Uniparts India Limited
Notes to consolidated financial statements for the year ended 31st March, 2016
1) a)	The consolidated financial statements are brpared on the following basis:
	i)	These consolidated financial statements comprise the financial statements of the Company and its subsidiaries, associates and joint controlled entities (together referred to as ‘the Group’). These consolidated financial statements of the Group have been brpared in accordance with the generally accepted accounting principles in India (the accounting standards notified under Indian GAAP). The Group has brpared these consolidated financial statements to comply in all material aspects with accounting principles generally accepted in India, including the accounting standards notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014. These consolidated financial statements of the Group are brpared in accordance with Accounting Standard 21 “Consolidated Financial Statements”, Accounting Standard 23 “Accounting for Investments in Associates in Consolidated Financial Statements” and Accounting Standard 27 “Financial Reporting of Interests in Joint Ventures” as notified. Despite that Financial Statements of the Subsidiaries have been brpared by applying principles of German GAAP (for Uniparts India GmbH), under US GAAP (for Uniparts USA Limited and its subsidiary) and under Dutch Standards on Auditing (for Uniparts Europe B.V.), these consolidated financial statements have been brpared substantially in the same format adopted by the parent to the extent possible, as required by the Accounting Standard AS 21 ‘‘Consolidated Financial Statements’’ issued by the Companies Accounting Standard Amendment Rules, 2006.
	ii)	The operations of the subsidiaries are not considered as an integral part of the operations of the parent. Hence, all Monetary and Non-Monetary Assets and Liabilities have been translated at the exchange rate brvailing at the close of the subsidiaries period ended (i.e. 31st March, 2016). Income and Expenditure have been translated at the daily average rate of exchange brvailing for the subsidiaries financial year. Translation losses and gains on the above are carried to Foreign Currency Translation Reserve for future adjustments.
	iii)	The financial statements of the Company and its subsidiary companies are combined on a line-by-line basis by adding together the value of like items of assets, liabilities, income and expenses after fully eliminating intra- group balances and intra-group transactions in accordance with Accounting Standard AS 21 “Consolidated Financial Statements”. The excess or deficit of parent’s portion of equity in subsidiary companies over its carrying cost on investments in subsidiary companies, if any, is treated as a capital reserve or goodwill respectively.
	iv)	For financial year 2015-16, Uniparts India GmbH has brpared their financial statements by applying principles of German GAAP. Uniparts USA Limited and its wholly owned subsidiary have brpared their consolidated financial statements under US GAAP. Uniparts Europe B.V. has brpared their financial statements under Dutch Standards on Auditing. No adjustments have been made to the financial statements of the Subsidiaries on account of diverse accounting policies followed by them under respective GAAPs. However the diverse accounting policies followed by the subsidiaries to the extent they could materially impact these consolidated financial statements have been detailed in Note below. Since these do not have material financial impact, the same have not been given effect to in the Consolidated Financial Statements.
	v)	Minority Interest in the net liabilities of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the dates on which investments are made by the Company in the subsidiary companies and further movement in their share in the equity, subsequent to the dates of investments.
	vi)	Minority Interest’s share of net profit of consolidated subsidiaries for the year is identified and adjusted against the income of the group in order to arrive at the net income attributable to shareholders of the Company.
	vii)	The financial statements are brpared on the following basis:
		a) Notes of these Consolidated Financial Statements are intended to serve as a means of informative disclosure and a guide to better understanding of the consolidated position of the companies. Recognising this purpose, the company has disclosed only such Notes from the individual financial statements, which fairly brsent the needed disclosures. Practical considerations made it desirable to exclude Notes to Financial Statements, which in the opinion of the management, could be better viewed, when referred from the individual Financial statements of Uniparts India Limited.
		b) Summary of significant accounting policies followed by the Company:
		Significant Accounting Policies followed by Uniparts India Limited are annexed to the independent Financial Statements. Due to inherent diversities in the legal and regulatory environment governing accounting principles, the accounting policies would be better understood when referred to from the individual Financial Statements.
		However the following are instances of diverse accounting policies followed by the subsidiaries, which do not materially impact these consolidated financial statements:
		i) Debrciation:
		In respect of Indian Companies comprised within the Group, debrciation is provided using the straight line method, at the rates and manner brscribed under Schedule II of the Companies Act, 2013 except in the case of Plant and Machinery where the debrciation has been provided on the basis of the useful lives of the assets estimated by the management based on internal assessment and independent technical evaluation carried out by external Chartered Engineer.
