34	Segmental Reporting
	The Company's operating business is organised and managed according to a single primary reportable business segment namely "Automotive Components".
	Secondary Segment- Geographical Location of Customers
	As a part of secondary reporting, revenues are attributed to geographic areas based on the location of the customers. In accordance with Accounting Standard (AS) - 17 on Segment Reporting, the following table brsents information relating to the geographical segments for the year ended 31 March 2018.
	Reportable Segment
	Revenue from external customers by location of customers	As at 31 March 2018	As at  31 March 2017
	India	4,227,067,424	3,356,185,290
	Outside India	1,861,545,717	1,676,847,317
	Total			6,088,613,141	5,033,032,607
	Carrying amount of segment assets by location	As at 31 March 2018	As at  31 March 2017
	India	3,505,501,790	2,356,957,702
	Outside India	2,638,302,680	2,530,761,156
	Total			6,143,804,470	4,887,718,858

32	EMPLOYEE BENEFITS
A	Defined contribution plans:
	The Company has recognised in the statement of profit and loss for the year ended 31 March 2018 an amount of Rs 30,492,769 (brvious year Rs. 25,410,390) as expenses under defined contribution plans. Contribution to defined contribution plans include:
	Particulars	As at 31 March 2018	As at 31 March 2017
	a) Provident fund						19,157,815	16,620,771
	b) Super annuation fund						9,957,327	7,785,108
	c) Employees state insurance corporation						1,297,549	923,709
	d) Punjab/Haryana labour welfare fund						80,078	80,802
							30,492,769	25,410,390
	Defined benefit plans:
i)	The Company operates post retirement defined benefit plan for retirement gratuity, which is funded. The Company through the gratuity trust has taken group gratuity policy of Life Insurance Corporation of India Gratuity Scheme.
ii)	Detail of the post retirement funded gratuity plan are as follows:
1	Reconciliation of opening and closing balances of obligations
	Particulars	Gratuity (Funded)
	As at 31 March 2018	As at 31 March 2017
	Opening defined benefit obligation						48,966,290	40,369,323
	Current service cost						6,219,769	5,213,241
	Interest cost						3,341,408	3,001,450
	Actuarial loss						17,094,367	3,201,000
	Benefits paid						(1,776,960)	(3,281,872)
	Transfer of employees from erstwhile related party					951,480	463,148
	Closing defined benefit obligation						74,796,354	48,966,290
	Present value of obligation does not include provision for casual leaves amouting to Rs. 1,265,455 (brvious year Rs. Nil) made during the year.
2	Change in plan assets ( Reconciliation of opening and closing balances)
	Particulars	Gratuity (Funded)
	As at 31 March 2018	As at 31 March 2017
	Opening fair value of plan assets						46,792,805	25,097,218
	Expected return on Plan Asset						3,724,793	2,812,678
	Employer contributions						611,174	19,268,070
	Benefits paid						(1,076,960)	(3,281,872)
	Transfer of employees from erstwhile related party					951,480	2,692,341
	Actuarial gain/(loss)						(246,266)	204,370
	Closing fair value of plan assets						50,757,026	46,792,805
3	Reconciliation of fair value of assets and obligations
	Particulars	Gratuity (Funded)
	As at 31 March 2018	As at  31 March 2017
	Present value of obligation	74,796,354	48,966,290
	Fair value of plan assets	(50,757,026)	(46,792,805)
	Net defined benefit obligation	24,039,328	2,173,485
	Experience adjustments on plan assets - (loss)/gain	(246,266)	204,370
4	Expense recognised during the year
	Particulars	Gratuity (Funded)
	As at 31 March 2018	As at  31 March 2017
	Current service cost						6,219,769	5,213,241
	Interest cost						3,341,408	3,001,450
	Expected return on plan assets						(3,724,793)	(2,812,678)
	Actuarial loss						17,340,633	2,996,630
	Expenses recognised during the year	23,177,017	8,398,643
5	Assumptions
	In accordance with Accounting Standard 15, the liability in respect of defined benefit plans, namely gratuity has been determined based on actuarial valuation based on the following assumptions:
	Particulars	Gratuity (Funded)
	As at 31 March 2018	As at  31 March 2017
	Discount rate (per annum)					7.45%	6.95%
	Expected rate of return on plan assets(per annum)					8.00%	8.00%
	Rate of escalation in salary(per annum)					6.00%	10.00%
B	Expected contribution in the next year
	Particulars	Gratuity
	Estimate of contribution next year	32,272,839
	Reconciliation of fair value of assets and obligations :
C
						Gratuity
	Particulars	As at 31 March 2016	As at 31 March 2015	As at 31 March 2014
	Present value of obligation	40,369,323	36,102,678	30,128,160
	Fair value of plan (assets)	(25,097,218)	(29,095,120)	(20,841,568)
	Unfunded (asset) /liability recognised in the balance sheet	15,272,105	7,007,558	9,286,592
	Experience adjustments on plan liabilities - (loss)/gain	-	-	2,025,648
	Experience adjustments on plan assets - (loss)/gain	(151,807)	104,048	(91,692)

