Good Company (India) LTD - IGAAP Model Financial Statements - March 2019

Good Company (India) Limited
Indian GAAP
Illustrative financial statements for the year
ended 31 March 2019
Based on Accounting Standards and Division I of the Schedule III to the

Companies Act 2013 applicable for the financial year ending 31 March 2019
These illustrative financial statements have been updated for the Companies (Accounting Standards) Amendment Rules, 2018 and
Amendment to Schedule III.
Contents
Introduction 4
Balance Sheet 6
Statement of Profit & Loss 8
Cash Flow Statement 10
Notes to Financial Statements 12
1. Corporate information 12
2. Basis of preparation 12
2.1 Summary of significant accounting policies 12
3. Share capital 27
4. Reserves and surplus 31
5. Long-term borrowings 33
6. Other long-term liabilities 34
7. Provisions 35
8. Short-term borrowings 36
9. Other current liabilities 36
10. Property, Plant and Equipment 38
11. Intangible assets 42
12. Non-current investments 42
13. Deferred tax asset (net) 44
14. Loans and advances 44
15. Trade
receivables Err
or! Bookmark not defined.
16. Other assets 46
17. Current investments 47
18. Inventories (valued at lower of cost and net realizable value) 48
19. Cash and bank balances 49
20. Revenue from operations 49
21. Other income 51
22. Cost of raw material and components consumed 51
23. (Increase)/ decrease in inventories 52
24. Employee benefits expense 53
25. Depreciation and amortization expense 53
26. Finance costs 53
27. Other expenses 54
28. Exceptional items 55
29. Discontinuing operation 56
30. Earnings per share (EPS) 57
31. Gratuity and other post-employment benefit plans 59
Indian GAAP Illustrative financial statements for the year ended 31 March 2019 2
32. Employee stock option plans 61
33. Leases 63
34. Capitalization of expenditure 64
35. Interest in a joint venture 64
36. Accounting for Amalgamation 65
37. Segment information 65
38. Related party disclosures 70
39. Capital and other commitments 74
40. Disclosure required under Sec 186(4) of the Companies Act 2013 74
41. Contingent liabilities 75
42. Utilization of money raised through public issue 75
43. Derivative instruments, foreign currency exposure and risk management 76
44. Deferral/ capitalization of exchange differences 78
45. Subsequent events 78
46. Loans and advances in the nature of loans given to subsidiaries and associates and firms/ companies in which directors are
interested 78
47. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006 79
48. Value of imports calculated on CIF basis 79
49. Expenditure in foreign currency (accrual basis) 79
50. Imported and indigenous raw materials, components and spare parts consumed 80
51. Net dividend remitted in foreign exchange 80
52. Earnings in foreign currency (accrual basis) 80
53. Previous year figures 80
Appendix 1 - Exemptions/ relaxations for SMCs 84
Appendix 2 - Presentation of EBITDA 88
Appendix 3 - Alternate presentation of discontinuing operation 91
Indian GAAP illustrative financial statements for the year ended 31 March 2019 3
Introduction
This publication contains an illustrative set of standalone financial statements for Good Company (India) Limited (the company), as of and
for the year ended 31 March 2019. These illustrative financial statements have been prepared in accordance with Indian GAAP, particularly
notified AS under the Companies (Accounting Standards) Rules, 2006 (as amended from time to time) [hereinafter referred to as the
‘Companies AS Rules’] applicable for financial years ended 31 March 2019 and Division I of Schedule III ( as amended from time to time).
The company is a fictitious public company incorporated under the Companies Act, 1956. Its shares are listed on two stock exchanges in
India. The company is engaged in the manufacturing and selling a reputed brand of refrigerators, washing machines, air conditioners,
microwave ovens and other small electronic appliances. The company caters to both domestic and international markets. The company
operates electronic stores in India wherein all major brands of fast moving consumer goods (FMCG) are available. The company also
provides annual maintenance service for FMCG products.
Objective
This set of illustrative financial statements is prepared to assist audit teams in understanding the presentation and disclosure
requirements that needs to be considered, when client prepare their financial statements under Indian GAAP. The illustration intends to
reflect transactions and disclosures that we consider to be most common and most likely for a broad range of companies. Users of this
publication are encouraged to select disclosures relevant to their circumstances and adjust appropriately. Users should also keep in mind
that other transactions are likely to require additional disclosures.
This set of illustrative financial statements should not be relied upon as a substitute for either detailed professional advice concerning
specific individual situations or for reference to the relevant standards, particularly when uncertainty exists. A company should also
complete updated accounting standards, Schedule III and other disclosure checklists. This set of illustrative financial statements is
intended as an illustrative guide rather than a definitive statement, and should be used in conjunction with the relevant statutory and stock
exchange requirements.
Applicable Indian GAAP

This set of illustrative financial statements is prepared in accordance with Indian GAAP, including, notified AS and the Schedule III, issued
as on 30 November 2018 and applicable for financial years ended 31 March 2019. Companies may note the following key assumptions
used in preparation of illustrative financial statements:
1. This set of illustrative financial statements does not deal with the following notified AS:
 AS 7 Construction Contracts
 AS 21(R) Consolidated Financial Statements
 AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
 AS 25 Interim Financial Reporting
 AS 27 Financial Reporting of Interests in Joint Ventures (to the extent relevant for consolidated financial statements)
2. On 18 June 2018, the Ministry of Corporate Affairs (MCA) notified the Companies (Accounting Standards) Amendments Rules,
2018 for amending the Companies (Accounting Standards) Rules, 2006 (Indian GAAP). It has substituted para 32 of AS 11 ‘The
effects of changes in foreign exchange rates’. The amendment states that remittance from a non-integral foreign operation by
way of repatriation of accumulated profits does not form part of a disposal unless it constitutes return of the investment. This
amendment is applicable for accounting period commencing on or after 1 April 2018. This illustrative financial statements were
not impacted as the result of this amendment.
3. On 30 March 2016, the Ministry of Corporate Affairs (MCA) notified the Companies (Accounting Standards) Amendment Rules,
2016, for amending the Companies (Accounting Standards) Rules, 2006 (Indian GAAP). The amendment rules have replaced AS
10 Accounting for Fixed Assets and AS 6 Depreciation Accounting, with a new AS 10 Property, Plant and Equipment. The
Amendment Rules contain changes in the following Indian GAAP standards:
Good Company (India) Limited 4

 AS 2 Valuation of Inventories
 AS 4 Contingencies and Event Occurring After Balance Sheet Date
 AS 10 Property, Plant and Equipment
 AS 13 Accounting for investments
 AS 14 Accounting for Amalgamations
 AS 21 Consolidated Financial Statements
 AS 29 Provisions, Contingent Liabilities and Contingent Assets
These changes were applicable for accounting period commencing on or after 1 Apr 2016. These illustrative financial statements have
been updated for the above changes.
3. This set of illustrative financial statements is prepared based on the requirements of notified AS applicable to non-SMC. Notified
AS contains exemptions/ relaxations for SMCs. The criteria for identifying SMC and key exemptions/ relaxations available to
them are listed in Appendix 1.
4. Guidance Note on Accounting for Derivative Contracts issued by ICAI is applicable for accounting period beginning on or after 1
April 2016. The illustrative financial statements have been prepared based on the guidance note. Pursuant to the issuance of
this Guidance Note the ICAI has withdrawn the following standards and announcements:
 AS 30 Financial Instruments: Recognition and Measurement, AS 31 Financial Instruments: Presentation and AS 32

Financial Instruments: Disclosures.
 Announcements on applicability of Accounting Standard (AS) 11 (revised 2003), The Effects of Changes in Foreign
Exchange Rates, in respect of exchange differences arising on a forward exchange contract entered into to hedge the foreign
currency risk of a firm commitment or a highly probable forecast transaction issued on the basis of the decision of the
Council at its meeting held on June 24-26, 2004
 Announcement on disclosures regarding Derivative Instruments published in ‘The Chartered Accountant”, December 2005
 Announcement on Accounting for Derivatives published in ‘The Chartered Accountant”, May 2008
These illustrative financial statements have been updated for the above changes.
5. The requirements of pronouncements issued by specific regulatory bodies, e.g., RBI for NBFCs, are not considered in this set of
illustrative financial statements.
6. To a company having turnover of less than INR1,000 million (INR100 crores), the Schedule III allows rounding to the nearest
hundreds, thousands, lakhs or millions, or decimals thereof. To a company having turnover of INR1,000 million (INR100 crores)
or more, the Schedule III allows rounding off to the nearest lakhs, millions or crores, or decimals thereof. The company has
rounded off its financial information to the nearest millions.
Balance sheet as at 31 March 2019
Notes 31 March 2019 31 March 2018 Commented [PS1]: Refer the format of BS
INR millions INR millions
Equity and liabilities SIII.BS.I
Shareholders’ funds SIII.BS.I(1)
Share capital 3 6,200 5,700
Reserves and surplus 4 17,600 12,286
23,800 17,986
Non-current liabilities SIII.BS.I(3)
Long-term borrowings 5 5,336 4,691
Trade payables 6 1,565 1,623
Other long-term liabilities 6 326 308
Long-term provisions 7 2,534 1,851
9,761 8,473
Current liabilities SIII.BS.I(4)
Short-term borrowings 8 2,115 2,690
Trade payables 9
 Total outstanding dues of micro enterprises and small enterprises 42 12
 Total outstanding dues of creditors other than micro enterprises
and small enterprises 6,714 6,530
Other current liabilities 9 1,761 1,549
Short-term provisions 7 672 492
11,304 11,273
TOTAL 44,865 37,732
Assets SIII.BS.II
Non-current assets SIII.BS.II(1)
Property, Plant and Equipment 10 7,838 8,028

Intangible assets 11 315 332
Capital work-in-progress 535 1,012
Intangible assets under development 12 19
Non-current investments 12 564 627
Deferred tax assets (net) 13 10 351 AS 22.30
Loans and advances 14 4,747 3,894
Trade receivables 15 1,037 757
Other non-current assets 16 335 356
15,393 15,376
Current assets SIII.BS.II(2)
Current investments 17 432 181
Inventories 18 13,198 10,772
Trade receivables 15 12,788 7,846
Cash and bank balances 19 2,209 2,591
Loans and advances 14 800 895
Other current assets 16 45 71
29,472 22,356
TOTAL 44,865 37,732
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.
Commentary

Balance sheet as at 31 March 2019
Section 134(1) states that the financial statement shall be approved by the Board of Directors. They are to be signed on behalf of the
Board at least by
(a) the chairperson of the company where he is authorised by the Board or by two directors out of which one shall be managing
director; and
a. the Chief Executive Officer,
b. the Chief Financial Officer and
c. the company secretary of the company,
wherever they are appointed.
The Schedule III allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the face of the financial
statements when such presentation is relevant to an understanding of the company’s financial position or performance or to cater to
industry/sector-specific disclosure requirements. Accordingly, the company has elected to present non-current trade receivables and
non-current trade payables separately on the face of the balance sheet.
The Schedule III requires “Share application money pending allotment” to be disclosed as a separate line-item on the face of the balance
sheet between the heads “Shareholders’ funds” and “Non-current liabilities.” Non-refundable portion of share application money is
disclosed under this line-item. Refundable portion of the share application money, i.e., the amount in excess of subscription or if
minimum subscription requirement is not met, is disclosed under the head “Other current liabilities.” A company, which has received
share application money pending allotment, whether refundable or otherwise, needs to disclose, among other matters, its terms and
conditions, the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares will be
allotted.
If a company has net deferred tax liability, i.e., after offsetting deferred tax assets in accordance with AS 22, then it will disclose the same
as “non-current liability,” after the line item “long-term borrowings.
Based on Schedule III, AS 10(R), EAC opinion and ASB comments on accounting issues, more than one view seems possible with regard
to presentation of fixed assets held for sale, e.g., inclusion in fixed assets and disclosure in the note, separate presentation on the face of
the balance sheet and presentation as current assets. The company has elected to include fixed assets held for sale as part of fixed assets
and give separate disclosure in note.
Statement of profit and loss for the year ended 31 March 2019
Notes 31 March 2019 31 March 2018
INR millions INR millions Commented [PS2]: Refer the format of PL
Continuing operations
Income
Revenue from operations (gross) 77,606 74,366 SIII.PL.I
Less: excise duty 4,136 AS 9.10
Revenue from operations (net) 20 77,606 70,230 AS 9.10

Other income 21 594 491 SIII.PL.II
Total revenue (I) 78,200 70,721 SIII.PL.III
Expenses SIII.PL.IV
Cost of raw material and components consumed 22 44,904 43,474
Purchase of traded goods 23 7,718 5,648
(Increase)/ decrease in inventories of finished goods, work-in-
23 (2,068) (2,558)
progress and traded goods
Employee benefits expense 24 12,486 10,695
Depreciation and amortization expense 25 615 543
Finance costs 26 663 480
Share of (profit)/ loss from investment in partnership firm (1) (2)
Other expenses 27 8,616 7,567
Exceptional items 28 - 340 SIII.PL.VI
Profit/(loss) before tax 5,267 4,534 SIII.PL.IX
Tax expenses SIII.PL.X

Current tax
Pertaining to profit/(loss) for the current period 1,298 1,200
Adjustment of tax relating to earlier periods 45 23
Deferred tax 341 266
Total tax expense 1,684 1,489
Profit/(loss) for the year from continuing operations 3,583 3,045 SIII.PL.XI
(A)
Discontinuing operations 29 AS 24.32
Profit/(loss) before tax from discontinuing operations 6 63 SIII.PL.XII

Tax expense of discontinuing operations 2 22 SIII.PL.XIII
Profit/(loss) after tax from discontinuing operations SIII.PL.XIV
(B) 4 41
Profit/(loss) for the year (A+B) 3,587 3,086 SIII.PL.XV
Earnings per equity share [nominal value of share 30 SIII.PL.XVI AS

20.48
INR10 (31 March 2018: INR10]
Basic AS 20.8
Computed on the basis of profit from continuing operations INR6.76 INR5.78
Computed on the basis of total profit for the year INR6.77 INR5.86
Diluted AS 20.8
The accompanying notes are an integral part of the financial statements.

Commentary
The Schedule III allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the face of the financial
statements when such presentation is relevant to an understanding of the company’s financial position or performance or to cater to
industry/sector-specific disclosure requirements. For example, considering the flexibility, GNSIII allows a company to present EBITDA as a
separate line item on the face of the statement of profit and loss. If a company elects to present EBIDTA as separate line item, GNSIII
requires that the company discloses policy for measurement. Also, the method of computation adopted by the company should be
followed consistently. The company has not elected to present EBITDA as separately line item on the face of statement of profit and loss.
However, in appendix 2, an illustrative statement of profit and loss which contains a separate line item for EBITDA.
AS 5 requires that the nature and amount of prior period items should be separately disclosed in the statement of profit and loss in a
manner that their impact on the current profit or loss can be perceived. Accordingly, a company may disclose prior period items, if any, as
a separate line item on the face of the statement of profit and loss. Alternatively, it may include the same in other line items of the
statement of profit and loss with a relevant disclosure, e.g., employee benefit expense (including prior period INRXX).
The following two options seem possible with regard to presentation of profit or loss from discontinuing operations:
i. On the face of the statement of profit and loss, "Profit/ (loss) before tax" is arrived at by deducting total expenses from total
revenue, pertaining to both continuing and discontinuing operations. Profit/ (loss) before tax is then analyzed between profit (loss)
from continuing operations and profit (loss) from discontinuing operations and the income-tax expense associated with each
constituent is shown as deduction there from. The aggregate of profit/ (loss) after tax from continuing operations and from
discontinuing operations is shown as "profit/ (loss) for the year." The breakup of revenue and expenses into continuing operations
and discounting operations (along with other disclosures required by AS 24) is made in the notes.
ii. Revenue and expenses pertaining to continuing operations are reported on the face of the statement of profit and loss. In respect
of discontinuing operations, only the profit (loss) before tax, associated tax expense and profit (loss) after tax are reported on the
face of the statement, with revenue and expenses relating to discontinuing operations being disclosed in the notes.
The company has elected second option with regard to presentation of the statement of profit and loss. In Appendix 3, an illustrative
statement of profit and loss (with relevant note) using option 1 is given.
AS 20.50 allows a company to present basic and diluted EPS computed using a reported component of net profit/ (loss), other than net
profit/ (loss) for the year, as an additional information. The company has elected to present additional EPS information for profit/ (loss)
from continuing operations.
If a company pays current tax under Section 115JB of Income-tax Act, 1961 and recognizes MAT credit entitlement in accordance with the
Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under Income Tax Act, 1961 , it makes the
following disclosure in the year of MAT payment:
Current tax (MAT payable) XX
Less: MAT credit entitlement (XX)
Net current tax expense XX
MAT credit entitlement is disclosed under the head “loans and advances.”
Cash flow statements for the year ended 31 March 2019
31 March 2019 31 March 2018
INR millions INR millions Commented [PS3]: Refer Cash flow for format
Cash flow from operating activities AS 3.8
AS 3.18(b)
Profit before tax from continuing operations 5,267 4,534
Profit before tax from discontinuing operations 6 63
Profit before tax 5,273 4,597
Adjustment to reconcile profit before tax to net cash flows AS 3.20(b)
Depreciation/ amortization on continuing operations 615 543
Depreciation/ amortization on discontinuing operations 20 20
Impairment/ other write off on tangible/ intangible assets pertaining to 350 -
continuing operation
Impairment/ other write off on tangible/ intangible assets pertaining to 50 -
discontinuing operation
Loss/ (profit) on sale of property, plant and equipment 2 1
Provision for diminution in value of investments in subsidiary company 15 -
Provision for diminution in value of investments (current plus other long 17 9
term)
Employee stock compensation expense 2,369 1,907
Unrealized foreign exchange loss 38 29
Premium on forward exchange contract amortized 4 4
Amortization of ancillary cost 2 2
Net (gain)/ loss on sale of current investments (250) (121)
Interest expense 589 411 AS 3.20(c)
Interest (income) (113) (104) AS 3.20(c)
Dividend (income) (86) (90) AS 3.20(c)
Operating profit before working capital changes 8,894 7,206
Movements in working capital : AS 3.20(a)
Increase / (decrease) in trade payables 96 160
Increase / (decrease) in provisions 863 1,248
Increase / (decrease) in other current liabilities 130 641
Decrease / (increase) in trade receivables (5,155) (4,688)
Decrease / (increase) in inventories (2,426) (2,248)
Decrease / (increase) in loans and advances (822) (887)
Decrease / (increase) in other current assets 21 182
Cash generated from /(used in) operations 1,601 1,614
Direct taxes paid (net of refunds) (1,334) (1,163) AS 3.34
Net cash flow from/ (used in) operating activities (A) 267 451
Cash flows from investing activities AS 3.8