		In respect of foreign companies comprised within the Group, debrciation is provided using the straight line method, at the rates specified under respective laws of the country of incorporation, which are generally higher than the rates brscribed under the Schedule II of the Companies Act, 2013. The practice would not have any material impact over the life of the asset and on the profit for the year.
		ii) Inventories:
		Inventory	Uniparts India Limited	Gripwel Fasteners Private Limited	Uniparts USA Limited
		Raw Materials	At cost computed on FIFO method.	At cost computed on FIFO method.	N.A.
		Work in Progress	At material cost plus appropriate share of labour and production overheads incurred till the stage of completion of production.	At material cost plus appropriate share of labour and production overheads incurred till the stage of completion of production.	N.A.
		Finished Goods	At lower of the cost or net realizable value.	At lower of the cost or net realizable value.	At lower of the cost or market value computed at weighted average cost.
		Consumables, Stores, Spares, Packing Materials, Totes, Supplies	At cost computed on FIFO method.	At cost computed on FIFO method.	N.A.
		Scrap	At net realizable value calculated as last months average realisation.	At net realizable value calculated as last months average realisation.	N.A.
		Inventory	Uniparts Olsen Inc.	Uniparts Europe B.V.	Uniparts India GmbH
		Raw Materials	At lower of cost or market value computed on FIFO method.	N.A.	N.A.
		Work in Progress	At lower of cost or market value computed on FIFO method.	N.A.	N.A.
		Finished Goods	At lower of the cost or net realizable value.	N.A.	At lower of the cost or market value computed at weighted average cost.
		Consumables, Stores, Spares, Packing Materials, Totes, Supplies	At lower of cost or market value computed on FIFO method.	N.A.	N.A.
		Scrap	At lower of cost or market value computed on FIFO method.	N.A.	N.A.

Name of Company Uniparts India Ltd Uniparts India Ltd
CIN U74899DL1994PLC061753 U74899DL1994PLC061753
Add Gripwel House, Block 5, C 6 7 Vasant Kunj, New Delhi Gripwel House, Block 5, C 6 7 Vasant Kunj, New Delhi
Type of industry Commercial & Industrial Commercial & Industrial
Period 01-04-2014 to 31-03-2015 01-04-2013 to 31-03-2014
start date 01-04-2014 01-04-2013
end date 31-03-2015 01-04-2014
nature of report Consolidated Consolidated
content Financial Statement Financial Statement
currency INR INR
rounding Actual Actual
cash flow Indirect Method Indirect Method

1.9)Employee Benefits
a) Contributions to Provident Fund which are defined contribution schemes, are made to a government administered Provident Fund and are charged to the Statement of Profit and Loss as incurred. The Company has no further obligations beyond its monthly contributions to these funds.
b)Provision for gratuity and leave encashment, which are in the nature of defined benefit plans, are provided based on actuarial valuations based on projected unit credit method, as at the balance sheet date.

33	Disclosure pursuant to Accounting Standard- 15 (Revised) - "Employee Benefits"
	Details of Long Term Employee Benefits determined by an appointed Actuary are as follows:
						As at 31st March, 2016 (Rs.)	As at 31st March, 2015 (Rs.)
