by-item basis. Finished goods inventory is inclusive of excise duty. Inventories in transit are valued at cost. Appropriate adjustments are made to the carrying value of damaged, slow moving and obsolete inventories based on management's current best estimate. I. Revenue recognition a) Revenue from sale of goods in the course of ordinary activities is recognisedwhen the property in the goods or all significant risks and rewards of ownership are transferred to the customer and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods and regarding its collection. The amount recognized as revenue is inclusive of excise duty and exclusive of sales tax, value added taxes (VAT) and is net of returns, trade discounts and quantity discounts. b) Management fees, Designing and service revenue is recognised on an accrual basis as and when the services are rendered in accordance with the terms of the underlying contract. c) Interest income is recognised on a time proportionate basis taking into account the amount outstanding and the interest rate applicable. d) Dividend income is recognised when the right to receive dividend is established. e) Royalty income is recognised based on the terms of the underlying agreement. f) Claims lodged with insurance companies are accounted for on an accrual basis, to the extent these are measurable and the ultimate collection is reasonably certain. g) Export entitlement under Duty Entitlement Pass Book Scheme ('DEPB') is recognised on accrual basis and when the right to entitlement has been established. h) Share of profit from partnership firms is recognised on accrual basis. J. Government grants Government grants in the nature of promoters' contribution are credited to capital reserve and treated as a part of shareholders' funds. Grants from State Government towards revenue expenditure are recognised as income either till the period of benefit expires or the financial cap is reached, whichever occurs earlier. K. Research and development a) Revenue expenditure on research and development is charged off under the respective heads of account in the year in which it is incurred. b) Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses, if any. Fixed assets used for research and development are debrciated in accordance with the Company's policy as stated above. L. Foreign currency transactions a) Foreign currency transactions are recorded at the rate of exchange brvailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the closing rates of exchange brvailing on that date. The resultant exchange differences are recognised in the Statement of Profit and Loss except exchange differences pertaining to long term foreign currency monetary items that are related to acquisition of debrciable assets and are adjusted in the carrying amount of the related fixed assets. b) In the cases of exchange difference on reporting long term monetary items, the company has opted to avail the option provided under paragraph 46A of Accounting Standard 11 "The Effects of Changes in Foreign Exchange Rates" inserted vide notification dated 29 December 2011. Consequently, the exchange differences arising on reporting of long term foreign currency monetary items on account of a debrciable asset is adjusted in the cost of debrciable asset and would be debrciated over the balance life of the asset. In cases other than the debrciable assets exchange differences is accumulated in a Foreign Currency Monetary Item Translation Difference Account, and amortized over the balance period of such long term asset or liability. c) The Company uses forward contracts to hedge its foreign currency risk relating to an existing asset/ liability, which are covered under Accounting Standard 11 - 'Accounting for the effects of changes in foreign exchange rates'. Exchange difference on a forward exchange contract is the difference between: (i) the foreign currency amount of the contract translated at the exchange rate at the reporting date, or the settlement date where the transaction is settled during the reporting period; and (ii) the same foreign currency amount translated at the latter of the date of inception of the forward exchange contract and the last reporting date; and is recognisedin the Statement of Profit and Loss over the period of the contract. The forward exchange contracts taken to hedge existing assets/ liabilities are translated at the closing exchange rates and the resultant exchange differences are recognised in the same manner as those on the underlying foreign currency asset or liability. Any profit or loss arising on cancellation/ renewal of such contracts is recognised in the Statement of Profit and Loss for the year. The brmium or discount on all such contracts arising at the inception of each contract is amortized over the life of the contract. d) Investments in foreign entities are recorded at the exchange rate brvailing on the date of making the investments. e) Foreign currency loans covered by forward exchange contracts are translated at the rate brvailing on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract. f) Derivative Transactions The Company has entered into cross currency cum interest swap to hedge foreign currency risk and interest risk. In respect of