Purchase of property, plant and equipment, including CWIP and capital (96) (159) AS 3.15(a)
advances
Proceeds from sale of property, plant and equipment 4 9 AS 3.15(b)
Proceeds of non-current investments - 6 AS 3.15(c)
Purchase of non-current investments (3) -
Purchase of current investments (377) (6) AS 3.15(c)
Proceeds from sale/maturity of current investments 410 366 AS 3.15(d)
Investments in bank deposits (having original maturity of more than three (832) (537) AS 3.15(c)
months)
Redemption/ maturity of bank deposits (having original maturity of more 767 565 AS 3.15(d)
than three months)
Purchase consideration for amalgamation (note 36) (267) - AS 3.38(a)
Interest received 71 104 AS 3.30
Dividends received from subsidiary company 20 - AS 3.30
Dividends received 86 90 AS 3.30
Net cash flow from/ (used in) investing activities (B) (217) 438
Cash flows from financing activities AS 3.8
Proceeds from issuance of equity share capital 1,250 - AS 3.17(a)
Proceeds from issuance of preference share capital - 2,500 AS 3.17(a)
Proceeds from long-term borrowings 1,025 35 AS 3.17(b)
Repayment of long-term borrowings (311) (186) AS 3.17(c)

Cash flow statements for the year ended 31 March 2019
31 March 2019 31 March 2018
INR millions INR millions Commented [PS3]: Refer Cash flow for format
Proceeds from short-term borrowings 658 718 AS 3.17(b)
Repayment of short-term borrowings (1,233) (620) AS 3.17(c)
Interest paid (640) (494) AS 3.30
Dividend paid on equity shares (1,040) (940) AS 3.30
Dividend paid on preference shares (35) - AS 3.30
Tax on equity dividend paid (177) (160) AS 3.30
Tax on preference dividend paid (6) - AS 3.30
Net cash flow from/ (used in) in financing activities (C) (509) 853
Net increase/(decrease) in cash and cash equivalents (A + B + (459) 1,742

C)
Effect of exchange differences on cash & cash equivalents held in foreign (2) - AS 3.25
currency
Cash and cash equivalents at the beginning of the year 2,362 620
Cash and cash equivalents at the end of the year 1,901 2,362
Components of cash and cash equivalents AS 3.42

Cash on hand 29 1
Cheques / drafts on hand 3 2
With banks- on current account 1,508 2,174
- on deposit account 350 174
- unpaid dividend accounts* 7 6
- unpaid matured deposits* 4 3
- unpaid matured debentures* - 2
Total cash and cash equivalents (note 19) 1,901 2,362
* The company can utilize these balances only toward settlement of the respective unpaid dividend, unpaid matured
AS 3.45
deposits and unpaid matured debenture liabilities.
Notes to financial statements for the year ended 31 March 2019
1. Corporate information
Good Company (India) Limited (the company) is a public company domiciled in India. Its shares are listed on two stock
exchanges in India. The company is engaged in the manufacturing and selling a reputed brand of refrigerators, washing
machines, air conditioners, microwave ovens and other small electronic appliances. The company caters to both domestic
and international markets. The company also operates electronic stores in India wherein all major brands of fast moving
consumer goods (FMCG) are available. The company also provides annual maintenance service for FMCG products.
2. Basis of preparation CA 2013 – 133
The financial statements of the company have been prepared in accordance with the generally accepted accounting
principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects
with the accounting standards notified under section 133 of the Companies Act 2013 read together with the Companies
(Accounting Standards) Amendment Rules, 2006 (as amended from time to time). The financial statements have been
prepared on an accrual basis and under the historical cost convention, except for derivative financial instruments which
have been measured at fair value.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year,
except for the change in accounting policy explained below.
2.1 Summary of significant accounting policies AS 1.24
Change in accounting policy AS 1.26

AS 5.32
I. Accounting for amalgamation in the nature of purchase
The company accounts for all amalgamations in the nature of purchase using the purchase method as prescribed in AS
14(R) Accounting for Amalgamations. Till the previous year, the company followed the policy of recognizing assets and
liabilities acquired in an amalgamation in the nature of purchase at their existing carrying amounts in the financial
statements of transferor company. In the current year, the company changed its accounting policy from the carrying value
method to the fair value method, i.e., fair value of the assets and liabilities acquired. The management believes that such
change better reflects the allocation of consideration paid for the acquisition and resultant goodwill/ capital reserve. The
management has decided to apply the revised accounting policy to all acquisitions made on or after 1 April 2017.
Had the company continued to use the earlier basis of accounting for amalgamations in the nature of purchase, its fixed
and other assets on the amalgamation date would have been lower by the following amounts:
Assets INR millions

Land 18
Buildings 4
Patents 20
Brands/ trademarks 35
Technical knowhow 16
Total 93
Consequently, its goodwill arising on amalgamation would have been higher by INR93 million. This change in the value of
the assets and goodwill arising on amalgamation will consequently impact depreciation/ amortization expense for the
current and subsequent years.
(a) Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the
management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could
result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
(b) Property, Plant and Equipment AS 10.81(a) (R)

AS10.16(R)
Property, plant and equipment, capital work in progress are stated at cost, net of accumulated depreciation and AS 10.17(R)
accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are
met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of
decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the AS 10.12 (R)
purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of AS 10.13 (R)
property, plant and equipment are required to be replaced at intervals, the Company depreciates them separately based
on their specific useful lives. 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 stores and spares that meet the definition of property, plant and equipment are capitalized at cost and AS 10.8(R)
depreciated over their useful life. Otherwise, such items are classified as inventories.
The company adjusts exchange differences arising on translation/ settlement of long-term foreign currency monetary
items pertaining to the acquisition of a depreciable asset to the cost of the asset and depreciates the same over the
remaining life of the asset. In accordance with MCA circular dated 09 August 2012, exchange differences adjusted to the AS 11.46A
cost of fixed assets are total differences, arising on long-term foreign currency monetary items pertaining to the
acquisition of a depreciable asset, for the period. In other words, the company does not differentiate between exchange
differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost
and other exchange difference.
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when
the asset is derecognized. AS 10.79(R)
The company identifies and determines cost of each component/ part of the asset separately, if the component/ part has
a cost which is significant to the total cost of the asset and has useful life that is materially different from that of the
remaining asset.
Property, plant and equipment held for sale is valued at lower of their carrying amount and net realizable value. Any write-
down is recognized in the statement of profit and loss. AS 10.73(R)
(a) Depreciation on property, plant and equipment SII

AS 10.62(R)
Leasehold land is amortized on a straight line basis over the period of lease, i.e., 80 years. AS 10.81(b) (R)
AS 10.81(c) (R)
Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at, based on
the useful lives estimated by the management. The identified components are depreciated separately over their useful
lives; the remaining components are depreciated over the life of the principal asset. The company has used the following
rates to provide depreciation on its property, plant and equipment.
Useful lives estimated by the management (years)

Factory buildings 15-30
Other buildings 60
Plant and equipments 15 – 20
Furniture and fixtures 8
Office equipment 8
Vehicles 5
Leasehold improvements 4 or the life based on lease period, whichever is lower
The management has estimated, supported by independent assessment by professionals, the useful lives of the following
classes of assets.
 The useful lives of certain plant and equipment and office equipment are estimated as 20 years and 8 years,
respectively. These lives are higher than those indicated in schedule II.
 Furniture and fixtures and vehicles are depreciated over the estimated useful lives of 8 years and 5 years,
respectively, which are lower than those indicated in schedule II.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
(b) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in AS 26.23
an amalgamation in the nature of purchase is their fair value as at the date of amalgamation. Following initial recognition, AS 26.27
intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Internally
generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in
the statement of profit and loss in the year in which the expenditure is incurred.
Intangible assets are amortized on a straight line basis over the estimated useful economic life. The company uses a AS 26.63
rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is AS 26.83
available for use. If the persuasive evidence exists to the affect that useful life of an intangible asset exceeds ten years, the
company amortizes the intangible asset over the best estimate of its useful life. Such intangible assets and intangible
assets not yet available for use are tested for impairment annually, either individually or at the cash-generating unit level.
All other intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be
impaired.
The amortization period and the amortization method are reviewed at least at each financial year end. If the expected
useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If
there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method
is changed to reflect the changed pattern. Such changes are accounted for in accordance with AS 5 Net Profit or Loss for AS 26.78
the Period, Prior Period Items and Changes in Accounting Policies.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is
derecognized.
Research and development costs AS 26.88
Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized as an
intangible asset when the company can demonstrate all the following:
 The technical feasibility of completing the intangible asset so that it will be available for use or sale
 Its intention to complete the asset
AS 26.41
 Its ability to use or sell the asset AS 26.44

 How the asset will generate future economic benefits
 The availability of adequate resources to complete the development and to use or sell the asset
 The ability to measure reliably the expenditure attributable to the intangible asset during development.
Following the initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset
to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset
begins when development is complete and the asset is available for use. It is amortized on a straight line basis over the
period of expected future benefit from the related project, i.e., the estimated useful life of ten years. Amortization is
recognized in the statement of profit and loss. During the period of development, the asset is tested for impairment
annually.
AS 26.90
A summary of amortization policies applied to the company’s intangible assets is as below:
Rates (SLM)
Goodwill 20%
Brands/ trademarks 10%
Patents and intellectual property rights (IPR) 10%
Technical know now 20%
Computer software 25%
AS 26.90
(c) Leases
Where the company is lessee
Finance leases, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of AS 19.11
the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the leased property and AS 19.16
present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction
of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges
are recognized as finance costs in the statement of profit and loss. Lease management fees, legal charges and other
initial direct costs of lease are capitalized.
A leased asset is depreciated on a straight-line basis over the useful life of the asset. However, if there is no reasonable
certainty that the company will obtain the ownership by the end of the lease term, the capitalized asset is depreciated on a AS 19.18
straight-line basis over the shorter of the estimated useful life of the asset or the lease term.
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are
classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss
on a straight-line basis over the lease term.
AS 19.23
Where the company is the lessor
Leases in which the company transfers substantially all the risks and benefits of ownership of the asset are classified as AS 19.26
finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment AS 19.31
in the lease. After initial recognition, the company apportions lease rentals between the principal repayment and interest
income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of the finance
lease. The interest income is recognized in the statement of profit and loss. Initial direct costs such as legal costs,
brokerage costs, etc. are recognized immediately in the statement of profit and loss.
Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Assets subject to operating leases are included in property, plant and equipment. Lease
income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. AS 19.39
Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as AS 19.40
legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss. AS 19.41
AS 19.42
(d) Borrowing costs
Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowings.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective
asset. All other borrowing costs are expensed in the period they occur. AS 16.6
Commentary
The company has used option given in paragraph 46A of AS 11 to defer capitalized exchange difference on long term foreign currency
monetary items. If the company had not applied this option, the words “exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost " will be added to the first sentence in the accounting policy. In such a
case, the company will also make appropriate changes in other accounting policies, e.g. Tangible assets and Foreign currency translation,
and the concerned notes.
(e) Impairment of property, plant and equipment’s and intangible assets
The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any AS 28.4
indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s AS 28.6
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) net selling AS 28.25
price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not AS 28.47
generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying AS 28.57
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using AS 28.64
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining net selling price, recent market transactions are taken into account, if available. If no such
transactions can be identified, an appropriate valuation model is used.
The company bases its impairment calculation on detailed budgets and forecast calculations which are prepared
separately for each of the company’s cash-generating units to which the individual assets are allocated. These budgets
and forecast calculations are generally covering a period of five years. For longer periods, a long term growth rate is
calculated and applied to project future cash flows after the fifth year.
Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit
and loss.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment
losses may no longer exist or may have decreased. If such indication exists, the company estimates the asset’s or cash-
generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change
in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The
reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the AS 28.61
asset in prior years. Such reversal is recognized in the statement of profit and loss.
AS 28.98
AS 28.101
(f) Government grants and subsidies
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the company will AS 12.13
comply with the conditions attached to them, and (ii) the grant/subsidy will be received.
When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit
and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where AS 12.14
the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the
expected useful life of the related asset.
Where the company receives non-monetary grants, the asset is accounted for on the basis of its acquisition cost. In case a
non-monetary asset is given free of cost, it is recognized at a nominal value.
AS 12.17
Government grants of the nature of promoters’ contribution are credited to capital reserve and treated as a part of the
shareholders’ funds
AS 12.16
(g) Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such AS 13.3
investments are made, are classified as current investments. All other investments are classified as long-term
investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable AS 13.28
acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of AS 13.29
shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in
exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by
reference to the fair value of the investment acquired, whichever is more clearly evident.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to AS 13.31
recognize a decline other than temporary in the value of the investments. AS 13.32
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
AS 13.34
Investment property
An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the operations of, AS 13.3(R)
the company, is classified as investment property. Investment properties are stated at cost, net of accumulated AS 10.5(R)
depreciation and accumulated impairment losses, if any. AS 10.33(R)
The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of
bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are
deducted in arriving at the purchase price.
Depreciation on building component of investment property is calculated on a straight-line basis using the rate arrived at
based on the useful life estimated by the management. The company has used the depreciation rate of 2.5%. The
company based on technical assessment from the professionals and management estimate depreciates the investment
property over the estimated useful life of 40 years which is higher than the useful life prescribed in schedule II for “Factory
Building”.
The company identifies and determines cost of component of building significant to the total cost of the asset having
useful life that is materially different from that of the remaining asset. The identified components are depreciated over
their useful lives; the remaining asset is depreciated over the life of the principal asset.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
(h) Inventories
Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However, materials
AS 2.5(R)
and other items held for use in the production of inventories are not written down below cost if the finished products in
AS 2.16(R)
which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores
AS 2.24(R)
and spares is determined on a weighted average basis. Stores and spares which do not meet the definition of property,
AS 2.4(R)
plant and equipment are accounted as inventories.
AS 2.5(R)
Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials
and labour and a proportion of manufacturing overheads based on normal operating capacity.. Cost is determined on a
weighted average basis.
Traded goods are valued at lower of cost and net realizable value. Cost includes cost of purchase and other costs incurred
AS 2.3(R)
in bringing the inventories to their present location and condition. Cost is determined on a weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and estimated costs necessary to make the sale.
(i) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Sale of goods AS 9.11
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been
passed to the buyer, usually on delivery of the goods. The company collects Goods and Service Tax (GST) and sales taxes
and value added taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the
company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) in previous year is the
amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.
Income from services

Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when services are
rendered. The company collects service tax on behalf of the government and, therefore, it is not an economic benefit AS 9.12
flowing to the company. Hence, it is excluded from revenue.
Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head “other income” in the statement of profit and loss.
Dividends
Dividend income is recognized when the company’s right to receive dividend is established by the reporting date. AS 9.13
AS 9.13
(j) Foreign currency translation
Foreign currency transactions and balances

AS 11.9
(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) Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary
AS 11.11
items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange
rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation
denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
(iii) Exchange differences
The company accounts for exchange differences arising on translation/ settlement of foreign currency monetary items as
below:
1. Exchange differences arising on a monetary item that, in substance, forms part of the company’s net investment
in a non-integral foreign operation is accumulated in the foreign currency translation reserve until the disposal AS 11.15
of the net investment. On the disposal of such net investment, the cumulative amount of the exchange
differences which have been deferred and which relate to that investment is recognized as income or as AS 11.46A
expenses in the same period in which the gain or loss on disposal is recognized.
2. Exchange differences arising on long-term foreign currency monetary items related to acquisition of a property,
plant and equipment and intangible assets are capitalized and depreciated over the remaining useful life of the AS 11.13
asset.
AS 11.36
3. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the AS 11.38
“Foreign Currency Monetary Item Translation Difference Account” and amortized over the remaining life of the
concerned monetary item.
4. All other exchange differences are recognized as income or as expenses in the period in which they arise.
For the purpose of 2 and 3 above, the company treats a foreign monetary item as “long-term foreign currency monetary
item”, if it has a term of 12 months or more at the date of its origination. In accordance with MCA circular dated 09 August
2012, exchange differences for this purpose, are total differences arising on long-term foreign currency monetary items
for the period. In other words, the company does not differentiate between exchange differences arising from foreign
currency borrowings to the extent they are regarded as an adjustment to the interest cost and other exchange difference.
(iv) Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/ liability
The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an
expense/ income over the life of the contract. Exchange differences on such contracts, except the contracts which are
long-term foreign currency monetary items, are recognized in the statement of profit and loss in the period in which the
exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also
recognized as income or as expense for the period. Any gain/ loss arising on forward contracts which are long-term foreign
currency monetary items is recognized in accordance with paragraph (iii)(2) and (iii)(3).
Translation of integral and non-integral foreign operation
The company classifies all its foreign operations as either “integral foreign operations” or “non-integral foreign
operations.”
The financial statements of an integral foreign operation are translated as if the transactions of the foreign operation have AS 11.21
been those of the company itself.
The assets and liabilities of a non-integral foreign operation are translated into the reporting currency at the exchange rate AS 11.24
prevailing at the reporting date. Their statement of profit and loss are translated at exchange rates prevailing at the dates
of transactions or weighted average weekly rates, where such rates approximate the exchange rate at the date of
transaction. The exchange differences arising on translation are accumulated in the foreign currency translation reserve.
On disposal of a non-integral foreign operation, the accumulated foreign currency translation reserve relating to that
foreign operation is recognized in the statement of profit and loss.
AS 11.31
When there is a change in the classification of a foreign operation, the translation procedures applicable to the revised
classification are applied from the date of the change in the classification.
AS 11.33
(k) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other
than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund
scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for
service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the
contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent
that the pre payment will lead to, for example, a reduction in future payment or a cash refund.
The company operates two defined benefit plans for its employees, viz., gratuity and post employment medical benefit AS 15.120(a)
liability. The costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-
end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and
losses for both defined benefit plans are recognized in full in the period in which they occur in the statement of profit and
loss.
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit.
The company measures the expected cost of such absences as the additional amount that it expects to pay as a result of
the unused entitlement that has accumulated at the reporting date.
The company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred. The company presents the leave as a current liability in the balance
sheet, to the extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date.
Where company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months,
the same is presented as non-current liability.
The company recognizes termination benefit as a liability and an expense when the company has a present obligation as a
result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. If the termination benefits fall due more
than 12 months after the balance sheet date, they are measured at present value of future cash flows using the discount
rate determined by reference to market yields at the balance sheet date on government bonds.
(l) Income taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the AS 22.9
tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax AS 22.20
jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity
is recognized in equity and not in the statement of profit and loss. ICAI Ann DT
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating
during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates AS 22.9
and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized AS 22.21
directly in equity is recognized in equity and not in the statement of profit and loss.
ICAI Ann DT
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible
timing differences 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 realized. In situations where the company has unabsorbed AS 22.15
depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by AS 22.17
convincing evidence that they can be realized against future taxable profits.
In the situations where the company is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India or tax
laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability) is recognized in
respect of timing differences which reverse during the tax holiday period, to the extent the company’s gross total income is
subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the AS 22.13
tax holiday period is recognized in the year in which the timing differences originate. However, the company restricts
recognition of deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may
be, that sufficient future taxable income will be available against which such deferred tax assets can be realized. For
recognition of deferred taxes, the timing differences which originate first are considered to reverse first.
At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred
tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future
taxable income will be available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying
amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be,
that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write- AS 22.19
down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient
future taxable income will be available
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 tax assets and deferred taxes relate to the same taxable entity and the AS 22.26
same taxation authority.
AS 22.29
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company GN.MAT
recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay
normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the
year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of
credit to the statement of profit and loss and shown as “MAT Credit Entitlement.” The company reviews the “MAT credit
entitlement” asset at each reporting date and writes down the asset to the extent the company does not have convincing
evidence that it will pay normal tax during the specified period.
(m) Employee stock compensation cost SEBI.ESOP