Accounting Policy

X	Employee benefits:
	(i) Provident fund and Employees' state insurance:
	The Company makes contribution to statutory provident fund which is recognised by the income tax authorities in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which is a defined contribution plan. These funds are administered through Regional Provident Fund Commissioner and contribution paid or payable is recognised as an expense in the period in which the services are rendered by the employee. The Company has no legal or constructive obligations to pay further contributions after payment of the fixed contribution.
	The Company's contribution to state plans namely Employee's State Insurance Fund and Employee's Pension Scheme 1995 is recognised as an expense in the period in which the services are rendered by the employee.
	(ii) Gratuity:
	Gratuity is a post employment benefit and is in the nature of defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the brsent value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised actuarial gains or losses. Gratuity Fund is administered through Life Insurance Corporation of India. The defined benefit obligation is calculated at the balance sheet date on the basis of actuarial valuation by an independent actuary using projected unit credit method. Actuarial gain or loss arising from experience adjustments and changes in actuarial assumptions are recorded in the statement of profit and loss in the year in which such gain or loss arise.
	(iii) Superannuation:
	Certain employees are also participants in the superannuation plan ('the Plan') which is defined contribution plan. The Company has no obligation to the Plan beyond its monthly contribution which are periodically contributed to Trust Fund, the corpus of which is invested with the Life Insurance Corporation of India.
	(iv) Compensated absences:
	The liability in respect of compensated absences is determined on the basis of actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains or losses are recognised in the statement of profit and loss in the year they arise.
	(v) Termination benefits:
	Termination benefits are recognised as an expense as and when incurred or only when the obligation can be reliably estimated.

Note 1 SIGNIFICANT ACCOUNTING POLICIES
	I	Corporate overview:
		Sona BLW Precision Forgings Limited (the "Company"), a public limited company was incorporated on 27 October 1995 and began commercial production in November 1998. The Company is engaged in the manufacturing of brcision forged bevel gears and differential case assemblies for automotive and other applications.
	II	Basis of accounting:
		The financial statements are brpared on a going concern basis under historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India, including the Accounting Standards specified under section 133 of the Companies Act, 2013 (the 'Act') read with Rule 7 of the Companies (Accounts) Rules, 2014. All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in Schedule III to Act.
	III	Use of estimates:
		The brparation of financial statements in conformity with the principles generally accepted in India requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Example of such estimates include provisions for doubtful debts/ advances, employee retirement benefit plans, warranty, provision for income taxes, useful life of fixed assets, diminution in value of investments, other probable obligations and inventory write down. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.
	IV	Fixed assets:
		(i) Property, plant and equipment:
		Property, plant and equipment are stated at cost of acquisition or construction less accumulated debrciation and impairment losses, if any. The cost comprises of the purchase price, incidental expenses, erection/commissioning expenses and borrowing cost on qualifying assets upto the date the asset is ready for its intended use, and initial estimate of decommissioning, restoring and similar liabilities.
		When significant parts of plant and equipment are required to be replaced at intervals, the Company debrciates them separately based on their specific useful life. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.
		Items of spares that meet the definition of property, plant and equipment are capitalised at cost and debrciated over their useful life. Otherwise, such items are classified as inventories.
		Capital expenditure incurred on rented properties is recorded as leasehold improvements under fixed assets to the extent such expenditure is of a permanent nature.
		(ii) Intangible assets:
		Intangible assets comprise technical know how and computer software are stated at cost less accumulated amortisation and impairment of loss, if any. These are recognised as assets if it is probable that future economic benefits attributable to such assets will flow to the Company and the cost of assets can be measured reliably.
	V	Debrciation and amortisation:
		(i) Property, plant and equipment:
		Debrciation on Property, plant and equipment has been provided on a pro-rata basis from the month the assets are ready for intended use on the straight-line method as per the useful life brscribed in Schedule II to the Companies Act, 2013.
		Leasehold improvements are debrciated over a period of 5 years or over the period of lease if less than five years.
		Asset costing less than Rs. 5,000 each are fully debrciated in the year of capitalisation.
		(ii) Intangible assets:
		Intangible assets are being amortised over the useful life estimated by the management to be the economic life of the asset over which economic benefits are expected to flow. The economic life of intangible assets (technical know how and computer software) has been taken as 6 years.