						Funded		Funded
						Gratuity		Gratuity
(i)	Amount to be recognised in the Balance Sheet
	Present Value of Obligations at the end of the year		(95,242,893)		(82,329,792)
	Fair value of Plan Assets at the end of the year		14,867,391		14,144,856
	Net Asset/(Liability) recognised in Balance Sheet		(80,375,502)		(68,184,936)
(ii)	Amount to be recognised in the Statement of Profit & Loss
	Current Service Cost				9,775,314		10,525,854
	Interest on Defined Benefit Obligations			6,495,821		7,611,296
	Expected return on plan assets			(1,116,029)		(1,087,926)
	Net Actuarial Losses/(Gains) Recognised in year		5,822,712		(14,872,269)
	Total, included in "Employee Benefits Expense"		20,977,818		2,176,955
(iii)	Change in Defined Benefit obligation and reconciliation thereof
	Opening Defined Benefit obligation			82,329,792		84,288,985
	Add: Interest Cost				6,495,821		7,611,296
	Add: Current Service Cost			9,775,314		10,525,854
	Less: Benefit Paid				(8,787,252)		(6,233,099)
	Add: Net Actuarial Losses/(Gains) Recognised in year	5,429,218		(13,863,244)
	Closing Defined Benefit obligation			95,242,893		82,329,792
(iv)	Change in the fair value of Plan Assets and the reconciliation thereof
	Opening Fair Value of Plan Assets			14,144,856		12,047,905
	Add: Expected return on Plan Assets			1,116,029		1,087,926
	Add/(Less):Actuarial Losses/(Gains)			(393,494)		1,009,025
	Closing Fair Value of Plan Assets			14,867,391		14,144,856
(v)	Principle Actuarial Assumptions
	Discount Rate				7.72%		7.89%
	Expected Rate of Return on Assets (p.a.)		7.72%		7.89%
	Salary Escalation Rate			4.00%		4.00%
	Other disclosures:
	Particulars	As at 31st March, 2016 (Rs.)	As at 31st March, 2015 (Rs.)	As at 31st March, 2014 (Rs.)	As at 31st March, 2013 (Rs.)	As at 31st March, 2012 (Rs.)
	The brsent value of defined benefit obligation	(95,242,893)	(82,329,792)	(84,288,985)	(83,220,729)		(79,719,326)
	Fair value of plan assets	14,867,391	14,144,856	12,047,905	10,986,191		9,941,592
	Surplus/(deficit)	(80,375,502)	(68,184,936)	(72,241,080)	(72,234,538)		(69,777,734)
	The experience adjustment on plan assets - gain/(loss)	(393,494)	1,009,025	182,819	199,564		(138,198)
	The experience adjustment on plan liabilities - (gain)/loss	4,785,153	(2,518,939)	2,900,888	2,163,617		3,271,211
						As at 31st March, 2016 (Rs.)	As at 31st March, 2015 (Rs.)
						Non-Funded		Non-Funded
						Leave Encashment	Leave Encashment
(i)	Amount to be recognised in the Balance Sheet
	Present Value of Obligations at the end of the year		(26,884,412)		(23,768,644)
	Net Asset/(Liability) recognised in Balance Sheet		(26,884,412)		(23,768,644)
(ii)	Amount to be recognised in the Statement of Profit & Loss
	Current Service Cost				2,919,903		3,599,994
	Interest on Defined Benefit Obligations			1,129,494		1,307,167
	Net Actuarial Losses/(Gains) Recognised in year		5,681,812		2,934,811
	Total, included in "Employee Benefits Expense"		9,731,209		7,841,972
(iii)	Change in Defined Benefit obligation and reconciliation thereof
	Opening Defined Benefit obligation			14,315,514		14,475,830
	Add: Interest Cost				1,129,494		1,307,167
	Add: Current Service Cost			2,919,903		3,599,994
	Less: Benefit Paid				(9,096,863)		(8,002,288)
	Add: Net Actuarial Losses/(Gains) Recognised in year	5,681,812		2,934,811
						14,949,860		14,315,514
	Add: Leave Encashment Provision related to overseas subsidiaries	11,934,552		9,453,130
	Closing Defined Benefit obligation			26,884,412		23,768,644
(iv)	Principle Actuarial Assumptions
	Discount Rate				7.72%		7.89%
	Expected Rate of Return on Assets (p.a.)		N.A.		N.A.
	Salary Escalation Rate			4.00%		4.00%

35	Segment Information as per AS17
(i)	Primary Segment:
	The Company operates only in one business segment i.e. Linkage parts and components for off-Highway vehicles.
(ii)	Secondary Segment:
	The Classification based on the geographical location of the customers are as under:
	Revenue from Operations			For the year ended 31st March, 2016 (Rs.)	For the year ended 31st March, 2015 (Rs.)
	Within India				955,149,833		958,380,900
	Outside India				6,602,820,245		6,827,596,204
	(excluding Deemed Exports)
	Total				7,557,970,078		7,785,977,105
	Carrying amount of Assets*			As at 31st March, 2016 (Rs.)	As at 31st March, 2015 (Rs.)
	Within India				177,500,048		182,063,966
	Outside India				784,326,255		732,370,777
	(excluding Deemed Exports)
	Total				961,826,303		914,434,743
	* Disclosure in respect of carrying amount of Assets has been made to the extent ascertainable.