GN.ESOP
Employees (including senior executives) of the company receive remuneration in the form of share based payment
transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions).
In accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and
the Guidance Note on Accounting for Employee Share-based Payments, the cost of equity-settled transactions is
measured using the intrinsic value method. The cumulative expense recognized for equity-settled transactions at each
reporting date until the vesting date reflects the extent to which the vesting period has expired and the company’s best
estimate of the number of equity instruments that will ultimately vest. The expense or credit recognized in the statement of
profit and loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that
period and is recognized in employee benefits expense.
Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as
if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any
modification that increases the total intrinsic value of the share-based payment transaction, or is otherwise beneficial to
the employee as measured at the date of modification.
(n) Segment reporting
Identification of segments
The company’s operating businesses are organized and managed separately according to the nature of products and AS 17.19
services provided, with each segment representing a strategic business unit that offers different products and serves
different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the
company operate.
Inter-segment transfers
The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.
Allocation of common costs

AS 17.53
Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total
common costs.
Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to any business segment.
AS 17.37
Segment accounting policies

The company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the company as a whole.
AS 17.37
(o) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders AS 20.11
(after deducting preference dividends and attributable taxes) by the weighted average number of equity shares AS 20.19
outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they AS 20.22
are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted AS 20.23
average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element AS 20.26
in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity
shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares. AS 20.10
(p) Provisions
AS 29.14(R)
A provision is recognized when the company has a present obligation as a result of past event, it is probable that an AS 29.35(R)
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be AS 29.52(R)
made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on
the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting
date and adjusted to reflect the current best estimates.
Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of profit and loss net of any reimbursement.
Warranty provisions
Provisions for warranty-related costs are recognized when the product is sold or service provided. Provision is based on
historical experience. The estimate of such warranty-related costs is revised annually.
(q) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the AS 29.10(R)
occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence
in the financial statements.
(r) Cash and cash equivalents AS 3.5
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term AS 3.6
investments with an original maturity of three months or less.
(s) Derivative instruments and hedge accounting
GN.ADC
The company uses derivative financial instruments, such as, foreign currency forward contracts to hedge foreign currency
risk arising from future transactions in respect of which firm commitments are made or which are highly probable forecast
transactions. It also uses interest rate swaps to hedge interest rate risk arising from variable rate loans. The company
designates these forward contracts and interest rate swaps in a hedging relationship by applying the hedge accounting
principles as set out in the Guidance note on Accounting for Derivative Contracts issued by ICAI.
For the purpose of hedge accounting, hedges are classified as:
1. Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an
GN.ADC.26
unrecognized firm commitment
2. Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the
foreign currency risk in an unrecognized firm commitment
3. Hedges of a net investment in a foreign operation
At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which
the company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the
hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of
GN.ADC.42
the risk being hedged and how the company will assess the effectiveness of changes in the hedging instrument’s fair value
in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such
hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on
an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for
which they were designated.
Hedges that meet the strict criteria for hedge accounting are accounted for as described below:
Fair value hedges
The change in the fair value of a hedging derivative is recognized in the statement of profit and loss. The change in the fair
value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is
also recognized in the statement of profit and loss.
When an unrecognized firm commitment is designated as a hedged item, the subsequent cumulative change in the fair
GN.ADC.27
value of the firm commitment attributable to the hedged risk is recognized as an asset or liability with a corresponding
gain or loss recognized in the statement of profit and loss.
Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognized directly under shareholders fund in the
hedging reserve, while any ineffective portion is recognized immediately in the statement of profit and loss.
The company uses foreign currency forward contracts as hedges of its exposure to foreign currency risk in forecasted
transactions and firm commitments. The ineffective portion relating to foreign currency contracts is recognized
immediately in the statement of profit and loss.
Amounts recognized in the hedging reserve are transferred to the statement of profit and loss when the hedged
transaction affects profit or loss, such as when the hedged income or expense is recognized or when a forecast sale GN.ADC.34-35
occurs.

If the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss previously
recognized in the hedging reserve is transferred to the statement of profit and loss. If the hedging instrument expires or is
sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, any cumulative
gain or loss previously recognized in the hedging reserve remains in the hedging reserve until the forecast transaction or
firm commitment affects profit or loss.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of
the net investment, are accounted for in a way similar to cash flow hedges. Gains or losses on the hedging instrument
relating to the effective portion of the hedge are recognized as hedging reserve while any gains or losses relating to the
ineffective portion are recognized in the statement of profit and loss. On disposal of the foreign operation, the cumulative
value of any such gains or losses recorded in hedging reserve is transferred to the statement of profit and loss.
Presentation of derivative contracts in the financial statement GN.ADC.39
Derivative assets and liabilities recognized on the balance sheet are presented as current and non-current based on the
following considerations:
• Derivatives that are hedges of recognized assets or liabilities are classified as current or non-current based on GN.ADC.41
the classification of the hedged item.
• Derivatives that are hedges of forecasted transactions and firm commitments are classified as current or non-
current based on the settlement date / maturity dates of the derivative contracts.
• Derivatives that have periodic or multiple settlements such as interest rate swaps are not bi-furcated into GN.ADC.62
current and non-current elements. Their classification is based on when a predominant portion of their cash
flows are due for settlement as per their contractual terms.
(t) Amalgamation accounting
The company treats an amalgamation in the nature of merger if it satisfies all the following criteria: AS 14.29(R)
(i) All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of
the transferee company.
(ii) Shareholders holding not less than 90% of the face value of the equity shares of the transferor company (other
than the equity shares already held therein, immediately before the amalgamation, by the transferee company
or its subsidiaries or their nominees) become equity shareholders of the transferee company.
(iii) The consideration for amalgamation receivable by those equity shareholders of the transferor company who
agree to become shareholders of the transferee company is discharged by the transferee company wholly by the
issue of equity shares, except that cash may be paid in respect of any fractional shares.
(iv) The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee
company.
(v) The transferee company does not intend to make any adjustment to the book values of the assets and liabilities
of the transferor company, except to ensure uniformity of accounting policies.
All other amalgamations are in the nature of purchase.
The company accounts for all amalgamations in the nature of merger using the pooling of interest method. The application
of this method requires the company to recognize any non-cash element of the consideration at fair value. The company
recognizes assets, liabilities and reserves, whether capital or revenue, of the transferor company at their existing carrying AS 14.12(R)
amounts and in the same form as at the date of the amalgamation. The balance in the statement of profit and loss of the
transferor company is transferred to the general reserve. The difference between the amount recorded as share capital
issued, plus any additional consideration in the form of cash or other assets, and the amount of share capital of the
transferor company is adjusted in reserves.
An amalgamation in the nature of purchase is accounted for using the purchase method. The cost of an acquisition/
amalgamation is measured as the aggregate of the consideration transferred, measured at fair value. Other aspects of
accounting are as below:
(i) The assets and liabilities of the transferor company are recognized at their fair values at the date of
amalgamation. The reserves, whether capital or revenue, of the transferor company, except statutory reserves,
are not recognized.
(ii) Any excess consideration over the value of the net assets of the transferor company acquired is recognized as
goodwill. If the amount of the consideration is lower than the value of the net assets acquired, the difference is
treated as capital reserve. AS 14.36(R)
(iii) The goodwill arising on amalgamation is amortized to the statement of profit and loss on a systematic basis over
its useful life not exceeding five years.
AS 14.37(R)
AS 14.38(R)

3. Share capital
31 March 2019 31 March 2018
Authorized shares (No. millions) GIBS.6A(a)
2,000 (31 March 2018: 2,000) equity shares of INR10/- each 20,000 20,000
100 (31 March 2018: 100) 7% cumulative convertible preference shares 1,000 1,000
(CCPS) of INR10/- each
Issued, subscribed and fully paid-up shares (No. millions) GIBS.6A(b)

570 (31 March 2018: 520) equity shares of INR10/- each 5,700 5,200
50 (31 March 2018: 50) 7% CCPS of INR10/- each 500 500
Total issued, subscribed and fully paid-up share capital 6,200 5,700
(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period GIBS.6.A(d)
Equity shares
31 March 2019 31 March 2018
No. millions INR millions No. millions INR millions
At the beginning of the period 520 5,200 470 4,700
Issued during the period – Bonus issue - - 50 500
Issued during the period – ESOP 50 500 - -
Outstanding at the end of the period 570 5,700 520 5,200
Preference shares
31 March 2019 31 March 2018
No. millions INR millions No. millions INR
millions
At the beginning of the period 50 500 - -
Issued during the period - - 50 500
Outstanding at the end of the period 50 500 50 500
(b) Terms/ rights attached to equity shares GIBS.6.A(e)

The company has only one class of equity shares having par value of INR10 per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March 2019, the amount of per share dividend recognized as distributions to equity
shareholders was2 (31 March 2018: INR2).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
(c) Terms of conversion/ redemption of CCPS GIBS.6.A.j

During the year ended 31 March 2018, the company issued 50 million CCPS of INR10 each fully paid-up at a premium
of INR40 per share. CCPS carry cumulative dividend @ 7% p.a. The company declares and pays dividends in Indian
rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting. Each holder of CCPS is entitled to one vote per share only on resolutions placed before the
company which directly affect the rights attached to CCPS.
Each holder of CCPS can opt to convert its preference shares into equity share after the end of 3rd year from the date of
Issue, viz., 3 April 2017, till the end of 7th year from the date of issue. If the holder exercises its conversion option, the
company will issue 1 equity shares for each preference share held.
If CCPS holders do not exercise conversion option, all preference shares are redeemable at par at the end of 7th year
from the date of issue. In the event of liquidation of the company before conversion/ redemption of CCPS, the holders
of CCPS will have priority over equity shares in the payment of dividend and repayment of capital.
(d) Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates GIBS.6.A.f
Out of equity and preference shares issued by the company, shares held by its holding company, ultimate holding
company and their subsidiaries/ associates are as below:
31 March 2019 31 March 2018

All nos. in millions INR millions INR millions
Holding Limited, the holding company
310 (31 March 2018: 310) equity shares of INR10 each fully paid 3,100 3,100
35 (31 March 2018: 35) 7% CCPS of INR10 each fully paid
350 350
Father Limited, the ultimate holding company
50 (31 March 2018: 50) equity shares of INR10 each fully paid 500 500
15 (31 March 2018: 15) 7% CCPS of INR10 each fully paid
150 150
DEF Private Limited, associate of Father Limited
10 (31 March 2018: 10) equity shares of INR10 each fully paid 100 100
Commentary
In accordance with the Guidance Note on the Schedule III to the Companies Act, 2013, shares held by the entire chain of
subsidiaries and associates starting from the holding company and ending right up to the ultimate holding company needs
to be disclosed. This disclosure needs to be made separately for each class of shares, both within equity and preference
shares. However, a company may aggregate shares held under each class by category of relationship, such as holding
company, ultimate holding company, subsidiaries of holding company, subsidiaries of ultimate holding company,
associates of holding company and associates of ultimate holding company.
(e) Aggregate number of bonus shares issued, shares issued for consideration other than cash and GIBS.6.A.i
shares bought back during the period of five years immediately preceding the reporting date:
31 March 2019 31 March 2018

No. millions No. millions
Equity shares allotted as fully paid bonus shares by capitalization of 50 50
securities premium
Equity shares allotted as fully paid-up pursuant to contracts for 10 10
consideration other than cash
Equity shares bought back by the company 50 50
In addition, the company has issued total 50 shares (31 March 2018: nil) during the period of five years immediately
preceding the reporting date on exercise of options granted under the employee stock option plan (ESOP) wherein part
consideration was received in form of employee services.

(f) Details of shareholders holding more than 5% shares in the company GIBS.6.A.g
Name of the shareholder As at 31 March 2019 As at 31 March 2018

No. millions % holding in No. millions % holding in
the class the class
Equity shares of INR10 each fully paid
Holding Limited, holding company 310 54.39% 310 59.62%
Father Limited, ultimate holding company 50 8.77% 50 9.61%
ABC Limited 40 7.01% 40 7.69%
CCPS of INR10 each fully paid

Holding Limited, holding company 35 70.00% 35 70.00%
Father Limited, ultimate holding company 15 30.00% 15 30.00%
As per records of the company, including its register of shareholders/ members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of
shares.
(g) Shares reserved for issue under options GIBS.6.A.h
For details of shares reserved for issue under the employee stock option (ESOP) plan of the company, please refer note 32.
For details of shares reserved for issue on conversion of CCPS, please refer note 3 (c) regarding terms of conversion/
redemption of preference shares.
For details of shares reserved for issue on conversion of bonds/ debentures, please refer note 5.1 regarding terms of
conversion/ redemption of bonds.
GIBS.6.U
(h) Proposed dividends on Equity shares:
31 March 2019 31 March 2018 AS 4. 8.5 (R)
The board proposed dividend on equity shares and preference shares after the
balance sheet date
Proposed dividend on equity shares for the year ended on 31 March 2019: INR2 1,140 1,040
per share (31 March 2018: INR2 per share)
DDT on proposed dividend 189 177
Proposed dividend on preference shares for the year ended on 31 March 2019: 35 35
INR0.7 per share (31 March 2018: INR 0.7)
DDT on proposed preference dividend 6 6
1,370 1,258
Commentary
Any dividend proposed or declared after the balance sheet date is treated as non-adjusting event, unless a statute requires
otherwise. However, company will need to disclose the same in notes to the financial statements.

4. Reserves and surplus
31 March 2019 31 March 2018 GIBS.6.B
Capital reserve 11 11
Capital redemption reserve 50 50
Securities premium account

Balance as per the last financial statements 2,052 552
Add: premium on Issue of CCPS - 2,000
Add: additions on ESOPs exercised 750 -
Add: transferred from stock options outstanding 650 -
Less: amounts utilized toward issue of fully paid bonus shares - (500)
Closing Balance 3,452 2,052
Debenture redemption reserve

Balance as per the last financial statements 250 125
Add: amount transferred from surplus balance in the statement of profit 125 125
and loss
Closing Balance 375 250
Revaluation reserve AS 10.85(e) (R)

Less: amount adjusted against land and building pursuant to applicability (106) -
of AS-10 (R)
Closing Balance - 106
Cash flow hedge reserve (refer note 43)

Gains/(losses) arising during the year
Foreign currency forward contract (19) 55
Reclassification adjustments included in the statement of profit and loss (9) (29)
Closing Balance 22 50
Employee stock options outstanding

Balance as per the last financial statements 3,973 2,066
Add/(less): Compensation options granted during the year 2,369 1,907
Less: transferred to securities premium on exercise of stock options (650) -
General reserve
Balance as per the last financial statements 1,188 482
Add: amount transferred from surplus balance in the statement of profit 1,107 706
and loss
Surplus/ (deficit) in the statement of profit and loss

Balance as per last financial statements 4,606 3,451
Profit for the year 3,587 3,086
Less: Appropriations
Final equity dividend INR (1,040) (940) GIBS.6.U
Tax on final equity dividend (177) (160)
Dividend on preference shares INR (35) GIBS.6.U
Tax on preference dividend (6)
Transfer to debenture redemption reserve (125) (125)
Transfer to general reserve (1,107) (706)
Total appropriations (2,490) (1,931)
Net surplus in the statement of profit and loss 5,703 4,606
Total reserves and surplus 17,600 12,286
Commentary
The Schedule III requires that debit balance in the statement of profit and loss, if any, will be shown as a negative figure GIBS.6.B.iii
under the head “reserves and surplus.” Similarly, any negative balance of total “reserves and surplus,” after adjusting
negative balance of the surplus, will be shown under the head “reserves and surplus,” and not on the asset side.
The adjustment due to ESOP cancelled during the year is nil (31 March 2018: nil), since actual forfeitures are in line with
the expected forfeitures estimated at the grant date. However, if the actual forfeitures are not in line with the expected
forfeitures, “compensation on ESOP cancelled during the year” will be disclosed as a separate line item under the head
“Employee stock option outstanding.”
Foreign Currency Monetary Item Translation Difference Account
ICAI vide the announcement dated April 1, 2013 has decided that debit or credit balance in FCMITDA should be shown on
the “Equity and Liabilities” side of the balance sheet under the head ‘Reserves and Surplus’ as a separate line item.