forward contracts, which are covered under Accounting Standard (AS) 11, 'Effects of Changes in Foreign Exchange Rates', the difference between the spot rate and forward rate on the date the forward exchange contract is entered into, is amortised over the tenure of the contract. The foreign currency receivable or payable arising under the forward contract is revalued using the closing rate, and any resultant gain or loss is taken to the Statement of Profit and Loss. In respect of derivative contract, which are not covered by AS 11, pursuant to the announcement on "Accounting for Derivatives" made by the Institute of Chartered Accountants of India ('ICAI') on 29 March 2008, such contracts are marked to market and provision for loss, if any, is recognised in the Statement of Profit and Loss and resultant gains, if any, on account of mark to market are ignored. The Company does not enter into derivative transactions for trading or speculative purposes. g) Commodity hedging In case of hedging contracts for metals used as raw materials entered into with commodity exchanges, the changes in the fair value of these contracts are recorded through the statement of profit and loss. h) Increase or decrease in non-current liabilities on account of exchange rate fluctuations has been adjusted in the cost of tangible fixed assets. M. Provisions A provision is recognised if, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the brsent obligation at the balance sheet date. The provisions are measured on an undiscounted basis. Warranties Warranty costs are estimated on the basis of a technical evaluation and past experience. Provision is made for estimated liability in respect of warranty costs in the year of sale of goods and is included in the statement of profit and loss. The estimates used for accounting for warranty costs are reviewed periodically and revisions are made, as and when required. Contingencies Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties, etc. are recognised when it is probable that a liability has been incurred, and the amount can be estimated reliably. N. Contingent liabilities and contingent assets A contingent liability exists when there is a possible but not probable obligation, or a brsent obligation that may, but probably will not, require an outflow of resources, or a brsent obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. O. Employee Benefits a) Short term employee benefits Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by employees. b) Post employment benefits Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The Company makes specified monthly contributions towards employee provident fund and ESI to Government administered fund which is a defined contribution plan. The Company's contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service. The Company makes specified monthly contribution towards superannuation fund to Superannuation Trust which is managed by the Life Insurance Corporation of India ("LIC"). Defined benefit plan The Company's gratuity benefit scheme is a defined benefit plan. The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its brsent value. The fair value of plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis. The calculation of the Company's obligation is performed annually by a qualified actuary using the projected unit credit method. The Company recognises all actuarial gains and losses arising from defined benefit plans immediately in the Statement of Profit and Loss. All expenses related to defined benefit plans are recognised in employee benefits expense in the Statement of Profit and Loss. The Company recognises gains and losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The Company's gratuity fund is administered and managed by the Life Insurance Corporation of India ("LIC"). Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Compensated absences The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit to such extent is classified as a long-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. Actuarial gains and losses are recognisedin the Statement of Profit and Loss. Termination benefits Termination benefits are recognised as an expense when, as a result of a past event, the Company has a brsent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. P. Income Taxes Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Income-tax expense is recognised in Statement of Profit or Loss except that tax expense related to items recognised directly in reserves is also recognized in those reserves. Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws. Deferred tax is recognised in respect of timing differences between taxable income and accounting income i.e. differences that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised. Minimum Alternative Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss. The credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent, the aforesaid convincing evidence no longer exists. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognised in the year in which the timing differences originate. Q. Earnings per share Basic earnings/ (loss) per share are calculated by dividing the net profit or loss for the year attributableto equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average numbers of equity shares outstanding during the year are adjusted for eventsof bonus issue and share split. For the purpose of calculating diluted earnings/ (loss) per share, thenet profit or loss for the year attributable to equity shareholders and the weighted average number ofshares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed to be converted as of the beginning of the period, unless they have been issued at a later date. R. Cash and cash equivalent Cash and cash equivalent include cash in hand, cash balance at bank, demand deposits with banks with original maturities of three months or less and highly liquid investments. NOTE 3 DIMINUTION IN THE VALUE OF INVESTMENT The company has recorded diminution other than temporary in value of investment amounting to Rs.1,216.80 based on report of independent valuer in respect of investment in MJ Casting Limited, a joint venture entity. NOTE 4 ADDITIONAL INVESTMENT The company has made an additional investment of Rs.49.50 in Minda Emer Technologies Limited by acquiring 4, 95,000 equity shares of Rs.10 each at par. The paid up capital of the Minda Emer Technologies Limited is Rs.555 (brvious year Rs.456). NOTE 5 During the year 2002-03, the Director, Town and Country Planning, Chandigarh issued a demand notice on the Company amounting to Rs.39.51 towards revised CLU (change of land use) charges for the land situated at Village Nawada Fatehpur, P.O. Sikanderpur Badda, Gurgaon, and Haryana. The Company paid Rs.1.58 and had also filed a Special Leave Petition (SLP) with the Hon'ble Subrme Court of India, basis which a leave had been granted. Further, the Company had deposited Rs.9.50 as under protest with the authorities. During the earlier year, the Company had filed a writ petition with the High Court of Punjab and Haryana in order to cancel the demand notice and obtain a stay on the balance demand. Further, the Company had withdrawn the petition and accordingly had agreed to pay the total liability of Rs.39.51 and the interest thereon amounting to Rs.37.51, towards revised CLU charges after adjusting the amount of Rs.9.50 paid earlier. During brvious year, the Company has applied for grant of license under 'Affordable housing Policy- 2013' on the land measuring 9.9625 acres in revenue estate of Village Nawada, Fatehpur Sector-81, Gurgaon and paid scrutiny fee (non-refundable) amounting to Rs.15.35 in this respect. On issue of license either under 'Residential Group Housing Colony scheme' or under 'Affordable housing policy 2013', CLU charges would be payable as per terms and conditions of the scheme. NOTE 6 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD-15 ON "EMPLOYEE BENEFITS" a) Defined contribution plan An amount of Rs.755.76 (brvious year Rs.671.55) for the year, has been recognized as an expense in respect of the Company's contribution towards Provident Fund, deposited with the government authorities and has been included under employee benefit expense in the Statement of Profit and Loss.An amount of Rs.36.67 (brvious year Rs.35.42) for the year, has been recognized as an expense in respect of the Company's contribution towards Superannuation Fund, and has been included under employee benefit expense in the Statement of profit and loss. Further an amount of Rs.111.23 (brvious year Rs.100.56) for the year, has been recognized as an expense in respect of the Company's contribution towards ESI Fund, and has been included under employee benefit expense in the Statement of profit and loss. b) Defined benefit plans Gratuity is payable to all eligible employees of the Company on retirement/exit,death or permanent disablement in terms of the provisions of the Payment of Gratuity Act. NOTE 7 During the year ended 31 March 2012, one of the manufacturing facilities of the Light division at Pune had incurred loss of fixed assets and inventory on account of fire. During the year, the Company has received final claim of Rs.27.52 as full and final settlement of the insurance claim. The same has been disclosed as an 'Exceptional item' in the Statement of Profit and Loss. NOTE 8 Capital Work in Progress includes borrowing cost capitalised during the year amounting to Rs. Nil (brvious year Rs.28.62) NOTE9 The Company has established a combrhensive system of maintenance of information and documents are required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by due date as required under the law. The management is of the opinion that its transactions with the associated enterprises are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation. NOTE 10 Previous year figures have been reclassified/ regrouped, wherever required, to confirm to current year classification. As per our report of even date attached For B S R & Co. LLP Chartered Accountants Firm Registration No: 101248W/W-100022 Vikram Advani Partner Membership No. 091765 For and on behalf of the Board of Directors of Minda Industries Limited Nirmal K. Minda Chairman & Managing Director DIN No. 00014942 Sudhir Jain Corporate Business Head and Group CFO Anand Kumar Minda Director DIN No. 00007964 H.C. Dhamija VP Group - Accounts, Legal, Secretarial, Indirect Taxes & Co. Secretary Place : Gurgaon Date : 26 May 2015 |