VII	Income tax:
	(i) Current tax:
	Provision is made for current income tax liability based on the applicable provisions of the Income Tax Act, 1961 for the income chargeable under the said Act.
	(ii) Deferred tax:
	Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In respect of carry forward losses and unabsorbed debrciation, deferred tax assets are recognised only to the extent there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such losses can be set off.
	Further, deferred tax asset appearing in books is reviewed at each reporting date and is written down to the extent it is not certain that the Company will pay taxes on future incomes against which such deferred tax asset may be adjusted.
VIII	Leases:
	(i) Where the Company is the lessee:
	Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as 'Operating Leases'. Lease rentals in respect of assets taken under operating leases are charged to the statement of profit and loss on a straight line basis over the term of lease.
	(ii) Where the Company is the lessor:
	Assets subject to operating leases are included in tangible fixed assets. Lease income is recognised in the statement of profit and loss on a straight line basis over the lease term. Cost including debrciation are recognised as an expense in the statement of profit and loss. Initial direct cost such as legal cost, brokerage cost, etc. are recognised immediately in statement of profit and loss.
IX	Investments:
	Long term investments are stated at cost of acquisition inclusive of expenditure incidental to acquisition. A provision for diminution is made to recognise a decline, other than temporary in the value of long term investments.
	Current investments are stated at lower of cost and fair value determined on an individual basis.

XI	Foreign currency transactions:
	(i) Initial recognition:
	Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
	(ii) Subsequent recognition:
	Foreign currency monetary assets and liabilities are reported using the closing rate as at the reporting date.
	Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
	(iii) Exchange differences:
	Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in brvious financial statements, are recognised as income or expense in the year in which they arise.
	(iv) Forward contracts:
	The brmium of discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense for the year.
XII	Research expense:
	Expenditure incurred on research are charged to statement of profit and loss of the year in which it is incurred.

XIV	Borrowing cost:
	Borrowing costs directly attributable to acquisition, construction or erection of fixed assets, which necessarily take a substantial period of time (generally 12 months or more) to be ready for the intended use, are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to brpare the qualifying assets for their intended use are complete. Capitalisation of borrowing costs is suspended and charged to the statement of profit and loss during extended periods when active development activity on the qualifying assets is interrupted. Other borrowing costs are recognised as an expense in the statement of profit and loss in the year in which they are incurred.
XV	Earning per share:
	Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
	For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, except where results would be anti-dilutive.
XVI	Provisions and contingent liabilities:
	The Company creates a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
	A disclosure is made for a contingent liability when there is a:
	- possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;
	- brsent obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
	- brsent obligation, where a reliable estimate cannot be made.
	Where there is a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
XVII	Impairment of assets:
	The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. Where there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased, the Company books a reversal of the impairment loss not exceeding the carrying amount that would have been determined (net of amortisation or debrciation) had no impairment loss been recognised for the asset in prior accounting periods.
XVIII	Cash and cash equivalents:
	Cash and cash equivalents comprise cash at bank and on hand and short term investments in fixed deposits with an original maturity of three months or less.