5. Long-term borrowings
Non-current portion Current maturities GIBS.6.C
31 March 31 March 31 March 31 March
2019 2018 2019 2018
INR millions INR millions INR millions INR
millions
Bonds/ debentures
0.25 million (31 March 2018: 0.25 million) 8% 250 250 - -
Optionally convertible bonds (OCB) of INR1,000
each (secured)
75 million (31 March 2018: 75 million) 10% 750 750 - -
redeemable debentures of INR10 each
(unsecured)
40 million (31 March 2018: 40 million), 9% 300 400 100 -
redeemable bonds of INR10 each (secured)
Term loans
Indian rupee loan from banks (secured) 1,250 1,375 125 125
Foreign currency loan from banks (secured) 475 445 - -
From financial institutions (secured) 700 800 100 100
Other loans and advances

Finance lease obligation (secured) 31 41 10 11
Deferred sales tax loan (unsecured) 450 525 75 75
Deposits (unsecured)
Deposits from shareholders 130 105 - -
Deposits from public 1,000 - - -
5,336 4,691 410 311
The above amount includes
Secured borrowings 3,006 3,311 335 236
Unsecured borrowings 2,330 1,380 75 75
Amount disclosed under the head “other current (410) (311)
liabilities” (note 9)
Net amount 5,336 4,691 - -
1. The OCB holders have an option to convert their bonds into equity shares within ten years from the date of allotment GIBS.6.C.iv
viz., 1 June 2015. The holder can also opt to convert these bonds into equity shares earlier; however, no conversion
will take place before the end of fifth year from the date of allotment. Each bond is convertible into 20 equity shares of
INR10 each fully paid. The bonds not converted by the end of tenth year will be redeemed at par. These bonds are
secured by mortgage/charge on the machinery at Tarapore plant, except the machinery acquired under finance lease
on which the bondholders have the second charge.
2. 10% Debentures are redeemable at par at the end of nine years from the date of allotment, viz., 1 June 2015. The GIBS.6.C.iv
company has an option to redeem these debentures earlier; however, no redemption will take place before the end of
5th year from the date of allotment.
3. 9% bonds are redeemable at par in four installments of 25% each beginning the end of fourth year from the date of GIBS.6.C.iv
allotment, viz., 1 June 2014. These bonds are secured by mortgage/ charge on the plant and machinery at Hazira
AS 10.82(a)
plant, except the machinery acquired under finance lease on which the bondholders have the second charge, valuing
(R)
INR446 million (31 March 2018: INR446 million).
4. Indian rupee loan from bank carries interest @ 9% p.a. The loan is repayable in 12 yearly installments of INR125 GIBS.6.C.vi
million each along with interest, from the date of loan, viz., 1 February 2017. The loan is secured by hypothecation of
inventory and trade receivables of the company pertaining to manufacturing division. Further, the loan has been
guaranteed by the personal guarantee of the managing director of the company.
5. Foreign currency loan carries fixed interest @ 5.5%. The loan is repayable after 6 years from the date of its origination, GIBS.6.C.vi
viz., 1 April 2014. The loan is secured against the plant and machinery at Golkunda plant, except the machinery
AS 10.82(R)
acquired under finance lease on which the lender has the second charge, valuing INR524 million (31 March 2018:
INR524 million). Further, the loan has been guaranteed by the personal guarantee of non-executive director of Father
Limited, the ultimate holding company.
6. Term loan from financial institutions was taken during the financial year 2015–16 and carries interest @ 8% to 10% GIBS.6.C.vi
p.a. The loan is repayable in 20 half yearly installments of INR50 million each along with interest, from the date of
loan. The loan is secured by hypothecation of inventory and trade receivables of the company pertaining to trading
business. Further, the loan has been guaranteed by the corporate guarantee of Father Limited, the ultimate holding
company.
7. Finance lease obligation is secured by hypothecation of plant and machinery taken on lease. The interest rate implicit GIBS.6.C.vi
in the lease is 12% p.a. The gross investment in lease, i.e., lease obligation plus interest, is payable in 6 annual
installments of approx. INR12.5 million each.
8. Deferred sales tax loan is interest free and payable in 48 quarterly installments of INR18.75 million each, starting GIBS.6.C.vi
from 30 June 2014.
9. Deposits from shareholders carry interest @10% p.a. and are repayable after 3 years from the respective dates of GIBS.6.C.vi
deposit.
10. Deposits from public carry interest @ 10% p.a. and are repayable after 3 years from the date of deposit, viz., 1 GIBS.6.C.vi
September 2017.
Commentary
The Schedule III, among other matters, requires that borrowings will be further sub-classified as secured and unsecured. It GIBS.6.C(ii)
also requires that bond / debentures will be stated in the descending order of maturity or conversion starting from the GIBS.6.C(iv)
farthest redemption or conversion date, as the case may be.
The Schedule III requires that the period and amount of continuing default as on the reporting date in repayment of loans GIBS.6.C(vii)
and interest will be specified separately in each case. The company does not have any continuing defaults in repayment of
loans and interest as at the reporting date.
The Guidance Note on the Schedule III to the Companies Act, 2013 clarifies that the nature of security will be specified GN.SIII
separately in each case. A blanket disclosure of different securities covering all loans classified under the same head such
as ”all term loans from banks” is not sufficient compliance with the disclosure requirements. However, where one security
is given for multiple loans, the same may be clubbed together for disclosure purposes with adequate details or cross
referencing. The company has only one loan in each line item. Hence, security disclosure made is in compliance with the
Schedule III.
Rule 16A of the Companies (Acceptance of Deposits) Amendment Rules, 2016 requires a public company to disclose in
notes of its financial statement about money received from the directors as deposits. The rule requires every private
company to disclose in notes of its financial statement about the money received from the directors, or relatives of
directors as deposits.
6. Other long-term liabilities

31 March 2019 31 March 2018 GIBS.6.D
Trade payables (refer note 46 for details of dues to micro and small 1,565 1,623
enterprises)

Others
Advance from customers 228 208
Unearned revenue 98 100
326 308
1,891 1,931
7. Provisions
Long-term Short-term GIBS.6.E
31 March 31 March 31 March 31 March GIBS.6.H
2019 2018 2019 2018
INR INR
millions millions
Provision for employee benefits
Provision for post-employment medical benefits 339 197 - -
(note 31)
Provision for gratuity (note 31) 1,919 1,433 - -
Provision for leave benefits 10 8 83 81
2,268 1,638 83 81
Other provisions
Provision for warranties 266 213 341 310
Provision for litigations - - 175 -
Derivative liability (mark-to-market losses on - - 73 101
derivative contracts)
266 213 589 411
2,534 1,851 672 492
Provision for warranties

A provision is recognized for expected warranty claims on products sold during the last two years, based on past AS 29.67(R)
experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the
next financial year and all will have been incurred within two years after the reporting date. Assumptions used to calculate
the provision for warranties were based on current sales levels and current information available about returns based on
the two-year warranty period for all products sold. The table below gives information about movement in warranty
provisions.
31 March 2019 31 March 2018 AS 29.66(R)

At the beginning of the year 523 522
Arising during the year 393 341
Utilized during the year (287) (325)
Unused amounts reversed (22) (15)
At the end of the year 607 523
Current portion 341 310
Non-current portion 266 213
Provision for litigations
During the year ended 31 March 2018, the Income Tax Officer (ITO) raised a demand for INR250 million toward additional AS 29.67(R)
income tax payable for assessment year 2015-16 on account of disallowances of certain expenses incurred at. The
company has been contesting this claim and was of the view that the demand raised by the ITO was not tenable. To
support its view, the company had also obtained legal opinion. Hence, it had not created provision toward this liability in
the year ended 31 March 2018. The Commissioner (Appeals) heard the matter during the current year and decided the
case against the company. Although the company continues to contest the case in the high court, the management now
believes that outflow of resources embodying economic benefits is probable and the estimated amount of outflow is
INR175 million. Hence, the company has created a provision ofINR175 million toward the obligation.
AS 29.66(R)
8. Short-term borrowings
GIBS.6.F
31 March 2019 31 March 2018
Cash credit from banks (secured) 1,495 1,890
10% loan from ABZ Finance Private Limited repayable on demand 250 300
(unsecured)
Interest free loan and advances from related parties repayable on demand 220 350
(unsecured) (refer note 38)
Deposits (unsecured)
10% Inter-corporate deposit repayable on demand 150 150
2,115 2,690
The above amount includes
Secured borrowings 1,495 1,890
Unsecured borrowings 620 800
Cash credit from banks is secured against margin money deposits, investment property, intangible assets except goodwill GIBS.6.F.ii
and second charge on all trade receivables. The cash credit is repayable on demand and carries interest @ 9% to 11% p.a.
9. Other current liabilities

GIBS.6.FA/G
31 March 2019 31 March 2018
Trade payables
 total outstanding dues of micro enterprises and small 42 12
enterprises(refer note 46 for details of dues to micro and small
enterprises)
 total outstanding dues of creditors other than micro enterprises 6,714 6,530
and small enterprises
6,756 6,542
Other liabilities
Current maturities of long-term borrowings (note 5) (Includes current 410 311
maturity of finance lease obligation INR10 million (31 March 2018: INR11
million))
Interest accrued but not due on borrowings 8 7
Interest accrued and due on borrowings 1 1
Unearned revenue on AMC services 176 164
Investor Education and Protection Fund will be credited by following
amounts (as and when due)

Unpaid dividend 7 6
Unpaid matured deposits 4 3
Unpaid matured debentures - 2
Others
Interest free deposits from customers* 96 103
Service tax payable 73 62
TDS payable 986 890
1,761 1,549
8,517 8,091
*Customer deposits are repayable within 6 – 9 months from the reporting date on completion of supply contracts.
Commentary
VOL 31 – 18 EAC opinion, Disclosure of ‘buyer’s credit’ and ‘supplier’s credit - As per the opinion buyer’s credit and
supplier’s credit which are in the nature of a ‘loan’ and are also secured by charge, should be disclosed under the head
‘Secured Loans’ in the balance sheet of the company. Hence, buyer’s credit and supplier’s credit, including acceptances,
which in substance arise in the nature of loan, cannot be shown under the head “Trade Payables”
10. Property, Plant and Equipment

Land Buildings Plant and Furniture Office Vehicles Leasehold Total AS 10.81(R)
equipment and fixtures equipment improveme GIBS.6.I
nts
Cost or valuation
At 1 April 2017 2,318 1,944 4,690 553 61 71 175 9,812
Additions 80 280 564 77 9 - 27 1,037
Disposals - - - - - (50) - (50)
Other adjustments
– Exchange differences - - 4 - - - - 4
- Borrowing costs - 40 33 - - - - 73
At 31 March 2018 2,398 2,264 5,291 630 70 21 202 10,876
Additions - - 800 18 2 45 2 867
Acquisitions through amalgamation (note 36) 42 28 58 5 - - - 133
Disposals (36) (70) (36) - - - - (392)
Other adjustments
– Exchange differences - - 6 - - - - 6
- Borrowing costs - - 60 - - - - 60
At 31 March 2019 2,404 2,222 5,929 653 72 66 204 11,550
Depreciation
At 1 April 2017 20 434 1,819 90 10 37 42 2,452
Charge for the year 1 53 242 71 8 14 47 436 AS 10.83(a) (R)
Disposals - - - - - (40) - (40)

21 487 2,061 161 18 11 89 2,848 AS 10.83(b) (R)
At 31 March 2018
Charge for the year 1 57 287 77 8 13 51 494 AS 10.83(a) (R)
Disposals - - (30) - - - - (30)

22 544 2,318 238 26 24 140 3,312 AS 10.83(b) (R)
At 31 March 2019
Impairment loss
At 1 April 2017 - - - - - - - -
At 31 March 2018 - - - - - - - -

Land Buildings Plant and Furniture Office Vehicles Leasehold Total AS 10.81(R)
equipment and fixtures equipment improveme GIBS.6.I
nts
Charge for the year - - 400 - - - - 400
At 31 March 2019 - - 400 - - - - 400
Net Block
At 31 March 2018 2,377 1,777 3,230 469 52 10 113 8,028
At 31 March 2019 2,382 1,678 3,211 415 46 42 64 7,838
(INR millions)
1. Building includes INR150 (31 March 2018: INR150) representing cost of unquoted fully paid shares held in various co-operative housing societies.
2. Capitalized borrowing costs
The borrowing cost capitalized during the year ended 31 March 2019 was INR52 (31 March 2018: INR81). The company capitalized this borrowing cost in the capital work- AS 16.23
in-progress (CWIP). The amount of borrowing cost shown as other adjustments in the above note reflects the amount of borrowing cost transferred from CWIP.
3. Land includes land held on leasehold basis: AS 19.22

Gross block INR80 (31 March 2018: INR80) GIBS.6.I.ii
Depreciation charge for the year INR1 (31 March 2018: INR1)
Accumulated depreciation INR22 (31 March 2018: INR21)
Net book value INR58 (31 March 2018: INR59)
Building includes those constructed on leasehold land:

Gross block INR30 (31 March 2018: INR30)
Depreciation charge for the year INR0.5 (31 March 2018: INR0.5)
Accumulated depreciation INR11 (31 March 2018: INR10.5)
Net book value INR19 (31 March 2018: INR19.5)
4. Plant and equipment includes plant taken on finance lease: AS 19.22

Depreciation charge for the year INR11.3 (31 March 2018: INR11.3)
Accumulated depreciation INR50.7 (31 March 2018: INR39.4)
Net book value INR175.3 (31 March 2018: INR186.6)
5. Plant and equipment includes plant given on operating lease: AS 19.46

6. Plant and equipment includes plant held for sale: AS 10.82(e) (R)
Impairment loss INR50 (31 March 2018: INR Nil)
7. Furniture and fixtures includes furniture held for sale: AS 10.82(e) (R)
Depreciation charge for the year INR4(31 March 2018: INR4)
8. In the current year, the company has recognized the following impairment loss on write-down of certain plant and equipment to the recoverable amount. AS 28.117 AS
28.121
Home appliance segment: INR350
Furniture division (discontinuing operation): INR50
Total INR400
In case of home appliance segment, the availability of modern technology triggered this impairment loss. The recoverable amount was based on value in use and was
determined at the level of the cash-generating unit. The cash-generating unit consisted of the refrigerator manufacturing unit at Hazira. In determining value in use for
the cash-generating unit, the cash flows were discounted at a rate of 15.4% on a pre-tax basis.
The impairment loss, in case of furniture division is recognized on account of management’s decision to disinvest the same. The company written-down these assets to
the net realizable value (net selling price)
The losses have been recognized in the statement of profit and loss under the head “other expenses”.

Commentary
Based on Schedule III, AS 10(R), EAC opinion and ASB comments on accounting issues, more than one view seems possible with regard to presentation of fixed a ssets held for
sale, e.g., inclusion in fixed assets and disclosure in the note, separate presentation on the face of the bala nce sheet and presentation as current assets. The company has elected
to include fixed assets held for sale as part of fixed assets and give separate disclosure in note.
11. Intangible assets
(INR millions)
Goodwill Brands/ Patents Technical Computer Total GIBS.6.J
trademarks and IPR know now software AS 26.90
Gross block
At 1 April 2017 248 - - 90 38 376
Purchase - - - - 134 134
Internal development - - - - 40 40
At 31 March 2018 248 - - 90 212 550
Purchase - - - 8 8
Acquisitions through
44 35 20 16 - 115
amalgamation (note36)
At 31 March 2019 292 35 20 106 220 673
Amortization
At 1 April 2017 75 - - 18 19 112
Charge for the year 50 - - 18 38 106
At 31 March 2018 125 - - 36 57 218
Charge for the year 58 4 2 21 55 140
At 31 March 2019 183 4 2 57 112 358
Net block
At 31 March 2018 123 - - 54 155 332
At 31 March 2019 109 31 18 49 108 315
Intangible assets given as security AS 26.94I
Intangible assets, except goodwill, with a carrying amount of INR206 million (31 March 2018: INR209 million) are subject
to first charge to secure the company’s cash credit loans.
12. Non-current investments

GIBS.6.K
31 March 2019 31 March 2018
Investment property (at cost less accumulated depreciation) GIBS.6.K.i
Cost of land and building given on operating lease 90 90
Less: Accumulated depreciation (12) (11)
Net block 78 79
Trade investments (valued at cost unless stated otherwise)

Unquoted equity instruments
Investment in subsidiaries
1 million (31 March 2018: 1 million) Equity shares of INR100 each fully 100 100
paid-up in C Limited
7.5 million (31 March 2018: 7.5 million) equity shares of INR10 each 60 75
fully paid-up in Rofil Investments Limited
(At cost less provision for other than temporary diminution in value
INR15 million (31 March 2018: nil))
Investment in joint ventures

31 March 2019 31 March 2018
3.5 million (31 March 2018: 3.5 million) equity shares of INR10 each 35 35
fully paid-up in E-age Ltd
Investment in associates
45 million (31 March 2018: 45 million) shares of INR2 each partly paid- 45 45
up @ INR1per share in Brother Ltd
25% (31 March 2018: 25%) share in the partnership firm ASQ [Includes 11 10
accumulated share of profit INR6 million (31 March 2018: INR5
million)]
251 265
Non-trade investments (valued at cost unless stated

otherwise)
Investment in equity instruments (quoted)
2 million (31 March 2018: 2 million) equity shares of INR5 each fully 7 8
paid-up in Rox Limited
(At cost less provision for other than temporary diminution INR3 million
(31 March 2018:INR2 million))
Preference shares (unquoted) - 50

Nil (31 March 2018: 4 million) 13.5% Preference shares of INR 10 each
fully paid-up in Mark Capital Limited.
These shares are redeemable on 1 June 2014 at a premium of INR2.5
per share.
Government and trust securities (unquoted)

Investment in government securities 28 25
Debentures (quoted) 200 200

2 million (31 March 2018: 2 million) 12% Secured redeemable non-
convertible debentures of INR100 each partly paid-up in Amol Limited.
235 283
564 627
Aggregate amount of quoted investments (Market value: INR212 million 207 208 GIBS.6.K.iii
(31 March 2018: INR220 million)) AS13.35(e)
Aggregate amount of unquoted investments 279 340

Value of investment property 78 79
Aggregate provision for diminution in value of investments 18 2
Investment property given as security AS 13.35(d)

Investment property with a carrying amount of INR78 million (31 March 2018: INR79 million) are subject to first charge to
secure the company’s cash credit loans.
Details of investments in partnership firms GIBS.6.K.i

Investment in ASQ
Name of Partner 31 March 2019 31 March 2018
Share of partner in profits (%)
Good Company (India) Ltd 25 25
Mr. Q 50 50
Mr. R 25 25
Total capital of the firm (INRmillion) 44 40
13. Deferred tax asset (net)

31 March 2019 31 March 2018
Deferred tax liability
Property, plant and equipment and intangible assets: Impact of difference 1,284 832
between tax depreciation and depreciation/ amortization charged for the
financial reporting
Others 149 156
Gross deferred tax liability 1,433 988
Deferred tax asset

Impact of expenditure charged to the statement of profit and loss in the 234 218
current year but allowed for tax purposes on payment basis
Provision for diminution in the value of investments 11 3
Provision for doubtful debts and advances 620 534
Provision for warranties 196 169
Provision for litigations 52 -
Others 330 415
Gross deferred tax asset 1,443 1,339
Net deferred tax asset 10 351
14. Loans and advances

GIBS.6.L
GIBS.6.R
Non-current Current
2019 2018 2019 2018
INR millions INR millions INR INR millions
millions
Capital advances
Secured, considered good 81 125 - - GIBS.6.L.ii
Unsecured, considered good 30 39 - -
111 164 - -
Security deposit
Secured, considered good 49 117 20 22
Unsecured, considered good 237 334 25 73
Doubtful 5 6 - -
291 457 45 95
Provision for doubtful security deposit (5) (6) - - GIBS.6.L.iii
286 451 45 95
Loan and advances to related parties - - 107 102 GIBS.6.L.i.c

GIBS.6.R.i.a
(note 38)
Unsecured, considered good
Advances recoverable in cash or kind

Non-current Current
2019 2018 2019 2018
INR millions INR millions INR INR millions
millions
Secured considered good 2,403 1,412 212 293
Unsecured considered good 1,680 1,628 150 107
Doubtful 20 19 3 4
4,103 3,059 365 404
Provision for doubtful advances (20) (19) (3) (4)
4,083 3,040 362 400
Other loans and advances Unsecured, GIBS.6.L.i.d

GIBS.6.R.i.b
considered good
Advance income-tax (net of provision for - - 228 239
taxation)
Prepaid expenses - - 1 14
Loans to employees 38 28 57 45
Balances with statutory / government 224 206 - -
authorities
Others (refer note 40) 5 5
267 239 286 298
Total 4,747 3,894 800 895
Commentary
The following disclosure is given in the year in which MAT credit is set-off.
Provision for tax XX
Less : MAT credit set-off XX XX
Loans and advances due by officers, etc. GIBS.6.L.iv

GIBS.6.R.iv
Non-current Current
2019 2018 2019 2018
INR millions INR millions INR millions INR millions
Loans to employees include
Dues from officers 31 20 34 30
GIBS.6.M
GIBS.6.S
31 March 31 March GIBS.6.P
2019 2018
Non-current
31 March 31 March GIBS.6.P
2019 2018
Secured, considered good 374 350
Unsecured, considered good 663 407
Doubtful 1,609 1,282
2,646 2,039
Provision for doubtful receivables (1,609) (1,282)
1,037 757
Current
Outstanding for a period exceeding six months from the date they are
due for payment
Secured, considered good 242 765
Unsecured, considered good 723 932
Doubtful 233 342
1,198 2,039
Provision for doubtful receivables (233) (342)
965 1,697
Other receivables
Secured, considered good 3,725 1,322
Unsecured, considered good 8,098 4,827
Doubtful 50 2
11,873 6,151
Provision for doubtful receivables (50) (2)
11,823 6,149
12,788 7,846
Trade receivables include: GIBS.6.M.iii.iii

Non-Current Current GIBS.6.P.iv
2019 2018 2019 2018
INR millions INR INR millions INR
millions millions
Due from non-executive directors 2 2 5 5
Due from officers 1 1 3 4
Due from non-executive directors and officers 4 2 8 5
jointly with other persons
Dues from partnership firm (PQR) in which the 8 6 20 15
company’s non-executive director is a partner
Dues from XYZ Pvt. Ltd. in which the company’s 12 11 21 16
non-executive director is a director
15. Other assets

Non-current Current
2019 2018 2019 2018
Unsecured, considered good
unless stated otherwise
GIBS.6.M.ii
Non-current bank balances (note 19) 169 183
Unamortized expenditure
Unamortized premium on forward contract 8 12 4 4
Ancillary cost of arranging the borrowings 7 8 2 3
Derivative assets
Forward contracts - - 1 5
Interest rate swap 14 34 7 11
29 54 14 23
GIBS.6.M.ii
Others
Interest accrued on fixed deposits 34 16 10 5
Interest accrued on investments 40 21 - -
Dividend receivable on investments in - - - 20
subsidiaries - long term
Others 63 82 21 23
137 119 31 48
335 356 45 71
16. Current investments

GIBS.6.N
31 March 2019 31 March 2018
Current portion of long-term investments (valued at cost) GIBS.6.N.i
31 March 2019 31 March 2018
Preference shares (unquoted) 50 -
4 million (31 March 2018: nil) 13.5% preference shares of INR10 each
fully paid in Mark Capital Limited
These shares are redeemable on 1 June 2018 at a premium of INR2.5 per
share. **
Current investments (valued at lower of cost and fair value, unless stated GIBS.6.N.i
otherwise)
Quoted equity instruments

2 million (31 March 2018: 3 million) shares of INR10 each fully paid-up in 27 37
KFC Investments Limited
Unquoted government or trust securities

7.25% 6 months government securities 225 -
Unquoted bonds
Nil (31 March 2018: 12 million) Short-term Bonds of INR10 each fully - 126
paid #
13 million (31 March 2018: Nil) Short-term Infra Bonds of INR10 each 110 -
fully paid ##
Unquoted mutual funds

2 million (31 March 2018: 1.8 million) units of INR10 each fully paid-up 20 18
of AXZ Mutual Fund
432 181
GIBS.6.N.ii AS
13.35(e)
Aggregate amount of quoted investments (Market value INR44 millions 27 37
(31 March 2018: INR42 millions))
Aggregate amount of unquoted investments 405 144
# Aggregate provision for diminution in value of investments - 8
## Aggregate provision for diminution in value of investments 16 -
** in earlier years, the company had invested in 4 million preference shares of Mark Capital Limited with an intention of
holding the same for more than one year from the date on which such investments was made. Accordingly, it classified the
same as long-term investment under AS 13 Accounting for Investments. Since the shares are redeemable on 1 June 2019,
the company does not have an intention to hold the investment for more than 12 months as at 31 March 2019. Hence, the
company has presented its investment in preference shares as “current investment” in the financial statements for the
year ended 31 March 2019. However, for measurement purposes, the investment continues to be treated as long-term
investment.
17. Inventories (valued at lower of cost and net realizable value)

31 March 2019 31 March 2018 GIBS.6.O
INR millions INR millions AS 2.27(R)
Raw materials and components (includes in transit INR450 millions (31

March 2018: INR472 millions)) (refer note 22) 2,660 2,318
Work-in-progress (refer note 23) 1,550 1,108

31 March 2019 31 March 2018 GIBS.6.O
INR millions INR millions AS 2.27(R)
Finished goods (refer note 23) 6,890 6,126
Traded goods (including stock-in-transit INR252 millions (31 March 1,854 992
2018: INR128 millions)) (refer note 23)
Stores and spares 202 196
Loose tools 42 32
13,198 10,772
18. Cash and bank balances

GIBS.6.Q
Non-current Current
31 March 31 March 31 March 31 March 2018
2019 2018 2019
GIBS.6.Q.i
Cash and cash equivalents
Balances with banks:
– On current accounts 1,508 2,174
– Deposits with original maturity of less 350 174
than three months
– On unpaid dividend account 7 6 GIBS.6.Q.ii
Cheques/ drafts on hand 3 2

Unpaid matured deposits 4 3
Unpaid matured debentures - 2
Cash on hand 29 1
1,901 2,362
GIBS.6.Q.i.d
Other bank balances
– Deposits with remaining maturity for 37 29 - - GIBS.6.Q.v
more than 12 months

– Deposits with remaining maturity for less - - 308 229
than 12 months
– Margin money deposit 132 154 - - GIBS.6.Q.iii
169 183 308 229

Amount disclosed under non-current assets
(note 16) (169) (183)
- - 2,209 2,591
GIBS.6.Q.iii
Margin money deposits given as security AS 3.45
Margin money deposits with a carrying amount of INR132 million (31 March 2018: INR154 million) are subject to first
charge to secure the company’s cash credit loans.
Commentary
The ICAI has issued a Clarification regarding Applicability of MCA Notification no. G.S.R. 307(E) and G.S.R. 308(E)
dated. 30 March 2017 on ‘Specified Bank Notes (SBN)’ transactions. In its clarification, ICAI has stated that since SBN
disclosures was event specific, disclosure requirement relating to SBNs are not applicable for the Financial Year 2017-18
& subsequent years
19. Revenue from operations

GIPL.2.A
31 March 2019 31 March 2018
Revenue from operations
Sale of products
Finished goods 64,078 61,223
Traded goods 9,522 8,703
Sale of services 3,774 4,236
Other operating revenue
Scrap sales 96 77
Other 136 127
Revenue from operations (gross) 77,606 74,366 AS 9.10
Less: Excise duty* # 4,136 AS 9.10
Revenue from operations 77,606 70,230 AS 9.10
# Excise duty on sales amounting to INR NIL (31 March 2018: INR4,136 million) has been reduced from sales in profit &
loss account and excise duty on increase/decrease in stock amounting to INR NIL (31 March 2018: INR109 million) has
been considered as (income)/expense in note 27 of financial statements.
* Revenue from operations for periods up to 30 June 2017 includes excise duty. From 1 July 2017 onwards the excise duty
and most indirect taxes in India have been replaced Goods and Service Tax (GST). The group collects GST on behalf of the
Government. Hence, GST is not included in Revenue from operations. In view of the aforesaid change in indirect taxes,
Revenue from operations for the year ended 31 March 2019 is not comparable with 31 March 2018.
Detail of products sold GIPL.5.ii.d

31 March 2019 31 March 2018
Finished goods sold
Refrigerator 22,482 20,203
Washing machine 13,722 14,081
Air conditioner 14,408 12,857
Microwave oven 10,291 7,347
Other electronic appliances 3,175 6,735
64,078 61,223
Traded goods sold
Television 3,523 3,046
Spare parts 1,333 1,305
Other electronic appliances 1,047 783
9,522 8,703
73,600 69,926
Detail of services rendered GIPL.5.ii.d

Particulars 31 March 2019 31 March 2018
AMC services 3,774 4,236
3,774 4,236
Commentary

The Schedule III does not define the term “other operating revenue.” In accordance with the ICAI Guidance Note on GN.SIII
Schedule III, this item includes revenue arising from a company’s operating activities, either principal or ancillary;
however, which is not revenue arising from the sale of products or rendering of services. Whether a particular income
constitutes “other operating revenue” or “other income” is decided based on the facts of each case and detailed
understanding of the company’s activities. The classification of income also depends on the purpose for which the
particular asset is acquired or held. Based on this guidance, the company has classified scrap and revenue arising from
other ancillary activities as "other operating revenue."
In accordance with the ICAI FAQ’s on RVI whether an item is classified as ’other operating revenue’ or ’other income’ is a
matter of judgment and requires consideration of specific facts. In a number of cases, the dividing line between these
two items may be very blur. It requires an exercise of significant judgment.
20. Other income

31 March 2019 31 March 2018 SIII
Interest income on GIPL.4.a

Bank deposits 64 54
Long-term investments 26 26
Current investments 10 9
Others 13 15
Dividend income on GIPL.4.b
Investment in subsidiaries - 20
Net gain on sale of current investments 250 121 GIPL.4.c
Government grant # 12 -
Commission income 38 48 GIPL.4.d
Other non-operating income (net of expenses directly attributable to such 95 108 GIPL.4.d
income of INR30 millions (31 March 2018: INR70 millions))
594 491
# The company obtained and recognized as income a government grant of INR12 million (31 March 2018: INR NIL), for
generating employment opportunities in the backward area. The company is obliged not to reduce its average number of
employees in the backward area over the next two years under the terms of this government grant.
21. Cost of raw material and components consumed

31 March 2019 31 March 2018 SIII.PL.IV
Inventory at the beginning of the year 2,318 2,255

Add: Purchases 45,246 43,537
47,564 45,792
Less: inventory at the end of the year 2,660 2,318
Cost of raw material and components consumed 44,904 43,474
Details of raw material and components consumed GIPL.5.ii.d

31 March 2019 31 March 2018
CRCA coils and steel sheets 15,718 15,652
Compressors 11,226 9,564
Fan motors 5,388 6,086
Copper 3,143 2,608
Air Handling Unit 4,041 3,478
Others 5,388 6,086
44,904 43,474
Details of inventory
31 March 2019 31 March 2018
Raw material and components
CRCA coils and steel sheets 932 834
Compressors 665 510
Fan motors 319 325
Copper 186 139
Air Handling Unit 239 185
Others 319 325
2,660 2,318
22. (Increase)/ decrease in inventories

31 March 2019 31 March 2018 (Increase) / SIII.PL.IV
decrease
INR millions INR millions INR millions
Inventories at the end of the year 31 March 2019
Traded goods 1,854 992 (862)
Work-in-progress 1,550 1,108 (442)
Finished goods 6,890 6,126 (764)
10,294 8,226 (2,068)
Inventories at the beginning of the year 31 March 2018

Traded goods 992 1,523 531
Work-in-progress 1,108 634 (474)
Finished goods 6,126 3,511 (2,615)
8,226 5,668 (2,558)
(2,068) (2,558)
Details of purchase of traded goods GIPL.5.ii.b

31 March 2019 31 March 2018

Television 2,855 1,977
Spare parts 1,081 847
Other electronic appliances 849 508
7,718 5,648

Details of inventory
31 March 2019 31 March 2018
Traded goods
Television 556 327
Refrigerator 408 248
Washing machine 222 208
Spare parts 464 110
1,854 992
Work-in-progress
Refrigerator 512 388
Washing machine 357 222
Air conditioner 326 233
Microwave oven 186 166
1,550 1,108
Finished goods
Air conditioner 965 1,286
Microwave oven 413 674
Other electronic appliances 1,516 612
6,890 6,126
23. Employee benefits expense

31 March 2019 31 March 2018 GIPL.5.i
Salaries, wages and bonus 7,231 6,626
Contribution to provident and other funds 452 435
Employee stock option scheme 2,369 1,907
Gratuity expense (note 31) 1,995 1,433
Post-employment medical benefits (note 31) 194 90
Staff welfare expenses 245 204
12,486 10,695
24. Depreciation and amortization expense
GI.PL.5.i.b
31 March 2019 31 March 2018 AS 10.83(a)
(R)
Depreciation of tangible assets 474 436
Amortization of intangible assets 140 106
Depreciation of investment property 1 1
615 543
25. Finance costs

31 March 2019 31 March 2018 GIPL.3
Interest 589 411
Bank charges 72 67
Amortization of ancillary borrowing costs 2 2
663 480
26. Other expenses

31 March 2019 31 March 2018 GIPL.5.vi
Consumption of stores and spares - 921

Consumption of loose tools 90 116
Sub-contracting expenses 152 64
(Increase)/decrease of excise duty on inventory 109
Customer service expenditure 234 53
Power and fuel 272 239
Water charges 3 4
Freight and forwarding charges 688 598
Rent 233 213
Rates and taxes 372 248
Insurance 120 92
Repairs and maintenance
Plant and machinery 193 131
Buildings 91 19
Others 36 20
CSR expenditure (refer note A below) 80 72 GIPL.5.vii.b
Advertising and sales promotion 2,643 1,720
Brokerage and discounts 129 100
Sales Commission 92 59
Travelling and conveyance 312 233
Communication costs 90 92
Printing and stationery 57 63
Donation to political parties 23 22
Legal and professional fees 216 179
Directors’ sitting fees 10 6
Payment to auditor (refer note B below) 32 25
Provision for diminution in value of investment in subsidiary company 15 - GIPL.5.vii.b
Provision for other than temporary decline in the carrying amount of other 1 AS 13.35(c) (R)
1
long-term investments
Adjustments to the carrying amount of current investments 16 8 AS 13.35(c) (R)
Provision for warranties (net of reversals) 371 326
Provision for litigations (net of reversals) 175 -
Exchange differences (net) 94 111
Loss on derivative contracts (including provisions for mark-to-market loss) 6 22
Bad debts / advances written off 80 175
Impairment loss on property, plant and equipment 350 -
Provision for doubtful debts and advances 345 810
Loss on sale of property, plant and equipment (net) 2 1
Premium on forward exchange contract amortized 4 4
Miscellaneous expenses 989 820

8,616 7,567
Above expenses include research and development expenses 160 135
A. Details of CSR expenditure

31 March 2019 31 March 2018
INR lacs INR lacs
a) Gross amount required to be spent by the group during the 80 72
year
(b) Amount spent during the year ending on 31st March, 2018: In cash Yet to be paid in Total
cash
i) Construction/acquisition of any asset — — —
ii) On purposes other than (i) above 80 — 80
b) Amount spent during the year ending on 31st March, 2017: In cash Yet to be paid in Total
cash
i) Construction/acquisition of any asset — — —
ii) On purposes other than (i) above 72 — 72
B. Payment to auditor GIPL.5.i.j

31 March 2019 31 March 2018
As auditor:
Audit fee 22 20
Tax audit fee 2 1
Limited review 3 2
In other capacity:
Taxation matters 1 -
Company law matters - 1
Management services 1 -
Other services (certification fees) 1 -
Reimbursement of expenses 2 1
32 25
Commentary
GIPL.5
The Schedule III, among other matters, requires separate disclosure for item of income/ expense which exceed 1% of
revenue from operations or INR100,000, whichever is higher.
27. Exceptional items

31 March 2019 31 March 2018 GIPL.5.i.k
VRS expenses - 340 AS 5.12
With a view to downsize and rationalize the workforce at Hazira plant, the company had announced a voluntary retirement
scheme (VRS) on 19 May 2015 for the workmen of its Hazira plant. The scheme was open till 25 August 2016. In response
to the VRS, 331 workmen opted for the same. Expenditure of INR340 million on VRS is charged to the statement profit and
loss for the year ended 31 March 2018.
28. Discontinuing operation

AS 24.20
On 12 November 2018, the company publicly announced the decision of its board of directors to discontinue the Furniture
Division, which is also a separate segment as per AS 17 Segment Reporting. The proposed discontinuation is consistent
with the company’s long-term strategy to focus its activities in the areas of home appliances and related services, and to
divest unrelated activities. On 15 March 2019, the company signed a contract to sell the Furniture Division to XYZ Limited
for INR60 million.
Furniture Division’s assets are written down by INR50 million (31 March 2018: INRnil) before income tax saving of
INR16.25 million (31 March 2018: INRnil) to their recoverable amount.
The company has recognized provision for termination benefits of INR30 million (31 March 2018: INRnil) before income-
tax saving of INR9.75 million (31 March 2018: INRnil) to be paid by 30 September 2018 to certain employees of the
Furniture Division whose jobs will be terminated as a result of the sale.
At 31 March 2019, the carrying amount of assets of the Furniture Division was INR419 million (31 March 2018: INR491
million) and its liabilities were INR389 million (31 March 2018: INR470 million), including the provision for expected
termination cost. The process of selling the Furniture Division is likely to be completed by 31 May 2019.
The following statement shows the revenue and expenses of discontinuing operations:
31 March 2019 31 March 2018

Revenue 543 632
Expenses (432) (544)
Provision for employee termination (30) -
Profit/ (loss) from operating activities 81 88
Finance costs (5) (5)
Depreciation/ amortization (20) (20)
Impairment loss (50) -
Profit/ (loss) before tax 6 63 AS 24.20(g)
Income-tax expense (2) (22) AS 24.20(g)
Profit/ (loss) after tax 4 41
The carrying amounts of the total assets and liabilities to be disposed of at 31 March are as follows. Comparative AS 24.20(e)
information for Furniture Division is included in accordance with AS 24 Discontinuing Operations.
31 March 2019 31 March 2018

Total assets 419 491

Total liabilities 389 470
Net assets 30 21
Total assets include property, plant and equipments for which binding sale agreements have been entered into as of 31 AS 24.20(d)
March 2019 and are likely to be settled on 30 June 2019. The company written-down these assets to the net realizable
value (net selling price) of INR283 million and recognized an impairment loss of INR50 million (31 March 2018: nil). The
company has disclosed these property, plant and equipments separately on the face of the balance sheet.
The net cash flows attributable to the Furniture Division are as below: AS 24.20(h)
31 March 2019 31 March 2018

Operating activities 63 75
Investing activities - (6)
Financing activities (12) (25)
Net cash inflows / (outflows) 51 44
29. Earnings per share (EPS)

The following reflects the profit and share data used in the basic and diluted EPS computations: AS 20.48(ii)
31 March 2019 31 March 2018

Total operations for the year
Profit/ (loss) after tax 3,587 3,086
Less : dividends on convertible preference shares & tax thereon 41 41
Net profit/ (loss) for calculation of basic EPS 3,546 3,045
Net profit as above 3,546 3,045

Add: dividends on convertible preference shares & tax thereon 41 41
Add: interest on bonds convertible into equity shares (net of tax) 13 13
Net profit/ (loss) for calculation of diluted EPS 3,600 3,099
Profit/ (loss) after tax 3,583 3,045
Less: dividends on convertible preference shares & tax thereon 41 41
Net profit for calculation of basic EPS 3,542 3,004
Net profit as above 3,542 3,004

Add: dividends on convertible preference shares & tax thereon 41 41
Add: interest on bonds convertible into equity shares (net of tax) 13 13
Net profit/ (loss) for calculation of diluted EPS 3,596 3,058
No. millions No. millions

Weighted average number of equity shares in calculating basic EPS 524 520
Effect of dilution:
Convertible preference shares 50 50
Convertible bonds 5 5
Stock options granted under ESOP 236 209
Weighted average number of equity shares in calculating 815 784
diluted EPS
31 March 2019 31 March 2018

30. Gratuity and other post-employment benefit plans

AS 15.120
The company operates two defined plans, viz., gratuity and post employment medical benefits, for its employees. Under
the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of
last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of
qualifying insurance policy.
Under the post employment medical benefit plan, the company provides medical benefit to those employees who leave
the services on the company on retirement and have completed atleast 7 years of service with the company. The plan is
not funded by the company.
The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and
the funded status and amounts recognized in the balance sheet for the respective plans.
Statement of profit and loss

Net employee benefit expense recognized in the employee cost AS15.120 (g)
Gratuity Post-employment medical
benefits
31 March 2019 31 March 31 March 31 March
2018 2019 2018
Current service cost 1,778 1,499 180 86
Interest cost on benefit obligation 1,419 1,278 25 8
Expected return on plan assets (1,340) (1,266) - -
Net actuarial( gain) / loss recognized in 138 (78) (11) (4)
the year
Net benefit expense 1,995 1,433 194 90
Actual return on plan assets 1,281 1,213
Balance sheet
Benefit asset/ liability AS15.120(f)
benefits
31 March 2019 31 March 2018 31 March 31 March
2019 2018
INR millions INR millions INR millions INR
millions
Present value of defined benefit obligation (19,838) (17,731) (339) (197)
Fair value of plan assets 17,919 16,298 - -
Plan asset / (liability) (1,919) (1,433) (339) (197)
Changes in the present value of the defined benefit obligation are as follows: AS 15.120(c)
benefits
31 March 2019 31 March 31 March 31 March
2018 2019 2018
Opening defined benefit obligation 17,731 15,978 197 107
Current service cost 1,778 1,499 180 86
Interest cost 1,419 1,278 25 8
Benefits paid (2,419) (969) (52) -
Actuarial (gains) / losses on obligation 1,329 (55) (11) (4)
Closing defined benefit obligation 19,838 17,731 339 197
Changes in the fair value of plan assets are as follows: AS15.120(e)

Gratuity
31 March 2019 31 March 2018
Opening fair value of plan assets 16,298 14,780
Expected return 1,340 1,266
Contributions by employer 1,509 1,198
Benefits paid (2,419) (969)
Actuarial gains / (losses) 1,191 23
Closing fair value of plan assets 17,919 16,298
The company expects to contribute INR1950 millions to gratuity in the next year (31 March 2018: INR1550 millions). AS15.120(o)
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: AS15.120(h)
Gratuity
31 March 2019 31 March 2018
Investments with insurer 100% 100%
The principal assumptions used in determining gratuity and post-employment medical benefit AS15.120(l)
obligations for the company’s plans are shown below:
benefits
2019 2018 2019 2018
Discount rate 8.25% 8.00% 8.25% 8.00%
Expected rate of return on assets 8.50% 8.00% - -
Employee turnover 10% at 10% at 10% at 10% at
younger ages younger ages younger ages younger ages
and reducing and reducing and reducing and reducing
to 1% at older to 1.25% at to 1% at older to 1.25% at
age according older age age according older age
to graduated according to to graduated according to
scale graduated scale graduated
scale scale
Healthcare cost increase rate - - 5% 4.50%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable AS15.120(j)
to the period over which the obligation is to be settled. There has been significant change in expected rate of return on
assets due to change in the market scenario.
Assumed healthcare cost trend rates have a significant effect on the amounts recognized in the AS 15.120(m)
statement of profit and loss. One percentage point change in assumed healthcare cost trend rates
would have the following effects on the aggregate of the service cost and interest cost and defined
benefit obligation:
Post-employment medical benefits
31 March 2019 31 March 2018
Increase
Effect on the aggregate of the service cost and interest cost 6 4
Effect on defined benefit obligation 12 7
Decrease
Effect on the aggregate of the service cost and interest cost (2) (2)
Effect on defined benefit obligation (8) (5)
Amounts for the current and previous four periods are as follows: AS 15.120(n)
31 Mar 2018 31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2015 2014
INR millions INR INR INR INR
millions millions millions millions
Gratuity
Defined benefit obligation 19,838 17,731 15,978 13,850 12,950
Plan assets 17,919 16,298 14,780 12,100 10,050
Surplus / (deficit) (1,919) (1,433) (1,198) (1,750) (2,900)
Experience adjustments on plan (578) (127) (80) (90) (40)
liabilities
Experience adjustments on plan assets 59 (21) 50 30 50
Post employment medical
benefit
Defined benefit obligation 339 197 88 80 78
Experience adjustments on plan (8) (3) (22) 15 20
liabilities
31. Employee stock option plans

GN.ESOP
The company provides share-based payment schemes to its employees. During the year ended 31 March 2019, an
employee stock option plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below.
On 1 March 2016, the board of directors approved the Equity Settled ESOP Scheme 2016 (Scheme 2016) for issue of GN.ESOP.
stock options to the key employees and directors of the company. According to the Scheme 2016, the employee selected 50(a)
by the remuneration committee from time to time will be entitled to 10 to 100 options, subject to satisfaction of the
prescribed vesting conditions, viz., continuing employment of 3 years. The contractual life (comprising the vesting period
and the exercise period) of options granted is 6 years. The other relevant terms of the grant are as below:
Vesting period 3 years

Exercise period 3 years
Expected life 5 years
Exercise price INR22 to INR29
Market price at 1 March 2015 INR38
GN.ESOP.
The details of activity under the Scheme 2016 are summarized below: 50(b)
31 March 2019 31 March 2018
No. of options WAEP No. of options WAEP
(INR) (INR)
Outstanding at the beginning of the year 460 25 480 25
Granted during the year 90 25 - -
Forfeited during the year 30 25 20 25
Exercised during the year 50 25 - -
Outstanding at the end of the year 470 25 460 25
Exercisable at the end of the year 380 Nil - -
GN.ESOP. 50(c)
For options exercised during the period, the weighted average share price at the exercise date was INR59 per share (31
March 2018: not applicable since no option exercised).
GN.ESOP. 50(d)
The weighted average remaining contractual life for the stock options outstanding as at 31 March 2019 is 2.94 years (31
March 2018: 2.60 years). The range of exercise prices for options outstanding at the end of the year was INR22 to INR29
(31 March 2018: INR22 to INR29).
GN.ESOP. 51
The weighted average fair value of stock options granted during the year was INR40.36 (31 March 2018: nil). The Black
Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:
31 March 2019 31 March 2018*
Dividend yield (%) 20% *
Expected volatility 53% *
Risk-free interest rate 7% *
Weighted average share price (INR) 57 *
Exercise price (INR) 25 *
Expected life of options granted in years 5 *
* Not applicable since no ESOP’s were granted during the year.
The expected life of the stock is based on historical data and current expectations and is not necessarily indicative of GN.ESOP.51
exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period
similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.
The company measures the cost of ESOP using the intrinsic value method. Had the company used the fair value model to GN.ESOP. 48
determine compensation, its profit after tax and earnings per share as reported would have changed to the amounts
indicated below:
31 March 2019 31 March 2018

Profit after tax as reported 3,587 3,086
Add: ESOP cost using the intrinsic value method 2,369 1,907
Less: ESOP cost using the fair value method (3,871) (3,366)
Proforma profit after tax 2,085 1,627

Earnings Per Share

Basic
- As reported INR 6.61 INR 5.86
- Proforma INR 3.74 INR 3.05
Diluted
- As reported INR 4.32 INR 3.95
- Proforma INR 2.50 INR 2.17
32. Leases
Finance lease: company as lessee
The company has finance leases and hire purchase contracts for various items of plant and machinery. These leases AS 19.22
involve significant upfront lease payment, have terms of renewal and bargain purchase option. However, there is no
escalation clause. Each renewal is at the option of lessee. Future minimum lease payments (MLP) under finance leases
together with the present value of the net MLP are as follows:
31 March 2019 31 March 2018

Minimum Present value Minimum Present value
payments of MLP payments of MLP
Within one year 11 10 13 11
After one year but not more than five
years 38 31 49 41
More than five years — — — —
Total minimum lease payments 49 41 62 52
Less: amounts representing finance
charges (8) — (10) —
Present value of minimum lease
payments 41 41 52 52
Operating lease: company as lessee AS 19.25
The company has entered into commercial leases on certain motor vehicles and items of machinery. These leases have
an average life of between three and five years with no renewal option included in the contracts. There are no restrictions
placed upon the company by entering into these leases.
Future minimum rentals payable under non-cancellable operating leases are as follows:
31 March 2019 31 March 2018

Within one year 248 233
After one year but not more than five years 412 345
More than five years - -
660 578
Operating lease commitments – Group as lessor AS 19.46
The company has entered into commercial property leases on its investment property portfolio, consisting of the company’s
surplus office and manufacturing buildings. These non-cancellable leases have remaining terms of between five and 20
years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing
market conditions.
Future minimum rentals receivable under non-cancellable operating leases are as follows:
31 March 2019 31 March 2018

Within one year 14 14
After one year but not more than five years 56 56
More than five years 63 77
133 147
33. Capitalization of expenditure

During the year, the company has capitalized the following expenses of revenue nature to the cost of property, plant and
equipment/ capital work-in-progress (CWIP). Consequently, expenses disclosed under the respective notes are net of
amounts capitalized by the company.
31 March 2019 31 March 2018

Salaries, wages and bonus 346 616
Consumption of stores and spares 47 239
Power and fuel 54 47
Finance costs 52 81
499 983
34. Interest in a joint venture

The company holds 50% interest in E-Age & Co Limited, a joint controlled entity which is involved in manufacture of AS 27.52
television and DVD players.
The company’s share of the assets, liabilities, income and expenses of the jointly controlled entity for the year ended 31 AS 27.53
March are as follows:
31 March 2019 31 March 2018

Current assets 140 132
Non-current assets 228 216
Current liabilities (87) (70)
Non-current liabilities (126) (147)
Equity 155 131
Revenue 391 326

Cost of material consumed (301) (257)
Depreciation of plant and machinery (12) (13)

Employee benefit expense (32) (21)
Other expense (12) (10)
Profit before tax 34 25
Income-tax expense (10) (8)

Profit after tax 24 17
Commitments and contingent liabilities of the jointly controlled entity are disclosed in note 39 and 40 respectively.
35. Accounting for Amalgamation

The Honorable High Court of Delhi, on 16 August 2018, sanctioned a scheme of amalgamation (the scheme) under AS 14.43 (R)
sections 232 of the Companies Act, 2013. In accordance with the scheme, Peter Limited (transferor company) merges
with the company with effect from 1 April 2018. The transferor company was engaged in the business of refrigerators. The
amalgamation is expected to channelize synergies and lead to better utilization of available resources and result in
greater economies of scale.
The company discharged the purchase consideration for acquisition through bank payments. In terms of the scheme, the AS 14.43(R)
company has accounted for the amalgamation under the purchase method and recognized assets and liabilities acquired AS 14.45(R)
at fair value. The excess of purchase consideration paid by the company over the aggregate value of the net assets
acquired has been treated as goodwill, to be amortized over a period of 5 years from the date of amalgamation.
Particulars INR millions

Assets
Land 42
Buildings 28
Plant and equipment 58
Furniture and fixtures 5
Patents 20
Brands/ trademarks 35
Technical knowhow 16
Trade receivables 79
Total assets 283
Liabilities
Trade payables 60
Total liabilities 60
Net assets 223

Purchase consideration 267
Goodwill 44
36. Segment information

The primary segment reporting format is determined to be business segments as the company’s risks and rates of return AS 17.19
are affected predominantly by differences in the products and services produced. Secondary information is reported
geographically. The operating businesses are organized and managed separately according to the nature of the products
and services provided, with each segment representing a strategic business unit that offers different products and serves
different markets.
The “home appliance” segment produces and sells a reputed brand of home appliance companies, comprising
refrigerators, washing machines, air conditioners, microwave ovens and other small electronic appliances.
The “retail” segment operates electronic stores in India wherein all major brands of fast moving consumer goods (FMCG)
are available.
The “services” segment provides annual maintenance service for the FMCG products.
The “furniture” segment producing plastic furniture for home and commercial purposes is being discontinued.
Transfer prices between business segments are set at cost plus appropriate margins.
Segment revenue, segment expense and segment result include transfers between business segments. Those transfers
are eliminated in total revenue/ expense/ result.
Business segments AS 17.40

Year ended 31 March 2019
(INR millions)
Particulars Continuing operations Discontinuing Total
operations operatio
Home Retail Services Eliminatio Total Furniture ns
appliance ns
Revenue
External sales 64,310 9,522 3,774 - 77,606 543 78,149 AS 17.40 (a)
Inter segment 1,350 - 435 (1,785) - - - AS 17.40 (a)
sales
Total 65,660 9,522 4,209 (1,785) 77,606 543 78,149
revenue
Results
Segment 6,018 412 31 6,461 11 6,472 AS 17.40 (b)
results
Unallocated (1,126)
expenses
Operating 5,346
profit
Finance costs (668)
Other income 594
including
finance income

operations operatio
Home Retail Services Eliminatio Total Furniture ns
appliance ns
Share of profit 1
investment in
partnership
firm
Exceptional -
Items
Profit before 5,273
tax
Income taxes (1,686)
Net profit 3,587
As at 31
March 2019
Segment 24,339 9,543 6,628 419 40,929 AS 17.46
assets
Unallocated 4,042
assets
Total assets 24,339 9,543 6,628 419 44,971
Segment 6,733 3,753 160 389 11,035 AS 17.46
liabilities
Unallocated 11,400
liabilities
Total 6,733 3,753 160 389 22,435
liabilities
Other
segment
information
Capital
expenditure:
Tangible assets 308 5 26 339* AS 17.40(e)
Intangible 116 - - 116** AS 17.40(e)

assets
Depreciation 325 95 53 20 493 AS 17.40(f)
Amortization 85 23 32 140 AS 17.40(f)
Impairment 350 - - 50 400 AS 17.40(g)
losses
recognized
Other non-cash 1825 395 107 42 AS 17.40(g)
expenses
* The amount includes tangible assets acquired through amalgamations, borrowing costs and exchange differences
capitalized.
** The amount includes intangible assets acquired through amalgamations.
Year ended 31 March 2018

(INR millions)
operations operatio
Home Retail Services Eliminati Total Furniture ns
appliance ons
Revenue
External sales 57,291 8,703 4,236 - 70,230 632 70,862 AS 17.40(a)
Inter segment 1,250 - 143 (1,393) - - - AS 17.40(a)
sales
Total 58,541 8,703 4,379 1,393 70,230 632 70,862
revenue
Results
Segment 5,093 746 28 5,867 68 5,935 AS 17.40(b)
results
Unallocated (1,006)
expenses
Operating 4,929
profit
Finance costs (485)
Other income 491
including
finance income
Share of profit 2
investment in
partnership
firm
Exceptional (340)
Items
Profit before 4,597
tax
Income taxes (1,511)
Net profit 3,086
As at 31
March 2018
Segment 20,578 8,089 4,954 491 34,112 AS 17.46
assets
Unallocated 3,620
assets
Total assets 20,078 8,089 4,954 491 37,732
Segment 5,549 3,489 262 470 9,770 AS 17.46
liabilities
Unallocated 11,234
liabilities
Total 5,549 3,489 262 470 21,004
liabilities

operations operatio
Home Retail Services Eliminati Total Furniture ns
appliance ons
Other
segment
information
Capital
expenditure:
Tangible assets 73 25 8 - 106* AS 17.40(e)
Intangible 134 - - - 134 AS 17.40(e)
assets
Depreciation 311 87 37 20 455 AS 17.40(f)
Amortization 80 19 7 - 106 AS 17.40(f)
Impairment - - - - - AS 17.40(g)
losses
recognized
Other non-cash 1311 387 145 64 AS 17.40(g)
expenses
* The amount includes borrowing costs and exchange differences capitalized.
Geographical segments
The company’s secondary segments are the geographic distribution of activities. Revenue and receivables are specified by
location of customers while the other geographic information is specified by location of the assets. The following tables
present revenue, expenditure and certain asset information regarding the company’s geographical segments:
(INR millions)
Year ended 31 March 2019 India United Others Total
States
Revenue AS 17.48(a)
Sales to external customers 67,242 7,586 3,321 78,149
Less: sales attributable to discontinuing operations (543) — — (543)

Revenue from continuing operations 66,699 7,586 3,321 77,606
Other segment information

Segment assets 44,823 17 131 44,971 AS 17.48(b)
Total assets
Capital expenditure:
Property, plant and equipment 339 - - 339 AS 17.48(c)
Intangible assets 116 - - 116 AS 17.48(c)
(INR millions)
Year ended 31 March 2018 India United Others Total
States
Revenue AS17.48(a)
Sales to external customers 62,886 6,280 1,696 70,862
Less: sales attributable to discontinuing operations (632) — (632)
Revenue from continuing operations 62,254 6,280 1,696 70,230
Other segment information

Segment assets 37,623 27 82 37,732 AS 17.48(b)
Total assets
Capital expenditure:
Property, plant and equipment 106 - - 106 AS 17.48(c)
Intangible assets 134 - - 134 AS 17.48(c)
37. Related party disclosures

Names of related parties and related party relationship AS 18.21
Related parties where control exists
Holding company Holding Limited
Ultimate holding company Father Limited
Subsidiaries C Limited (wholly owned)
Rofil Investments Limited
Related parties under AS 18 with whom transactions have taken place during the year
Fellow subsidiaries Beta Private Limited
Associates Brother Ltd, M/s ASQ (partnership firm)
Jointly controlled entity E-Age Ltd.
Key management personnel Mr. A.B. Managing director
Mr. X. Y. Finance director
Relatives of key management personnel Mr. C.A. brother of Mr. A.B
LR- Regulation
Additional related parties as per CA 2013 with whom transactions have taken place during the year 18(3) read
with A(4)(f) of
part C of
Schedule II
Chief Executive Officer Mr. HRA Kapoor
Chief Financial Officer Mr. PQR Singh
Company Secretary Mr. TSL Singh
Enterprises in which a manager is a director and holds along AXCD Ltd.
with his relatives, more than 2% of its paid-up share capital
Enterprises in which a Director is a member XYZ Pvt. Ltd.
Commentary
As per regulation 18(3) read with A(4)(f) of part C of Schedule II of the new listing regulation, role of the audit committee is LR- Regulation
to review the annual financial statements and auditor’s report thereon before submission to the board for approval, with 18(3) read with
A(4)(f) of part C
particular reference to disclosure of any related party transactions. of Schedule II
Under new listing regulation, an entity will be considered as related to the company if:
 such entity is a related party under Section 2(76) of the Companies Act, 2013; or
 such entity is a related party under the applicable accounting standards
Hence, it is interpreted that the financial statements of listed entity should disclose transaction entered into with related
parties identified as per AS 18 as well as Section 2(76) of the Companies Act, 2013. However, this requirement will not be
applicable to non-listed companies.
Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the AS 18.23
relevant financial year:
a. Sale/ purchase of goods and services (INR millions)

Year Sale of Sale of Purchase Amount Amount
ended goods services of traded owed by owed to
goods related related
parties* parties*
Holding and ultimate
holding companies
Holding Limited 31 March 200 65 - 48
2019
31 March 180 87 - 34
2018
Father Limited 31 March 123 - - 14
2019
31 March 96 12 - 6
2018
Fellow subsidiaries
Beta Private Limited 31 March - - 965 - 148
2019
31 March - - 1034 - 243
2018
Associates and jointly
controlled entities
Brother Limited 31 March - - 267 - 18
2019
31 March - - 189 - 24
2018
E-Age & Co Limited 31 March - 14 - - -
2019
31 March - 9 - - -
2018
from Directors
Mr A.R.B 31 March 19 - - 19 -
2019
31 March 14 - - 14 -
2018
Dues from firm in which
any director is a partner
PQR 31 March 28 - - 28 -
2019
31 March 21 - - 21 -
2018
Dues from Pvt Ltd Co in
which any director is a
member
XYZ Pvt. Ltd 31 March 33 - - 33 -
2019
31 March 27 - - 27 -
2018
Firm in which any director
is a partner
PQR 31 March 28 - - 28 -
2019
31 March 21 - - 21 -
2018
Pvt Ltd Co in which any
director is a member
XYZ Pvt. Ltd 31 March 33 - - 33 -
2019
31 March 27 - - 27 -
2018
* The amounts are classified as trade receivables and trade payables, respectively.
b. Loans given and repayment thereof (INR millions)

Year ended Loans given Repayment Interest Amount
accrued owed by
related
parties
Wholly owned subsidiary
C Ltd 31 March - - - 10
2019
31 March - - - 10
2018
Enterprises owned or
significantly influenced by
key management personnel
or their relatives
M/s ADC (partnership firm) 31 March - 12 1 18
2019
31 March 20 5 2 29
2018
AXD Pvt. Ltd 31 March 10 18 2 33
2019
31 March 38 - 1 39
2018
Relatives of key managerial
personnel
Mr. C A 31 March 29 10 3 56
2019
31 March - - 2 34
2018
Loans given to related parties are repayable on demand. These loans carry interest @ of 6% to 10% p.a. Sec 186 (4) of
CA2013
The loans have been utilised by the C Ltd, M/s ADC and AXD Pvt. Ltd for acquiring property, plant and equipments and
meeting the working capital requirements. Mr. C.A. has used the loan to acquire vehicle for his personal use.

c. Loans taken and repayment thereof (INR millions)

Year ended Loans taken Repayment Interest Amount
accrued owed to the
related
parties
Holding company
Holding Limited 31 March 20 150 - 220
2019
31 March - 50 - 350
2018
Loans taken from related parties are interest free and repayable on demand.
d. Remuneration to key managerial personnel

31 March 2019 31 March 2018
Mr. A.B. Managing director
Salary, bonus and contribution to PF 25 22
ESOP cost 10 10
Mr. X. Y. Finance director
ESOP cost 3 3
Mr. HRA Kapoor Chief Executive Officer
ESOP cost 3 3
Mr. PQR Singh Chief Financial Officer
ESOP cost 3 3
Mr. TSL Singh Company Secretary
ESOP cost 3 3
Total 84 77
Note: The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave
benefits, as they are determined on an actuarial basis for the company as a whole.
e. Other transactions
1. During the year ended 31 March 2018, the company issued 35 million and 15 million CCPS of INR10 each fully
paid-up at a premium of INR40 per share to Holding Limited and Father Limited, respectively. For detailed terms of
the CCPS, please refer note 3(c).
2. During the year ended 31 March 2019, the company paid a final dividend of INR2 and INR0.7 (year ended 31
March 2018: INR2 and INRnil) per share on equity and preference shares, respectively. This includes dividend on
equity and preference shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates, at
the beginning of respective financial years. For detail of shares held by holding/ ultimate holding company and/ or
their subsidiaries/ associates, please refer note 3(d).
3. The company has recognized dividend income of INRnil (31 March 2018: INR20 million) toward divided proposed
by its subsidiary, C Limited.
4. The company has recognized income of INR1 million (31 March 2018: INR2 million) toward its share of profit in
M/s ASQ (partnership firm).
5. Indian rupee loan of INR1,375 million (31 March 2018: INR1,500 million) from banks is guaranteed by the
personal guarantee of the managing director of the company.
6. Term loan from of INR800 million (31 March 2018: INR900 million) from financial institutions is guaranteed by the
corporate guarantee of Father Limited, the ultimate holding company.
The loans availed by above companies against guarantee given or security provided have been used by the respective Sec 186 (4) of
companies for acquiring property, plant and equipments, intangible assets and meeting working capital requirements. CA2013
38. Capital and other commitments

GIBS.6.T
(a) At 31 March 2019, the company has commitments of INR5 million (31 March 2018: INR102 million) relating to the
AS 27.51
completion of the Baramati manufacturing facility and INR2 million (31 March 2018: INR1 million) relating to the
company’s share in the jointly controlled entity.
(b) At 31 March 2019, the company has commitments of INR25 million (31 March 2018: INR10 million) relating to
further investment in subsidiary Rofil Investments Ltd.
(c) At 31 March 2019, the company has commitment to pay INR45 million (31 March 2018: INR45 million) toward
balance amount due on investments in equity share in Brother Limited.
(d) At 31 March 2019, the company has commitment for non-disposal of its investment in subsidiary Rofil Investments
Ltd. Similar commitment was there in the previous year also.
(e) The company has obtained and recognized a government grant of INR12 million during the current year (31 March
2018: INRnil), for generating employment opportunities in the backward area. The company is obliged not to reduce
its average number of employees in the backward area over the next two years under the terms of this government
grant.
(f) For commitments relating to lease arrangements, please refer note 33.
39. Disclosure required under Sec 186(4) of the Companies Act 2013
Included in loans and advance are certain intercorporate deposits the particulars of which are disclosed below as required by Sec 186(4)
of Companies Act 2013
Name of the Rate of Interest Due date Secured/ 31 March 2019 31 March 2018
loanee unsecured
ARMDL Ltd 9.5% 31/5/2020 Secured 5 5
5 5
ARMDL Ltd has given first charge over its inventory and trade receivables against the above loans. The loans have been utilized for meeting
their working capital requirements.
Name of the Rate of Interest Due date Secured/ 31 March 2019 31 March 2018
loanee unsecured

Employee A 6% 31/3/2021 Secured against 26 18
Employee B 6% 31/3/2021 underling vehicle 33 27
Employee C 6% 31/3/2021 24 19
Employee D 6% 31/3/2021 12 9
95 73
Housing loans have been provided to the employees as per the scheme of the company.
For details of loans, advances and guarantees given and securities provided to related parties, refer note 38,
Commentary
General Circular No, 04/2015 dt. 10 March 2015 clarifies with regards the applicability status of Sec 186 of the
Companies Act 2013, on loans and advances to employees. Accordingly, loans which are not governed by sec 186 need
not be disclosed above.
40. Contingent liabilities

31 March 2019 31 March 2018 AS 29.68(R)
GIBS.6.T
Claims against the company not acknowledged as debts * 1,560 1,700
Share of guarantees given by the jointly controlled entity (E-Age & Co Limited) 120 120 AS 27.50
Bills of exchange discounted with banks 1,200 1,100
Income-tax demand ** 1,500 1,500
4,380 4,420
* The claims against the company comprise:
An overseas customer has commenced an action against the company in respect of equipments claimed to be defective.
The company has estimated that if the action is successful, estimate liability may be approx. INR1,500 million (31 March
2018: INR1,600 million). A trial date has not yet been set and therefore it is not practicable to state the timing of any
payment. The company has been advised by its legal counsel that it is possible, but not probable, the action will succeed
and accordingly no provision for liability has been recognized in the financial statements.
INR60 million (31 March 2018: INR100 million) in respect of claims made by lessors for land leased under tenancy
agreements in respect of claims made by the Pollution Control Board. These claims are being contested in the courts by
the company. The management does not expect these claims to succeed. Accordingly, no provision for the contingent
liability has been recognized in the financial statements.
** Income tax demand comprise demand from the Indian tax authorities for payment of additional tax of INR1,500 million
(31 March 2018: INR1,500 million), upon completion of their tax review for the financial years 2008-09 and 2009-10.
The tax demands are mainly on account of disallowance of a portion of the tax holiday claimed by the company under the
Income tax Act. The matter is pending before the Commissioner of Income tax (Appeals).
The company is contesting the demands and the management, including its tax advisors, believe that its position will likely
be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand
raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on
the company's financial position and results of operations.
Sec 186(4) of
The guarantee or security given has been used for acquiring property, plant and equipments, intangible assets and CA2013
meeting the working capital requirements.
41. Utilization of money raised through public issue
During the year ended 31 March 2017, the company has raised INR250 million through public issue, specifically to meet GIBS.6.V
its share in the cost of setting-up a new manufacturing facility at Baramati. The balance amount needs to be met out of
bank finance. Given below are the details of utilization of proceeds raised through public issue.
31 March 2019 31 March 2018

Unutilized amount at the beginning of the year 75 250
Less: amount utilized during the year
Purchase of land at Baramati - 80
Purchase of plant and machinery 75 95
Unutilized amount at the end of the year - 75
Details of short-term investments made from unutilized portion of public issue raised during the year ended 31 March 2018
31 March 2019 31 March 2018

Investment in fixed deposits of banks - 75
42. Derivative instruments, foreign currency exposure and risk management
The company is exposed to market risk which includes foreign currency risk and interest rate risk. The company’s senior GN.ADC.64
management oversees the management of these risks. The company’s senior management is supported by a financial risk
committee that advises on financial risks and the appropriate financial risk governance framework. The financial risk
committee provides assurance to the company’s senior management that the company’s financial risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the company’s policies and risk objectives. All derivative activities for risk management purposes are
carried out by specialist teams that have the appropriate skills, experience and supervision. It is the company’s policy that
no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.
The company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Interest rate swaps and foreign exchange forward contracts are valued using valuation
techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include GN.ADC.65
forward pricing and swap models, using present value calculations. The models incorporate various inputs including the
credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency
basis spreads between the respective currencies, interest rate curves and forward rate curves. All derivative contracts are
fully cash collateralized, thereby eliminating both counterparty and the company’s own non-performance risk. As at 31
March 2019, the mark-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to
derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness
assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair value.
Cash flow hedges GN.ADC.66

Foreign currency risk
Foreign exchange forward contracts measured at fair value and designated as hedging instruments in cash flow hedges of
forecast sales in US dollar. These forecast transactions are highly probable, and they comprise about 15% of the
company’s total expected sales in US dollar.
The company has outstanding forward exchange contract to sell US dollars 2.07 million (INR 126.63 million) (31 March
2018: US$ 1.30 million, INR 83.20 million) to cover itself from movement in the foreign currency risk from highly probable

sales. These contracts are expected to occur in the next year. The fair value of the instrument at 31 March 2019 is INR 22 GN.ADC.67
(31 March 2018: INR 50)
While the company has also entered into other foreign exchange forward contracts with the intention to reduce the foreign
exchange risk of expected purchases, these contracts are not designated in hedge relationships and were measured at fair
value through profit and loss.
Fair value hedge GN.ADC.65

The company has a fixed rate loan of which interest rate exposure is converted to floating rate with an interest rate swap
agreement in place with a notional amount of USD 7.76 million (INR 475 million) (March 2018: USD: 6.95 million, INR 445
million) whereby the company receives a fixed rate of interest of 5.5% and pays interest at a variable rate equal to
LIBOR+0.2% on the notional amount. The swap is being used to hedge the exposure to changes in the fair value of its fixed
interest rate secured loan. GN.ADC.67
The decrease in fair value of the interest rate swap of INR 24 million (March 2018: INR (16)) has been recognised in
finance costs and offset with a similar gain on the bank borrowings. The ineffectiveness recognised in March 2019 and
March 2018 was immaterial. The fair value of the instrument at 31 March 2019is INR 21 (31 March 2018: INR 45)
GN.ADC.65
Foreign Current year Previous year GN.ADC.

currency Exchange Amount in Amount Exchange Amount in Amount Appendix I
rate foreign in INR rate foreign in INR
currency millions currency millions
I. Asset
Trade receivable USD 61.18 1.06 65.05 64 0.45 28.93
Total receivable (A) 65.05 28.93
Hedged by derivative Nil Nil
contracts (B)
Unhedged receivables 65.05 28.93
(C=A-B)
II. Liabilities
Trade payable Euro 76 0.45 34.2 Nil Nil Nil
Foreign currency USD 61.18 7.76 475 64 6.95 445
borrowings
Total payable (D) 509.2 445
Hedged by derivative
contracts (E)
Foreign currency
borrowings 61.18 0.60 36.7 64 0.74 47.36
Unhedged payable (F=D- 472.5 397.64
E)
III. Contingent
Liabilities and
Commitments
Contingent liabilities
Commitments
Highly probable foreign USD 61.18 2.07 126.63 64 1.30 83.20
currency sale
Total (G) 126.63 83.20
Hedged by derivative 126.63 83.20
contracts (H)
Unhedged payable (I=G- Nil Nil
H)
Total 537.55 426.57
unhedged FC
Exposures
(J=C+F+I)
43. Deferral/ capitalization of exchange differences AS 11.46A
The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29 December 2011 to AS 11 The Effects of
Changes in Foreign Exchange Rates, to allow companies deferral/ capitalization of exchange differences arising on long-
term foreign currency monetary items.
In accordance with the amendment/ earlier amendment to AS 11, the company has capitalized exchange loss, arising on
long-term foreign currency loan, amounting to INR30 million (31 March 2018: INR20 million) to the cost of plant and
equipments. The company has also capitalized exchange gain, arising on long-term foreign forward contract, undertaken
to partially hedge the foreign current loan, amounting to INR24 million (31 March 2018: INR16 million) to the cost of
plant and equipments. The company does not have any other long-term foreign currency monetary item. Hence, the
amount of exchange loss deferred in the “Foreign Currency Monetary Item Translation Difference Account” is INRnil (31
March 2018: INR nil)
44. Subsequent events AS 4.17
On 14 April 2019, there was a fire in one of the distribution warehouse in Mumbai. The loss of inventory caused by the fire
was limited; however, the company expects that the fire may cause some disturbance in the operations for approx. 2 months.
The management expects that loss of INR50 million due to loss of inventory is fully recoverable from the insurer. The financial
statements have not been adjusted to give effect to this expected loss.
45. Loans and advances in the nature of loans given to subsidiaries and associates LR – Regulation
and firms/ companies in which directors are interested 53(f)
(a) C Limited
Loan given to wholly owned subsidiary:
Balance as at 31 March 2019 INR10 million (31 March 2018: INR10 million)
Maximum amount outstanding during the year INR10 million (31 March 2018: INR10 million)
For other disclosures relating to loans/ advances/ investment in subsidiary and associates, refer note 38 and 40.
Commentary
Sec 185 of the Companies Act 2013 requires that “no company shall, directly or indirectly, advance any loan, including GIPL.5
any loan represented by a book debt, to any of its directors or to any other person in whom the director is interested or give
any guarantee or provide any security in connection with any loan taken by him or such other person”. However, the rules
allow that a company may give loans to wholly owned subsidiaries. The companies are required to complying with Sec.
185 of the Companies Act, 2013 separately.

In most of the cases, the disclosure requirement under regulation 53(f) read together with Para A of Schedule V will not be
applicable, since the company cannot enter into such transactions as required to be disclosed under Para A of Schedule V
of the listing regulations.
The clause 32 of the old listing agreement required the disclosure to be given in the annual account, however, the new
listing regulations requires the equivalent disclosure to be given under regulation 53(f) read together with Para A of
Schedule V in the annual report. Accordingly, the disclosure can be part of the financial statements or annual report. The
company has opted to disclose it in the financial statements.
46. Details of dues to micro and small enterprises as defined under the MSMED Sec 22
Act, 2006 MSMED/

GIBS.6.FA
31 March 2019 31 March 2018
The principal amount and the interest due thereon remaining unpaid to
any supplier as at the end of each accounting year
Principal amount due to micro and small enterprises 42 12
Interest due on above - -
42 12
31 March 2019 31 March 2018

The amount of interest paid by the buyer in terms of section 16 of the
MSMED Act 2006 along with the amounts of the payment made to the 1 -
supplier beyond the appointed day during each accounting year
The amount of interest due and payable for the period of delay in making
payment (which have been paid but beyond the appointed day during the
- -
year) but without adding the interest specified under the MSMED Act
2006.
The amount of interest accrued and remaining unpaid at the end of each
- -
accounting year
The amount of further interest remaining due and payable even in the
succeeding years, until such date when the interest dues as above are
- -
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the MSMED Act 2006
47. Value of imports calculated on CIF basis GIPL.5.viii.a
31 March 2019 31 March 2018

Raw materials 5,882 5,660
Components and spare parts 226 244
Capital goods 14 23
6,122 5,927
48. Expenditure in foreign currency (accrual basis) GIPL.5.viii.b
31 March 2019 31 March 2018

Professional fees 34 26
Interest 29 27
Travelling and conveyance 72 62
135 115
49. Imported and indigenous raw materials, components and spare parts GIPL.5.viii.c
consumed
% of total Value % of total Value
consumption (INR consumption (INR
millions) millions)
31 March 2019 31 March 2018
Raw Materials
Imported 13 5,230 13 5,343
Indigenously obtained 87 36,396 87 35,942
100 41,626 100 41,285
% of total Value % of total Value

consumption (INR consumption (INR
millions) millions)
31 March 2019 31 March 2018
Components
Imported 7 237 11 245
Indigenously obtained 93 3,041 89 1,944
100 3,278 100 2,189
Spare parts
Imported 11 116 11 98
Indigenously obtained 89 905 89 825
100 1,021 100 923
50. Net dividend remitted in foreign exchange GIPL.5.viii.d
Year of remittance (ending on) 31 March 2019 31 March 2018

Period to which it relates 1 April 2017 to 31 1 April 2016 to 31
March 2018 March 2017
Number of non-resident shareholders 7 5
Number of equity shares held on which dividend was due 15,000 11,000
Amount remitted (in USD) 432 561
Amount remitted (in INR) 34,354 25,821
51. Earnings in foreign currency (accrual basis) GIPL.5.viii.e
31 March 2019 31 March 2018

Exports at F.O.B. Value 10,907 7,976
Commission Income 25 21
10,932 7,997
52. Previous year figures

Previous year figures have been regrouped / reclassified, where necessary, to conform to this year’s classification.

Appendix 1: Exemptions/ relaxations for SMCs
Definition of small and medium-sized company (SMC)
As per the Companies (Accounting Standards) Rules, 2006 (as amended), an SMC is a company that complies with all the following
conditions:
1. Its equity or debt securities are neither listed nor are in the process of listing on any stock exchange, whether in India or outside India.
2. It is not a bank, financial institution or an insurance company.
3. Its turnover (excluding other income) does not exceed INR500 million (50 crore) in the immediately preceding accounting year.
4. It does not have borrowings (including public deposits) in excess of INR100 million (ten crore) at any time during the immediately
preceding accounting year.
5. It is not a holding or subsidiary company of a company which is not a SMC.
Explanation: A company qualifies as an SMC, if the conditions mentioned above are satisfied as at the end of the relevant accounting
period.
Instructions for providing exemptions/ relaxation to SMCs
1. An SMC, which does not disclose certain information pursuant to the exemptions or relaxations given, will disclose (by way of a note in
its financial statements) the fact that it is an SMC and has complied with the accounting standards insofar as they are applicable to
an SMC on the following lines:
“The company is a small and medium-sized company (SMC) as defined in the General Instructions in respect of Accounting Standards
notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014.
Accordingly, the company has complied with the Accounting Standards as applicable to an SMC.”
2. Where a company, being an SMC, has qualified for any exemption or relaxation previously but no longer qualifies for the relevant
exemption or relaxation in the current accounting period, the relevant standards or requirements become applicable from the current
period and the figures for the corresponding period of the previous accounting period need not be revised merely by reason of its
having ceased to be an SMC. However, the fact that the company was an SMC in the previous period and it had availed of the
exemptions or relaxations available to SMCs should be disclosed in the notes to the financial statements.
3. No company will be qualified for exemption or relaxation available to an SMC until the company remains an SMC for two consecutive
accounting periods.
4. If an SMC opts not to avail exemptions or relaxations available to an SMC in respect of any but not all of the accounting standards, it
will disclose the standard(s) in respect of which it has availed the exemption or relaxation.
5. If an SMC desires to disclose the information not required to be disclosed pursuant to the exemptions or relaxations available to the
SMCs, it will disclose that information in compliance with the relevant accounting standard.
6. The SMC may opt for availing certain relaxation and disclosure requirement prescribed in an accounting standard provided that such a
partial relaxation and disclosure will not be permitted to mislead any person or public.
Exemptions/ relaxations available
1. The following accounting standards are not applicable to an SMC since the relevant regulators require compliance with these
standards only by certain non-SMCs:
 AS 21 Consolidated Financial Statements
 AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
 AS 27 Financial Reporting of Interests in Joint Ventures (to the extent of requirements relating to consolidated financial
statements)
2. An SMC is exempt from applying the following accounting standards in entirety. However, it is encouraged to apply the same.
 AS 3 Cash Flow Statement*
 AS 17 Segment Reporting
Commentary
*The exemption from preparation of cash flow statement given under Companies Act, 2013 is different from that under
Notified Accounting Standards. The Companies Act, 2013 exempts only a small company from preparation of cash flow
statement. We believe that for preparation of cash flow statement, stricter of the two requirements will apply. Accordingly,
a company which is a SMC under notified Accounting Standards but not a small company under Companies Act, 2013 is
required to prepare Cash flow statement.
In the absence of any specific transition provision under the Companies Act, 2013 and AS-3 for first time preparation of
cash flow statement, prior period comparatives are also required to be furnished for cash flow statement. Schedule III of
the Companies Act, 2013 states that Except in the case of the first Financial Statements laid before the Company (after its
incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items
shown in the Financial Statements including notes shall also be given.
3. Accounting standards in respect of which relaxations from certain disclosure requirements have been given to an SMC:
 AS 15 Employee Benefits
An SMC need not comply with the following requirements of AS 15:
(i) An SMC is not required to apply the requirements of AS 15 regarding short-term compensated absences to the extent they
deal with accumulating compensated absences which are non-vesting (i.e., which are not encashable).
(ii) An SMC is not required to discount the amounts that fall due more than 12 months after the reporting date.
(iii) Accounting for defined benefit plans has been simplified on the following lines:
(a) An SMC should determine and provide for accrued liability by using the projected unit credit method (PUCM).
(b) The discount rate used should be determined by reference to market yields at the reporting date on government bonds.
An SMC should disclose actuarial assumptions in accordance with AS 15. The other recognition, measurement,
presentation and disclosure requirements of AS 15 concerning defined benefit plans are not applicable to an SMC.
(iv) Accounting for other long-term employee benefits has been simplified on the following lines:
(a) An SMC should determine and provide for accrued liability by using the PUCM.
(b) The discount rate used should be determined by reference to market yields at the reporting date on government bonds.
The other recognition and measurement requirements of AS 15 concerning other long-term employee benefits are not
applicable.
 AS 19 Leases
Relaxations from certain disclosure requirements of AS 19 have been provided to SMCs. For example, in the financial statements
of a Lessee which is an SMC, the following disclosures are not required to be made for finance leases:
• Reconciliation between the total of minimum lease payments at the reporting date and their present value.
• The total of minimum lease payments at the reporting date, and their present value, for each of the following periods:

• Not later than one year
• Later than one year and not later than five years
• Later than five years.
• Total of future minimum sublease payments expected to be received under non-cancellable subleases at the reporting date
• General description of the lessee’s significant leasing arrangements including, but not limited to, the following:
• The basis on which contingent rent payments are determined.
• The existence and terms of renewal or purchase options and escalation clauses.
• Restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing.
Similar relaxations have been provided in respect of Operating Leases and to the Lessors also.
 AS 20 Earnings Per Share
The disclosure of diluted earnings per share (both including and excluding extraordinary items) is not mandatory for SMCs. Such
companies are however encouraged to make these disclosures.
 AS 28 Impairment of Assets
An SMC has been permitted to make a reasonable estimate of “value in use” for computation of impairment instead of using the
present value technique. Consequently, if an SMC chooses to measure the “value in use” by not using the present value
technique, the relevant provisions of AS 28, such as discount rate, would not be applicable to such an SMC. Further, such an
SMC need not disclose the information regarding discount rate (s) used.
 AS 29 (R), Provisions, Contingent Liabilities and Contingent Assets
For each class of provision, the following disclosures are not required to be made by an SMC:
(a) The carrying amount at the beginning and end of the period
(b) Additional provisions made in the period, including increases to existing provisions
(c) Amounts used (i.e., incurred and charged against the provision) during the period
(d) Unused amounts reversed during the period
(e) Description of the nature of the obligation and the expected timing of any resulting outflows
(f) An indication of the uncertainties about those outflows
(g) The amount of any expected reimbursement, stating the amount of any asset that has been recognized for that expected
reimbursement.
Appendix 2: Presentation of EBITDA

Income
Revenue from operations (gross) 77,606 74,366 SIII.PL.I
Less: excise duty 4,136 AS 9.10
Revenue from operations (net) 20 77,606 70,230 AS 9.10

Other income 21.1 481 387 SIII.PL.II
Expenses SIII.PL.IV
(Increase)/ decrease in inventories of finished goods, work-in-
23 (2,068) (2,558)
Total (II) 71,655 65,164
Earnings before interest, tax, depreciation and 6,432 5,453 GN.RVI
amortization (EBITDA) (I) – (II)

Depreciation and amortization expense 25 615 543
Interest Income 21.2 (113) (104)

Current tax
Pertaining to profit/ (loss) for the current period 1,298 1,200
Additional of tax related to earlier periods 45 23
Total tax expense 1,684 1,489
Profit/(loss) for the year from continuing operations 3,583 3,045 SIII.PL.XI
(A)

(B) 4 41

20.48
INR10 (31 March 2018: INR10]
Basic AS 20.8
Diluted AS 20.8

Impacted Note 21
21.1 Other income SIII.PL.II

31 March 2019 31 March 2018
Dividend income on GIPL.4.b

Investment in subsidiaries - 20
Net gain on sale of current investments 250 121 GIPL.4.c
Government grant # 12 -
Commission income 38 48 GIPL.4.d
Other non-operating income (net of expenses directly attributable to such 95 108 GIPL.4.d
income of INR30 millions (31 March 2018: INR70 millions))
481 387
# The company obtained and recognized as income a government grant of INR12 million (31 March 2018: INRnil), for
generating employment opportunities in the backward area. The company is obliged not to reduce its average number of
employees in the backward area over the next two years under the terms of this government grant.
21.2 Interest income SIII.PL.II

31 March 2019 31 March 2018
Interest income on GIPL.4.a

Bank deposits 64 54
Others 13 15
113 104
Commentary
This appendix contains, for illustrative purposes, disclosures of statement of profit and loss and the impacted note 21, GN.SIII
when the company has elected to present EBITDA as a separate line item on the face. If the company elects to present
EBITDA as an separate line item on the face, its accounting policy may be worded as below:
Measurement of EBITDA
As permitted by the Guidance Note on the Schedule III to the Companies Act, 2013, the company has elected to present
earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement
of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its
measurement, the company does not include depreciation and amortization expense, interest income, finance costs and
tax expense.
Exceptional Item
Any amount described as unusual or exceptional should be classified by nature, in the same way as non-exceptional
amounts. Their inclusion or exclusion in EBIDTA will depend on the nature of income/ expense described as exceptional.
In the case of model financial statements, exceptional item is VRS expense, which needs to be reduced while calculating
EBITDA.
If nature of unusual or exceptional item is in the nature of interest, tax, depreciation and amortization, then it should be
excluded from EBIDTA and the same should be clarified in the accounting policy.

Appendix 3: Alternate presentation of discontinuing operation
Income
Revenue from operations (gross) 20 78,149 75,031 SIII.PL.I
Less: excise duty (4,169) AS 9.10
Revenue from operations (net) 78,149 70,862 AS 9.10

Other income 21 594 491 SIII.PL.II
Expenses SIII.PL.IV
(Increase)/ decrease in inventories of finished goods, work-in- (2,068) (2,558)
23
oDepreciation and amortization expense 25 635 563

Profit/(loss) before tax from continuing operation 5,267 4,534
Current tax
Pertaining to profit/(loss) for the current period 1,298 1,200
Adjustment of tax relating to earlier periods 45 23
Total tax expense from continuing operation 1,684 1,489
Profit/(loss) after tax from continuing operations (A) 3,583 3,045 SIII.PL.XI

(B) 4 41

20.48
INR10 (31 March 2018: INR10]
Basic AS 20.8
Diluted AS 20.8
Appendix 3: Alternate presentation of discontinuing operation

Additionally the following information is given in the note to the financial statements
Continuing operation Discontinuing operation Total
31 March 2019 31 March 2018 31 March 2019 31 March 2018 31 March 2019 31 March 2018
INR millions INR millions INR millions INR millions INR millions INR millions
Revenue from operations (net) 77,606 70,230 543 632 78,149 70,862
Other income 594 491 - - 594 491
Total revenue 78,200 70,721 543 632 78,743 71,353
Expenses
Cost of goods sold 50,553 46,562 398 517 50,951 47,079
Employee benefits expense 12,486 10,695 30 3 12,516 10,698
Other expenses 8,266 7,567 34 24 8,300 7,591
Exceptional items - 340 - - - 340
Impairment loss 350 - 50 - 400 -
Depreciation and amortization expense 613 543 20 20 635 563
Finance costs 663 480 5 5 668 485
Profit before tax 5,267 4,534 6 63 5,273 4,597
Tax expenses
Current tax
Pertaining to profit/(loss) for the current period 1,298 1,200 2 22 1,300 1,222
Adjustment of tax relating to earlier periods 45 23 - - 45 23
Deferred tax 341 266 - - 341 266
Total tax expense 1,684 1,489 2 22 1,686 1,511
Profit/(loss) for the period 3,583 3,045 4 41 3,587 3,086

Good Company (India) LTD - IGAAP Model Financial Statements - March 2019

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Good Company (India) Limited

Based on Accounting Standards and Division I of the Schedule III to the

Applicable Indian GAAP

 AS 21(R) Consolidated Financial Statements

 AS 23 Accounting for Investments in Associates in Consolidated Financial Statements

 AS 25 Interim Financial Reporting

Good Company (India) Limited 4

 AS 4 Contingencies and Event Occurring After Balance Sheet Date

 AS 10 Property, Plant and Equipment

 AS 13 Accounting for investments

 AS 14 Accounting for Amalgamations

 AS 21 Consolidated Financial Statements

 AS 29 Provisions, Contingent Liabilities and Contingent Assets

 AS 30 Financial Instruments: Recognition and Measurement, AS 31 Financial Instruments: Presentation and AS 32

Non-current assets SIII.BS.II(1)

Property, Plant and Equipment 10 7,838 8,028

The accompanying notes are an integral part of the financial statements.

Good Company (India) Limited 6

Revenue from operations (net) 20 77,606 70,230 AS 9.10

Total revenue (I) 78,200 70,721 SIII.PL.III

Profit/(loss) before tax 5,267 4,534 SIII.PL.IX

Tax expenses SIII.PL.X

Discontinuing operations 29 AS 24.32

Profit/(loss) before tax from discontinuing operations 6 63 SIII.PL.XII

Profit/(loss) after tax from discontinuing operations SIII.PL.XIV

Earnings per equity share [nominal value of share 30 SIII.PL.XVI AS

The accompanying notes are an integral part of the financial statements.

Good Company (India) Limited 8

Cash flows from investing activities AS 3.8

Good Company (India) Limited 10

Net increase/(decrease) in cash and cash equivalents (A + B + (459) 1,742

Components of cash and cash equivalents AS 3.42

2. Basis of preparation CA 2013 – 133

2.1 Summary of significant accounting policies AS 1.24

Change in accounting policy AS 1.26

Assets INR millions

(a) Use of estimates

Good Company (India) Limited 12

(b) Property, Plant and Equipment AS 10.81(a) (R)

(a) Depreciation on property, plant and equipment SII

Useful lives estimated by the management (years)

(b) Intangible assets

Research and development costs AS 26.88

Good Company (India) Limited 14

Where the company is lessee

(d) Borrowing costs

(e) Impairment of property, plant and equipment’s and intangible assets

Good Company (India) Limited 16

(i) Revenue recognition

Sale of goods AS 9.11

Income from services

(j) Foreign currency translation

Foreign currency transactions and balances

(iii) Exchange differences

Translation of integral and non-integral foreign operation

(k) Retirement and other employee benefits

(l) Income taxes

(m) Employee stock compensation cost SEBI.ESOP

(n) Segment reporting

Allocation of common costs

Good Company (India) Limited 22

(o) Earnings Per Share

(q) Contingent liabilities